Crafting Strategy and the Marketing Plan Arild Aspelund

Crafting Strategy and the Marketing Plan Arild Aspelund

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

Marketing Strategy Firm Market Strategy Market Resources & Capabilities Value Positioning Targeting Segmentation Buying behavior

The Value Delivery Process

K&K’s Business Unit Strategic Model

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!

Mission statement - e. Bay “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. ”

Does it say Mission statement - IKEA that IKEA’s prices should be as low as “The IKEA vision is to create apossible? better 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”

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

The Value Work Shop Stabell and Fjeldstad (1998)

Porter’s Value Chain

The Value Network Stabell and Fjeldstad (1998)

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)

Goal Formulation • Goals should be realistic! • Objectives should be quantitative! • Objectives must be consistent! • Create hierarchical sub-goals!

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 – – – • 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 – – – • 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

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

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…

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