MKTG7501 Strategic Planning and Marketing Planning
Explain strategic planning and how it relates to the organisation’s mission, objectives, and goals Identify and define methods for designing the business portfolio, developing growth strategies and planning functional strategies Outline the structure and scope of the marketing plan.
Most organisations operate according to formal plans Managers are often so busy that they have no time for planning Planning can help make sense of a changing environment Organisations failing to plan are planning to fail
The main purpose of strategic planning is to help firms understand how to compete for the future.
Strategic Planning Defined
Strategic Planning The process of developing and maintaining a strategic fit between the organisation's goals and capabilities in the light of changing marketing opportunities It relies on developing: Clear company mission Supporting objectives Sound business portfolio Coordinated functional strategies
Corporate Level Corporate Strategy • Mission and vision • Objectives • Business portfolio strategy • Resource development • Corporate values SBU Strategy • Business definition • Objectives • Product market portfolio • Competitive strategy • Resource allocation and management
Strategic Business Unit Level
Functional Level of Marketing Strategy SBU
•Marketing objectives •Product/markets strategies
R&D Strategy Technology Product development
Production and operation strategy
Finance and administration strategy
Human resources strategy
Steps in Strategic Planning
Corporate Level Defining the Company Mission
Defining Company Objectives and Goals Designing the Business Portfolio
Planning, Marketing and Other Functional Strategies
Strategic Planning Steps: Mission Statement
A Mission Statement is a statement of the organisation’s purpose
Market oriented Realistic Specific Fits market environment Distinctive competencies Motivating
Characteristics of a good mission statement
Example of Corporate Mission Statements
Carlton United Breweries
OUR VISION Inspiring Global Enjoyment. Whether through beer, wine, spirits, leisure or property, Foster’s premium products inspire enjoyment around the world. world OUR MISSION Foster’s mission is to work together, respecting each other, our heritage, diversity, skills and knowledge to: • Build premium quality, first-choice brands, • Deliver service excellence to customers and consumers, • Generate superior returns for shareholders, • Create an inspiring workplace, • Be welcomed in the communities in which we operate. 9
Setting company objectives and goals
The mission needs to be turned into detailed supporting objectives for each level of management. The mission leads to a hierarchy of objectives including business objectives and marketing objectives. Marketing strategies must be developed to support the objectives. Objectives need to be specific.
Marketing’s role in strategic planning and value creation
Marketing plays a key role in the company’s strategic planning: Marketing provides a guiding philosophy which suggests that company strategy revolves around serving the needs of important customer groups. e.g. Westpac (following slide)
Marketing provides input to strategic planners by helping to identify attractive market opportunities and by assessing the company’s potential to take advantage of them.
Westpac’s Strategic Agenda
a) drive a strong, active customer-centric culture to delight our customers by:
Our strategic priorities are particularly centred on improving our distribution and customer offerings, specifically to: putting the customer...