1. Copyright © 2003 Prentice-Hall, Inc. 1 Developing Marketing Strategies and Plans

2. Copyright © 2003 Prentice-Hall, Inc. 2 What is Strategy ? A Voyage on the Ocean Controls Objective Strategy Formulation Tactics Strategic Analysis x Strategic Option x

3. Copyright © 2003 Prentice-Hall, Inc. 3 Objective : To get from Copenhagen to Helsingborg as fast as possible and as cheaply as possible Strategic Analysis Departure point / Prices / Weather conditions / Sea conditions / Traffic conditions / Departure times / Duration of journey …. Allocated Resources Business Expenses Strategic Options : Bus? Rental car? Taxi? Helicopter shuttle? Boat? …. Strategy : Take the helicopter shuttle Tactics : Choose departure time / Prepare luggage / Buy ticket / Take ear plugs / Board the helicopter / Fasten seat belt ….. Example

4. Copyright © 2003 Prentice-Hall, Inc. 4 Business Example OBJECTIVESSTRATEGYTACTICS PURPOSE Set ultimate objectives Meet ultimate objectives Meet contributing sub- objectives ACTIVITY Think / Doubt Act / Believe TIME HORIZON Longer term Long term Short term MAGNITUDE OF EFFECTS Larger amplitude Large amplitude Small amplitude EXAMPLE (ONE STRATEGIC THRUST)  Improve profitability profitability  …  Gaining a competitive competitive advantage based advantage based on lower on lower production production cost cost  ….  Partnering for economies of scale economies of scale  Acquiring new manufacturing manufacturing technology technology  Improving change- over costs over costs  …

5. Copyright © 2003 Prentice-Hall, Inc. 5 Allocating marketing investment according to customer value

6. Copyright © 2003 Prentice-Hall, Inc. 6 Corporate and Division Strategic Planning  Defining the Corporate Mission  Mission statements define which competitive scopes the company will operate in  Industry scope  Products and applications scope  Competence scope  Market-segment scope  Vertical scope  Geographical scope

7. Copyright © 2003 Prentice-Hall, Inc. 7 Mission Statements Fast Food Industry To make, distribute and sell the finest quality all-natural ice cream and related products in a wide variety of innovative flavors made from Vermont dairy products. Ben & Jerry‘s To satisfy the world's appetite for good food, well served, at a price people can afford. McDonald’s

8. Copyright © 2003 Prentice-Hall, Inc. 8 Mission Statement Great Britain – WWII Our whole people and empire have vowed themselves to the single task of cleansing Europe of the Nazi pestilence and saving the world from the new dark ages. We seek to beat the life and soul of Hitler and Hitlerism. That alone. That all the time. That to the end. Winston Churchill, 1941 Collins and Lazier, Managing the Small to Mid-sized Company

9. Copyright © 2003 Prentice-Hall, Inc. 9 Can you name a company that has recently changed its product scope or market segment scope in a very public way? Was this an expansion or contraction of scope?

10. Copyright © 2003 Prentice-Hall, Inc. 10 Product-Oriented versus Market-Oriented Definitions of a Business Company Product Definition Market Definition Missouri-Pacific Railroad We run a railroad We are a people-and- goods mover Xerox We make copying equipment We help improve office productivity Standard Oil We sell gasoline We supply energy Columbia Pictures We make movies We market entertainment Encyclopaedia We sell encyclopedias We distribute Information Carrier We make air conditioners and furnaces We provide climate control in the home

11. Copyright © 2003 Prentice-Hall, Inc. 11 Corporate and Division Strategic Planning  BCG Matrix  The General Electric Model

12. Copyright © 2003 Prentice-Hall, Inc. 12 Factors Influencing Company Marketing Strategy

13. Copyright © 2003 Prentice-Hall, Inc. 13 Business Unit Strategic Planning  Business Mission  Example: Southwest Airlines  The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.

14. Copyright © 2003 Prentice-Hall, Inc. 14 Business Unit Strategic Planning  SWOT Analysis  Internal Analysis  Strength and Weakness Analysis  External Environment Analysis  Opportunity and Threat Analysis

15. Copyright © 2003 Prentice-Hall, Inc. 15 Business Unit Strategic Planning  Porter’s Generic Strategies  Overall cost leadership  Differentiation  Focus

16. Copyright © 2003 Prentice-Hall, Inc. 16 Competitive Advantage   Achieved when there is a match between a firm’s distinctive competencies and the factors critical for success within its industry

17. Copyright © 2003 Prentice-Hall, Inc. 17 Hong Kong film star Jackie Chan

18. Copyright © 2003 Prentice-Hall, Inc. 18 Product-Market Expansion Grid Products Current New Markets Current New Market Penetration Product Development Market Development Diversification

19. Copyright © 2003 Prentice-Hall, Inc. 19 The Business Strategic Planning Process  Mission  SWOT  Goal formulation  Strategy formulation  Program formulation  Implementation  Feedback and control

20. Copyright © 2003 Prentice-Hall, Inc. 20 Five most common errors of entrepreneurs  1. No realistic goals  2. Failure to anticipate roadblocks  3. No commitment or dedication  4. Lack of demonstrated experience  5. No market segment(s)

21. Copyright © 2003 Prentice-Hall, Inc. 21 Frank Moyes - Entrepreneurship Master Teacher  Concept Analysis  Business Plan http://leeds- faculty.colorado.edu/moyes/bplan/html/s ample.html

22. Copyright © 2003 Prentice-Hall, Inc. 22 Concept Analysis

23. Copyright © 2003 Prentice-Hall, Inc. 23 Business Plan

24. Copyright © 2003 Prentice-Hall, Inc. 24 Product Planning: The Nature and Contents of a Marketing Plan  Contents of the Marketing Plan  Executive Summary  Current Marketing Situation  Opportunity and issue analysis  Objectives  Marketing strategy  Action programs  Financial projections  Implementation controls