Marketing Strategy &Planning

Business Strategy

VOCABULARY OF STRATEGICMANAGEMENT

VISION : Desired future state; the aspiration of the Organization

What are our Dreams and Aspirations?

What do we want to look like in 5, 10, 15 years?

Where do we want to go?

VOCABULARY OF STRATEGICMANAGEMENT

MISSION :It is the unique purpose or reason for organization’s existence.

Overriding purpose in line with the values or expectations of the stakeholders

Who are we? What business are we in?

Good Mission Statements

Focus on limited number of goals Stress major policies and values Define major competitive spheres within which

the company will operate by defining the: Industry. Products and applications. Competence. Market-segment Geographical Vertical limit

VOCABULARY OF STRATEGICMANAGEMENT

OBJECTIVE : Quantification or more precise statement of objective

Definable: It should define to compare the performance

Quantifiable: It should be expressed in terms of “Value Or Market share”

( Avoid Vague terms such as “increase, improve or maximize”)

Achievable:

e.g. To increase sales of product globally by 30% in real terms within 5yrs. To increase market share for the product in the India from 10%-15% over 2yrs

VOCABULARY OF STRATEGICMANAGEMENT

GOAL: General statement of Aim or Purpose.

It is an open ended statement of what one wishes to accomplish with no quantification and no time frame for completion.

GOAL OBJECTIVE STRATEGY

To be No. 1in the market

Increase market share by 15% in three years

i) Increase product promotion

ii) Design product pricing

iii) Penetration

iv) New market development

v) Product-Service mix

vi) Quality improvement

VOCABULARY OF STRATEGICMANAGEMENT

CORE : Resources, Processes, Skills COMPETENCE and Experience, which

provide superior Competitive Advantage

STRATEGY : Long Term Direction

STRATEGIC : Combination of Resources, ARCHITECTURE Processes and Competencies

to put strategy in action

VOCABULARY OF STRATEGICMANAGEMENT

CONTROL : Monitoring of Action Stepsto :

(a) Assess effectiveness of Strategies & Action

(b) Modify Strategies & Action as necessary

NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY

1. VISION

What are our Dreams and Aspirations?

Where do we want to go?

What do we want to look like in 5, 10, 15 years?

NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY

2. MISSION

Who are we?

What business are we in?

Corporate Mission This seeks to embody the entire goals of

the organization and the objective of its existence.

It seeks to provide a sense of purpose, direction and opportunity

How to go about it? Defining the corporate mission Establishing SBUs Allocating resources for SBUs Planning for new business

NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY

3. VALUES

What do we prize?

What drives our business?

What are our criteria for making ethical decisions?

NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY

4. MARKETS

Which markets should we be in?

Which markets do we need to create?

What should be our basic Customer Orientation?

NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY

5. CORE COMPETENCIES

What are we good at?

What do we need to be good at?

How can we leverage our competencies into products and services for market we serve?

NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY

6. PRODUCTS & SERVICES

What kinds of products and services should we provide for the markets we serve?

How do we use these products to carve out a market niche?

NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY

7. BUSINESS ENVIRONMENT

What Threats and Opportunities do we face from Environmental Factors?

How do we track Key Environmental Activities and Trends?

NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY

8. STAKEHOLDERS

Which group of individuals are affected by the way we do business?

How do we establish win-win relationship with our stakeholders?

NINE COMPLEX AND INTERRELATED ELEMENTS OF STRATEGY

9. CRITICAL RESOURCES

Which are the Critical Resources do we need to do business?

What should we do to ensure a steady supply of these Resources?

ECONOMIC PERFORMANCE IS THE FUNDAMENTAL REASON FOR ANY

ORGANISATION TO EXIST

CONSTITUENTS OF ECONOMIC PERFORMANCE ARE :

To make present business effective;

To identify potential and realise it;

To make different business for a different future.

