Lecture 2 Strategic Marketing Planning

1、BMA1/251 Principles of MarketingLecture 2:Strategic Marketing PlanningLearning OutcomeslBy the end of this lecture you should be able to:lDefine strategic marketing planning and identify why it is an important of the marketing process.lIdentify the sections of a marketing plan and specify the conten

2、ts of each section.lOutline the factors contributing to poor and successful implementation of marketing plans.lOutline the processes involved in controlling and evaluating performance.What is Planning?lA plan is “a scheme of action or procedure” - it guides our future direction.lBenefits of Planning

3、:lPlanning can help making sense of changing environment.lCreates clarity of purpose and consistency of effort.lEnsures efficient and effective resource allocations.lHelps in monitoring and controlling action.What is Planning?lPlans can be formal or informal.lOrganisations failing to plan are planni

4、ng to fail.lPlanning is a constant and ongoing process of formulating, implementing, and controlling and evaluating.lMust incorporate flexibility into planning - remember planning is a speculative act based on assumptions about the future.lScenario planning is one way to achieve flexibility.lPlans h

5、ave a defined life expectancy.What is Strategic Planning?lThe process of developing and maintaining a strategic fit between the organisations goals and capabilities in the light of changing marketing opportunities.l It relies on developing a clear:lCompany missionlObjectiveslSound Business Portfolio

6、lCoordinated Functional StrategiesStrategic Planning HierarchylStrategic planning occurs on many levels within organisations:lCorporate Level Planning.lStrategic Business Unit (SBU) Planning.lFunctional Level Planning.lMust have consistency between plans.lWe are interested in strategic marketing pla

7、nning.The Strategy HierarchySBUStrategySBU Strategy Business definition Objectives Product market portfolio Competitive strategy Resource allocation and managementMarketing Strategy Marketing objectives Product/marketsstrategiesCorporate LevelFunctional Level of SBUStrategic Business Unit LevelCorpo

8、rate Strategy Mission and vision Objectives Business portfolio strategy Resource development Corporate valuesSBUStrategyFinance andadministration StrategyProduction and operation strategyR&D StrategyTechnologyProduct developmentHumanResources StrategyBusiness or Marketing Plans?lThe business plan in

9、corporates all functional areas - R&D, finance, human resources, IT and marketing. The marketing plan has its focus on customer acquisition, retention and the resources required. It include the resources needed to implement specific marketing functions (such as selling, advertising, sales promotion

10、and market research). Most marketing plans cover one year, but some cover a few years.Plans vary in their length from under ten pages to over 50. Frequently cited shortcomings of marketing plans, are lack of realism, insufficient market and competitive analysis and a short-run focus. The Marketing P

11、lanning ProcessThe Marketing Planning Process1.Finding opportunities and developing profitable marketing strategies:lThis requires constant and ongoing analysis of the macro, micro, and competitive environment in which the firm operates.2.Identifying a target market:lA group of customers with simila

12、r needs to whom a company wishes to appeal.The Marketing Planning Process3.Developing marketing strategies the marketing mix (four Ps):lThe controllable variables that the company puts together to satisfy this target group.lKey point - developed for a given target market.4.Develop a marketing plan.5

13、.Implementation and control.The Marketing PlanlMarketing plana written statement of a marketing strategy and the time-related details for carrying out the strategy.lSpells out, in detail:lWhat marketing mix is offeredlTo what target marketlFor how longlWhat resources (costs) are needed and at what r

14、atelWhat results are expected (e.g. sales and profits)lWhat control procedures will be usedStructure of the Marketing Plan1.Executive summary.2.Current marketing situation.3.SWOT and issue analysis.4.Objectives.5.Marketing strategy.6.Action plan.7.Projected profit and loss statement.8.Control mechan

15、isms.Structure of the Marketing Plan1.Executive Summary:lThe marketing plan should open with a brief summary of the plan. lThis executive summary is aimed at the senior management to enable them to grasp quickly the plans major thrust, its goals and recommendations. lThe summary should be no more th

16、an one page long. Structure of the Marketing Plan2.Current Marketing Situation:lThis section presents relevant background data on the target market, product, competition, distribution and the macro-environment. lThe data are drawn from a product fact book or database maintained by the product manage

17、r. Structure of the Marketing Plan3.Opportunity and Issue Analysis:lAfter summarising the current marketing situation, the product manager proceeds to identify the major:lStrengths and weaknesses (INTERNAL).lOpportunities and threats (EXTERNAL).lIssues analysis.Structure of the Marketing Plan4.Objec

