Corporate Strategic Planning

Asia-Pacific Marketing Federation

Certified Professional MarketerCopyright

Marketing Institute of Singapore

Outline Introduction Meaning & Role of Strategic

Planning Corporate Mission Strategic Business Units (SBU) Marketing Audit

Strategic Planning

…is the managerial process of developing and maintaining a strategic fit between the organization's objectives and resources and its changing market opportunities.

Org Objectives Resources

Changing Environment

Strategic Fit

The Role of Strategy

CorporateMission &Objectives

Strategy:• Corporate• Business• Functional

Operating Plans

Sun Tze on Strategy

“Know your enemy, know yourself, and your victory will not be threatened. Know the terrain, know the weather, and your victory will be complete.”

Strategic Marketing

“Marketing Strategy is a series of integrated actions leading to a sustainable competitive advantage.”

John Scully

Corporate Mission

Broad purposes of the organizationGeneral criteria for assessing the

long-term organizational effectiveness

Driven by heritage & environmentMission statements are increasingly

being developed at the SBU level as well

Examples of Corporate Mission

SINGAPORE AIRLINES is engaged in air transportation and related businesses. It operates world-wide as the flag carrier of the Republic of Singapore, aiming to provide services of the highest quality at reasonable prices for customers and a profit for the company

Examples of Corporate Mission (cont’d)

MARRIOTT’S Mission Statement:We are committed to being the best lodging and food service company in the world, by treating employees in ways that create extraordinary customer service and shareholder value

Corporate Culture

The most abstract level of managerial thinking

How do you define culture?What is the significance of culture

to an organization?How does marketing affect

culture in the organization?

Corporate Objectives & Goals

An objective is a long-range purpose Not quantified and not limited to a time period E.g. increasing the return on shareholders’

equityA goal is a measurable objective of

the business Attainable at some specific future date through

planned actions E.g. 10% growth in the next two years

What is a Strategic Business Unit? (SBU)

A set of products or product lines With clear independence from other

products or product lines for which a business or marketing

strategy should be designed

Characteristics of a viable SBU

Unique business missionDefinable set of competitors Integrative planning done

independentlyResponsible for resource management

in all areasLarge enough but not so large as to

become bureaucratic(Source: Subhash Jain, Marketing Planning & Strategy, 6th Ed.)

Organizational Marketing Levels

Hofer and Schendel suggested that organizations develop strategies at three structural levels:

Corporate level—(corporate marketing)

SBU level—(Strategic Marketing)Product/Market level—(Functional

Marketing)

Marketing at the SBU Level—Strategic Marketing

Strategic Marketing requiresDetailed understanding of market

needs, and Proactive use of competitive

intelligence at the corporate as well as SBU’s levels

Strategic Marketing Focuses on what the firm do best at

the SBU levelTo secure and maintain a sustainable

competitive advantage

What is Competitive Advantage?“Competitive advantage is a

company’s ability to perform in one or more ways that competitors cannot or will not match.”

Philip Kotler“If you don’t have a competitive

advantage, don’t compete.” Jack Welch,

GE

Other Characteristics of Competitive Advantage

Substantiality Is it substantial enough to make a

difference?Sustainability

Can it be neutralized by competitors quickly?

Ability to be leveraged into visible business attributes that will influence customers(Source: Strategic Marketing Management, Aakers)

Seeking Competitive AdvantagesPositions of advantage

Superior customer value Lower relative total cost

Performance advantages Customer satisfaction, Loyalty, Market

Share, ProfitSources of advantages

Superior skills & knowledge, Superior resources, Superior business process

Key Elements of Marketing Strategy Formulation

The strategic 3 Cs Customers, Competitors & the

CorporationEnvironment analysis -- PEST  Strategic Marketing Decisions

Where to competeHow to competeWhen to compete

Must have a clearly defined market

Must have a good match between corporate strengths and market needs

Must have significant positive differentiation in the key success factors of the business

A Viable Marketing Strategy

Situation Analysis

Internal Analysis—company; capability etc.

External Analysis—customers, market definition, industry structure

SWOT AnalysisStrengths, Weaknesses,

Opportunities & Threats Identify & prioritize major problems

and opportunities: selection of key issues

Based on the firm’s core competencies, decide on future options

Marketing Audit

“Marketing audit is a comprehensive, systematic, independent, and periodic examination of a company’s—or business unit’s—marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance”

Philip Kotler

Characteristics of Marketing Audit

Comprehensive Must cover all marketing areas

Systematic Sequential diagnostic steps

Independent Internal & external auditors

Periodic Performed at regular intervals

Marketing Audit Procedure Marketing environment audit Marketing strategy audit Marketing organization audit Marketing system audit Marketing productivity audit Marketing function audit Marketing excellence review Ethical and social responsibility review