Crafting Strategy and the Marketing Plan. Arild Aspelund. Outline. A simple model for marketing strategy Containing the roles of the key concepts A practical guide to the marketing strategy process Kotler’s view The marketing plan Rationale Content Dissemination and confidentiality.
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Crafting Strategyand the Marketing Plan Arild Aspelund
Outline • A simple model for marketing strategy • Containing the roles of the key concepts • A practical guide to the marketing strategy process • Kotler’s view • The marketing plan • Rationale • Content • Dissemination and confidentiality
Firm Market Strategy Market Resources & Capabilities Segmentation Buying behavior Targeting Value Positioning Marketing Strategy
Business Mission • A good mission statement clearly defines the organization’s mission to all employees, stake holders, customers and suppliers • Defines focus on a common mission! • Focus on a limited number of goals! • Stress major policies and values! • Define major competitive spheres!
Mission statement - eBay “We help people trade anything on earth. We will continue to enhance the online trading experiences of all – collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers.”
Does it say that IKEA’s prices should be as low as possible? Mission statement - IKEA “The IKEA vision is to create a better everyday life for the many people. We make this possible by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”
SWOT - Analysis Internal Factors • Strengths • Competitive strengths, resources and capabilities • Weaknesses • Competitive disadvantages, resource and capability gaps Three models for internal analysis • The Value Workshop • The Value Chain • The Value Network
The Value Work Shop Stabell and Fjeldstad (1998)
The Value Network Stabell and Fjeldstad (1998)
SWOT - Analysis External Factors • Opportunities • Attractiveness and success probability • Threats • Seriousness and probability of occurrence • Market research • Customercharacteristics, segments, preferences, buyingbehavior, etc Two models for externalanalysis • PESTEL - analysis • Porter’sfiveforces • (Wewillcome back to theseshortly)
Goal Formulation • Goals should be realistic! • Objectives should be quantitative! • Objectives must be consistent! • Create hierarchical sub-goals!
Strategy Formulation • Porter’s generic strategies • Overall cost leadership • Differentiation • Focus • Define overall allocation and development of the firm’s organizational resources and capabilities • Market strategies • Value proposition • Segmentation • Targeting • Positioning • Customer behavior • Define allocation and development of market resources and capabilities
Program Formulation, Implementation, Control and Feedback • Specification of tactical issues • Product features • Promotion • Merchandising • Pricing • Sales channels • Service • Development of a feasible time schedule associated with each task • Organization and allocation of responsibilities • Development of reliable measures of performance on all levels • Report procedures • Stop criteria
The Market Plan - Motivation • Primarily internal focus • Frequently used in programs for holistic marketing • Communication of market knowledge throughout the organization • A plan…with milestones… • Economic measures, commitment and control
The Market Plan - Contents • Executive Summary • Value proposition, key market segments, targeting, positioning, forecasts and returns • Situation Analysis • Market summary with consumer behavior, SWOT, competition, value proposition, CSF • Marketing Strategy • Mission, goals, key market segments, targeting, positioning, marketing mix, marketing research • Financial • Break-even analysis, sales forecast, expense forecast • Controls • Implementation, organization, feed-back routines
The Market Plan - Dissemination • It is rarely smart to discloseyour market plan • Not only due to competitorscanseeyourevaluationof • Valuepropositions • Accuracy and amountof market information • Futureactions and investments • Coststructure • Butalso to protectyouractions from transparency from customers • It could be wise, however, to publish a versionthatyouwantthepublic and yourcompetitors to see…
Summary and continuation • A market strategy should start with a scan of the environment • We have presented a framework for strategical market managementthatincorporatesseveralframeworksofanalysis and forms the basis for new marketing campaignes (thesewill be revisited in detail…) • We have suggested a structure for a market plan • And in the next episode of Marketing Management… • A model for scanning the environment • A practical guide for performing market research