CORPORATE OBJECTIVE : ECONOMIC PERFORMANCE

TO MAKE PRESENT BUSINESS EFFECTIVE

Maximizing Opportunities

Maximizing Resources

Maximizing Results

CORPORATE OBJECTIVE : ECONOMIC PERFORMANCE

TO IDENTIFY POTENTIAL AND REALISE IT

Environment Scanning

SWOT Analysis

Turning obstacles into opportunities

CORPORATE OBJECTIVE : ECONOMIC PERFORMANCE

TO MAKE A DIFFERENT BUSINESS FOR A DIFFERENT FUTURE

Focus on Core Competencies

Creation of Learning Organization

Redrawing Industry Boundaries

Market Orientation Companies can achieve competitive

advantage with the ability of an organization to provide superior value consistently to its customers.

It focuses on-

Customer Focus

Competitor Orientation

Coordination across functions

Planned & Adjusted Strategies Planned Strategy

1. Top down flow of instructions

2. Major changes in organization

3. Mkt-oriented structure is adopted first

.

Adjusted Strategy

1. Bottom-up flow of in formations

2. Evolving changes in organization.

3. Mkt-orientation strategy is formulated first.

Planned & Adjusted Strategies cntd..

Planned Strategy

4 Strategy is formulated to achieve results.

5 Training provided is program oriented.

6 Culture change is achieved by providing training to change individual

Adjust Strategy

4 The result of the strategy are used to design a structure.

5 .training provided is opportunity oriented.

6 Culture change is achieved by changing roles or putting in new people to meet specific skills.

Strategic Planning

What is Strategic Planning? It is the managerial process that helps to

develop a strategic and viable fit between the firm’s objectives, skills, resources with the market opportunities available. It helps the firm deliver its targeted profits and growth through its businesses and products.

5 questions that the firm must ask itself What is our business? Who is our customer? What does our customer need? What will our business be? What should our business be?

Marketing Myopia Industry is a customer satisfying process

not a goods producing process. It is important therefore how you redefine

your business.

SBU It is a company within a company The business is differentiated from the rest

of the company It has its own set of competitors It is a separate profit centre

The BCG Matrix

???

Stars

Dogs Cash Cows

Mkt Share

Mkt

gro

wth

SBU strategies Build Hold Harvest Divest

SWOT Analysis Strengths Weaknesses Opportunities Threats

The GE Model

Business Strength

Mkt

Att

rac t

ive n

ess

Strong

Medium

Weak

StrongMediumWeak

Ansoff’s Product-Market GridCurrent products New products

Current Mkts

New Mkts

Mkt penetrationstrategy

Mkt developmentstrategy

Product developmentstrategy

Diversificationstrategy

The Planning Process Analysing Market opportunities Developing Marketing strategies Planning Marketing Programs Managing the Marketing Effort

Porter’s Generic Strategies Overall cost leadership Product Differentiator Focus

Marketing Control Annual Plan control Profitability control Strategic Control

Marketing Planning

Efficient Inefficient

Ineffective Perish

(immediately)

Perish

(gradually)

Effective Flourish Endure

Tactics

Strategy

strategy

Benefits of Marketing Planning

Enhanced interpersonal relationships within the organization

Effective utilization & application of marketing intelligence

Enhanced communications within & outside the organization

Hurdles in the marketing planning process

Misunderstanding tactics as strategy Treating marketing as an independent

function Defining Marketing function

Organizational structure hurdles

Hurdles in the marketing planning process cntd..

Lack of proper analysis Lack of proper knowledge Absence of methodical approach to

marketing planning Failure in prioritizing goals

Documentation of Marketing Plan

Executive summary Marketing objectives of the business Product/Market condition Results of the SWOT analysis Customer & competitor information Segmenting, targeting & positioning

strategies.

Documentation of Marketing Plan cntd.

Sales forecast & results Marketing activities for implementation Evaluating & monitoring the marketing

performance Financial forecast & allocating a budget Considerations in operations.

Steps for creating a marketing plan

Summarizing the strategic situation. Describing the target markets Set objectives for the target markets Formulate a marketing program considering

the following- Product strategy, Price strategy,

Distribution strategy, Promotion strategy, Marketing research, Coordination with other business functions.

Steps for creating a marketing plan cntd….

Forecast sales & profit, allocate functions Draw up contingency plans.