Asia-Pacific Marketing Federation--CorpStragPlanning

Corporate Strategic Planning
AsiaAsia-Pacific Marketing Federation Certified Professional Marketer
Copyright Marketing Institute of Singapore
Outline
Introduction Meaning & Role of Strategic Planning Corporate Mission Strategic Business Units (SBU) Marketing Audit
Corporate Culture
The most abstract level of managerial thinking
How do you define culture? What is the significance of culture to an organization? How does marketing affect culture in the organization?
Positions of advantage
Superior customer value Lower relative total cost
Performance advantages
Customer satisfaction, Loyalty, Market Share, Profit
Sources of advantages
Examples of Corporate Mission
SINGAPORE AIRLINES is engaged in air transportation and related businesses. It operates world-wide as the flag carrier of worldthe Republic of Singapore, aiming to provide services of the highest quality at reasonable prices for customers and a profit for the company
(Source: Subhash Jain, Marketing Planning & Strategy, 6th Ed.)
Organizational Marketing Levels
Hofer and Schendel suggested that organizations develop strategies at three structural levels: Corporate level—(corporate marketing) level— SBU level—(Strategic Marketing) level— Product/Market level—(Functional level— Marketing)
“Competitive advantage is a company’s ability to perform in one or more ways that competitors cannot or will not match.” Philip Kotler “If you don’t have a competitive advantage, don’t compete.”
Jack Welch, GE
Other Characteristics of Competitive Advantage
stantiality
Is it substantial enough to make a difference?
Sustainability
Can it be neutralized by competitors quickly?
Org Objectives Strategic Fit Resources
Changing Environment
The Role of Strategy
Corporate Mission & Objectives
Strategy: •Corporate •Business •Functional
Operating Plans
Sun Tze on Strategy
“Know your enemy, know yourself, and your victory will not be threatened. Know the terrain, know the weather, and your victory will be complete.”
A set of products or product lines
With clear independence from other products or product lines for which a business or marketing strategy should be designed
Strategic Marketing
Focuses on what the firm do best at the SBU level To secure and maintain a sustainable competitive advantage
What is Competitive Advantage?
Superior skills & knowledge, Superior resources, Superior business process
Key Elements of Marketing Strategy Formulation
The strategic 3 Cs
Customers, Competitors & the Corporation
Ability to be leveraged into visible business attributes that will influence customers
(Source: Strategic Marketing Management, Aakers)
Seeking Competitive Advantages
Marketing at the SBU Level— Level— Strategic Marketing
Strategic Marketing requires
Detailed understanding of market needs, and Proactive use of competitive intelligence at the corporate as well as SBU’s levels
Corporate Objectives & Goals
An objective is a long-range purpose longNot quantified and not limited to a time period E.g. increasing the return on shareholders’ equity
Environment analysis -- PEST Strategic Marketing Decisions
Where to compete How to compete When to compete
A Viable Marketing Strategy
Must have a clearly defined market Must have a good match between corporate strengths and market needs Must have significant positive differentiation in the key success factors of the business
A goal is a measurable objective of the business
Attainable at some specific future date through planned actions E.g. 10% growth in the next two years
What is a Strategic Business Unit? (SBU)
Broad purposes of the organization General criteria for assessing the longlongterm organizational effectiveness Driven by heritage & environment Mission statements are increasingly being developed at the SBU level as well
Situation Analysis
Internal Analysis—company; capability etc. Analysis— External Analysis—customers, market definition, Analysis—
industry structure
SWOT Analysis Strengths, Weaknesses, Opportunities & Threats
“Marketing audit is a comprehensive, systematic, independent, and periodic examination of a company’s—or business company’s— unit’s— unit’s—marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the company’s marketing performance” Philip Kotler