Introduction

It is necessary to discuss strategic market planning and marketing early in the course. A strategic market plan gives direction to a firm's efforts and better enables it to understand the dimensions of marketing research, consumer analysis, and product, distribution, promotion, and price planning, which will be discussed in later classes. We will look at an overview of the strategic marketing process including the development of:

SWOT Analysis Mission Statement Organizational Goals Corporate Strategy Marketing strategy

The strategic market plan is not a marketing plan, it is a plan of all aspects of an organizations strategy in the market place. The process of strategic market planning yields a marketing strategy(s) that is the framework and the development of the marketing plan. Developing a marketing plan is your group project assignment. A marketing plan deals primarily with implementing the market strategy as it relates to target market(s) and the marketing mix.

Strategic Market Planning

A Strategic marketing plan is an outline of the methods and resources required to achieve organizational goals within a specific target market(s). "Describes the direction [an organization] will pursue within its chosen environment and guides the allocation of resources and effort" - Peter Bennett, Dictionary of Marketing Terms, AMA 1988 Strategic planning requires a general marketing orientation rather than a narrow functional orientation. All functional areas must include marketing and must be coordinated to reach organizational goals. It is a hierarchal process, from company wide to marketing specific. (Marketing concept, implemented from top down.) A firm can be broken down into several strategic business units. Each SBU is a division, product line, or other profit center within the parent company.

An SBU has its own strategic plan and can be considered a separate business entity competing with other SBU's for corporate resources. For example Pepsico Companies SBUs include:

KFC Taco Bell Pizza Hut Mountain Dew Lipton Tea Brands Frito Lay

A strategic plan gives:

Direction and better enables the company to understand mkt. function dimensions Makes sure that each division has clear integrated goals Different functional areas are encouraged to coordinate Assesses SW & OT Assesses alternative actions It is a basis for allocating company resources A procedure to assess company performance

The strategic planning process may include the following, although this differs from one organization to another:

Develop a SWOT analysis Develop Mission Statement that evolves from the SWOT analysis Develop Corporate Objectives that are consistent with the organization's mission statement. Develop corporate strategy to achieve the organization's objectives. [if the organization is made up of more than one SBU, then follow loop again for each SBU, then proceed] Marketing (and other functional objectives) must be designed to achieve the corporate objectives Marketing Strategy, designed to achieve the marketing objectives.

The strategic market planning process is based on the establishment of organizational goals and it must stay within the broader limits of the organizations mission, which is developed taking into consideration the environmental opportunities and threats and the companys resources and distinct competencies. A firm can then assess its opportunities and develop a corporate strategy. Marketing objectives must be designed so that they can be accomplished through efficient use of the firms resources.

Corporate strategy is concerned with issues such as diversification, competition, differentiation, interrelationships between business units and environmental issues. It attempts to match the resources of the organization with the opportunities and risks of the environment (SWOT). Corporate strategy is also concerned with defining the scope and roles of the SBU's of the firm so that they are coordinated to reach the ends desired.

SWOT Analysis
A SWOT Analysis examines the companies:

Strengths...Internal Weaknesses...Internal Opportunities...External Threats...External

By developing a SWOT analysis, a company can determine what its distinctive competencies are. This will help determine what the organization should be in business for, what its mission should be. Return to Contents

Mission Statement
Handout Visioning Missions becomes...
Reason to be? Invisible hand etc. Product Terms...outdated Technology Terms...outdated Market Terms...keep in touch with consumer's needs i.e. AT&T is in the communications business not the telephone business. Visa...allows customers to exchange values...not credit cards 3M solves problems by putting innovation to work. Should not be too narrow...or...too broad Should be based on distinctive competencies of the corporation, determined from the SWOT analysis

Organizational goals
Organizational goals are derived from the mission; corporate strategy is derived from the organizational goals. Goals must specify the end results that are desired, that are measurable and within a particular time frame. SMAC

Specific Measurable Achievable Consistent

Corporate Strategy
Issues include:

Scope of Business-----What Business you are in?? Resource deployment----How you are going to use your resources?? Competitive advantage----What are your competitive advantages?? Coordination of Production, Marketing, Personnel etc.---Coordination process??

Tools for strategic market planning The following are some of the many tools that are used in developing corporate strategy, they are supplements not substitutes for management's own judgment:

BCG Product Portfolio Management o Star o Cash Cow o Problem Child (Question Marks) o Dog SWOT analysis Product Life Cycle Concept

A separate strategy is needed for each SBU

Intense Growth-mkt penetration/development, product development in related markets. o Market Penetration...more products to the same market o Market Development...same product to new markets o Product Development...new products to same market Diversified Growth-new products new markets Horizontal (unrelated products to current markets)/Concentric (NPNM) Integrated growth Forward/Backward/Horizontal Disney's Purchase of Capital Citys/ABC, a content provider purchasing distribution

Handout Mattel Toy.... Handout Ben & Jerry's New CEO...

What should B&J do?

Develop SWOT Analysis Propose Mission Goals Strategy:

Market Penetration Market Development Product Development Diversification

Ben & Jerry's Homepage Ben & Jerry's SWOT Analysis Return to Contents List

Marketing Planning.
Marketing plans vary by:

Duration Scope Method of Development, bottom up/top down

Objective is to create a Marketing plan. A plan for each marketing strategy developed. Marketing strategy encompasses selecting and analysing the target market(s) and creating and maintaining an appropriate marketing mix that satisfies the target market and company. A Marketing strategy articulates a plan for the best use of the organizations resources and tactics to meet its objectives. Do not pursue projects that are outside the companies objectives or that stretch the companies resources. Plan includes:

Executive summary Situation Analysis Opportunity and Threat Analysis Environmental Analysis Company Resources Marketing Objectives Marketing Strategies to include: o Target market (Intended) A target market is group of persons/companies for whom a firm creates and maintains a Marketing Mix that specifically fits the needs and preferences of that group. Does the company have the resources to create the appropriate MM and does it meet the company's objectives. o Develop a marketing mix-how to reach the target market. The marketing mix is designed around the buying motive-emphasizing the marketing concept. The marketing environment effects the marketing mix, which is

only controllable to a certain extent (the MM). Before developing the MM, need to determine the needs of the target market. Financial Projections Controls and Evaluations

Marketing control process consists of establishing performance standards, evaluating the actual performance by comparing it with the actual standards, and reducing the difference between the desired and actual performance.

Marketing Management.
The planning, Organizing, Implementing and Controlling the marketing activities to facilitate and expedite exchanges effectively (NEED TO ACHIEVE ORGANIZATIONAL OBJECTIVES) and efficiently (MINIMIZING ORGANIZATIONAL RESOURCES). Therefore to facilitate highly desirable exchanges and to minimize the cost of doing so. Effective planning reduces/eliminates daily crises.