Strategic marketing process

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In the name of God
Developing Successful Marketing and
Organizational Strategies
Zahra Danieli
University of Tehran
October 2015
Learning objectives
 Learn about two kinds of organizations and three levels of strategy
in them
 Learn how core values, mission, organizational culture, business
and goals are important to organizations.
 Learn why managers use marketing dashboards and marketing
metrics
 Learn how an organization assesses where it is now and where it
seeks to be
 Learn the three steps of the planning phase of the strategic
marketing process
 Learn about the elements of the implementation and evaluation
phases of the strategic marketing process.
Today’s Organizations
 In studying today’s visionary organizations ,it is
important to recognize :
 1.The kinds of organizations
 2.What strategy is
 3.How this strategy relates to the three levels found in
many large organizations
Kinds of organizations
Organizations :

Legal entity

People

Common mission.
creating value for both the organization and its
customers by satisfying customer need and wants
Todays organizations
Business firms
Nonprofit organizations
Business Firm
 Privately owned organization
 Serves its customers to earn a profit so that it can survive
 Profit= total revenues – total expenses
Nonprofit Organization
A nongovernmental organization that serves its customers but does
not have profit as an organizational goal.
Its Goals:
Operational efficiency
Client satisfaction
Sustainable Development( SD)
 Both
business firms and nonprofit organizations
increasingly seek to achieve sustainable development
Sustainable development: "Development that meets the
needs of the present without compromising the ability of
future generations to meet their own needs.“
Strategy
 Strategy is an organization’s long-term course of action
designed to deliver a unique customer experience while
achieving its goals.
 1.Delivering a unique customer experience
While
2.Achieving its goals
● organizations set strategies and marketing helps to both
set this direction and move the organization there.
Structure of Todays Organizations
Corporate level
 Corporate level: where
top management
directs
overall strategy for the entire organization.
 Top management usually means the board of directors
and senior management officers with a variety of skills
and experiences that are invaluable in establishing overall
strategy.
 CEO ( chief executive officer )
 CMOs( chief marketing officer)
Strategic Business Unit Level (SBU level)
Some multimarket ,multiproduct firms manage a group of
businesses. Each group is a SBU which markets a set of related
offerings to a clearly defined group of customers. At the strategic
business unit level ,managers set a more specific direction for their
business to exploit value-creating opportunities. For less complex
firms with a single business focus ,the corporate and business unit
levels may merge.
Functional Level
 Each strategic business unit has a functional level, where groups
of specialists actually create value for the organization. The term
Department refers to these specialized functions such as
marketing or finance.
 At this level ,the organizational strategic direction becomes its
most specific and focused.
 It addresses issues usually faced by lower-level managers and
deals with strategies for the major organizational functions such
as marketing, finance, production, and research, which are
considered important to achieving the business strategies and
enabling the corporate-level strategy.
Strategy in Visionary Organizations
 Todays organizations must be
Forward looking: to
anticipate future events and respond quickly and
effectively. this requires a visionary organization to
specify:
 Its foundation= why does it exist?
 Set a direction : what will it do ?
 Formulate strategies: how will it do it?
Organizational Foundation : Why does it
exist?
Core Values:
the fundamental ,passionate and enduring principles that
guide its conduct over time
Mission:
a statement of the organization’s function in society, often
identifying its customers, markets, products, and
technologies. it should be clear, concise, meaningful,
inspirational and long-term.
Example:
Medtronic's mission statement: to contribute to human welfare by application
of biomedical engineering in the research , design, manufacture and sale of
instruments or applicants that alleviate pain, restore health, and extend life
Organizational culture:
set of values ,ideas, attitudes, and norms of behavior that is
learned and shared among the members of an organization.
Organizational Direction: what will it do?
 The business : It describes the clear ,broad, underlying industry or
market sector of an organization’s offerings.
 Goals or Objectives : Statements of an accomplishment of task to
be achieved, often by a specific time.
 Profit: to get as high a ROI as possible
 Sales: to maintain or increase its sales
 Market share : (Particular firm’s sales revenue in Time Period X) / (Relevant market’s Total Sales

