Strategic Marketing

1. Imperatives for Market-Driven Strategy 2. Markets and Competitive Space 3. Strategic Market Segmentation 4. Strategic Customer Relationship Management 5. Capabilities for Learning about Customers and Markets 6. Market Targeting and Strategic Positioning 7. Strategic Relationships 8. Innovation and New Product Strategy 9. Strategic Brand Management 10. Value Chain Strategy 11. Pricing Strategy 12. Promotion, Advertising and Sales Promotion Strategies 13. Sales Force, Internet, and Direct Marketing Strategies 14. Designing Market-Driven Organizations 15. Marketing Strategy Implementation And Control

Chapter 15

Marketing Strategy Implementation and Control

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Marketing strategy implementation and control

* * * * * The strategic marketing planning process Implementing the strategic marketing plan Strategic marketing evaluation and control Marketing performance measurement Global issues for planning, implementation and control

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Marketing strategy implementation and control

* Fiat - strategic turnaround in auto industry * Debts, losses, market share falling, reputation for low quality, diversification * Recovery strategy of radical restructuring, dismantling management and bureaucracy * Marketing, operations and R&D overhauled small car focus * Range of strategic relationships established

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The strategic marketing planning process

* The marketing plan guides implementation * Contents of the marketing plan * Managing the planning process

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Strategy and planning relationships

MARKETING STRATEGY

Annual Marketing Planning

Annual Marketing Planning

Annual Marketing Planning

Implementation Control and Evaluation Revision

Implementation Control and Evaluation Revision

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MARKETING PLAN OUTLINE

I. Strategic Situation Summary
Summarize the key points from your situation analysis (market analysis, segments, industry/competition) in order to recount the major events and provide information to better understand the strategies outlined in the marketing plan.

II.

Market-Targets and Objectives

The market target may be defined demographically (key characteristics only), geographically, or in social/economic terms. Each market target should have needs and wants that differ to some degree from other targets. These differences may be with respect to types of products purchased, use situation, frequency of purchase, and other variations that indicate a need to alter the positioning strategy to fit the needs and wants of each target. An objective is a quantified goal identifying what is expected when. It specifies the end results expected. The objectives should be written for each target market. Objectives should also be included for the following program components: (1) product, (2) price, (3) distribution, (4) promotion (salesforce, advertising, sales promotion, and public relations), and (5) technical services.

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MARKETING PLAN OUTLINE

III. Positioning Statements
Write statements that describe how you want each market target to perceive each product relative to competition. State the core concept used to position the product (brand) in the eyes and mind of the targeted buyer. The positioning statement should describe: (1) What criteria or benefits the customer considers when buying a product along with the level of importance, (2) What we offer that differentiates our product from competition, and (3) The limitations of competitive products.

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IV.

Market Mix Strategy for Each Market Target

A.

Product Strategy
Identify how each product fits the market target. Other issues that may be addressed would be new product suggestions, adjustments in the mix of existing products, and product deletion candidates.

B.

Price Strategy
The overall pricing strategy (I.e., competitive, premium-priced, etc.) should be identified along with a cost/benefit analysis if applicable. Identify what role you want price to play, i.e., increase share, maintenance, etc.

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IV.

Market Mix Strategy for Each Market Target

C. Distribution Strategy Describe specific distribution strategies for each market target. Issues to be addressed are intensity of distribution (market coverage), how distribution will be accomplished, and assistance provided to distributors. The role of the sales force in distribution strategy should also be considered. D. Promotion Strategy Promotion strategy is used to initiate and maintain a flow of communication between the company and the market target. To assist in developing the communications program, the attributes or benefits of our product should be identified for each market target. How our product differs from competition (competitive advantage) should be listed. The sales forces responsibilities in fulfilling the market plan must be integrated into the promotion strategy. Strategies should be listed for (1) personal selling, (2) advertising, (3) sales promotion, and (4) public relations.

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E.

