Presentation on theme: "MARKETING STRATEGY O.C. FERRELL • MICHAEL D. HARTLINE"— Presentation transcript:
1 MARKETING STRATEGY O.C. FERRELL • MICHAEL D. HARTLINE 2Strategic MarketingPlanning
2 The Strategic Planning Process Marketing Plan“…a written document that provides the blueprint or outline of the organization’s marketing activities, including the implementation, evaluation, and control of those activities.”
3 Discussion QuestionWhat role, if any, should customers play in the strategic planning process? Should they have a voice in developing the organizational mission, marketing goals, or the marketing strategy?
5 Organizational Mission vs. Organizational Vision (1 of 2) Elements of the Mission StatementFive 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 concerns and interests related to our employees, our community, society in general and our environment?
6 Organizational Mission vs. Organizational Vision (2 of 2) Mission Width and StabilityWidth: Too broad or too narrow?Stability: Frequency of modificationsCustomer-Focused Mission StatementsBen and Jerry’s 3-part Mission StatementProduct MissionEconomic MissionSocial MissionTylenol
7 Marketing Strategy in Action As this 1946 ad demonstrates, railways were once a prominent way to travel across the country.How did narrow mission statements lead to missed opportunities for the railroad industry?
9 Corporate or Business-Unit Strategy The central means for:Utilizing and integrating the organization’s resourcesCarrying out the organization’s missionAchieving the organization’s desired goals and objectivesAssociated with developing a competitive advantageDetermines the nature and future direction of each business unitEssentially the same as corporate strategy in small businesses
10 Functional Goals and Objectives All business functions must support the organization’s mission and goals.Functional objectives should be expressed in clear, simple terms.All functional objectives should be reconsidered for each planning period.
11 Functional StrategyFunctional strategies are designed to integrate efforts focused on achieving the area’s stated objectives.The strategy must:(1) Fit the needs and purposes of the functional area(2) Be realistic with the organization’s resources andenvironment(3) Be consistent with the organization’s missiongoals, and objectives.The effects of each functional strategy must be evaluated.
12 ImplementationInvolves activities that execute the functional strategy.Functional plans have two target markets:(1) External market(2) Internal marketA company must rely on its internal market for a functional strategy to be implemented successfully.
13 Discussion QuestionDefend or contradict this statement: Developing marketing strategy is more important than implementing marketing strategy because if the strategy is flawed, it doesn’t matter how well it is implemented.
14 Evaluation and Control Designed to keep activities on target with goals and objectivesCoordination among functional areas is a critical issueOpen lines of communication is the keyEvaluation and control is both an ending and beginning:Occurs after a strategy has been implementedServes as the beginning point for planning in the next cycle
15 The Marketing PlanDetailed formulation of the actions needed to carry out the marketing programAn action document:The handbook for marketing implementation, evaluation and controlNot the same as a business planRequires a great deal of information from many different sources
16 Marketing Plan Structure (1 of 5) Should be well organizedA good marketing plan outline is:ComprehensiveFlexibleConsistentLogical
18 Marketing Plan Structure (2 of 5) I. Executive SummarySynopsis of the overall marketing planIntroduces major aspects of the marketing planII. Situation AnalysisSummarizes information about 3 key environments:Internal environmentCustomer environmentFirm’s external environment
19 Marketing Plan Structure (3 of 5) III. SWOT AnalysisStrengthsWeaknessesOpportunitiesThreatsAnalysis of the SWOT matrixEstablishing a strategic focus
20 Marketing Plan Structure (4 of 5) IV. Marketing Goals and Objectives:Formal statements of desired and expected outcomes of the marketing planGoals:Broad, simple statements of what is to be accomplishedObjectivesMore specific and essential to planningV. Marketing Strategy:Primary target market and marketing mixSecondary target market and marketing mix
21 Marketing Plan Structure (5 of 5) VI. Marketing Implementation1. What specific marketing activities will be undertaken?2. How will these activities be performed?3. When will these activities be performed?4. Who is responsible for the completion of these activities?5. How will the completion of planned activities be monitored?6. How much will these activities cost?VII. Evaluation and ControlFormal marketing controlInformal marketing controlFinancial assessments
22 Using the Marketing Plan Structure Tips for using the marketing plan framework to develop a marketing plan:Plan aheadRevise, revise, reviseBe creativeUse common sense and judgmentThink ahead to implementationUpdate regularlyCommunicate with others
23 Purposes and Significance of the Marketing Plan A good marketing plan will:(1) Explain both the present and future situations ofthe organization(2) Specify the outcomes that are expected(3) Describe the specific actions that are to take place(4) Identify the resources that will be needed(5) Permit the monitoring of each action and itsresultsCommunicating the strategy to top executives is paramount.
24 Organizational Aspects of the Marketing Plan Top managers ask two questions:(1) Will the marketing plan achieve the desiredgoals and objectives?(2) Are there alternative uses of resources thatwould better meet objectives?The marketing plan is most often prepared by the Marketing Director or VP of MarketingThe final approval lies with the President, Chairman or CEO
25 Major Problems in Developing and Implementing the Marketing Plan Exhibit 2.4
27 Strategic Planning in the Market-Oriented Organization A Market-Oriented Organization:Shifts its focus:From products to the requirements of market segmentsFrom transactions to relationshipsFrom competition to collaborationPuts customer’s needs and wants firstFocuses on long-term, value-added relationshipsInstills a corporate culture that puts customers at the top of the organizational hierarchyCooperates with suppliers and competitors to serve customers better
28 Traditional Organizations CustomersFrontline EmployeesMiddleManagersCEOCompetitionExhibit 2.5 – Part One
29 Market-Oriented Organizations CustomersFrontline EmployeesMiddleManagersCEOCooperationExhibit 2.5 – Part Two
30 Discussion QuestionIn many organizations marketing is not given a place of importance in the organizational hierarchy. Why do you think this happens? What other business functions get more importance? Why?