Download Strategic Marketing and Sales Planning

Part 3
Presented by
Mr. Ahmed El Seddawy
AASTMT
“Market-oriented strategic planning is the
managerial process of developing and
maintaining a practical fit between the
organisation’s objectives, skills and resources
and its changing market opportunities”.
“The aim of strategic planning is to shape and
reshape the company’s businesses and products
so that they yield target profits and growth”.
Kotler, P. (1997) Marketing management, (9th ed), Upper Saddle River, NJ: Prentice
Hall International, p.63

Competition - competitive forces, analysing competitors

Monitoring environmental change - managing strategic
environmental issues

Opportunities - market and sales opportunity analysis

Competitive advantage - distinctive capabilities, cost and
differentiation strategies, product differentiation strategies

Resource reviews

Strategic fit - fitting both market opportunities and internal
capabilities
There are five types of company:
1.
those who make things happen
2.
those who think they make things happen
3.
those who watch things happen
4.
those who wonder what happened, and
5. those that did not know that anything had
happened

Planning is essential

It gives a sense of purpose and direction

Stops constant fire-fighting

Stops panicking

Put managers in control

marketing strategy is a cycle of integrated actions leading
to a sustainable competitive advantage

strategic marketing seeks to secure and maintain
competitive advantage in order to meet the goals of the
organisation

it involves consideration of the interaction of three key
variables: external environment, organisation goals and
strategies
E-Marketing Planning and Strategies
1 objectives
vision
corporate objectives
2 situation
review
marketing audit
SWOT analysis
3 strategies
and plans
formulate strategies
forecasts
Strategic Focus
what business are we in?
what business should we be
in?
what business should we
not be in?
identify opportunities
target markets
product, price, promotion
and
distribution strategies
budgets
4 action
Implementation programme
control
Performance review and evaluation
action: products, prices,
promotion, distribution

An e-marketing strategy needs to be fully
integrated into an organisation’s business and
marketing strategies and plans

Rather than have a separate e-marketing
strategy it is important to have an integrated
marketing plan with an e-marketing plan as a
sub-set of that marketing plan

E-marketing strategy as a detailed sub-set
of overall marketing planning

But also part of the investment for a new
web site

And part of the investment in upgrading
and extending a website
Environment-strategy-performance model
E
Legal-ethical
Technology
Competition
Other factors
markets
internet
SWOT
E-marketing plan
S
P
E-business
strategy
E-marketing strategy
E-marketing mix
CRM
Performance metrics
Source: Strauss, El-Ansary & Frost (2006:23)
Environmental Influences
1.
2.
3.
broad environmental variables: economy,
technology, society
Industry variables: industry structure, lifecycle,
specific technology, structure of competition,
strategies and performance
market variables: lifecycle, segment structure,
demand influences, purchase size and frequency
Goals (Objectives)
sustainable competitive advantage as a means
to sales, market share, profit and other
objectives to satisfy stakeholders
The Ashridge Mission Model
PURPOSE
why the company
exists
STRATEGY
competitive
position and
distinctive
competence
VALUES
what the company
believes in
STANDARDS AND BEHAVIOURS
policies and behaviour patterns
underpinning the distinctive
competence and value system
Factors influencing company marketing strategies
Demographic/
economic
environment
Technical/
physical
environment
Marketing and sales
information system
Marketing and sales
intermediaries
suppliers
product
Target
customer
s
place
price
Marketing
planning system
promotion
publics
competitors
Political/
legal
environment
Marketing & sales
organisation
system
publics
Marketing
organisation and
implementation
system
Social/
cultural
environment
Factors influencing
competitive
success
Environmental factors
e.g. rate of technological change
nature of competition
intensity of competition
Organisational factors
e.g. size
structure
culture
innovation capability
Strategic factors
e.g. long-term objectives
strategic time horizon
product-market strategy
Marketing factors
e.g. use of market research
customer service
product quality
Managerial factors
e.g. communication
attitudes
leadership style
Business Performance
Source: after Baker & Hart
(1989)
Strategies
 bedrock strategy - to build and sustain
capabilities of reputation, know-how,
relationships, physical resources
 then determine strategies to transform these
into positional advantage vis a vis
competitors
 must derive strategies for market positioning
in the chosen target segments
 have strategies to deliver continuing
customer satisfaction
Value creation for customers
Organisation
capabilities
Used to create
value for
customers
Careful assessment
of these capabilities
what capabilities to
build
analysis of
opportunities
choice of opportunities
to address
Internet
website and ecommerce
Provide
customers with
desired benefits
Creating value for customers



surest way of gaining and keeping
competitive advantage is to create better
value for customers
customer come back for more and a longterm customer relationship develops
The internet and development of ecommerce offers great opportunities for
creating value for customers

value-defining processes [influenced by e-marketing]

◦ market sensing to understand what customers value (what
benefits buying)
◦ assess what the organisation creates from a customer perspective
◦
value-developing processes [influenced by e-marketing]
◦ what creates customer value in the value chain?
◦ how can customer value be enhanced through product and service
development?
◦ what facilitates and inhibits better product or service delivery

Value-delivering processes [influenced by e-marketing]
◦ can the product or service be better delivered?
◦ can it be made available at better times in better locations?

