Chapter 4

Winning Markets Through

Strategic Planning,
Implementation,
and Control
PowerPoint by Karen E. James
Louisiana State University - Shreveport

©2003 Prentice Hall, Inc.

To accompany A Framework for Slide 1 in
 Objectives

 Understand how strategic

planning is carried out at the
corporate, division, and
business unit levels.
 Learn the major steps in the
marketing process.

©2003 Prentice Hall, Inc.

To accompany A Framework for Slide 2 in
 Objectives

 Learn what type of content a

marketing plan includes.
 Understand how companies can
effectively manage the marketing
process.

©2003 Prentice Hall, Inc.

To accompany A Framework for Slide 3 in
 Nature of Strategic
Planning
 Strategic planning requires actions
in three key areas
 Strategic planning takes place at
the corporate, division, business
unit and product levels
 Marketing plans operate at
strategic and tactical levels
©2003 Prentice Hall, Inc.
To accompany A Framework for Slide 4 in
 Corporate and Division
Strategic Planning

 Planning activities include:

– Defining the Corporate Mission
– Establishing Strategic Business
Units (SBUs), and Assigning
Resources to SBUs
– Planning New Businesses,
Downsizing Older Businesses
©2003 Prentice Hall, Inc.
To accompany A Framework for Slide 5 in
 Corporate and Division
Strategic Planning

Mission statements define the

company’s major competitive scopes:
 Industry scope  Vertical scope
 Products and  Market-segment
applications scope scope
 Competence scope  Geographical
scope

©2003 Prentice Hall, Inc.

To accompany A Framework for Slide 6 in
 Corporate and Division
Strategic Planning

 Strategic Business Units share

three characteristics:
– Single business or collection of
businesses which can be managed
separately
– Has own set of competitors
– Has manager responsible for
strategic planning and profits
©2003 Prentice Hall, Inc.
To accompany A Framework for Slide 7 in
 Corporate and Division
Strategic Planning

 SBUs are treated as investment

portfolios. Resources are allocated by:
– The BCG Growth-Share Matrix
Stars
Cash Cows
Question Marks
Dogs

– The General Electric Market-Attractiveness

Model
©2003 Prentice Hall, Inc.
To accompany A Framework for Slide 8 in
 Corporate and Division
Strategic Planning

 Planning New Businesses and

Downsizing Old Businesses
– Involves taking advantage of one or
more of the following:
Intensive growth
Integrative growth

Diversification growth

Harvesting or divesting old businesses

©2003 Prentice Hall, Inc.

To accompany A Framework for Slide 9 in
Business Strategic Planning

Planning Involves Eight Steps:

 Business Mission  Strategy
Formulation
 SWOT Analysis:
Internal  Program
Formulation
 SWOT Analysis:
 Implementation
External
 Feedback and
 Goal Formulation
Control
©2003 Prentice Hall, Inc.
To accompany A Framework for Slide 10 in
Strategic Business Planning

SWOT Analysis  Monitoring key

forces for trends
 Opportunities and  For each trend,
threats stemming conduct an
from the external MOA - Marketing
environment
Opportunity
 Internal strengths Analysis
and weaknesses
©2003 Prentice Hall, Inc.
To accompany A Framework for Slide 11 in
Strategic Business Planning

SWOT Analysis  Brand awareness,

image, reputation
 Opportunities and  Distribution,
threats stemming pricing, customer
from the external loyalty, product
environment benefits
 Internal strengths  Finance, R&D,
and weaknesses manufacturing
©2003 Prentice Hall, Inc.
To accompany A Framework for Slide 12 in
Business Strategic Planning

 Effective goals should be

formulated so that they are:
– Arranged hierarchically from broader
to more specific objectives
– Stated in quantitative terms
– Realistic
– Consistent with each other and the
company mission
©2003 Prentice Hall, Inc.
To accompany A Framework for Slide 13 in
Business Strategic Planning

