Strategic Planning

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Strategic Planning
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Defining Marketing
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What is Marketing?
Marketing is an organizational function and a
set of processes for creating, communicating,
and delivering value to customers and for
managing customer relationships in ways that
benefit the organization and its stakeholders.
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What is Marketing Management?
Marketing management is the art and science of
choosing target markets and getting, keeping,
and growing customers through creating,
delivering, and communicating superior customer
value.
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Selling is only the tip of the iceberg
There will always be need for some selling. But
the aim of marketing is to make selling
superfluous. The aim of marketing is to know and
understand the customer so well that the product
or service fits him and sells itself. Ideally,
marketing should result in a customer who is
ready to buy. All that should be needed is to
make the product or service available. Peter
Drucker
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For an exchange to occur.

• There are at least two parties.
• Each party has something that might be of value
  to the other party.
• Each party is capable of communication and
  delivery.
• Each party is free to reject the exchange offer.
• Each party believes it is appropriate or
  desirable to deal with the other party.

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What is Marketed?
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Marketing Ideas Friends Dont Let Friends
Drive DrunkThis is the watch Stephen
Hollingshead, Jr. was wearing when he encountered
a drunk driver. Time of death 655 p.m.
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Demand States
Nonexistent (unaware)
Latent (non existing)
Negative (dislike)
Irregular (vary)
Declining
Full
Unwholesome
Overfull
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Key Customer Markets
Nonprofit/ Government Markets
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Global Markets
Coke is represented at the first China
International Beverage Festival in Beijing in 2003
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The marketplace isnt what it used to be
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Company Orientations
Production
Product
Selling
Marketing
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Holistic Marketing Dimensions
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The Four Ps
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Marketing-Mix Strategy
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Marketing Mix and the Customer

• Four Ps
• Product
• Price
• Place
• Promotion

• Four Cs
• Customer solution
• Customer cost
• Convenience
• Communication

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Corporate Social Initiatives
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Core Concepts

• Needs, wants, and demands
• Target markets, positioning, segmentation
• Offerings and brands
• Value and satisfaction

• Marketing channels
• Supply chain
• Competition
• Marketing environment
• Marketing planning

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I want it, I need it

• 5 Types of Needs
• Stated needs
• (inexpensive)
• Real needs
• (low operating cost)
• Unstated needs
• (good service)
• Delight needs
• (extras)
• Secret needs
• (savvy consumer)

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Marketing Management Tasks

• Developing marketing strategies
• Capturing marketing insights
• Connecting with customers
• Building strong brands

• Shaping market offerings
• Delivering value
• Communicating value
• Creating long-term growth

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Marketing Debate
Does Marketing Create or Satisfy Needs?
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Developing Marketing Strategies and Plans
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3 Vs Approach to Marketing
Define the value segment
Define the value proposition
Define the value network
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Characteristics of Core Competencies

• A source of competitive advantage
• Applications in a wide variety of markets
• Difficult to imitate

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Challenges Facing CMOs
Doing more with less
Driving new business development
Becoming a full business partner
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Levels of a Marketing Plan

• Strategic
• Target marketing decisions
• Value proposition
• Analysis of marketing opportunities

• Tactical
• Product features
• Promotion
• Merchandising
• Pricing
• Sales channels
• Service

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The Strategic Planning, Implementation, and
Control Processes
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Corporate headquarters planning activities

• Define the corporate mission
• Establish SBUs
• Assign resources to each SBU
• Assess growth opportunities

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Good Mission Statements
Focus on limited number of goals
Stress major policies and values
Define major competitive spheres
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Major Competitive Spheres
Industry
Products
Geographical
Competence
Vertical channels
Market segment
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eBay
We help people trade anything on earth. We will
continue to enhance the online trading
experiences of all collectors, dealers, small
businesses, unique item seekers, bargain hunters,
opportunity sellers, and browsers.
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Product Orientation vs. Market Orientation
Company Product Market
Missouri-Pacific Railroad We run a railroad We are a people-and-goods mover
Xerox We make copying equipment We improve office productivity
Standard Oil We sell gasoline We supply energy
Columbia Pictures We make movies We entertain people
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Dimensions That Define A Business
Customer groups
Technology
Customer needs
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Characteristics of SBUs

• It is a single business or collection of related
  businesses
• It has its own set of competitors
• It has a leader responsible for
• Strategic planning
• Profitability
• Efficiency

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The Strategic Planning Gap
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Product-Market Expansion Grid
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The Business Unit Strategic Planning Process
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Goal Formulation and MBO

• Requirements for using MBO
• Units objectives must be hierarchical
• Objectives should be quantitative
• Goals should be realistic
• Objectives must be consistent

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Porters Generic Strategies
Overall Cost Leadership
Differentiation
Focus
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Categories of Marketing Alliances
Product or Service Alliances
Promotional Alliances
Logistics Alliances
Pricing Collaborations
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Marketing Plan Contents

• Executive summary
• Table of contents
• Situation analysis
• Marketing strategy
• Financial projections
• Implementation controls

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Evaluating a Marketing Plan

• Is the plan simple?
• Is the plan specific?
• Is the plan realistic?
• Is the plan complete?

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Gathering Information and Scanning the
Environment

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Internal Records
Order-to-Payment Cycle
Sales Information System
Databases, Warehousing, Data Mining
Marketing Intelligence System
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Steps to Improve Marketing Intelligence
Train sales force to scan for new developments
Motivate channel members to share intelligence
Network externally
Utilize a customer advisory panel
Utilize government data resources
Purchase information
Collect customer feedback online
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Needs and Trends
Fad
Trend
Megatrend
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10 Megatrends Shaping the Consumer Landscape

• Aging boomers
• Delayed retirement
• Changing nature of work
• Greater educational attainment
• Labor shortages

• Increased immigration
• Rising Hispanic influence
• Shifting birth trends
• Widening geographic differences
• Changing age structure

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Environmental Forces
Demographic
Economic
Political-Legal
Socio-Cultural
Technological
Natural
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Population and Demographics

• Size
• Growth rate
• Age distribution
• Ethnic mix
• Educational levels

• Household patterns
• Regional characteristics
• Movement

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Population Age Groups
65
40-65
25-40
Teens
School-age
Preschool
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Economic Environment

• Purchasing Power
• Income Distribution
• Savings Rate
• Debt
• Credit Availability

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Types of Industrial Structures
Industrial economies
Industrializing economies
Subsistence economies
Raw-material- exporting economies
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India An Industrializing Economy
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Saudi Arabia A Raw-Material Exporting Economy
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Social-Cultural Environment
Views of themselves
Views of others
Views of organizations
Views of society
Views of nature
Views of the universe
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Most Popular American Leisure Activities

• Walking
• Gardening
• Swimming
• Photography
• Bicycling
• Fishing

• Bowling
• Camping
• Jogging
• Free weights
• Golf
• Continuing education

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Natural Environment
Shortage of raw materials
Increased energy costs
Anti-pollution pressures
Governmental protections
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Technological Environment
Pace of change
Opportunities for innovation
Varying RD budgets
Increased regulation of change
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Political-Legal Environment
Increase in business legislation
Growth of special interest groups
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Unit Pricing on Store Shelves