Revenue in Time Period X)
why it matters? It’s a sign of the firm’s competitiveness
 Quality
 Customer satisfaction
: to balance the conflicting goals of stakeholders
promote their overall welfare, even at the expense of profits .
 Social responsibility
Organizational strategies : how will it do
it?
 Variation by Level : as we come down an organization,
strategies become detailed and more specific.
 Corporate
 SBU
 Functional
Variation by Offering: the strategy will be far different when
marketing a very tangible physical product, a service or an
idea.
Product
Service
Idea
Tracking strategic performance with
Marketing Dashboards
 Car dashboards and marketing dashboards: a marketing
dashboard is the visual computer display of the essential
information related to achieving a marketing objective.
 The idea of marketing dashboard comes from the display
of information on a car’s dashboard. on a car dashboard
we glance at the fuel gauge and take action when our gas
is getting low. With a marketing dashboard we glance at a
graph or table and makes a decision whether to take action
or to analyze the problem further.
Setting Strategic Direction
 Where are we now?
 Competencies: what do we do best?





its distinguishing
competencies→ competitive advantage→ success
Customers: providing genuine value to customers with
different preferences.
Competitors
Growth strategies: Where do we want to go?
Business Portfolio Analysis
Diversification Analysis
Business Portfolio Analysis by BCG
Business Portfolio Analysis (BCG matrix)
 Developed by Boston Consulting Group, Business
Portfolio Analysis, is a technique that managers use to
quantify performance measures and growth targets to
analyze their firms SBUs as though they were a collection
of separate investments.
 The purpose: to determine the appeal of SBU or offering
and then determine the amount of cash each should
receive.
 The vertical axis : market growth rate
 The horizontal axis: relative market share
BCG Matrix
Cash Cows ( Low growth, High market share)



stars of yesterday.
SBUs that generate large amounts of cash more than required.
Located in an industry that is mature ,not growing or declining.
Stars( High growth, High market share)



leaders in business
The may need extra cash to finance their own rapid future growth
When their growth slows, they are likely to become cash cows.
Question marks:(High growth, Low market share)

They require large injections of cash to maintain their market share.
Dogs ( Low growth ,Low market share)
 They do not hold the promise of ever becoming real winners for the organizations.
 Their numbers should be minimized
.
Diversification Analysis
 A technique that helps a firm search for growth
opportunities from among current and new markets as
well as current and new products.
.
The Strategic Marketing Process
 After an organization assesses where it is and where it




wants to go ,other questions will emerge:
How do we allocate our resources to get where we want to
go?
How do we convert our plans into actions?
How do our results compare with our plans ,and do
deviations require new plans?
The strategic marketing process is used to answer these
questions.
Strategic marketing process
 Planning
 Implementation
 Evaluation
Strategic Marketing Process
STEP 1: SWOT analysis
ACTIONS in SWOT analysis phase
 Build on a strength
 Correct a weakness
 Exploit an opportunity
 Avoid a disaster-laden threat
Step 2: market –product Focus and
Goal setting
 Determine which products will be directed toward which
customers.
 Its based on Market Segmentation: aggregating
prospecting buyers into groups or segments that have
1.common needs and 2.will respond similarly to a
marketing action.
 Step 2 is a foundation for step 3.
The Strategic Marketing Process
 How do we allocate our resources to get where we want to
go?
 How do we convert our plans into actions?
 How do results compare with our plans ,and deviations
require new plans?
Step3.Marketing Program
 The HOW aspect is




developing the
program’s marketing
mix(the four Ps) and its
budget.
Product strategy
Price strategy
Promotion strategy
Place strategy
The Implementation Phase of the strategic
marketing Process
 Carrying out the marketing plan that emerges from the
planning phase.
 Obtaining resources
 Designing the marketing organization
 Developing Planning Schedules
 Executing the Marketing Program: effective execution requires
attention to detail for both marketing strategies and marketing
tactics.
The Evaluation Phase of the strategic
marketing process
 It seeks to keep the marketing program moving in the
direction set for it. Accomplishing this requires the
marketing manager to :
 1. Compare the results of the marketing program with the
goals in the written plans to identify the deviations
 and
 2. Act on these deviations- Correcting negative deviations
and exploiting positive ones.
Thanks For Your
Attention
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