Marketing Strategy - Chapter 2
Terms in this set (26)
planning process begins with an in-depth analysis of the organization's internal and external environments.
-written document that provides the blueprint or outline of the organizations marketing activities, including the implementation, evaluation, and control of those activities.
-Explains how the organization will achieve its goals and objectives
-Serves as a "road map" for implementing the marketing strategy
-Instructs employees as to their roles and functions
-Provides specifics regarding the allocation of resources, specific marketing tasks, responsibilities of individuals, and the timing of marketing activities
Answers... "What business are we in?";
Clear and concise; Explains the organization's reason for existence; of all components this should change the least; remains constant
5 Elements of Mission statement
1. who are we?
2. who are our customers?
3. what is our operating philosophy(basic, beliefs, values, ethics, etc)?
4. what are our core competencies or competitive advantages?
5. what are our responsibilities with respect to being a good steward of our human, financial, and environmental resources?
Answers... "What do we want to become?"
Tends to be future oriented
Represents where the organization is headed
Mission Width and Stability
Width - too broad or too narrow?
Stability - frequency of modifications in mission statement
corporate or business-unit strategy:
def: central scheme or means for utilizing and integrating resources in the areas of production, finance, research and development. (pg 37)
-utilzing and integrating the organization's resources
-Carrying out the organization's mission
-Achieving the organization's desired goals and objectives
issues: competition, differentiation, diversificatino, coordination of business units and envoronmental issues.
Leverages the firm's capabilities that give it a competitive or differential advantage
Determines the nature and future direction of each business unit
Essentially the same as corporate strategy in small businesses
functional goals and objectives
-All business functions must support the organization's mission and goals with specific quantitative measurements and accurately.
-Functional objectives should be expressed in clear, simple terms.
-All functional objectives should be reconsidered for each planning period.
Functional strategies are designed to integrate efforts focused on achieving the area's stated objectives.
The strategy must:
-Fit the needs and purposes of the functional area
-Be realistic with the organization's resources and environment
-Be consistent with the organization's mission goals, and objectives.
-The effects of each functional strategy must be evaluated to determine its effect on original sales, cost, image and profitability.
Involves activities that execute the functional strategy
Functional plans have two target markets:
-External market:customers, suppliers, investors
-Internal market: employees, managers, executives.
A company must rely on its internal market - its employees - for a functional strategy to be implemented successfully.
Evaluation and control
-Designed to keep planned activities on target with goals and objectives. communication = timely production = satisfyed customers.
-Coordination and open communication among functional areas are critical issues
-Evaluation and control is both an ending and beginning
-Occurs after a strategy has been implemented
-Serves as the beginning point for planning in the next cycle
-maintaining customer focus important especially during implementation, evaluation and control phases.
the marketing plan
"action documentation" & big picture
-Detailed formulation of the actions needed to carry out the marketing program; an action document - the handbook for marketing implementation, evaluation, and control
-Not the same as a business plan
-Requires a great deal of information from many different sources
-Should be well organized. A good marketing plan outline is:
marketing plan structure
Strengths, weaknesses, opportunities, threats
Analysis of the SWOT matrix
Establishing a strategic focus
Synopsis of the major aspects of the marketing plan with outline that conveys main thrust of the marketing strategy and its execution. 1st element in plan but last to be written; purpose: overview of plan so reader can quickly identify key issues/concerns; not detailed; have scope and time frame.
Marketing Goals and Objectives
-Formal statements of desired and expected outcomes of the marketing plan
-Goals: Broad, simple statements of what is to be accomplished
-Objectives:More specific performance targets
Primary target market and marketing mix
Secondary target market and marketing mix
What specific marketing activities will be undertaken?
How will these activities be performed?
When will these activities be performed?
Who is responsible for the completion of these activities?
How will the completion of planned activities be monitored?
How much will these activities cost?
(employee support is important)
Evaluation and Control (marketing plan structure)
Formal marketing control
Informal marketing control
Financial assessments: estimates of costs, sales and revenues determine financial projections.
involves establishing performance standards, assessing actual performance by comparing it with these standards, and taking corrective action if necessary to reduce discrepancies between desired and actual performance.
a systematic examination of the firm's marketing objectives, strategy and performance. can help isolate weaknesses in marketing plan and recommend actions.
Tips for using marketing plan structure
Revise, then revise again
Use common sense and judgment
Think ahead to implementation
Communicate to others
A good marketing plan will:
-Explain both the present and future situations of the organization
-Specify the outcomes that are expected
-Describe the specific actions that are to take place
-Identify the resources that will be needed
-Permit the monitoring of each action and its results
-Communicating the strategy to top executives is paramount.
-The marketing plan is most often prepared by the marketing manager, brand manager, or product manager
-The final approval of the marketing plan lies with the President, Chairperson, or CEO
customer focus and balance in strategic planning
-Changes in the focus and content of strategic plans over the last two decades: Renewed emphasis on the customer & Advent of balanced strategic planning
-Changes require a shift in focus:
--From products to the requirements of specific target market segments
--From customer transactions to customer relationships
--From competition to collaboration
customer-focused strategic planning
-Puts customer needs and wants first
-Focuses on long-term, value-added relationships
-Focuses on understanding customers in ways that enhance sustainable competitive advantages
-Instills a corporate culture that places customers at the top of the organizational hierarchy
-Finds ways to cooperate with suppliers and competitors to serve customers more effectively and efficiently
Balanced strategic planning
-Traditional planning approaches do not capture value created by the organization's intangible assets (relationships, processes, human resources, innovation, information)
-Advocated strongly by Kaplan & Norton with their creation of the Balanced Performance Scorecard
-Aligns four complementary perspectives
--Learning and growth
Use balanced scorecard
1) Translate the Strategy into Operational Terms
2) Align the Organization to Strategy
3) Make Strategy Everyone's Everyday Job
4) Make Strategy a Continual Process
5) Mobilize Change through Executive Leadership