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Gary Akehurst
Market-oriented strategic planning is the managerial process of developing and maintaining a viable fit between the organisations objectives, skills and resources and its changing market opportunities.
The aim of strategic planning is to shape and reshape the companys businesses and products so that they yield target profits and growth.
Kotler, P. (1997) Marketing management, (9th ed), Upper Saddle River, NJ: Prentice Hall International, p.63
Competition - competitive forces, analysing competitors Monitoring environmental change - managing strategic environmental issues Opportunities - market and sales opportunity analysis Competitive advantage - distinctive capabilities, cost and differentiation strategies, product differentiation strategies Resource reviews Strategic fit - fitting both market opportunities and internal capabilities
Without planning a company drifts without realising it Drifting means the company can end up anywhere There is no sense of purpose, or direction End result is usually liquidation or take-over Cash flows usually become erratic
Planning is essential It gives a sense of purpose and direction Stops constant fire-fighting Stops panicking Put managers in control
marketing strategy is a series of integrated actions leading to a sustainable competitive advantage strategic marketing seeks to secure and maintain competitive advantage in order to meet the goals of the organisation searching for advantage involves both an inwardlooking resource-based view and an outwardlooking view of market and selling opportunities it involves consideration of the interaction of three key variables: external environment, organisation goals and strategies
1 objectives
vision
corporate objectives
2 situation review
Strategic Focus what business are we in? what business should we be in? what business should we not be in?
identify opportunities target markets product, price, promotion and distribution strategies
4 action
Implementation programme control Performance review and evaluation action: products, prices, promotion, distribution
An e-marketing strategy needs to be fully integrated into an organisations business and marketing strategies and plans Rather than have a separate e-marketing strategy it is important to have an integrated marketing plan with an e-marketing plan as a sub-set of that marketing plan
E-marketing strategy as a detailed sub-set of overall marketing planning But also part of the investment for a new web site And part of the investment in upgrading and extending a website
internet
markets
E-marketing plan
E-business strategy
E-marketing strategy
Performance metrics
Source: Strauss, El-Ansary & Frost (2006:23)
Environmental Influences
broad environmental variables: economy, technology, society industry variables: industry structure, lifecycle, specific technology, structure of competition, strategies and performance market variables: lifecycle, segment structure, demand influences, purchase size and frequency
Goals (Objectives)
sustainable competitive advantage as a means to sales, market share, profit and other objectives to satisfy stakeholders
STANDARDS AND BEHAVIOURS policies and behaviour patterns underpinning the distinctive competence and value system
suppliers
product
place
Target customer s
price
promotion
Strategic factors e.g. long-term objectives strategic time horizon product-market strategy
Marketing factors e.g. use of market research customer service product quality
Business Performance
Strategies bedrock strategy - to build and sustain capabilities of reputation, know-how, relationships, physical resources then determine strategies to transform these into positional advantage vis a vis competitors must derive strategies for market positioning in the chosen target segments have strategies to deliver continuing customer satisfaction
Careful assessment of these capabilities what capabilities to build analysis of opportunities choice of opportunities to address Internet website and ecommerce
surest way of gaining and keeping competitive advantage is to create better value for customers customer come back for more and a long-term customer relationship develops The internet and development of e-commerce offers great opportunities for creating value for customers
Value-delivering processes [influenced by e-marketing] can the product or service be better delivered? can it be made available at better times in better locations?
Value-maintaining processes [influenced by e-marketing customer linking, channel bonding, managing brand equity
But customer expectations change what customers consider excellent value today will probably be average value tomorrow customers are increasingly demanding this is exacerbated by competitors who see advantage in meeting these higher demands other companies develop product and service enhancements which set new expectation standards change is endemic and built-in to most markets therefore, there is a need to continuously monitor and adapt
Improvement in corporate identity and image Improved customer service Increased visibility among targeted segments Market expansion Online transactions Lower communication costs
Website generations: 1. First generation: static electronic brochures, supplier broadcasting to many potential and existing customers 2. Second generation: interactive website, with product stock availability, FAQs and pricing information; still supplier driven 3. Third generation: fully interactive website, personalisation and market research information collection
Realised strategy
Emergent strategy
Source: Baker, M.J. (2000) Marketing strategy and management, (3rd Ed), Basingstoke: Macmillan
Unpredictable factors
Course plotted
Desired objective
Predictable factors
Source: Baker, M.J. (2000) Marketing strategy and management, (3rd ed), Basingstoke: Macmillan
Strategic planning calls for action on: managing the companys businesses as an investment portfolio (each business has a different profit potential so should allocate resources accordingly) assessing each business by considering the markets growth rate, the companys position and fit in that market strategy - each business needs to develop a game plan for achieving its long-run objectives
Market structure
number of buyers and sellers product differentiation barriers to entry cost structures vertical integration diversification
Conduct pricing behaviour product strategy and advertising research and innovation plant investment legal tactics Performance production and allocative efficiency progress, full employment equity
Public Policy taxes and subsidies regulation price controls antitrust information
Planning
corporate planning
Implementing
organising
Controlling
Measuring results
implementing
action
diagnosing results
External environment
(opportunities and threats)
Business mission
SWOT Analysis
Internal environment
(strength and weaknesses analysis)
Goal formulation
Strategy formulation
Programme formulation
implementation
1.
2. 3.
4.
Objectives: what business do we want to be in? (where do we want to be?) Situation Review: where are we now? Strategies, Tactics and Plans: how do we get there?, how do we exactly get there? Action and Control: doing it and asking did we get there?
Preliminary objectives
Environmental situation
Opportunities and threats Strategic thinking identify key issues develop strategy options Analysis resolve issues evaluate options
Competitive situation
Strengths and weaknesses
Decisions
Design website
Implement website
Monitor website
Source: adapted from Chaffey et al (2000: 124)
Baker, M.J. (2000) Marketing strategy and management, (3rd ed), Basingstoke: Macmillan Chaffey, D. (2002) E-business and e-commerce management, Harlow: Financial Times Prentice Hall, Chapter 5: E-Business Strategy and Chapter 8: EMarketing Chaffey, D., Mayer, R., Johnston, K. & Ellis-Chadwick, F. (2003). Internet marketing. (second edition). London: Pearson Education. Chapter 4: Internet Marketing Strategy (third edition 2006) Chaston, I. (2001) E-marketing strategy, London: McGraw-Hill Kotler, P. (1997) Marketing management, (9th edition), Upper Saddle River, NJ: Prentice Hall International Sterne, J. (1999) World wide web marketing (2nd ed), New York: John Wiley Strauss, J. and R. Frost (2001) E-marketing, Upper Saddle River, NJ: Prentice Hall, Chapter 8: The E-Marketing Plan Strauss, J., El-Ansary, A. and R. Frost (2006) E-marketing, (4th ed), Upper Saddle River, NJ: Prentice Hall, Chapter 3: The E-Marketing Plan