Description
Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling the product or service. It is a critical business function for attracting customers.
Winning Markets Through Strategic Planning, Implementation, and Control
©2003 Prentice Hall, Inc.
Slide 0 in Chapter 4
Objectives
? Understand how strategic planning is carried out at the corporate, division, and business unit levels.
? Learn the major steps in the marketing process.
©2003 Prentice Hall, Inc. Slide 1 in Chapter 4
Objectives
? Learn what type of content a marketing plan includes. ? Understand how companies can effectively manage the marketing process.
©2003 Prentice Hall, Inc.
Slide 2 in Chapter 4
Nature of Strategic Planning
? Strategic planning requires actions in three key areas
? Strategic planning takes place at the corporate, division, business unit and product levels
? Marketing plans operate at strategic and tactical levels
©2003 Prentice Hall, Inc. Slide 3 in Chapter 4
Corporate and Division Strategic Planning ? Planning activities include:
– Defining the Corporate Mission – Establishing Strategic Business Units (SBUs), and Assigning Resources to SBUs – Planning New Businesses, Downsizing Older Businesses
©2003 Prentice Hall, Inc. Slide 4 in Chapter 4
Corporate and Division Strategic Planning Mission statements define the company’s major competitive scopes:
? Industry scope
? Products and applications scope ? Competence scope
©2003 Prentice Hall, Inc.
? Vertical scope
? Market-segment scope ? Geographical scope
Slide 5 in Chapter 4
Corporate and Division Strategic Planning ? Strategic Business Units share three characteristics:
– Single business or collection of businesses which can be managed separately – Has own set of competitors – Has manager responsible for strategic planning and profits
©2003 Prentice Hall, Inc. Slide 6 in Chapter 4
Corporate and Division Strategic Planning
? SBUs are treated as investment portfolios. Resources are allocated by:
– The BCG Growth-Share Matrix
? Stars
? Cash
Cows ? Question Marks ? Dogs
– The General Electric Market-Attractiveness Model
©2003 Prentice Hall, Inc. Slide 7 in Chapter 4
Corporate and Division Strategic Planning
? Planning New Businesses and Downsizing Old Businesses
– Involves taking advantage of one or more of the following:
? Intensive
growth ? Integrative growth ? Diversification growth ? Harvesting or divesting old businesses
©2003 Prentice Hall, Inc. Slide 8 in Chapter 4
Business Strategic Planning
Planning Involves Eight Steps:
? Business Mission ? SWOT Analysis: Internal ? SWOT Analysis: External ? Goal Formulation
©2003 Prentice Hall, Inc.
? Strategy Formulation ? Program Formulation ? Implementation ? Feedback and Control
Slide 9 in Chapter 4
Strategic Business Planning
SWOT Analysis
? Opportunities and threats stemming from the external environment
? Monitoring key forces for trends
? For each trend, conduct an MOA - Marketing Opportunity Analysis
Slide 10 in Chapter 4
? Internal strengths and weaknesses
©2003 Prentice Hall, Inc.
Strategic Business Planning
SWOT Analysis
? Opportunities and threats stemming from the external environment
? Brand awareness, image, reputation
? Distribution, pricing, customer loyalty, product benefits
? Internal strengths and weaknesses
©2003 Prentice Hall, Inc.
? Finance, R&D, manufacturing
Slide 11 in Chapter 4
Business Strategic Planning
? Effective goals should be formulated so that they are:
– Arranged hierarchically from broader to more specific objectives – Stated in quantitative terms – Realistic – Consistent with each other and the company mission
©2003 Prentice Hall, Inc. Slide 12 in Chapter 4
Business Strategic Planning
? Strategy dictates the game plan for achieving goals. Porter’s generic strategies offer a starting point for strategic thinking:
– Overall cost leadership – Differentiation – Focus
©2003 Prentice Hall, Inc. Slide 13 in Chapter 4
Business Strategic Planning
? Program formulation and implementation involves:
– Developing supporting programs – Estimating implementation costs
– Carefully managing the details so great strategy isn’t ruined by poor implementation
? Feedback and control is crucial
©2003 Prentice Hall, Inc. Slide 14 in Chapter 4
The Marketing Process
? Two Views of the Value Delivery Process:
– Traditional physical process sequence
? Make
the product . . . Sell the product
– Value creation and delivery sequence
? Choose
the value . . . Provide the value . . . Communicate the value
©2003 Prentice Hall, Inc.
Slide 15 in Chapter 4
The Marketing Process
? Steps in the Marketing Process:
– Analyzing market opportunities – Developing marketing strategies – Planning marketing programs – Managing the marketing effort
©2003 Prentice Hall, Inc.
Slide 16 in Chapter 4
The Marketing Process
Marketing Plan Contents
? Executive summary and TOC ? Current situation ? Opportunity and issue analysis ? Objectives
©2003 Prentice Hall, Inc.
