Corporate Strategic Planning 1210852350613720 8

Corporate Strategic Planning Asia-Pacific Marketing Federation Certified Professional Marketer Copyright Marketing Institute of Singapore

Outline     

Introduction Meaning & Role of Strategic Planning Corporate Mission Strategic Business Units (SBU) Marketing Audit

Strategic Planning …is the managerial process of developing and maintaining a strategic fit between the organization's objectives and resources and its changing market opportunities. Org Objectives

Strategic Fit

Resources

Changing Environment

The Role of Strategy

Corporate Mission & Objectives

Strategy: •Corporate •Business •Functional

Operating Plans

Sun Tze on Strategy

 “Know your enemy, know yourself, and your victory will not be threatened. Know the terrain, know the weather, and your victory will be complete.”

Strategic Marketing “Marketing Strategy is a series of integrated actions leading to a sustainable competitive advantage.” John Scully

Corporate Mission

 Broad purposes of the organization  General criteria for assessing the

long-term organizational effectiveness  Driven by heritage & environment  Mission statements are increasingly being developed at the SBU level as well

Examples of Corporate Mission SINGAPORE AIRLINES is engaged in air transportation and related businesses. It operates world-wide as the flag carrier of the Republic of Singapore, aiming to provide services of the highest quality at reasonable prices for customers and a profit for the company

Examples of Corporate Mission (cont’d) MARRIOTT’S Mission Statement: We are committed to being the best lodging and food service company in the world, by treating employees in ways that create extraordinary customer service and shareholder value

Corporate Culture

 The most abstract level of

managerial thinking  How do you define culture?  What is the significance of culture to an organization?  How does marketing affect culture in the organization?

Corporate Objectives & Goals

 An objective is a long-range purpose  Not quantified and not limited to a time period  E.g. increasing the return on shareholders’ equity

 A goal is a measurable objective of the business

 Attainable at some specific future date through 

planned actions E.g. 10% growth in the next two years

What is a Strategic Business Unit? (SBU)

 A set of products or product lines  With clear independence from other products or product lines  for which a business or marketing strategy should be designed

Characteristics of a viable SBU

 Unique business mission  Definable set of competitors  Integrative planning done

independently  Responsible for resource management in all areas  Large enough but not so large as to become (Source: Subhashbureaucratic Jain, Marketing Planning & Strategy, 6th Ed.)

Organizational Marketing Levels Hofer and Schendel suggested that organizations develop strategies at three structural levels:  Corporate level—(corporate marketing)  SBU level—(Strategic Marketing)  Product/Market level—(Functional Marketing)

Marketing at the SBU Level— Strategic Marketing

 Strategic Marketing requires

 Detailed understanding of market

needs, and  Proactive use of competitive intelligence at the corporate as well as SBU’s levels

 Strategic Marketing

 Focuses on what the firm do best at

the SBU level  To secure and maintain a sustainable competitive advantage

What is Competitive Advantage?

 “Competitive advantage is a

company’s ability to perform in one or more ways that competitors cannot or will not match.” Philip Kotler

 “If you don’t have a competitive advantage, don’t compete.”

Jack Welch, GE

Other Characteristics of Competitive Advantage

 Substantiality  Is it substantial enough to make a difference?

 Sustainability  Can it be neutralized by competitors quickly?

 Ability to be leveraged into visible

business attributes that will influence (Source: Strategic Marketing Management, Aakers) customers

Seeking Competitive Advantages

 Positions of advantage

 Superior customer value  Lower relative total cost  Performance advantages  Customer satisfaction, Loyalty, Market Share, Profit

 Sources of advantages

 Superior skills & knowledge, Superior resources, Superior business process

Key Elements of Marketing Strategy Formulation

 The strategic 3 Cs

 Customers, Competitors & the Corporation

 Environment analysis -- PEST

  Strategic Marketing Decisions  Where to compete  How to compete  When to compete

A Viable Marketing Strategy

 Must have a clearly defined

market  Must have a good match between corporate strengths and market needs  Must have significant positive differentiation in the key success factors of the business

Situation Analysis  Internal Analysis—company; capability etc.  External Analysis—customers, market definition, industry structure  SWOT Analysis  Strengths, Weaknesses, Opportunities & Threats

 Identify & prioritize major problems and opportunities: selection of key issues

 Based on the firm’s core

Marketing Audit “Marketing audit is a comprehensive, systematic, independent, and periodic examination of a company’s—or business unit’s—marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance” Philip Kotler

Characteristics of Marketing Audit

 Comprehensive

 Must cover all marketing areas  Systematic  Sequential diagnostic steps  Independent  Internal & external auditors  Periodic  Performed at regular intervals

Marketing Audit Procedure  Marketing environment audit  Marketing strategy audit  Marketing organization audit  Marketing system audit  Marketing productivity audit  Marketing function audit  Marketing excellence review  Ethical and social responsibility review