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Strategic Marketing Plan

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Page 1: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Strategic

Marketing Plan

Page 2: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–2

Definitions of Strategy and Tactics

Strategy:

• An explicit statement of the firm’s vision of its

future, objectives, and purpose

• Provides long-term direction for decisions

• Includes corporate policies, resource

allocations, customer markets, and

competitive environment

Page 3: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–3

Definitions of Strategy and Tactics (cont’d)

Tactics:

• Serve as guidelines for implementing the

intent of the strategic plan

• Are the basis for day-to-day operating

decisions (including the marketing mix)

• Have a shorter-term planning horizon than

strategic planning

Page 4: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–4

Dimensions That Define Strategy

• The product market in which the business will

compete

• The level of investment in a strategic business

unit

• The functional area strategies required for

competing in the chosen market

• The underlying strategic assets and skills (core

competencies) that give the firm a sustainable

competitive advantage

Page 5: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–5

Marketing, Strategic Planning, and

Organizational Levels

Insert table 3.1

Page 6: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–6

Feed

back

The Strategic Planning Process

Mission

Set Performance Objectives

Environmental and Self Analyses

Strategic Objectives & Strategy Definition

Implementation and Tactics

Execution

Evaluation and Control

Page 7: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–7

Strategic Perspectives

• Strategic readiness

– Ability to take advantage of unexpected market opportunities

by having a long-term strategic plan and vision in place

• Strategic vision

– Longer-term, futuristic perspective, requires patience and

determination

• Strategic opportunism

– Focus on present, and seizing market opportunities in a

dynamic, uncertain environment

Page 8: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–8

External Environmental Analysis

• Customers

– Who are most desirable? Should the market be segmented?

– What are their characteristics, preferences, and behaviors?

• Competitor Assessment

– Who are our present and potential competitors?

– How well matched are their strategies and strengths to

– the market’s key success factors?

– What are their weaknesses?

– How much of a threat are they?

Page 9: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–9

External Environmental Analysis (cont’d)

• Market

– What are the market segment characteristics?

– What market trends are occurring?

– What is the current and future size, growth rate, and direction of the market?

• Environmental scanning and forecasting

– What trends and events are apparent in both the micro- and macro-environments?

– What will be their impact on us?

Page 10: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–10

Internal Organizational Analysis

• Financial resources

– Self-assessment of present financial assets

– Sources of funds (sales, interest, loans) and uses

(inventories, interest) of assets

• Physical resources

– Assets presently available and those needed to

implement strategy in the short - and long-run

– Property, plant, equipment, other assets

Page 11: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–11

Internal Organizational Analysis (cont’d)

• Human resources

– Talents, skills, and abilities of managers and other personnel

– Outside specialists, suppliers, or others

• Technological resources

– In the form of products and processes

• Organizational resources

– Firm’s structure, systems, and procedures that support the

strategy

Page 12: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–12

Figure 3.3: Five-Factor

Model of Profitability

Source: Model adapted from Michael Porter, “Industry Structure and Competitive Strategy: Keys to Profitability,” Financial Analysis Journal (July-August 1980) p. 33.

Page 13: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–13

Strategic Inflection Point:

A Six Forces Adaptation of the Five Forces Model

Suppliers

Existing

Competitors

Potential

Competitors

Complementors*

The Business Change The Business

Customers

Substitutes

Source: Adapted from Andrew Grove, “Navigating Strategic Inflection Points,” Business Strategy Review (Autumn, 1997), pp.12-13.

Copyright London Business School. Reprinted by permission of Blackwell Publishers.

*Significance: Complementors counteract substitution.

Imbalance of Environmental Forces (Substitutes)

Page 14: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–14

Strategic Inflection Point

Source: Adapted from Andrew Grove, “Navigating Strategic Inflection Points,”

Business Strategy Review (Autumn, 1997), pp.12-13. Copyright London Business

School. Reprinted by permission of Blackwell Publishers.

“During a

Strategic

Inflection Point,

the way a

business

operates, the

very structure

and concept of

the business,

undergoes a

change. But the

irony is that at

this point itself

nothing much

happens.”

Page 15: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–15

What Are the Basic Strategies for Sustainable

Competitive Advantage?

Differentiation

Low

Cost

Preemptive

Move

Synergy

Distinguishing one company’s products from

competitors on the basis of greater perceived

benefits and/or more value

Marketer achieves cost advantage by controlling

costs of production, inputs, marketing programs, etc.

First-mover advantage from being first to enter

market with a new product, innovation, etc.; creates

barriers to entry for follow-on competitors

Combining the assets and skills of two or more units

by sharing business functions, customers,

marketing, personnel, etc.

Focus Concentration of the business on specific

market segment(s) and/or product group(s)

Page 16: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–16

Strategic Planning and the

Challenge of Change

• Changes in approaches to strategy development

• Complexity and uncertainty

• Poverty of time

• Need for flexibility and adaptability

• Stakeholder involvement

• Integration of ethics and social responsibility

Page 17: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–17

Complexity and Uncertainty in

Strategic Market Planning

• Complexity

– The intricacies and relationships of the company and its industry partners make it difficult to analyze, understand, or solve complicated strategic problems.

• Uncertainty

– The vagueness and doubt about a company’s industry and general operating environment; not being sure of what is happening now or what to expect in the future.

Page 18: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–18

Strategic Planning and

Customer Orientation

• Develop outstanding approaches to delivering

customer satisfaction.

• Plan for value creation from the customer’s

perspective.

• Pursue continuous quality improvement in

products and processes.

• Develop the ability and willingness to re-engineer

(or redesign) goods or services as indicated by

the marketing environment or internal conditions.

Page 19: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–19

Figure 3.5: Integration of Ethical and Socially

Responsible Plans into Strategic Decision Making

Source: Adapted from Donald Robin and R. Eric Reidenbach, “Social Responsibility, Ethics, and Marketing Strategy: Closing the Gap Between Concept and

Application,” Journal of Marketing 51(1) (January), pp.44-58.Reprinted by permission.

Page 20: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–20

American Marketing Association

Code of Ethics

• Responsibilities of the marketer to all relevant

publics (consumers, organizations, and society)

• Honesty and fairness; uphold integrity, honor,

and dignity of the marketing profession

• Rights and duties of participants in the marketing

exchange process (including 4P’s and marketing

research)

• Ethical behavior in organizational relationships

Page 21: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–21

Figure 3.7: The Value Chain

Page 22: Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)

Copyright © Houghton Mifflin Company.All rights reserved. 3–22

Serv

ice

Cu

sto

mer V

alu

e

Need

As

ses

sm

en

t

Sele

ct T

arg

et(s

)

Valu

e P

ositio

nin

g

Pro

du

ct/S

erv

ice

Develo

pm

en

t

So

urc

ing

an

d

Makin

g

Dis

tribu

tion

Pric

ing

Pro

mo

tion

an

d

Pu

blic

Rela

tion

s

Ap

plic

atio

n

En

gin

eerin

g

Ad

vertis

ing

Sellin

g

The Marketing Value Chain

Value = Benefit – Price

Source: Redrawn from Anterasian and Phillips in Webster, Market-Driven Management (1994).

Choose

the ValueProvide the Value

Communicate

the Value