Developing and Enacting Strategic Marketing Plans and Amplifying Your Responsibility as a Middle Marketing Manager Lind

1. Developing and Enacting Strategic Marketing Plans and Amplifying Your Responsibility as a Middle Marketing Manager Lindell’s Notes L.P. Chew BA 315 Chapter 2 supplement to assist you in PORTFOLIO PLANNING AND ANALYSIS

2. Objectives-BA 315 Cpt. 2 Sup To define strategic planning and consider its importance for marketing To describe thoroughly each of the steps in the strategic planning process; defining organizational mission, establishing strategic business units, setting marketing objectives, performing situation analysis, developing marketing strategy, implementing tactics, and monitoring results To show how a strategic plan may be devised and applied We will focus on your responsibility as a product (middle marketing) manager

3. Strategic Planning is Critical • A strategic business plan describes the overall direction an organization will pursue within its environment and also guides the allocation of resources. It provides the logic that integrates the perspectives of functional departments and operating units, and points them all in the same direction. • A strategic marketing plan outlines the actions necessary, who is responsible, when and where they will be completed, and how they will be coordinated. A marketing plan is carried out within the context of a firm’s broader strategic business plan.

4. The Strategic Planning Process 3. Setting Marketing Objectives 2. Establishing SBUs 1. Defining Organizational Mission 4. Performing Situation Analysis 5. Developing Marketing Strategy 7. Monitoring Results 6. Implementing Tactical Plans Feedback

5. Step One in the Strategic Planning Process Defining the organizational mission refers to a long-term commitment to a type of business and a place in the market. It “describes the scope of the firm and its dominant emphasis and values,” based on a firm’s history, current management preferences, resources, and distinctive competence, and on environmental factors. Lindell says bedistinct , motivating and feasible!! 1. Defining Organizational Mission 1. Define Organizational Mission

6. Step Two in the Strategic Planning Process • First - STRATEGIC OPERATING AREAS, then - STRATEGIC BUSINESS UNITS • Each of a firm’s Strategic Business Units (SBU ) has six attributes: • A specific target market • Its own senior marketing executive • Control over its resources • Its own marketing strategy with distinct differential advantages • Clear-cut competition 2. Establishing SOA’s & SBUs

7. Step Three in the Strategic Planning Process Marketing objectives establish the firm’s goals for each SBU. Objectives are described in both quantitative terms (dollar sales, percentage profit growth, and market share), and qualitative terms (image, level of innovativeness, and industry leadership role). Without clearly identified objectives, firms often fail. 3. Setting Marketing Objectives

8. Step Four in the Strategic Planning Process • The situation analysis • Lindell suggests plus, minus & interesting rather than SWOT • Internal factors include: • Strengths • Weaknesses • External factors include: • Opportunities • Threats • Continuous review of a firm’s market position. 4. Performing Situation Analysis

9. Step Five in the Strategic Planning Process • A marketing strategy outlines the way in which the marketingmix is used to attract and satisfy the target market. • A separate strategy is necessary for each SBU. • Four strategic planning approaches are: • Product/Market Opportunity Matrix • Boston Consulting Group Matrix • General Electric Business Screen • Porter Generic Strategy Model 5. Developing Marketing Strategy

10. The Product/Market Opportunity Matrix(Product/Market Expansion Grid)The product/market opportunity matrix identifies four alternative marketing strategies to maintain and/or increase sales of business units and products: market penetration, market development, product development, and diversification.

11. Product/Market Opportunity Matrix (1) Market New Present Market Penetration Strategy Market Development Strategy Present Product Product Development Strategy Diversification Strategy New

12. Product/Market Opportunity Matrix (2) Market New Present Expand sales of present products in current market by pricing, promotion, and distribution strategies Seek greater sales of present products from new markets or new uses Present Product Develop new products aimed at new markets Develop new or modified products to appeal to present market New

13. DIVERSIFICATION • In diversification, a firm becomes involved with new products aimed at new markets. The products may be new to the industry or to the company. Distribution and promotion orientations are different from those traditionally used by the firm. • HORRIZONTAL • VERTICAL • CONCENTRIC • CONGLOMERATE

14. The Boston Consulting Group MatrixThe Boston Consulting Group matrix lets a firm classify each SBU in terms of market share relative to key competitors and annual industry growth.LINDELL SAY’S 10%a QUESTION MARK, A WILDCAT & A PROBLEM CHILD ARE THE SAME!!!!!!

15. Boston Consulting Group Matrix (1) Relative Market Share High Low ?? High Industry Growth Rate Low

16. Boston Consulting Group Matrix (1) Relative Market Share H L ? Intensify Marketing Efforts to Increase Share Intensify Marketing Efforts or Leave Market H Industry Growth Rate Use Profits to Aid Growing SBUs, Maintain Position Reduce Efforts or Divest L

17. A dog is an SBU with limited sales (low market share) in a mature or declining industry (low growth). Make it prosper!!??

18. Invest in your people • Do not price on the high end • Stress quality • Liberal terms of sale • Strong warrentees • Marketing person in charge • A POSITIVE CASH GENERATOR • reference Lindell’s Maytag example

19. The General Electric Business ScreenWHAT DO YOU DO WHEN YOU SEE A YELLOW LIGHT??!! . The General Electric business screen categorizes SBUs and products in terms of industry attractiveness and company business strengths

21. The Porter Generic Strategy Model Competitive Advantage Lower Cost Differentiation Differentiation Strategy Cost Leadership Strategy Broad Target Competitive Scope Differentiation Focus Strategy Cost Focus Strategy Narrow Target

22. The Porter Generic Strategy Model Competitive scope (broad or narrow target). Competitive advantage (lower cost or differentiation).. Cost leadership—broad market and low cost position. Differentiation—large market and unique strategy.. Focus—narrow target segment and either low cost position or a unique strategy. • Cost leadership and differentiation strategies are alternatives for large firms; a focus strategy is available to smaller firms.

23. Step Six in the Strategic Planning Process • A tactical plan specifies the short-run actions (tactics) that a firm undertakes in implementing a given marketing strategy. It has three basic elements: • Specific Tasks • Time Frame • Resource Allocation • Think of an ad campaign of 14 weeks or a six week new product introduction 6. Implementing Tactical Plans

24. Step Seven in the Strategic Planning Process • Monitoring resultscompares the actual performance of a firm, SBU, or product against the planned performance for a specified period. • Successful companies often employ the following strategies to assure success: • Continuous monitoring of performance • Regular use of proper strategy adjustments • Maintenance of a customer-oriented focus • Stressing positive written and oral communication among employees and channel members. 7. Monitoring Results

25. Lindell’s Summary • We defined strategic planning and considered its importance for marketing. .We describes each of the steps in the strategic planning process. • We described how a strategic plan may be devised and planned. We agressively applied SOA and SBU analysis Examples: Warner Lambert, Boeing, RCA

27. GO FOR IT! • YOU ARE GROUP PRODUCT MANAGER. NOW DO YOUR THINK TO COMPLEMENT • THE OVERAL MISSION AND GOALS OF YOUR ORGANIZATION. • OPPORTUNITY IS NOW HERE!!!LPC1@UMSL.EDU