Value-maintaining processes [influenced by e-marketing
◦ customer linking, channel bonding, managing brand equity

But customer expectations change

what customers consider excellent value today will probably be
average value tomorrow

customers are increasingly demanding

this is exacerbated by competitors who see advantage in meeting
these higher demands

other companies develop product and service enhancements which
set new expectation standards

change is endemic and built-in to most markets

therefore, there is a need to continuously monitor and adapt
Potential benefits of an Internet site:






Improvement in corporate identity and image
Improved customer service
Increased visibility among targeted segments
Market expansion
Online transactions
Lower communication costs
Source: Sterne (1999)
Website generations:
1. First generation: static electronic brochures,
supplier broadcasting to many potential and
existing customers
2. Second generation: interactive website, with
product stock availability, FAQs and pricing
information; still supplier driven
3. Third generation: fully interactive website,
personalisation and market research
information collection
Deliberate and emergent strategies
Deliberate strategy
Unrealised
strategy
Emergent strategy
Realised strategy
Source: Baker, M.J. (2000)
Marketing strategy and management,
(3rd Ed), Basingstoke: Macmillan
Unpredictable
factors
Course
plotted
Desired objective
Predictable
factors
Source: Baker, M.J. (2000)
Marketing strategy and management,
(3rd ed), Basingstoke: Macmillan
Strategic planning calls for action on:
 managing the company’s businesses as an
investment portfolio (each business has a
different profit potential so should allocate
resources accordingly)
 assessing each business by considering the
market’s growth rate, the company’s position
and fit in that market
 strategy - each business needs to develop a
game plan for achieving its long-run
objectives
Basic Conditions
Supply
raw material
technology
product durability
value/weight
Demand
price elasticity
substitutes
rate of growth
cyclical, seasonal
The structure-conductperformance paradigm
Market structure
number of buyers and sellers
product differentiation
barriers to entry
cost structures
vertical integration
diversification
Conduct
pricing behaviour
product strategy and advertising
research and innovation
plant investment
legal tactics
Performance
production and allocative efficiency
progress, full employment
equity
Public Policy
taxes and subsidies
regulation
price controls
antitrust
information
Threat of
new entrants
Bargaining power
of suppliers
The industry
jockeying for
position among
current
competitors
Threat of substitute
products or services
Porter’s five
forces
Bargaining power
of customers
Planning
Implementing
Controlling
corporate planning
organising
Measuring results
division planning
business planning
product planning
E-marketing
planning
implementing
action
diagnosing results
taking corrective action
External
environment
(opportunities and
threats)
Business
mission
SWOT Analysis
Goal
formulation
Strategy
formulation
Internal
environment
(strength and
weaknesses
analysis)
Business strategic planning
process
Programme
formulation
implementation
Feedback
and control
1.
2.
3.
4.
Objectives: what business do we want to
be in? (where do we want to be?)
Situation Review: where are we now?
Strategies, Tactics and Plans: how do we
get there?, how do we exactly get there?
Action and Control: doing it and asking
did we get there?
Business
definition
Preliminary
objectives
Environmental
situation
Opportunities
and threats
Competitive
situation
Resources and
capabilities
Strengths and
weaknesses
Strategic
thinking
•identify key
issues
•develop
strategy
options
Analysis
•resolve issues
•evaluate
options
Decisions
Analysis of past
performance
Specification
of present
strategy
•strategy
•performance
objectives
Corporate business planning
Internet marketing plan
(sub-set of marketing plan)
Design website
Implement website
Control,
review, modify
Monitor website
Source: adapted from Chaffey et al (2000: 124)
Baker, M.J. (2000) Marketing strategy and management, (3rd ed), Basingstoke:
Macmillan
Chaffey, D. (2002) E-business and e-commerce management, Harlow: Financial
Times Prentice Hall, Chapter 5: E-Business Strategy and Chapter 8: EMarketing
Chaffey, D., Mayer, R., Johnston, K. & Ellis-Chadwick, F. (2003). Internet
marketing. (second edition). London: Pearson Education. Chapter 4: Internet
Marketing Strategy (third edition 2006)
Chaston, I. (2001) E-marketing strategy, London: McGraw-Hill
Kotler, P. (1997) Marketing management, (9th edition), Upper Saddle River, NJ:
Prentice Hall International
Sterne, J. (1999) World wide web marketing (2nd ed), New York: John Wiley
Strauss, J. and R. Frost (2001) E-marketing, Upper Saddle River, NJ: Prentice
Hall, Chapter 8: The E-Marketing Plan
Strauss, J., El-Ansary, A. and R. Frost (2006) E-marketing, (4th ed), Upper Saddle
River, NJ: Prentice Hall, Chapter 3: The E-Marketing Plan