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Strategic marketing-plan-copyright-houghton-mifflin-company1839(1)
1.
Strategic Marketing Plan
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 Copyright © Houghton Mifflin Company.All rights reserved. 3–2
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 Copyright © Houghton Mifflin Company.All rights reserved. 3–3
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 Copyright © Houghton Mifflin Company.All rights reserved. 3–4
5.
Marketing, Strategic Planning,
and Organizational Levels Insert table 3.1 Copyright © Houghton Mifflin Company.All rights reserved. 3–5
6.
The Strategic Planning
Process Mission Feedback Set Performance Objectives Environmental and Self Analyses Strategic Objectives & Strategy Definition Implementation and Tactics Execution Evaluation and Control Copyright © Houghton Mifflin Company.All rights reserved. 3–6
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 Copyright © Houghton Mifflin Company.All rights reserved. 3–7
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? Copyright © Houghton Mifflin Company.All rights reserved. 3–8
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? Copyright © Houghton Mifflin Company.All rights reserved. 3–9
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 Copyright © Houghton Mifflin Company.All rights reserved. 3–10
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 Copyright © Houghton Mifflin Company.All rights reserved. 3–11
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. Copyright © Houghton Mifflin Company.All rights reserved. 3–12
13.
Strategic Inflection Point: A
Six Forces Adaptation of the Five Forces Model Imbalance of Environmental Forces (Substitutes) Existing Competitors Complementors* Customers The Business Change The Business Suppliers Substitutes Potential Competitors *Significance: Complementors counteract substitution. 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. Copyright © Houghton Mifflin Company.All rights reserved. 3–13
14.
Strategic Inflection Point “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.” 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. Copyright © Houghton Mifflin Company.All rights reserved. 3–14
15.
What Are the
Basic Strategies for Sustainable Competitive Advantage? Differentiation Distinguishing one company’s products from competitors on the basis of greater perceived benefits and/or more value Low Cost Marketer achieves cost advantage by controlling costs of production, inputs, marketing programs, etc. Focus Concentration of the business on specific market segment(s) and/or product group(s) Preemptive Move First-mover advantage from being first to enter market with a new product, innovation, etc.; creates barriers to entry for follow-on competitors Synergy Combining the assets and skills of two or more units by sharing business functions, customers, marketing, personnel, etc. Copyright © Houghton Mifflin Company.All rights reserved. 3–15
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 Copyright © Houghton Mifflin Company.All rights reserved. 3–16
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. Copyright © Houghton Mifflin Company.All rights reserved. 3–17
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. Copyright © Houghton Mifflin Company.All rights reserved. 3–18
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. Copyright © Houghton Mifflin Company.All rights reserved. 3–19
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 Copyright © Houghton Mifflin Company.All rights reserved. 3–20
21.
Figure 3.7: The
Value Chain Copyright © Houghton Mifflin Company.All rights reserved. 3–21
22.
The Marketing Value
Chain Value = Benefit – Price Choose the Value Communicate the Value Provide the Value Promotion and Public Relations Selling Advertising Application Engineering Pricing Service Distribution Sourcing and Making Product/Service Development Value Positioning Select Target(s) Customer Value Need Assessment Source: Redrawn from Anterasian and Phillips in Webster, Market-Driven Management (1994). Copyright © Houghton Mifflin Company.All rights reserved. 3–22
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