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T2 Marketing Strategy and Planning (Business Unit Strategic Planning (p…
T2 Marketing Strategy and Planning
Stategic planning involves (p.41):
Establish strategic business units (SBUs)
Characteristics
Has its own competitors
Has a manager responsible for strategic planning and profit performance
A part of the business that can be planned separately from the rest.
Defined by - each can be a direction for growth:
Customer needs
Technology
Customer groups
may include selling off or closing some units
Assign resources to SBUs
Define the corporate mission
Assess growth opportunities for the SBUs
Integrative - within related businesses
Backward integration - acquire suppliers
Forward integration - acquire wholesalers/retailers
Horizontal integration - acquire competitors
Diversification - within unrelated businesses
'Concentric strategy' - new products that have tech or marketing synergies with current products
'Horizontal strategy' - new products that their current customers are interested in
'Conglomerate strategy' - no direct relationship with current products or customers
Intensive - within current business
Ansoff's 'product-market expansion grid'
'market-development strategy' - new markets / current products
'product-development strategy' - new products / current markets
'market-penetration strategy' - current products / current market
'diversification strategy' - new products / new markets
Downsizing and divesting older SBUs - orgs must prune dead wood to release and redirect resources as required
Business Unit Strategic Planning (p.52)
SWOT
Strengths/Weaknesses - internal environment
Opportunities/Threats - external environment
'Macroenvironment forces'
demographic (p.82)
Population growth
Population age mix ('silver century')
Ethnic and other markets (careful to assign too much weight to 'ethnic' groupings as diversity within them can be wide
Educational groups
Household patterns (non-traditional household make-ups are growing significantly and this impacts on demand)
Geographical shifts in population
natural (p.92)
corporate environmentalism
technological (p.94)
Accelerating pace of change
Unlimited opportunities for innovation
Varying and collective R&D budgets
Increased regulation of technological change
political-legal (p.95)
Increase in business legislation
Growth of special-interest groups
Market reform
Corruption
social-cultural (p.90)
Impacted by views of themselves, others, organisations, society, nature, and the universe.
Core cultural values
Subcultures
fads/trends/megatrends (p.81) and countertrends (p.91)
economic (p.87)
Income distribution
Income, savings, debt, and credit
'Microenvironment forces'
suppliers
distributors
competitors
dealers
customers
'marketing opportunities'
supply an existing product/service in a new/superior way
research methods
'ideal method' - ask consumers for their ideas on the ideal solution
'consumption chain method' - ask consumers how the acquire, use, and dispose of the product
'problem detection method' - ask consumers for suggestions for improvements on current options
supply something totally new
supply something in short supply
Goal formulation
Criteria:
quantitative where possible
realistic
Arranged hierachically
consistent (not conflicting)
Trade-offs:
short-term profit v long-term growth
deep penetration of existing markets v entering new markets
profit goals v non-profit goals
high growth v low risk
Can cover:
sales growth
market share improvement
profitiability
risk containment
innovation
reputation
BU Mission
Strategy formulation
Porter's generic strategies
Overall cost leadership
Differentiation
Focus
Strategic Alliances, e.g. Star Alliance
Program formulation
Implementation
Feedback and control
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Planning and Management
Marketing planning
budgets
establishing budgets based on sales forecasts
allocating budgets across the marketing mix
scheduling the timing of intended actions
Deciding on the marketing mix that suits the target segment
customer AND competitor focused
analysis of marketing opportunities
selection of target markets
segment the market
evaluate the segments for their suitability
select one or more target segments
development of marketing strategies
decide how to grow in the market
decide how to enter the market
identify how the product offering is positioned for competitive advantage
execution of situation analysis
market research
Marketing management
Implementing the plan
Monitoring outcomes
Initiating action to control and correct the process
annual-plan control
profitability control
strategic control
Marketing plan generally includes (p.59):
Situation analysis (things that would come from the SWOT analysis)
Marketing strategy (this would include how all depts. in the org are going to contribute)
Executive summary / table of contents
Financial projections
includes:
Sales forecast
Expense forecast
Break-even analysis
Risk analysis
optimistic
pessimistic
most likely
Implementation controls
Outlines regular goals
May include contingency plans
Relationships to consider when producing a marketing plan:
Suppliers, distributors and partners
Government regulators, media, wider community
Internal staff and other departments
The Value Delivery Process (p.38)
Three stages
providing the value
prices
distribution
specific product features
choosing the value (STP)
Targeting
Positioning
Segmentation
communicating the value
sales force
promotion / advertising
Porter's Value Chain
Primary activites
Operations - producing products
Outbound logistics of finish product
Inbound logistics of raw materials
Marketing and sales
Servicing products
Support activities
technology development
HR management
Procurement
firm infrastructure (including admin)
Core business processes
new offering realisation
developing
launching
researching
customer acquisition
defining target markets
prospecting new customers
market sensing
gathering market intelligence
disseminating it within the org
acting on the information
customer relationship management
building deeper relationships
expanding offerings to existing customers
building deeper understanding
fulfilment management
shipping goods on time
collecting payment
receiving and approving orders
Core competencies
If orgs need to realign themselves to maximise core competencies, they must:
redefine the business concept
reshape the business scope
reposition the orgs brand identity
Strategies to harness core competencies
Expand quickly to capture global market opportunities
Become atomisers - specialists in your key product
Become asset-light by using intangibles
three characteristics
it is applicable to a variety of markets
it is difficult for competitors to imitate
source of competitive advantage as it is a significant benefit to customers