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Ch. 2 Strategic Marketing Planning
Terms in this set (14)
An in-depth analysis of the organization's internal and external environments
A written document that provides the blueprint or outline of the organization's 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
Organizational Mission vs. Organizational Vision
Answers... "What business are we in?"
Clear and concise
Explains the organization's reason for existence
Profit is not a mission or vision. The mission statement identifies what the firm stands for and its basic operating philosophy. Profit and other performance outcomes are ends, and thus are out of place and confuse the mission of the firm.
-Mission statement is one part of strategic plan that should not be confidential. Should tell everyone what the firm is and why it should exist.
- Of all the components of the strategic plan, the mission should change the least frequently.
Answers... "What do we want to become?"
Tends to be future oriented
Represents where the organization is headed
Elements of Mission Statement
Five basic questions to be answered:
Who are we?
Who are our customers?
What is our operating philosophy?
What are our core competencies or competitive advantages?
What are our responsibilities with respect to being a good steward of our human, financial, and environmental resources?
Mission Width and Stability:
Width - too broad or too narrow? If the mission is too broad, it will be meaningless to those who read and build upon it
Stability - frequency of modifications
Customer-Focused Mission Statements:
Ben and Jerry's 3-Part Mission Statement
The American Red Cross
Involves activities that execute the functional strategy
Functional plans have two target markets:
External market: (i.e., customers, suppliers, investors, potential employees, the society at large)
Internal market: (i.e., employees, managers, executives).
A company must rely on its internal market - its employees - for a functional strategy to be implemented successfully.
Evaluation & Control
Designed to keep planned activities on target with goals and objectives
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
Marketing plans can be developed for specific products, brands, target markets, or industries. Likewise, a marketing plan can focus on a specific element of the marketing program, such as a product development plan, a promotional plan, a distribution plan, or a pricing plan
Marketing Plan Structure
I. Executive Summary
Synopsis of the major aspects of the marketing plan. Should be the last element to be written.
Strengths, weaknesses, opportunities, threats
Analysis of the SWOT matrix
Developing competitive advantages
Establishing a strategic focus
IV. Marketing Goals and Objectives
Formal statements of desired and expected outcomes of the marketing plan
Broad, simple statements of what is to be accomplished
More specific performance targets
Primary (and secondary) target market
The marketing program
Branding and positioning strategy
VI. Marketing Implementation
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?
VII. Evaluation and Control
Formal marketing control
Informal marketing control
Purposes & Significance of Marketing Plan
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.
Balanced Performance Scorecard
The basic tenet of the balanced performance scorecard is that firms can achieve better performance if they align their strategic efforts by approaching strategy from four com- plementary perspectives: financial, customer, internal process, and learning and growth. The financial perspective is the traditional view of strategy and performance. This per- spective is vital, but should be balanced by the other components of the scorecard.
Organizational Aspects of Marketing Plan
Top managers ask two questions:
Will the marketing plan achieve the desired marketing, business unit, and corporate goals and objectives?
Are there alternative uses of resources that would better meet the firm's objectives?
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
Maintaining Customer Focus & 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
These 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