Analyze marketing results in light of the plan’s objectives
Strategic Planning
Unrestricted
“the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving
market opportunities”
What is strategic planning?
• Goal: • Long-term growth and profitability
• Addresses two questions: • What is the organization’s main activity
(currently)? • How will it reach its goals?
Strategic planning
• A subgroup of a single business or a collection of related businesses within the larger organization
Strategic business units
• Each SBU has: • A unique target market • Control over its resources • Its own unique competitors • A unique strategic plan
• May have its own accounting, R&D, manufacturing, marketing
Strategic business units
Strategic alternatives – tools
Ansoff’s strategic opportunity matrix
The innovation matrix
• Yellow: • Core Innovation • Uses existing assets • Ex: Tide Pods
• Orange: • Adjacent Innovation • Uses existing abilities in new ways • Ex: Crest Whitestrips
• Red: • Transformational Innovation • New markets, new products, new businesses • Ex: Uber/Lyft
The innovation matrix
Core Innovation Next year’s car
Adjacent Innovation Electric car
Transformational Innovation
App-based taxi service
The innovation matrix
• Portfolios: SBUs will have a range of performance in terms of growth and profitability
• This matrix organizes each SBU by their present or future growth and market share
• Relative market share: • The ratio between the company’s market share and the
share of the largest competitor
Boston Consulting Group’s Portfolio Matrix
Boston Consulting Group’s Portfolio Matrix
Boston Consulting Group’s Portfolio Matrix
Build Build or Harvest
Hold or Harvest Divest
Boston Consulting Group’s Portfolio Matrix
The General Electric Model
• Ansoff’s Matrix: • Helps you choose between current options (the
present market and what you can currently offer) and new options (a new market and/or new products)
• Innovation Matrix: • Illustrates how opportunities change as you move
away from core capabilities
• Boston Consulting Matrix: • Helps you analyze the performance of a portfolio of
SBUs
• General Electric: • Adds more nuance to the Boston Consulting matrix
When to use what?
• Based on the company or SBU’s strategy, managers can now create a marketing plan
• Process of anticipating future events and determining strategies to achieve organizational objectives in the future
Planning
• Designing activities relating to marketing objectives and the changing marketing environment
Marketing planning
• Written document that acts as a guidebook of marketing activities for the marketing manager
Marketing plan
The Marketing Plan
• To provide clearly stated activities that help employees and managers understand and work toward common goals
• To allow the examination of the marketing environment in conjunction with the inner workings of the businesses
• To help marketing managers enter the marketplace with an awareness of problems and opportunities
Objectives of the marketing plan
Elements of a marketing plan
• What business are we in? • Involves an analysis of current and potential
opportunities and environmental conditions • Focus on the market served
• Think about the benefits the customer seeks, not the product
• Marketing myopia: • Defining the business in terms of the products and
goods offered
Defining the mission
We build relationships with successful, busy people who want to plan effectively for their futures and strive to avoid costly
mistakes. – Danley & Associates Mission Statement
Defining the mission
Strengths Weaknesses Opportunities Threats
SWOT analysis
“a set of unique features of the company and its products that are perceived by the target
market as significant and superior to those of the competition”
What is a competitive advantage?
• Why customers choose your company over your competitors
• Three types: • Cost • Product/service differentiation • Niche
Competitive advantage
• Being a low-cost competitor in an industry while still maintaining satisfactory profit margins
• Costs may be reduced via: • Experience curves • Efficient labor • No frills • Government subsidies • Product design • Reengineering • Production innovations • New methods of delivery
Cost competitive advantage
• When a firm provides something that is unique and valuable to buyers (goes beyond a lower price)
• Done through: • Brand name • Strong dealer network • Product reliability • Image • Service
Product/service differentiation
• Seeks to target and effectively serve a single segment of the market
• Used by small companies with limited resources
• May be used in a limited geographic market • Effective for market segments with good
growth potential but is not crucial to success of competitors
Niche competitive advantage
• Can’t be duplicated by competitors • Gives consumers a viable, unique, long-term
reason to go to your firm over the competition • Can use assets:
• Patents, copyrights • Technology • Locations • Equipment
• Can also use intangible assets
A sustainable competitive advantage
Setting objectives
• Write down what is to be accomplished through the marketing activities
• Should be: • Realistic • Measurable • Time specific • Compared to a benchmark
Setting objectives
“selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets”
What is a marketing strategy?
• Use market opportunity analysis (MOA) to find attractive segments
• Describe the segments in terms of demographics, psychographics, and buying behavior
• Choose one or more segments to select as a target market
• This info guides your development of the marketing mix
Target market strategy
“a unique blend of product, place, promotion, and pricing strategies designed to produce
mutually satisfying exchanges with the target market”
What is the marketing mix?
• Includes any physical components but also: • Package • Warranty • After-sale service • Brand name or company image • The service experience
• May be tangible or intangible (i.e. primarily a service or experience)
Product
• Making product available when and where customers want it
• Distribution activities like storing and transporting raw materials or end products
• Products should be in good condition at desired locations at the right time
Place (distribution)
• Includes: • Advertising • Public relations (PR) • Sales promotion • Personal selling
• Inform, educate, persuade, or remind consumers of your product or brand
Promotion
• What a buyer must give up to obtain the product
• Often the easiest element to change • Can be important for competing effectively
• Revenue = price * number of units sold
Price
• Implementation • Turns a marketing plan into action
assignments • Ensures these assignments are executed in a
way that accomplishes the plan’s objectives
• Evaluation • Gauges the extent to which the marketing
objectives have been achieved during the specified time period
Follow up on the marketing plan
• Control • Provides the mechanisms for: • Evaluating marketing results in light of the
plan’s objectives • Correcting actions that do not help the
organization reach those objectives within budget guidelines
• Done through marketing audit • Helps management allocate marketing
resources efficiently
Follow up on the marketing plan
• Post audit tasks • Do another SWOT analysis • Make recommendations to improve
marketing performance • Set someone accountable for implementing
improvement ideas
Follow up on the marketing plan
Continual attention Creativity
Management commitment
Strategic planning success
