CIM Post Graduate Diploma

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CIM Post Graduate Diploma

• Marketing Leadership Planning

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Course Objectives

• To deliver a coherent and deliverable
• market oriented internal culture to encourage
  flexibility
• which is SMART enough for your employer to
  understand and give you the go ahead.
• To follow the CIM guidelines so as not to throw
  away marks
• To maximise the LSM on-line resources
• SUCCESS

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Session 3

• Strategic Marketing Plans

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Corporate Strategic Planning Process
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What is strategy?

• The direction and scope of an organisation over
  the long term, which achieves advantage in a
  changing environment through its configuration of
  resources and competencies with the aim of
  fulfilling stakeholder expectations.
• Johnson, Scholes and Whittington
• In simple terms, it is the means by which an
  organisation implements its vision and mission
  whilst achieving a competitive advantage.
  Strategy depicts
• The direction of the organisation
• Markets to be served and the scope
• Method of achieving competitive advantage
• Resource requirement and allocation
• Influence and implications of the external
  environment
• The expectations and the values of the
  stakeholders

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Levels of Strategy
market oriented internal culture to encourage
flexibility
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Corporate Strategy Purpose and scope

• When developing the corporate strategy, the
  following factor should be taken into account
• Opportunities and threats derived through the
  environment
• Availability and requirement of resources
• Stakeholder, shareholder and organisational value
• Timescale (corporate strategies are developed
  on a long term basis)
• Complexity uncertainty of the future, dynamism
  of the environment

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Business Strategy How do we compete?

• Once the corporate Strategy derives what products
  to offer in which markets, the next question of
  the business process would be to determine the
  way in which a competitive advantage would be
  achieved.

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Operational Strategy

• Organisations comprise of different functions.
  Therefore, once the way of competing is
  determined, it is important to derive the
  functional strategies to reflect the scope and
  focus of each function/ department
• Organisations often develop strategies for the
  following functions
• Production
• Marketing
• Finance
• HRM
• Research and development
• Information systems Strategic fit

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5 Ms E used for a resources audit

• Manpower
• Money
• Materials
• Machines
• Markets
• Enterprise

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Strategic Choice Product Market strategies
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Hierarchy of Objectives
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The McKinsey 7s key internal
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The Importance of Marketing Planning in a
Market-Oriented organisation

• Delivering strategies achieving objectives
• Implementing a marketing project
• Monitoring of progress
• Managing implementation
• Resource management
• Financial management
• Measurement of success

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A Road Map to Developing Strategic Plans
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Corporate Objectives

• Corporate objectives are statements of intent
  that provide the basic direction for the
  activities of an organisation in achieving its
  mission.
• E.g. Achieve a 20 increase in ROCE every year
• Corporate Objectives are translated into
  functional objectives in order to provide a basis
  for functional activities. It is important to
  ensure that each functional objectives are linked
  to the corporate objectives. Accordingly, the
  marketing function will develop its own
  objectives to ensure their contribution to the
  achievement of corporate objectives.
• E.g Achieve a market share of 30 by the end of
  2011
• Achieve a customer awareness level of 80 for
  all brands by the end of 2010

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Nestlé's Objectives

• Nestlés corporate objective is to be the worlds
  largest and best branded food manufacturer,
  whilst ensuring that the Nestlé name is
  synonymous with products of the highest quality.
• In recent years, the company has pursued a policy
  of expansion and diversification through
  acquisition and divestment to achieve a more
  balancedstructure to the business.
• Based on the corporate objectives, Nestlé has set
  marketing objectives for each of its product
  lines and profit centres. The primary objective
  for Kit Kat is to maintain its position as the
  UKs number one selling confectionery brand.

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Impact of future corporate and marketing
objectives

• Objectives that are not achievable are worthless.
  It is important to note that objectives must
  lead to organisational capabilities to enable
  effective implementation.
• However, acquiring a capability is not as easy as
  it sounds. To become good at something involves
  on-going training and practice.
• Then only the organisation can develop successful
  competitive strategies that outperform others in
  the marketplace. For example, marketing
  capabilities are supported by effective
  communications and time to market is enabled by
  the logistics behind it.

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Impact of future corporate and marketing
objectives

• The organisation should possess the necessary
  resources such as finance, human resources, plan
  and equipment in order to achieve its objectives.
  
