Strategy development: Setting marketing objectives and developing marketing strategies

Résumé du document

This presentation will take you through various steps that are involved in the formulation of a marketing strategy. The presentation will begin with the strategic marketing planning process and from there it will move onto marketing objectives and strategies. This will be followed by corporate objectives, the mission statement, performance objectives, financial decision making and marketing objectives. These points will be followed by strategic position, decision aids, product life cycle, the three dimensions of the PLC, the concept to help determine the stages in PLC and the problems with the PLC concept. The next topic to be covered will be Boston Consulting Group's growth/share matrix followed by relative market share and market growth after which problems with the BCG model will be examined. The next topic will be GE/McKinsey's model of market attractiveness/business position followed by Porter's generic strategies, sustainable competitive advantage (SCA), Competitive strategy options and Strategic gap analysis concluding with alternatives for closing the strategic gap, alternatives forincreasing sales, the Ansoff product-market matrix and writing the marketing objectives and strategies section.

Extraits

[...] Marketing strategies Strategic gap analysis Alternatives for closingthe strategic gap Alternatives for closing the strategic gap Alternatives for closingthe strategic gap Alternatives forincreasing sales Alternatives forincreasing sales Alternatives forincreasing sales Alternatives forincreasing sales The Ansoff product-market matrix Writing the marketing objectives and strategies section 1 Commence with a clear statement of the marketing objectives (in terms of revenue objectives) for each year of the SMP Show where the revenue will be derived in terms of the four product-market strategy options Provide a justification for these decisions. Writing the marketing objectives and strategies section Writing the marketing objectives and strategies section Rationale section This is the critical part of the section where you need to present strong arguments for your strategic recommendations. Draw on all of the tools to explain and justify: the financial imperatives underpinning the revenue performance objectives the current business position and any changes to that position that you are proposing the product-market strategic options. Also draw on the problems and opportunities statement. [...]

[...] A decline might be temporary and growth might return or it may be the start of a decline phase. Problems with the PLC concept The PLC is problematic if used as a normative model for prescribing alternative strategies for each stage. There is a difficulty in defining the appropriate market. The length of the various stages differs for different products and industries. The S-shaped curve does not always occur. Competitors can affect the growth curve. Generalised strategic implications are questionable due to divergent patterns between industries, such as competitive structure, price competition, advertising and R&D expenditure. [...]

[...] Suggested objectivesand strategies Stars Invest for growth. Problem Child Opportunistic development. Cash Cows Manage for earnings. Cash Dogs Extend life. Genuine Dogs Harvest/divest. Problems with theBCG model In many circumstances, factors other than relative market share and market growth influence cash flow. Cash flow may be less important than ROI in determining the attractiveness of investing in one business unit or another. The BCG model provides little insight into how one business unit might be compared with another in terms of investment opportunity. [...]

[...] We need to determine: the appropriate business strategy to pursue marketing objectives the nature of our competitive strategies. Decision aids Higher-level strategies, marketing objectives, and the type of competitive strategies to pursue, can be developed with help from tools such as: the product life cycle (PLC) concept product portfolio models (BCG and GE/McKinsey) the concept of competitive advantage competitive strategies. Product life cycle The product life cycle concept was developed in 1951 by Dean. It was based on a biological analogy of (product) birth–growth–maturity–decline. [...]

[...] Mission statement A mission statement provides (top-down) direction for setting marketing objectives. It covers: business definition and scope,i.e. the product-markets the SPU competes in the nature and type of business the type of competitive conduct; competitive advantage. Performance objectives The following stakeholders' needs must be satisfied: shareholders (and the influence of financial markets) employees (and their union representation) managers creditors the public (societal marketing). Performance is determined by the imperatives of stakeholder requirements, measured in terms of financial objectives ROI, ROA, EPS, dividends, profitability, cash flow, etc. [...]