intmktg strategic mktg planning week2

8/9/2019 IntMktg Strategic Mktg Planning Week2

1/30

Strategic Marketing

Planning

managerial process of developing & maintainingviable fit between the organizations objectives, skills,and resources and its changing market opportunities

in order to yield target profits and growth


2/30

Strategic Marketing Planning

Definingthe company

mission

Settingcompanyobjectivesand goals

Designingthe business

portfolio

Planningmarketingand otherfunctionalstrategies

Corporate level

Business unit,

product,and marketlevel


3/30

Strategic Marketing Planning

Where are we now?Strategic Marketing Analysis

Where do we want to be?

Strategic Direction and Strategy ImplementationHow we might get there?

Strategic choice

Which way is best?

Strategic evaluation

How we can ensure arrival?

Strategic Implementation and control


4/30

The Strategic Marketing Process

Steps in the Planning Process Analyzing Market Opportunities (situational

analysis, SWOT)

Developing Growth strategies

SBU strategies (in case of several SBUs)

Developing Marketing Strategies (STP)

Planning Marketing Programs (4-7Ps)

Managing the Marketing Effort Annual-plan control

Profitability control

Strategy implementation control


5/30

Market-Oriented Mission

Who is the customer?

What do the consumers value?

What is our business?

What should our business be?

IBM 10 years ago We sell computer

hardware and software

IBM Today We deliver customer IT

solutions

Mission statement=

Organization's purpose=

A direction for everyon


6/30

Mission statements

To create the safest and most exciting car experiencefor modern families. ~ Volvo

We help people trade practically anything on earth. Wewill continue to enhance the online trading experienceof all collectors, dealers, small businesses, uniqueitem seekers, bargain hunters, opportunity sellers, andbrowsers. ~ eBay


7/30

Situational Analysis


8/30

Situational Analysis


9/30

Situational Analysis: Medical Waste

Demand


10/30

Customer Analysis


11/30

Stericycle Performance: 1997-2000


12/30

SWOT Analysis

Figure 3.9 Using SWOT analysis to monitor the internal and externalposition of an organisation


13/30

SWOT Analysis


14/30

Setting SMART Companysobjectives SPECIFIC

Objectives should specify what they want to achieve. MEASURABLE

You should be able to measure whether you are meetingthe objectives or not.

ACHIEVABLE Are the objectives you set, achievable and attainable?

REALISTIC Can you realistically achieve the objectives with the

resources you have? TIME SPECIFIC

When do you want to achieve the set objectives?

To obtain 7% market share of themobile phone communications

market in Kazakhstan by the endof 2009


15/30

Objectives

To spend 12% of sales revenue between 2008 and 2009on research and development in an effort to introduce atleast five new products in 2009.

To obtain customer satisfaction rating of at least 90% onthe 2009 annual customer satisfaction survey, and to

retain at least 85% of 2009 customers as repeatpurchasers in 2010.

To increase market share from 30% to 40% in 2009 byincreasing promotional expenditures by 14%.


16/30

Strategy

the creation of unique and valuableposition involving different set of

activitiesM. Porter

Game Plan


17/30

Figure 3.6 The strategic planning gap

The Strategic-Planning Gap


18/30

Product/Market Expansion Matrix

Existing

Products

New

Products

Existing

Markets

MarketPenetration

Product

Development

NewMarkets

MarketDevelopment

Diversification


19/30

Product/Market Expansion Matrix

Market PenetrationMore sales to current customers with current

product Open additional stores, increase product usage (buy

more often, buy more during each visit), improve

marketing mix program

Market DevelopmentDeveloping new markets for current products

Demographic (teens), geographic (Kyrgyzstan), online

(no boundaries) Product Development

Modified or new product to current markets Improved formula of shampoo, Tide To Go, combined

products (2in1 and 3in1)


20/30

Product/Market Expansion Matrix(Ansoffs) Diversification

New product to new customers Unrelated business to new target audience

Downsizing

Reducing the business portfolio by eliminatingproducts due to Change in market environment (e.g. new law,

economic recession, stronger competition)

Lack of experience (result of diversification)

Foreign markets failure

Product failure

Product death


21/30

Market penetration strategy


22/30

Characteristics of SBUs

It is a single business, or a collection ofrelated businesses, that can be plannedseparately from the rest

It has its own set of competitors.

It has a manager responsible for strategicplanning and profit performance


23/30

Porters generic strategies

Overall costleadership

Differentiation

Focus


24/30

The Boston Consulting Groups Growth-Share Matrix (BCGMatrix)

Curren

tportfolio

analys

is

$ size ofbusiness

Strategies

:-Build

-Hold

-Harvest

-Divest

Hold/Build

Build

Harvest

Harvest/Divest

Hold

Build


25/30

SBU SBUs

Dollarsales (inmillions)

Dollar sales of

top 3 (inmillions)

Market

growth rate

A .5 .8, .6, .5 15%

Relative market share

=0.5/0.8=0.63

SBUs Dollar sales/ #1competitor Dollar Sales

If your SBU is #1

= ?

Divide SBUs share on thenearest competitors share

1.6/


26/30

Marketing Strategies at functional

levelSegmentation

Targeting

Positioning

(STP or TMP)


27/30

Tactical level: 7 Ps

Product Place

Price Promotion People Physical evidence Process


28/30

Stericycle Marketing Performance Plan


29/30

Figure 4-8:McKinsey 7-SFramework


30/30

Objectives Development

Source: Graham J. Hooley, John A. Saunders, Nigel F. Piercy (1998), Marketing Strategy and

New uses

New

users

Win share

Buy share

Changeproduct-mix

Increase

Fixed cost

Variable

cost

Improve performance

Increase sales Improve productivity

Expandmarket

Increaseshare

Increasemargins

Reducecosts

intmktg strategic mktg planning week2

Documents