• After/before developing the objectives, the
  organisation can conduct a resource audit to
  evaluate the resource capacity. The resource
  audit should include
• Technical resources
• Financial standing (credit rating, availability
  of capital, level of gearing..etc)
• Managerial skills
• Information systems

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An Example of How Corporate and Marketing
Objectives Could be Illustrated
Corporate Objectives Year 1 Year 2 Year 3 Year 4 Year 5
Increase overall revenue by 5 8 10 15 20
Decrease overall cost of goods by 5 5 5 5 Maintain current levels
Increase overall profit margins by 3 5 8 10 Maintain current levels
Marketing Objectives Marketing Objectives Marketing Objectives Marketing Objectives Marketing Objectives Marketing Objectives
Increase revenue by From UK Market 1 Market 2 Market 3 US Market 1 Market 2 EU Country a Market 1 Market 2 Country b market 1 5 5 10 8 10 5 5 10 7 6 14 6 5 6 5 8 9 8 18 5 4 7 5 6 11 10 22 6 3 8 5 5 14 12 26 7 4 9 5 7
Increase brand awareness through brand recall by From UK US EU Country a Country b 60 30 50 40 70 40 60 50 80 50 70 60 90 60 80 70 100 70 90 80
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Outline of a Strategic Marketing Plan

• Executive summary
• Key Issues
• Vision, Mission and Corporate Objectives
• Situation Analysis
• 4.1 Macro economic analysis
• 4.2 Industry Analysis
• 4.3 Market Analysis
• 4.4 Internal Analysis
• 4.5 Summary of Current Situation
• Marketing Objectives
• Marketing strategies
• Implementation (marketing mix)
• Budgetary Requirements
• Control, Milestones and Corrective Actions

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Implementing a Strategic Marketing Plan -
Developing core competencies

• Core competencies are those capabilities that are
  critical to an organisation in order to achieve a
  competitive advantage. Core competencies should
  ideally make a significant contribution to what
  the customers perceive as a benefit .
  Furthermore, a core competency should be unique
  and difficult for competitors to imitate.
• E.g The core competency that has made
  Tesco.com standout from rest of the online
  shopping sites are
• The provision of an effective distribution system
  
• Implementation of excellent supply chain
  management
• Provision of an attractive, user friendly
  customer interface that provides a customised
  approach to online shopping.

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Implementing a Strategic Marketing Plan -
Marketing Audit

• A marketing audit involves a comprehensive,
  systematic, independent and periodic examination
  of a companys or business units marketing
  environment, objectives, strategies and
  activities with a view to determining problem
  areas and opportunities and recommending a plan
  of action to improve the companys performance
• Kotler and Keller (2006)
• Marketing audit has two parts
• External audit
• political, economic, social,
  technological, environmental, and legal
  influences
• Internal audit
• Customers, competitors, suppliers,
  distributors, dealers and the public

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Implementing a Strategic Marketing Plan
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Why Marketing Plans fail!

• Design and implementation issues - Marketing
  plans are of no use unless they are designed in
  an achievable manner and implemented to ensure
  that all required resources are available and
  proper monitoring mechanisms are put in place.
• Lack of management support In practice,
  managers guide the actions of employees. If they
  dont have a clear focus and change plans
  frequently, employees would not be motivated to
  adhere to plans nor achieve their objectives.
• Separation of operational planning from strategic
  planning If operational plans are not designed
  in line with the strategic plans, the intended
  results will not be achieved and instead, teams
  will operate in isolation to achieve their
  objectives.
• Lack of Integration between marketing planning
  and corporate planning

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Agenda

• Management functions
• Corporate and marketing objectives
• Strategy
• Strategic planning process
• Implementing a Strategic Marketing Plan
• Importance of marketing planning
• Why marketing plans fail?

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The Context of the Organisation
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The TELESCOPIC OBSERVATIONS Strategic Matrix
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The TELESCOPIC OBSERVATIONS Strategic Matrix
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The TELESCOPIC OBSERVATIONS Strategic Matrix
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Integrating Marketing Planning Process with
organisational Strategy and objectives
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Advantages Disadvantages of Strategic Planning
Advantages Disadvantages
Identifies Risk Discourage strategic thinking
Stimulate management thinking Assumes that the environment is predictable
Maintains consistency at all levels Ignores internal politics
Facilitates better control Exaggerates Power
May not work for dynamic environments
Regular and routine
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The Importance of Strategic Marketing Planning

• Involves longer-term planning horizons
• Involves major commitments of company resources
• Determines the nature of what an organisation is
  what it is to be
• Affects involves all levels, functions
  activities of a business
• Reflects both internal (company) external
  considerations