Marketing Research Describe the market research problem and the kind of information needed. Include a statement which addresses why this information is needed. The specific market research strategies can be written once the above two steps have been followed.

V.

Coordination with Other Business Functions Indicate other departments/functions that have responsibilities for implementing the marketing plan.

VI. VII.

Sales Forecasts and Budgets Contingency Plans Indicate how your plans should be modified if events should occur that are different from those assumed in the plan.
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Dimensions of Planning Process

Analytical Process Dimension Marketing Planning Process
Techniques Procedures Systems Planning Models Managerial perceptions Participation Strategic assumptions Structure Information Culture

Behavioral Process Dimension Organizational Process Dimension

Process Consistency

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Implementing the strategic marketing plan (1)

* Implementation process * Structural issues * Behavioral issues * Building implementation effectiveness * Organizational design * Incentives * Communications * Internal marketing * Comprehensive approach to improving implementation
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Implementation process
Activities to be implemented

Responsibility for implementation

IMPLEMENTATION PROCESS

How implementation will be done

Time and location of implementation

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Improving Implementation
Skilled Implementers Effective Communications Organizational Design

Improving Implementation
Internal Marketing Incentives

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Internal Marketing
Strategy Plan

Internal Marketing Program

External Marketing Program

Internal Marketing Program: Targeted at key groups in the company, alliance partner companies, and other influencers

External Marketing Program Targeted at key customers, segments and niches, and other external influencers

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Comprehensive Approach to Improving Implementation

Financial Measures

Learning and Innovation Measures

BALANCED SCORECARD MANAGEMENT CONTROL SYSTEM

Customer Measures

Internal Business Process Measures

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Implementing the strategic marketing plan (2)

* Internal strategy-organization fit * Organizational stretch * The role of external organization

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Strategic marketing evaluation and control (1)

* Customer relationship management * Overview of control and evaluation activities * Find new opportunities/avoid threats * Keep performance in line with expectations * Solve specific problems

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Evaluation Activities

Find New Opportunities or Avoid Threats

Solve Specific Problems Keep Performance on Target

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Evaluation and control

Conduct strategic marketing audit Select performance criteria and choose relevant marketing metrics

Obtain and analyze information

Assess performance and take necessary action

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Strategic marketing evaluation and control (2)

* The strategic marketing audit * Results provide basis for selecting performance criteria to assess actual performance against lans

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Strategic Marketing Audit

Corporate Mission and Objectives

Business Composition and Strategies

Marketing Strategy (for each planning
unit)

Marketing Program Activities Implementation and Management

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Marketing performance assessment (1)

* * * * * The importance of marketing metrics The use of marketing metrics Types of marketing metrics Selecting relevant metrics Designing a management dashboard

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Marketing metrics (A)

* Marketing metrics focusing on operations * Competitive and customer metrics * Profitability metrics * Product and portfolio metrics * Customer profitability metrics * Sales and channel metrics * Pricing metrics * Promotion metrics * Advertising, media and web metrics * Financial metrics
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Marketing metrics (B)

* Brand equity metrics * Familiarity * Penetration * What they think about the brand * What they feel * Loyalty * Availability * Innovation metrics * Strategy * Culture * Outcomes
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Marketing metrics (C)

* Internal market metrics * Awareness of corporate goals * Perceived caliber of employer * Relative employee satisfaction * Commitment to corporate goals * Employee retention * Perceived resource adequacy * Appetite for learning * Freedom to fail * Customer-brand empathy * Internal process metrics * E.g., internal communications
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Marketing performance assessment (2)

* Interpreting performance measurement results * Opportunities and performance gaps * Problem/opportunity definition * Interpreting information * Determining normal and abnormal variability * Deciding what actions to take

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Global issues for planning, implementation and control

* Global marketing planning * Additional complexity * Simplifying assumptions * Limited information availability * Accommodate international strategy variability * Implementation globally * Importance of relationships between domestic and international executives * Performance measurement and control globally * International markets may require different metrics
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