18、tives:lAfter the product manager has summarised the issues involved with the product line,he or she must decide on the plans objectives. Two types of objectives must be set:lFinancial.lMarketing.lManagers should ensure their objectives are SMART - Specific, Measurable, Achievable, Realistic, Time-bo

19、und.Structure of the Marketing Plan5.Marketing Strategy:lThe product manager now outlines the broad marketing strategy or game plan that he or she will use to accomplish the plans objectives. lIncludes statement of target market, positioning strategy, and marketing mix.Structure of the Marketing Pla

20、n6.Action Programs:lThe marketing plan must specify the broad marketing programs designed to achieve the business objectives. Each marketing strategy element must now be elaborated to answer: lWhat will be done?lWhen will it be done?lWho will do it? lHow much will be spent?Structure of the Marketing

21、 Plan7.Projected profit-and-loss statement:lAction plans allow the product manager to build a supporting budget. lOn the revenue side, this budget shows the forecast sales volume in units and the average price. lOn the expense side, it shows the cost of production, physical distribution and marketin

22、g broken down into finer categories. The difference between revenues and sales is the projected profit.Structure of the Marketing Plan8.Controls:lThis section outlines the controls for monitoring the plans progress. Typically, the goals and budget are spelled out for each month or quarter. lSenior m

23、anagement can review the results of each period and identify businesses that are not attaining their goals. lManagers of lagging businesses must explain what is happening and the actions they will take to improve plan fulfillment. lA contingency plan outlines the steps that management would take in

24、response to specific adverse developments. The purpose of contingency planning is to encourage managers to think about difficulties that might lie ahead.Evaluating the Marketing PlanlHow does your marketing plan measure up? Before implementing the marketing plan it can be useful to evaluate it by an

25、swering the following questions:1.Do your marketing objectives relate directly to the companys strategic initiatives?2.Do your marketing objectives relate directly to what you learned in your situational analysis?3.Do your marketing objectives relate directly to the capacity of your current marketin

26、g mix to handle them?4.Do your marketing objectives relate directly to your businesss strengths and to the opportunities available?5.Do your marketing objectives relate directly to your businesss weaknesses and to the threats that endanger it?Evaluating the Marketing Plan6.Are your marketing objecti

27、ves clear, measurable statements of what is to be achieved?7.Do your marketing objectives, strategies and tactics relate to each other?8.Does each strategy in your marketing plan contain a cost/benefit evaluation?9.Is every person involved in implementation included in the marketing planning process

28、 in some way?10.Is the plan clearly visible on your desk every day?11.Is your businesss vision truly a shared vision?If you can answer all these questions positively you have a powerful marketing plan ready for implementation. Implementing Marketing PlanslMarketing implementation is the process that

29、 turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives.lImplementation involves day-to-day, month-to-month activities that effectively put the marketing plan to work. lWhereas marketing planning addresses the:l what and why of marketing act

30、ivities, limplementation addresses the who, where, when and how .Reasons for Poor ImplementationlIsolated Planning.lTradeoffs Between Long and Short Term Objectives.lNatural Resistance To Change.lLack of Financial and Marketing Integration.lOveremphasis on the Document.Reasons for Successful Impleme

31、ntation1.Action program that pulls all the people and activities together. 2.Formal organisation structure. 3.A companys decision and reward systems (operating procedures that guide planning, budgeting, remuneration and other activities). 4.Careful human resources planning.5.Marketing strategies mus

32、t fit with its company culture.Controlling and Evaluating PerformancelMarketing control is the process of measuring and evaluating the results of marketing strategies and plans, and taking corrective action to ensure that marketing objectives are attained.lOperating control involves checking ongoing

33、 performance against the annual plan and taking corrective action when necessary.lStrategic control is checking that the companys basic strategies are well matched to its opportunities.Controlling and Evaluating PerformancelMarketing Audit is a comprehensive, systematic and periodic examination of a

34、 companys environment, objectives, strategies and activities to determine problem areas and opportunities and to recommend a plan of action to improve the companys marketing performance.The Control ProcessWhat do we want to achieve?What ishappening?Why is ithappening?What should we do about it?Set goalsMeasureperformanceEvaluateperformanceTake correctiveactionMeasuring the Return of Marketing InvestmentReturn on Marketing Investment (ROI) lReturn on marketing investment (ROI) is the net return from a marketing investment divided by the costs of the ma