? Marketing strategy ? Action programs ? Financial projections ? Controls
Slide 17 in Chapter 4
Managing The Marketing Process
? Marketing Departments can be organized by:
– Function – Geographic area – Products or brands – Customers or markets – Corporate divisions – Global aspects
©2003 Prentice Hall, Inc. Slide 18 in Chapter 4
Managing The Marketing Process
? Building a Companywide Marketing Orientation Requires:
– Commitment from top management – Training programs; employee empowerment – Recognitions and rewards programs – Modern marketing planning system – Process-outcome focus
©2003 Prentice Hall, Inc. Slide 19 in Chapter 4
Managing The Marketing Process
? Injecting more creativity into the organization can be beneficial
? Successfully implementing programs requires four sets of skills:
– Diagnostic skills – Identification of company level – Implementation skills – Evaluation skills
©2003 Prentice Hall, Inc. Slide 20 in Chapter 4
Managing The Marketing Process
Types of Control
? Annual plan ? Profitability ? Efficiency ? Strategic
©2003 Prentice Hall, Inc.
? Responsibility of top and middle management
? Examines whether planned results are achieved
Slide 21 in Chapter 4
Managing The Marketing Process
? Five tools are used to evaluate annual plan performance:
– Sales analysis – Market-share analysis – Marketing expense-to-sales analysis – Financial analysis – Market-based scorecard analysis
©2003 Prentice Hall, Inc. Slide 22 in Chapter 4
Managing The Marketing Process
Types of Control
? Annual plan ? Profitability ? Efficiency ? Strategic
©2003 Prentice Hall, Inc.
? Responsibility of marketing controller
? Examines where the company is making and losing money
Slide 23 in Chapter 4
Managing The Marketing Process
Types of Control
? Annual plan ? Profitability ? Efficiency ? Strategic
©2003 Prentice Hall, Inc.
? Responsibility of line & staff and / or marketing controller
? Evaluates and attempts to improve spending efficiency of marketing expenditures
Slide 24 in Chapter 4
Managing The Marketing Process
Types of Control
? Annual plan ? Profitability ? Efficiency ? Strategic
©2003 Prentice Hall, Inc.
? Responsibility of top management and marketing auditor
? Examines whether company is pursuing its best opportunities
Slide 25 in Chapter 4
Managing The Marketing Process
? Strategic controls should be conducted periodically via:
– Marketing-effectiveness reviews – Marketing audits
? Additional reviews to consider:
– Marketing excellence review – Ethical and social responsibility review
©2003 Prentice Hall, Inc. Slide 26 in Chapter 4
doc_825211395.ppt
Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling the product or service. It is a critical business function for attracting customers.
Winning Markets Through Strategic Planning, Implementation, and Control
©2003 Prentice Hall, Inc.
Slide 0 in Chapter 4
Objectives
? Understand how strategic planning is carried out at the corporate, division, and business unit levels.
? Learn the major steps in the marketing process.
©2003 Prentice Hall, Inc. Slide 1 in Chapter 4
Objectives
? Learn what type of content a marketing plan includes. ? Understand how companies can effectively manage the marketing process.
©2003 Prentice Hall, Inc.
Slide 2 in Chapter 4
Nature of Strategic Planning
? Strategic planning requires actions in three key areas
? Strategic planning takes place at the corporate, division, business unit and product levels
? Marketing plans operate at strategic and tactical levels
©2003 Prentice Hall, Inc. Slide 3 in Chapter 4
Corporate and Division Strategic Planning ? Planning activities include:
– Defining the Corporate Mission – Establishing Strategic Business Units (SBUs), and Assigning Resources to SBUs – Planning New Businesses, Downsizing Older Businesses
©2003 Prentice Hall, Inc. Slide 4 in Chapter 4
Corporate and Division Strategic Planning Mission statements define the company’s major competitive scopes:
? Industry scope
? Products and applications scope ? Competence scope
©2003 Prentice Hall, Inc.
? Vertical scope
? Market-segment scope ? Geographical scope
Slide 5 in Chapter 4
Corporate and Division Strategic Planning ? Strategic Business Units share three characteristics:
– Single business or collection of businesses which can be managed separately – Has own set of competitors – Has manager responsible for strategic planning and profits
©2003 Prentice Hall, Inc. Slide 6 in Chapter 4
Corporate and Division Strategic Planning
? SBUs are treated as investment portfolios. Resources are allocated by:
– The BCG Growth-Share Matrix
? Stars
? Cash
Cows ? Question Marks ? Dogs
– The General Electric Market-Attractiveness Model
©2003 Prentice Hall, Inc. Slide 7 in Chapter 4
Corporate and Division Strategic Planning
? Planning New Businesses and Downsizing Old Businesses
– Involves taking advantage of one or more of the following:
? Intensive
growth ? Integrative growth ? Diversification growth ? Harvesting or divesting old businesses
©2003 Prentice Hall, Inc. Slide 8 in Chapter 4
Business Strategic Planning
Planning Involves Eight Steps:
? Business Mission ? SWOT Analysis: Internal ? SWOT Analysis: External ? Goal Formulation
©2003 Prentice Hall, Inc.
