Presentation on theme: "Crafting Strategy and the Marketing Plan"— Presentation transcript:
1 Crafting Strategy and the Marketing Plan Arild Aspelund
2 Outline A simple model for marketing strategy Containing the roles of the key conceptsA practical guide to the marketing strategy processKotler’s viewThe marketing planRationaleContentDissemination and confidentiality
6 Business MissionA good mission statement clearly defines the organization’s mission to all employees, stake holders, customers and suppliersDefines focus on a common mission!Focus on a limited number of goals!Stress major policies and values!Define major competitive spheres!
7 Mission statement - eBay “We help people trade anything on earth. We will continue to enhance the online trading experiences of all – collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers.”
8 Mission statement - IKEA Does it say that IKEA’s prices should be as low as possible?“The IKEA vision is to create a better everyday life for the many people. We make this possible by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”
9 SWOT - Analysis Internal Factors Strengths Weaknesses Competitive strengths, resources and capabilitiesWeaknessesCompetitive disadvantages, resource and capability gapsThree models for internal analysisThe Value WorkshopThe Value ChainThe Value Network
10 The Value Work ShopStabell and Fjeldstad (1998)
13 SWOT - Analysis External Factors Opportunities Threats Market research Attractiveness and success probabilityThreatsSeriousness and probability of occurrenceMarket researchCustomer characteristics, segments, preferences, buying behavior, etcTwo models for external analysisPESTEL - analysisPorter’s five forces(We will come back to these shortly)
14 Goal Formulation Goals should be realistic! Objectives should be quantitative!Objectives must be consistent!Create hierarchical sub-goals!
15 Strategy Formulation Porter’s generic strategies Overall cost leadershipDifferentiationFocusDefine overall allocation and development of the firm’s organizational resources and capabilitiesMarket strategiesValue propositionSegmentationTargetingPositioningCustomer behaviorDefine allocation and development of market resources and capabilities
16 Program Formulation, Implementation, Control and Feedback Specification of tactical issuesProduct featuresPromotionMerchandisingPricingSales channelsServiceDevelopment of a feasible time schedule associated with each taskOrganization and allocation of responsibilitiesDevelopment of reliable measures of performance on all levelsReport proceduresStop criteria
17 The Market Plan - Motivation Primarily internal focusFrequently used in programs for holistic marketingCommunication of market knowledge throughout the organizationA plan…with milestones…Economic measures, commitment and control
18 The Market Plan - Contents Executive SummaryValue proposition, key market segments, targeting, positioning, forecasts and returnsSituation AnalysisMarket summary with consumer behavior, SWOT, competition, value proposition, CSFMarketing StrategyMission, goals, key market segments, targeting, positioning, marketing mix, marketing researchFinancialBreak-even analysis, sales forecast, expense forecastControlsImplementation, organization, feed-back routines
19 The Market Plan - Dissemination It is rarely smart to disclose your market planNot only due to competitors can see your evaluation ofValue propositionsAccuracy and amount of market informationFuture actions and investmentsCost structureBut also to protect your actions from transparency from customersIt could be wise, however, to publish a version that you want the public and your competitors to see…
20 Summary and continuation A market strategy should start with a scan of the environmentWe have presented a framework for strategical market management that incorporates several frameworks of analysis and forms the basis for new marketing campaignes (these will be revisited in detail…)We have suggested a structure for a market planAnd in the next episode of Marketing Management…A model for scanning the environmentA practical guide for performing market research