Strategic g Market Planning g

From Theory To Practice

Dr. Prashant Mishra Dr prashant@iimcal.ac.in

MarketMarket -Oriented Strategic Planning

Objectives Resources

Skills

Opportunities pp

MarketMarket -Oriented Strategic Planning

Objectives Resources

Profit and Growth

Skills Opportunities

The Marketing Mix

Product St t Strategy

Communications St t Strategy

Customer
Price Strategy Channel Strategy

The ValueValue-Delivery Process

(a) Traditional physical process sequence Make the product
Design Procure M k Make product P

Sell the product

Pi Price S ll Advertise/ Sell Distribute t ib t Service S i promote Di

(b) Val Value e creation & deli delivery er seq sequence ence Ch Choose th the V Value l P id th Provide the V Value l C Communicate i t th the V Value l

Strategic marketing

Tactical marketing

The Value Chain

Su upport Act tivities
Firm Infrastructure Fi I f t t Human Resource Management Technology Development Procurement

Marketing Inbound Operations Outbound & Logistics Logistics Sales

Service

Primary Activities
Figure 4.5

Source: 1985 Michael Porter

The Marketing Plan

E Executive ti Summary S &T Table bl of f Contents C t t Current Marketing Situation Opportunity & Issue Analysis Objectives Marketing Strategy Action Programs Projected Profit-and-loss j Controls

Strategy as an Integrated Pattern of Choices

Arena

Advantage

Access

Activities

Strategy as an Integrated Pattern of Ch i Choices

Arena: the markets to serve and customer segments to target Advantage: The positioning theme that differentiates the business from competitors Access: The communication and distribution channels used to reach the market Activities:The appropriate scale and scope of activities to be performed

What is a Marketing Strategy?

A Marketing Strategy consists of a plan identifying what basic goals and objectives will be pursued and how they will be achieved in the time available. A strategy entails commitments it t to t certain t i courses of f action ti and d allocation of the resources necessary to achieve the identified goals. g

Elements of an Effective Marketing Strategy

Clearly Defined Markets to be Served Positioning for Differential Competitive Advantage Timing of Entry and Exit Focus on Organizational g Leverages g Clear Vision and Values Flexibility Functional Integration Long term vs. Short Term Perspective

Factors Influencing Company Marketing Marketing Strategy

intermediaries

Demographic/ economic i environment

Product Place
Target Price customers t

Technical/ physical h i l environment

Suppliers pp

Publics

Promotion

Political/ legal environment

Social/ cultural environment

Competitors

StrategicStrategic -Planning, Planning Implementation, Implementation and Control Process

Planning
Corporate planning Division planning Business planning Product planning Implementing Taking corrective action ti

Implementation
Organizing

Control
Measuring M i results Diagnosing results

Overview O e e o of St Strategic ateg c Market Management

External Analysis
Customer Analysis y Competitor Analysis Market Analysis Environmental Analysis

Internal Analysis
Performance Analysis y Determinants of Strategic option

Strategy Identification and Selection

The Strategic Marketing Process

1. Identify and evaluate opportunities 2. Analyze market segments and select target markets 3. Plan a market position; develop marketing mix strategy 4. Prepare a formal marketing plan

The Strategic Marketing Process

5. Execute the plan 6. 6 Control efforts and evaluate the results

External Analysis
Strategic Decisions
Where to compete How to compete Bases of Competition

External Analysis

Id tifi ti Identification
Trends/ future events Threats/Opportunities Strategic Uncertainties

Analysis
Information Information-need areas Scenario Analysis

Customer Analysis
Segmentation Customer Motivations Unmet Needs

Competitor p Analysis y
Size, , Growth and Profitability Image and Positioning Objectives and C Commitment it t

Strength and W k Weaknesses

Competitor Actions

Current and Past strategies

Exit Barriers

Cost Structure

Organisation and Culture

Market Analysis y
The Dimensions are Actual and Potential Market Size Market k Growth h Market Profitability Cost Structure Distribution Systems y Trends and Developments Key Success Factors

Environment Analysis y
Technology T h l Government Economics Culture Demographics

Internal Analysis
Strength and Weaknesses Past and Current Strategies g Strategic Problems Organizational Capabilities and Constraints Financial Capabilities and Constraints

The Boston Consulting g Groups p GrowthGrowth -Share Matrix

M et Gro Marke owth Rate
20%20%18%18% 16%16% 14%14% 12%12% 10%10% 8%8% 6%6% 4%4% 2%2% 0 10x

Stars

Question marks

5
Cash cow

?2
7

Dogs

8 6
4x 2x 1.5x 1x .5x .4x .3x .2x .1x

Relative Market Share

Market Attractiveness: CompetitiveCompetitiveP iti P Position Portfolio tf li Cl Classification ifi ti

MARKET A ATTRAC CTIVEN NESS h Low M L Medium High Strong
5.00 5.00

BUSINESS STRENGTH Medium

3.67

2.33

Weak

1.00

3.67

2.33

1.00 Invest/grow

Selectivity/earnings

Harvest/divest

The StrategicStrategic-Planning Gap

Desired sales

Diversification growth Integrative growth Intensive growth Current portfolio

Sale es

StrategicStrategicplanning gap

5 Time (years)

10

Three Intensive Growth Strategies: Ansoffs Product/Market Expansion Grid

Existing products New N products

Existing markets

1. Market penetration p

3. Product development p

New markets

2. Market development p

4. Diversification