Chapter 15: Strategic Marketing Planning PDF

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MKTG 2150 with Julie Gatherolie. Online class. These are notes for chapter 15 which looks at strategic marketing planning....

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CHAPTER 15 - Strategic Marketing Planning LO1 Organizational Structure and Strategy Kinds of Organizations ● Business Firms: organization that serves customers to earn a profit (excess of revenues over cost) ● Not-For-Profit Organizations: serves customers but does not have profit as an organizational goal Firms, company, corporations, organization will cover both 3 Organizational Levels Board of directors → Corporate Level → Strategic business unit level → Functional level 1. Corporate Level: top management directs overall strategy for the entire organization. Multimarket, multiproduct firms manage a group of different businesses, variously termed strategic business units (SBU), strategic business segments, or product-market units (PMU). At this level, management focuses on the interests of the shareholders 2. Business Unit Level: business unit managers set the direction for individual products and markets, strategic direction is more specific. (ex. Ben & Jerry’s ice cream company with fun flavour names) 3. Functional Level: each unit has marketing and other specialized activities such as finance, manufacturing, and HR (departments). Strategic direction becomes very specific and focused. Marketing may implement an advertising campaign. LO2 Strategy Issues in Organizations Strategy Defined for Business and Marketing Plans Strategy - organization’s long-term course if action that delivers a unique customer experience while achieving its goals Business Plan - helps convey the value of a company to investors, employees and future partners. Identify SWOT and accurate financial forecasts Marketing Plan - helps a business develop the right products to address customer needs, establish the best way to promote a business and determine where to distribute products. Mission: statement of the organization’s purpose and direction. Inspiration and focus, clear direction and compelling pictures of the future. Organizations must connect with customers and stakeholders Stakeholders - employees, owners, board members, suppliers, distributors, unions, local communities, governments, society and customers Goals/Objectives: take the mission and translate it into targeted levels of performance to be achieved within a specific time frame. Different types of goals:

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Profit, sales, market share, quality, customer satisfaction, employee welfare, social responsibility Budgets and Financials Align marketing and financial objectives. Marketing plans need to generate sales forecasts. Create more than one forecast. Review past sales, consider upcoming contracts, and propose predictions to potential changes in the market. LO3 Tracking Strategic Performance Marketing Dashboards: visual computer display of essential marketing information, give feedback at a quick glance. Marketing Metrics: a measure of the value or trend of a marketing activity or result, a variable in a marketing dashboard key performance measures of a product category, such as sales vs. cost of sales. LO4 Setting Strategic Directions Customers: strategic directions must be customer-focused and provide genuine value and benefits to existing and future customers Competencies: organization’s special capabilities, including skills, technologies and resources to distinguish it Competitors: set analysis externally. Growth Strategies → business portfolio analysis and market-product analysis - Business Portfolio Analysis: developed by BCG, uses quantified performance measures and market growth rate to analyze a firm’s strategic business units as though they were a collection of separate investments. Locate the position of each of its SBUs on a growth-share matrix (y-axis = growth rate, x-axis = relative market share) - Cash cows: SBUs that generate large amounts of cash, dominant share of a slow market-growth - Questions marks/Problem children: SBUs with a low share of high-growth markets. Require large injections of cash to maintain their market share - Dogs: SBUs with low share of low-growth markets, enough cash to sustain themselves Market-Product Analysis Markets

Current

New

Current

Market penetration Selling more Ben & Jerry’s super premium ice cream in North America

Product development Selling a new product such as frozen yogurt under the Ben & Jerry’s name in

North America New

Market development Selling Ben & Jerry’s super premium ice cream in Brazil for the first time

Diversification Selling a new product such as breakfast cereal in China for the first time

LO5 The Strategic Marketing Process How to allocate resources, how to convert plans into action, how results compare with plans and whether deviations require new plans/actions Approach whereby an organization allocates its marketing mix Marketing Plan: road map for the marketing activities of an organization for a specified future period of time - 3 phases: planning, implementation, and evaluation Planning Phase 1. Situation Analysis: taking stock of a firm’s or product’s past performance, where it is now, and where it is headed. SWOT analysis and build on it. Then industry, competitor, company and customer analysis. 2. Market-product focus: determining which products will be directed towards which customers (market segmentation), set market and product goals, select target markets, determine competitive advantages, position the product 3. Goal setting and the marketing program: marketing mix, 4 Ps. Implementation Phase Execute individual tactics to support marketing strategy. - Obtaining resources: growth - Designing the Marketing Organization - Developing schedules: deadlines - Executing the marketing program: marketing strategy (means by which a marketing goal is to be achieved). Marketing tactics (detailed day-to-day operational decisions essential to the overall success of marketing strategies Evaluation Phase - Identifying deviations: shortfall/planning gap - Acting on deviations: correcting a negative, exploiting a positive deviation...