Marketing: Strategic Planning Process

Strategic planning process

is a way of using the most effective methods available, such as allocating resources, in order to achieve organizational objectives.

Strategic Business Plan

is the overall master plan that specifies how to firm will use its resources and marketing mix to achieve organizational goals.

AKA the strategic business plan

Marketing Plan

is the plan that exists within the broader category of the master plan written by the marketing team to execute the marketing mix (4 Ps) for a specific SBU or product line in direct alignment with that master plan.

1. Defining Organisational Mission

Purpose;

A long term commitment to a type of business or place in the market.

It defines the scope or values of that business.

Importance

Provides direction

Provides standards for comparison to actual performance

Provides increase in overall performance and efficiency

Knowledge about current place of company in market

Dimensions of Mission.

1. Customer group you serve

2. Offerings you serve

3. How do they serve or their functions

4. Tools and technology utilised to create and serve

Vision Vs. Mission

A vision is an ideal future that serves as a guideline to inspire.

A mission is their purpose and what they are supposed to perform (currently).

2. Establishing SBU

Part of business that runs independently and generates own cost and revenues

its like its own mini-company.

it can be a branch, product line or just a product.

Attributes of SBUs

1. Target market

2. Control over resources

3. Marketing executive

4. Marketing strategy

5. Competitors

6. Differential advantage

Every SBU

has it's own target market, and it's own competitors.

has it's own resources and departments with their own marketing executive.

has it's own strategies.

has it's own differential advantage.

Example of SBU

Unilever has Lux, Dalda and Comfort.

Each has their own departmental functions, resources and their own audience and competitors.

Purpose of grouping SBUs

Identify key business units that make up a company.

Access the attractiveness of each SBU.

Such as if one is more profitable, you invest into it more.

Some are stars, others can be divested.

3. Setting Marketing Objectives

Objectives are measurable targets that aligns with the overall mission.

What are Objectives?

They are milestones set to fulfill mission.

Strategies Vs. Objectives

Objective is the specific, measurable target you want to achieve, while a strategy is the overall plan to get there.

Types of Objectives

1. Qualitative and Quantitatives

2. Long term and Short term

Qualitative and Quantitative

Qualitative is the idea: Brand image or equity

Quantitative is the statistical value: Sales profit

Long term and Short term

Long-term objectives are the vision and cannot be sacrificed.

Short-term objectives are needed in order to achieve the long-term objectives.

SMART Objectives

Smart

Measurable

Attainable

Realistic

Timely

4. SWOT analysis

It is a situation analysis where the org. identifies it's internal strengths and weaknesses as well as their external opportunities and threats.

Purpose of SWOT analysis

It derives the company strength in comparison to their competitors.

It studies the environment for opportunities to grab and minimise threats.

It helps company adapt and strategize.

Internal factors

They are controlled by the top management or the marketing department and exist within the company.

Strengths are internal differential advantages.

External factors

These are outside or uncontrollable factors present in the environment.

If org. is strong, it can convert threats into opportunities.

If org. is weak, it can convert opportunities into threats.

Opportunities to threats means:

It happens when competitors avail the opportunity and gain an advantage and market share over the company.

Example: Technology

Example of SWOT analysis

Apple

5. Kinds of Strategies

1. Ansoff Matrix

2. BCG

3. General electric screen

Ansoff Matrix is a growth strategy

Market penetration (Same product in the same market)

Market development (To new market)

Product development (New in the market)

Diversification (New SBU)

BCG Matrix

has 4 quadrants

BCG quadrants

Star

Cash cow

Question mark

Dog

BCG axis

Relative market share, and industry growuth rate

General electric business screen

Is company comparison of its strength to the industry attractiveness.

It has 9 sections and it's more comprehensive than a BCG.