? Strategy Formulation ? Program Formulation ? Implementation ? Feedback and Control
Slide 9 in Chapter 4
Strategic Business Planning
SWOT Analysis
? Opportunities and threats stemming from the external environment
? Monitoring key forces for trends
? For each trend, conduct an MOA - Marketing Opportunity Analysis
Slide 10 in Chapter 4
? Internal strengths and weaknesses
©2003 Prentice Hall, Inc.
Strategic Business Planning
SWOT Analysis
? Opportunities and threats stemming from the external environment
? Brand awareness, image, reputation
? Distribution, pricing, customer loyalty, product benefits
? Internal strengths and weaknesses
©2003 Prentice Hall, Inc.
? Finance, R&D, manufacturing
Slide 11 in Chapter 4
Business Strategic Planning
? Effective goals should be formulated so that they are:
– Arranged hierarchically from broader to more specific objectives – Stated in quantitative terms – Realistic – Consistent with each other and the company mission
©2003 Prentice Hall, Inc. Slide 12 in Chapter 4
Business Strategic Planning
? Strategy dictates the game plan for achieving goals. Porter’s generic strategies offer a starting point for strategic thinking:
– Overall cost leadership – Differentiation – Focus
©2003 Prentice Hall, Inc. Slide 13 in Chapter 4
Business Strategic Planning
? Program formulation and implementation involves:
– Developing supporting programs – Estimating implementation costs
– Carefully managing the details so great strategy isn’t ruined by poor implementation
? Feedback and control is crucial
©2003 Prentice Hall, Inc. Slide 14 in Chapter 4
The Marketing Process
? Two Views of the Value Delivery Process:
– Traditional physical process sequence
? Make
the product . . . Sell the product
– Value creation and delivery sequence
? Choose
the value . . . Provide the value . . . Communicate the value
©2003 Prentice Hall, Inc.
Slide 15 in Chapter 4
The Marketing Process
? Steps in the Marketing Process:
– Analyzing market opportunities – Developing marketing strategies – Planning marketing programs – Managing the marketing effort
©2003 Prentice Hall, Inc.
Slide 16 in Chapter 4
The Marketing Process
Marketing Plan Contents
? Executive summary and TOC ? Current situation ? Opportunity and issue analysis ? Objectives
©2003 Prentice Hall, Inc.
? Marketing strategy ? Action programs ? Financial projections ? Controls
Slide 17 in Chapter 4
Managing The Marketing Process
? Marketing Departments can be organized by:
– Function – Geographic area – Products or brands – Customers or markets – Corporate divisions – Global aspects
©2003 Prentice Hall, Inc. Slide 18 in Chapter 4
Managing The Marketing Process
? Building a Companywide Marketing Orientation Requires:
– Commitment from top management – Training programs; employee empowerment – Recognitions and rewards programs – Modern marketing planning system – Process-outcome focus
©2003 Prentice Hall, Inc. Slide 19 in Chapter 4
Managing The Marketing Process
? Injecting more creativity into the organization can be beneficial
? Successfully implementing programs requires four sets of skills:
– Diagnostic skills – Identification of company level – Implementation skills – Evaluation skills
©2003 Prentice Hall, Inc. Slide 20 in Chapter 4
Managing The Marketing Process
Types of Control
? Annual plan ? Profitability ? Efficiency ? Strategic
©2003 Prentice Hall, Inc.
? Responsibility of top and middle management
? Examines whether planned results are achieved
Slide 21 in Chapter 4
Managing The Marketing Process
? Five tools are used to evaluate annual plan performance:
– Sales analysis – Market-share analysis – Marketing expense-to-sales analysis – Financial analysis – Market-based scorecard analysis
©2003 Prentice Hall, Inc. Slide 22 in Chapter 4
Managing The Marketing Process
Types of Control
? Annual plan ? Profitability ? Efficiency ? Strategic
©2003 Prentice Hall, Inc.
? Responsibility of marketing controller
? Examines where the company is making and losing money
Slide 23 in Chapter 4
Managing The Marketing Process
Types of Control
? Annual plan ? Profitability ? Efficiency ? Strategic
©2003 Prentice Hall, Inc.
? Responsibility of line & staff and / or marketing controller
? Evaluates and attempts to improve spending efficiency of marketing expenditures
Slide 24 in Chapter 4
Managing The Marketing Process
Types of Control
? Annual plan ? Profitability ? Efficiency ? Strategic
©2003 Prentice Hall, Inc.
? Responsibility of top management and marketing auditor
? Examines whether company is pursuing its best opportunities
Slide 25 in Chapter 4
Managing The Marketing Process
? Strategic controls should be conducted periodically via:
– Marketing-effectiveness reviews – Marketing audits
? Additional reviews to consider:
– Marketing excellence review – Ethical and social responsibility review
©2003 Prentice Hall, Inc. Slide 26 in Chapter 4
doc_825211395.ppt