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Winning Markets through Market-oriented Strategic Planning. Chapter 2. Corporate and division strategic planning. All corporate headquarter undertake four planning activities: Defining the corporate mission Establishing strategic business units Assigning resources to each SBU
1- Corporate Mission:
A mission statement is a statement of “the purpose of a company and organization”. The mission statement should guide the actions of the organization, spell out its overall goal, provide a sense of direction, and guide decision-making. It provides "the framework or context within which the company's strategies are formulated.
2- Strategic Business Unit (SBU):
SBU is understood as a business unit within the overall corporate identity which is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets.
3- Assigning Resources to Each SBU:
once it has defined SBU’s management must decide how to allocate corporate resources to each.
4- Assessing Growth Opportunities:
Assessing growth opportunities includes planning new businesses, downsizing, and terminating older businesses.
Growth strategies / Market penetration strategies: Market penetration occurs when a company enters/penetrates a market with current products.
Product development strategies: (existing markets, new products): McDonalds is always within the fast-food industry, but frequently markets new burgers.
Market development strategies: (new markets, existing products): Lucozade (energy drink) was first marketed for sick children and then rebranded to target athletes.
Diversification strategies: (new markets, new products). i.e. Mitsubishi jumped in fast food industry with KFC in Japan.
Definition of Marketing Plan :
Marketing plan is a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or, a brand, or a product line. Marketing plans cover between one and five years.
The central point in planning for marketing decisions is the Marketing Plan. The plan serves several functions including:
Forcing marketing personnel to look internally in order to fully understand the results of past marketing decisions.
Forcing marketing personnel to look externally in order to fully understand the market in which they operate.
Setting future goals and providing direction for future marketing efforts that everyone within the organization should understand and support.
Serving as a key component in obtaining funding to pursue new initiatives.
1- Situation analysis-customers/competitors
2- Market opportunity and Issues
3- Marketing strategies and objectives
4- Target markets and Positioning
5- Marketing Mix-4P’s/ Tactical Marketing Program
6- Setting marketing budget
7- Review and implement
8- Evaluate and Control
9- Contingency Plan
The situational analysis is designed to take a snapshot of where things stand at the time the plan is presented.
Customers Analysis-Collection and evaluation of data associated with customer needs and market trends through customer satisfaction measurement and field testing.
Competitors Analysis- Identify your major competitors-compare your business with the competitors (strength/weaknesses)
Position on the experience curve
Match your strength with the opportunity available in the market.
Analyze Critical Issues:
Do PEST Analysis(Political– Economic- Social- Technological Analysis)
Do STEEPLE Analysis (Social, Technological, Economic, Environmental, Political, Legal, Ethical Analysis)
This section consists of three major issues:
Marketing Strategy: Is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.
A marketing strategy should be centered around the key concept that customersatisfaction is the main goal.
For many organizations the ultimate goal of the marketing plan is the effect it will have on the bottom line customers.
The marketing objectives section will indicate targets to be achieved across several marketing decision areas.
Segment your market- divide your market into subgroups-and target the segment that matched with your capabilities (Resources)
Positioning: Is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.
Position your brand in the minds and eyes of consumers better than your competitors.
This is the heart of the marketing plan. It contains descriptions of detailed tactics to be carried out to achieve the objectives and goals established
Product- features- design- finishing- packaging- labeling
Price- check the price of substitute products-value based-cost based
Place- make the availability of your product possible.
Intensive distribution-exclusive distribution-selective distribution. Direct marketing-indirect marketing
Promotion- advertisement- sales person- position your brand
This section should lay out spending requirements necessary for meeting the plan's objectives
Marketing implementation: is the process of turning plans into action describing who does what, when, and how. Effective implementation requires skills in allocating, monitoring, organizing, and interacting at all levels of the marketing effort.
A brilliant strategic marketing plan counts for little if not implemented properly.
Strategy addresses the what, and why of marketing activities, implementation addresses the who, where, when and how.
Evaluate and control: check your plan with regular interval of time, because markets have altering (changing) behavior.
Control the plan: spilt your annual plan in quarters, and check your sales, market share and growth at the end of each quarter, if it is the same as it was planned then carry on but if not then change strategies.
There should be a Plan B (alternative plan) in case of any natural disasters or any social activity or rapid technological boost or any other type of unforeseen situation.