Crafting Strategy
and the Marketing Plan
Arild Aspelund
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Outline
• A simple model for marketing strategy
– Containing the roles of the key concepts
• A practical guide to the marketing strategy process
– Kotler’s view
• The marketing plan
– Rationale
– Content
– Dissemination and confidentiality
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Marketing Strategy
Firm
Market Strategy
Market
Resources &
Capabilities
Value
Positioning
3
Targeting
Segmentation
Buying behavior
The Value Delivery Process
4
K&K’s Business Unit Strategic Model
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Business Mission
• A good mission statement clearly defines the organization’s mission to
all employees, stake holders, customers and suppliers
– Defines focus on a common mission!
• Focus on a limited number of goals!
• Stress major policies and values!
• Define major competitive spheres!
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Mission statement - eBay
“We help people trade anything on
earth. We will continue to enhance
the online trading experiences of all
– collectors, dealers, small
businesses, unique item seekers,
bargain hunters, opportunity sellers,
and browsers.”
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Mission statement -Does
IKEA
it say
that IKEA’s
prices should
be asalow
as
create
better
possible?
“The IKEA vision is to
everyday life for the many people. We
make this possible by offering a wide
range of well-designed, functional home
furnishing products at prices so low that
as many people as possible will be able to
afford them”
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SWOT - Analysis
Internal Factors
• Strengths
– Competitive strengths, resources and capabilities
• Weaknesses
– Competitive disadvantages, resource and capability gaps
Three models for internal analysis
• The Value Workshop
• The Value Chain
• The Value Network
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The Value Work Shop
Stabell and Fjeldstad (1998)
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Porter’s Value Chain
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The Value Network
Stabell and Fjeldstad (1998)
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SWOT - Analysis
External Factors
• Opportunities
– Attractiveness and success probability
• Threats
– Seriousness and probability of occurrence
• Market research
– Customer characteristics, segments, preferences, buying behavior, etc
Two models for external analysis
• PESTEL - analysis
• Porter’s five forces
• (We will come back to these shortly)
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Goal Formulation
• Goals should be realistic!
• Objectives should be quantitative!
• Objectives must be consistent!
• Create hierarchical sub-goals!
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Strategy Formulation
•
Porter’s generic strategies
– Overall cost leadership
– Differentiation
– Focus
•
Define overall allocation and development of the firm’s organizational
resources and capabilities
•
Market strategies
–
–
–
–
–
•
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Value proposition
Segmentation
Targeting
Positioning
Customer behavior
Define allocation and development of market resources and capabilities
Program Formulation, Implementation,
Control and Feedback
•
Specification of tactical issues
–
–
–
–
–
–
•
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Product features
Promotion
Merchandising
Pricing
Sales channels
Service
Development of a feasible time
schedule associated with each task
•
Organization and allocation of
responsibilities
•
Development of reliable measures
of performance on all levels
•
Report procedures
•
Stop criteria
The Market Plan - Motivation
• Primarily internal focus
• Frequently used in programs for holistic marketing
• Communication of market knowledge throughout the organization
• A plan…with milestones…
• Economic measures, commitment and control
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The Market Plan - Contents
• Executive Summary
– Value proposition, key market segments, targeting, positioning, forecasts
and returns
• Situation Analysis
– Market summary with consumer behavior, SWOT, competition, value
proposition, CSF
• Marketing Strategy
– Mission, goals, key market segments, targeting, positioning, marketing
mix, marketing research
• Financial
– Break-even analysis, sales forecast, expense forecast
• Controls
– Implementation, organization, feed-back routines
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The Market Plan - Dissemination
• It is rarely smart to disclose your market plan
• Not only due to competitors can see your evaluation of
–
–
–
–
Value propositions
Accuracy and amount of market information
Future actions and investments
Cost structure
• But also to protect your actions from transparency from customers
• It could be wise, however, to publish a version that you want the public
and your competitors to see…
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Summary and continuation
• A market strategy should start with a scan of the environment
• We have presented a framework for strategical market management
that incorporates several frameworks of analysis and forms the basis
for new marketing campaignes (these will be revisited in detail…)
• We have suggested a structure for a market plan
• And in the next episode of Marketing Management…
– A model for scanning the environment
– A practical guide for performing market research
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