Chapter 3 Developing and Enacting Strategic Marketing Plans
Chapter 3 Developing and Enacting Strategic Marketing Plans
Objectives To define strategic planning and consider its Importance for marketing To describe the total quality approach to strategic planning and show its relevance to marketing To look at the different kinds of strategic plans To describe thoroughly each of the steps in the strategic planning process To show how a strategic marketing plan may be devised and applied
Objectives • To define strategic planning and consider its importance for marketing • To describe the total quality approach to strategic planning and show its relevance to marketing • To look at the different kinds of strategic plans • To describe thoroughly each of the steps in the strategic planning process: • To show how a strategic marketing plan may be devised and applied
3-1: Overview a strategic business plan "describes the overall direction an organization will pursue within its chosen environment and guides the allocation of resources and effort. It also provides the logic that integrates the perspectives of functional departments and operating units, and points them all in the same direction Dan external orientation; Da process for formulating strategies; )methods for analyzing strategic situations and alternatives )a commitment to action
3-1: Overview • A strategic business plan "describes the overall direction an organization will pursue within its chosen environment and guides the allocation of resources and effort. It also provides the logic that integrates the perspectives of functional departments and operating units, and points them all in the same direction." • )an external orientation; • )a process for formulating strategies; • )methods for analyzing strategic situations and alternatives; • )a commitment to action
3-2: A Total Quality Approach to Strategic Planning Process-related philosophy Output-related philosophy Customer satisfaction Effectiveness Efficiency Customer focus Top management commitment Continuous improvement Employee support and involvement Supplier and distributor support and involvement
3-2: A Total Quality Approach to Strategic Planning – Process-related philosophy – Output-related philosophy – Customer satisfaction – Effectiveness – Efficiency – Customer focus – Top management commitment – Continuous improvement – Employee support and involvement – Supplier and distributor support and involvement
3-4: Strengthening relationships between Marketing and other Functional Areas in an Organization Functional area Major Strategic orientation Marketing To attract and retain a loyal group of consumers through a unique combination of nd price facto Production To utilize full plant capacity, hold down per-unit production costs, and maximize quality control Finance To operate within established budgets, focus on profitable items, control customer credit, and minimize loan costs for the company Accounting To standardize reports, detail costs fully, and routinize transactions Engineering To develop and adhere to exact product specifications, limit models and options and concentrate on quality improvements To acquire items via large, uniform orders at low prices and maintain low Inventor To seek technological breakthroughs, improvements in product quality, and recognition for innovations Personnel To hire, motivate, supervise, and compensate employees in an efficient manner
3-4: Strengthening Relationships Between Marketing and Other Functional Areas in an Organization Functional Area Major Strategic Orientation Marketing To attract and retain a loyal group of consumers through a unique combination of product, place, promotion, and price factors Production To utilize full plant capacity, hold down per-unit production costs, and maximize quality control Finance To operate within established budgets, focus on profitable items, control customer credit, and minimize loan costs for the company Accounting To standardize reports, detail costs fully, and routinize transactions Engineering To develop and adhere to exact product specifications, limit models and options, and concentrate on quality improvements Purchasing To acquire items via large, uniform orders at low prices and maintain low inventories Research and Development To seek technological breakthroughs, improvements in product quality, and recognition for innovations Personnel To hire, motivate, supervise, and compensate employees in an efficient manner Legal To ensure that a strategy is defensible against challenges from the government
3-5: The Strategic Planning Process 1. Defining Organizational Mission 2. Establishing strategic business unit, (SBU) has these general attributes a specific target market Its own senior marketing executive Control over its resources Its own marketing strateg Clear-cut competitors Distinct differential advantages
3-5: The Strategic Planning Process 1. Defining Organizational Mission 2. Establishing strategic business unit, (SBU) has these general attributes: – A specific target market. – Its own senior marketing executive. – Control over its resources. – Its own marketing strategy. – Clear-cut competitors. – Distinct differential advantages
3. Setting Marketing Objectives quantitative terms (dollar sales, percentage profit growth, market share, etc.) qualitative terms (image, level of innovativeness, industry leadership role, etc.) 4. situation analysis strengths(s) weaknesses(W) opportunities(O threats (T)
3. Setting Marketing Objectives – quantitative terms (dollar sales, percentage profit growth, market share, etc.) – qualitative terms (image, level of innovativeness, industry leadership role, etc.). 4. situation analysis – strengths (S) – weaknesses (W), – opportunities (O) – threats (T). –
5. marketing strateg. Marketing mix The Product/Market Opportunity Matrix The Boston Consulting Group matrix
5. marketing strategy – Marketing mix – The Product/Market Opportunity Matrix – The Boston Consulting Group Matrix
The general electric Business screen Industry attractiveness factors include market size and growth, competition, technological advances, and social/legal environment. Company business strengths embody differential advantages, market share, patent protection, marketing effectiveness control over prices, and economies of scale
– The General Electric Business Screen Industry attractiveness factors include market size and growth, competition, technological advances, and social/legal environment. Company business strengths embody differential advantages, market share, patent protection, marketing effectiveness, control over prices, and economies of scale