 Strategy dictates the game plan

for achieving goals. Porter’s
generic strategies offer a starting
point for strategic thinking:
– Overall cost leadership
– Differentiation
– Focus
©2003 Prentice Hall, Inc.
To accompany A Framework for Slide 14 in
Business Strategic Planning

 Program formulation and

implementation involves:
– Developing supporting programs
– Estimating implementation costs
– Carefully managing the details so
great strategy isn’t ruined by poor
implementation
 Feedback and control is crucial
©2003 Prentice Hall, Inc.
To accompany A Framework for Slide 15 in
 The Marketing Process

 Two Views of the Value Delivery

Process:
– Traditional physical process sequence
Make the product . . . Sell the product
– Value creation and delivery sequence
Choose the value . . . Provide the
value . . . Communicate the value

©2003 Prentice Hall, Inc.

To accompany A Framework for Slide 16 in
 The Marketing Process

 Steps in the Marketing Process:

– Analyzing market opportunities
– Developing marketing strategies
– Planning marketing programs
– Managing the marketing effort

©2003 Prentice Hall, Inc.

To accompany A Framework for Slide 17 in
 The Marketing Process

Marketing Plan Contents

 Executive summary and TOC  Marketing strategy
 Current situation
 Action programs
 Opportunity and issue
analysis  Financial
 Objectives projections
 Controls

©2003 Prentice Hall, Inc.

To accompany A Framework for Slide 18 in
 Managing The Marketing
Process
 Marketing Departments can be
organized by:
– Function
– Geographic area
– Products or brands
– Customers or markets
– Corporate divisions
– Global aspects

©2003 Prentice Hall, Inc.

To accompany A Framework for Slide 19 in
 Managing The Marketing
Process
 Building a Companywide Marketing
Orientation Requires:
– Commitment from top management
– Training programs; employee
empowerment
– Recognitions and rewards programs
– Modern marketing planning system
– Process-outcome focus
©2003 Prentice Hall, Inc.
To accompany A Framework for Slide 20 in
 Managing The Marketing
Process
 Injecting more creativity into the
organization can be beneficial
 Successfully implementing programs
requires four sets of skills:
– Diagnostic skills
– Identification of company level
– Implementation skills
– Evaluation skills
©2003 Prentice Hall, Inc.
To accompany A Framework for Slide 21 in
 Managing The Marketing
Process

Types of Control  Responsibility of

top and middle
 Annual plan management
 Examines
 Profitability
whether planned
 Efficiency results are
 Strategic achieved

©2003 Prentice Hall, Inc.

To accompany A Framework for Slide 22 in
 Managing The Marketing
Process
 Five tools are used to evaluate
annual plan performance:
– Sales analysis
– Market-share analysis
– Marketing expense-to-sales analysis
– Financial analysis
– Market-based scorecard analysis

©2003 Prentice Hall, Inc.

To accompany A Framework for Slide 23 in
 Managing The Marketing
Process

Types of Control  Responsibility of

marketing
 Annual plan controller
 Examines where
 Profitability
the company is
 Efficiency making and
 Strategic losing money

©2003 Prentice Hall, Inc.

To accompany A Framework for Slide 24 in
 Managing The Marketing
Process

Types of Control  Responsibility of

line & staff and / or
marketing
 Annual plan controller
 Evaluates and
 Profitability attempts to
 Efficiency improve spending
efficiency of
 Strategic marketing
expenditures
©2003 Prentice Hall, Inc.
To accompany A Framework for Slide 25 in
 Managing The Marketing
Process

Types of Control  Responsibility of

top management
and marketing
 Annual plan auditor
 Profitability  Examines whether
company is
 Efficiency pursuing its best
 Strategic opportunities

©2003 Prentice Hall, Inc.

To accompany A Framework for Slide 26 in
 Managing The Marketing
Process
 Strategic controls should be
conducted periodically via:
– Marketing-effectiveness reviews
– Marketing audits
 Additional reviews to consider:
– Marketing excellence review
– Ethical and social responsibility review

©2003 Prentice Hall, Inc.

To accompany A Framework for Slide 27 in