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STRATEGIC MARKETING

1. AN INTRODUCTION TO STRATEGIES AND PLANS

TUTOR: TERRY JOHNSON

Where absolute superiority is not attainable you must produce a relative one at the decisive point by making skilful use of what you have

Karl von Clausewitz, 1832

Why do Companies alter their business and marketing strategies?


To

improve competitive advantage.

Evolution of Business Planning

Unplanned Budget System Long-Range Planning Strategic Planning Strategic Marketing Management

Planning Levels

Organisational Policy
to determine Business Strategy

Marketing Management
to determine Strategic Marketing plans

Operational Marketing
to develop the Marketing Mix

Adapted from Abell & Hammond 1988

Differences Between Planning Levels


Strategic Planning
Time Horizon Major Purpose Uncertainty Level of Detail Breadth of Coverage Long Map direction Very High Broad issues only Very broad

Tactical planning
Medium Plan strategy Medium More detailed Considers strategic detail

Operational Planning
Short Plan daily operations Least Least detailed Very specific

Differences Between Planning Levels


Strategic Planning
Planning Methods Assessing the Value of Plans Evaluation of Goals Often Unstructured Very Difficult

Tactical planning
More structured

Operational Planning
Highly Structured Often easy

Depends on the plan being operational Apparent only Apparent in the in the long term medium term

Apparent immediately

Strategic planning leads to Conflicts of Interest for Resources:


Human Resources
Marketing

R&D

Resources for Strategic Planning

Manufacturing

Finance

MARKETING STRATEGY IS:the analysis, strategy development, and implementation activities in selecting market target strategies for the product-markets in each business unit, setting marketing objectives, and developing, implementing and managing the marketing program positioning strategies designed to meet the needs of the customers in each market target.

AREAS INVOLVED IN THE DESIGN OF EFFECTIVE BUSINESS & MARKETING STRATEGIES:

DYNAMIC BUSINESS ARENA GETTING CLOSER TO THE CUSTOMER PRODUCT / SERVICE INNOVATION STRATEGIES FOR COMPETITIVE ADVANTAGE COMPETING IN GLOBAL MARKETS

IN THE DYNAMIC BUSINESS ARENA


We need to consider: Market Dynamics Demographic Change The World Marketplace Time as a Competitive Advantage Viewing change as an Opportunity

WE CAN GET CLOSER TO THE CUSTOMER BY:Making Customer Satisfaction a priority Improving Customer Communications Providing Back-up Service Support and Field Links Improving our Understanding of the Customer

TO DO THIS WE MUST CONSIDER:-

Factors Impacting Customer Satisfaction Finding a Competitive Advantage Customer Driven Business Strategies Strategic Targeting

PRODUCT/SERVICE INNOVATION
Requires Consideration of: The Importance of Innovation Analysis of Customer Needs The Characteristics of Innovative Companies Business Strategy as well as Product Quality Customer Perception of Innovation

To Develop Strategies for Competitive Advantage requires:Business focus Organisational Design and Effectiveness Inter - Organisational Relationships

COMPETING IN GLOBAL MARKETS


Creates two Strategic Issues Competing beyond domestic markets for companies who have the resources Even to compete in domestic markets requires knowledge of key global competitors

Success in a Changing Environment Requires:Market Awareness Organisational Flexibility Strategic Vision External Relationships

The Benefits of Formal Planning:

Systematic Forward Thinking


Management Development

Co-ordination of Company Effort


Resource Management

Requires Performance Standards


Develops Control Mechanisms

Sharpens Objectives and Policies


Competitive Awareness

Quickens Response to Change


Develops Competitive Response

Increases Executive Participation


Develops Responsibility & Commitment

The Strategic Planning Process


Stage Stage Stage Stage Stage

1 Where are we now? 2 Where do we want to be? 3 How might we get there?

BEGINNING ENDS MEANS

4 Which way is best?

EVALUATION

5 How can we ensure arrival? CONTROL This is a continuous process

What does that mean?


1 2

3
4

5
6

Undertake a marketing situation analysis Define the business mission and set objectives Consider alternative strategies and select Develop the marketing programme implement the marketing strategy through a marketing action plan. Evaluate and control the strategy