CORPORATE STRATEGY

AND MARKETING
STRATEGY
STRATEGIC PLANNING
 STRATEGIC PLANNING AND
MARKETING
1. Objective of Strategic Planning
• To secure a strategic fit between a company and its
environment.
2. Key elements of strategic planning include:
(a) Analysis of strengths and weaknesses.
(b) Analysis of opportunities and threats.
(c) Determination of overall company and related objectives (e.g.
sales volume, market).
(d) Identification of alternative strategies.
(e) Selection and implementation of strategies, including selection
of target markets and the design of an appropriate marketing
mix.
3. Relationship with Marketing
• Marketing management plays a key role in the selection and
implementation of strategies.
 ELEMENTS OF THE STRATEGIC MARKET
PLAN
1. The Overall Framework
(a) ( Objectives:
• Where do we want to be?
• When do we plan to arrive?
(b) Delineation/Identification of Strategies:
• What broad routes can we pursue?
(c) Selection of Strategies:
• Which of these routes are viable?
• Which are most cost-effective?
(d) Strategy Formulation and Implementation
N.B Stages preceding Objectives are: Market Overview, SWOT
analysis, and Assumptions
 Elements of Market Strategy (Cont.)
2. Formulating a Strategic Market Plan
• Four related decisions involved:
(a) Defining the Business
• The definition should state:
i. Which customers are to be served
ii. Which customers (functions) needs are to satisfied
iii.What technologies are to be used to satisfy customer
needs
iv. Which products and market segments
(b) Determining the Mission or Role of Business
• Refer to decisions on performance expectations such
as: sales growth, market share and return on
investment
 Elements of Strategic Market Plan
(Cont.)
(c) Formulating Functional Strategies
• Having defined the business, and determined the
mission, the next step is the determination of strategies
for each of the functional areas (mktg, production, etc)
• Co-operation and involvement of functional managers
requires.
• Strategies should be stated in clear and precise terms.
(d) Budgeting
• Fourth and final element of strategic market plan.
• Involves allocation of resources and budgets for plan
implementation.
• Would include sales forecasts, cash flow statements, etc
 Elements of the Strategic Plan (Cont.)

(3) The Relationship Between Strategic

Market Planning and Corporate Plans
(a) Corporation Structure
• Kotler (1988) argues that the Head Office
designs the corporate strategic plan and
the business unit develops mktg plan.
• The strategic market contributes to, and
is part of both corporate and market
plans at other levels of the company
 Relationship with Corporate Plans
(Cont.)
• Baker (1985) suggests:
“..marketing strategy and corporate strategy
are inextricably linked.”
• Lancaster and Massingham (1993) make
the same point:
“markets, customers and competitors are
important to the development of overall
corporate plans that marketing must play a
key role in their development.”
 Relationship with Corporate Plans
(Cont.)
(c) Are Strategic market Planning and Corporate
Planning the Same Thing?
• Some pundits say, yes (not my view)
• Baker (1985) says marketing most important
input.
• It is only one input, corporate strategist must
take a wider view and include finance,
production, personnel, etc.
• Even this wider view, however, must reflect
customer, market, and competitor
considerations
Elements of Strategic Market Planning
(Cont.)

(4) Relationship between the Strategic Market Plan

and the Marketing Plan
• The distinction is much clearer.
(a)Focus and Detail
• Strategic market plan reflect the corporate
strategy in terms of detail and planning horizon
(3 years or more).
• Marketing plan is narrower in focus and contains
details for specific product markets.
 Relationship with Marketing Plan
(Cont.)
(b) Planning Cycles
One can distinguish between “one-cycle”, “two-cycle”,
“three-cycle” systems in terms of the type of
decisions being taken.
• One-cycle planning
Little or no longer-term strategic planning takes place.
• Two-cycle planning
Offers more soundly based, integrated planning, but
long-term considerations are still regulated.
• Three-cycle planning
Functional planning preceded by strategic mkt
planning.
 Elements of the Strategic Plan (Cont.)

(5) The Evolutionary Stages of Planning

• The notion of “planning cycles” suggests that
companies may be at different stages in terms of
planning sophistication.
• Three-cycle represents highly sophisticated
process with long-, medium-, and short-term
(annual) time horizons
• Few companies do this sort of planning.
• A large number are confined to “annual
planning”
 Strategic Marketing Planning (SMP):
Review of Current Thinking
Five principal conclusions:
1. There is clear consensus about the desirable
outputs of the SMP process.
2. SMP leads to improved performance.
3. In unsuccessful firms the prescriptive process of
SMP is poorly adhered to.
4. The primary barrier to SMP is org culture.
5. Although the degree of formality of the process
varies with firm, there is universal consensus
among strategic planners and thinkers on the need
for planning.
END
• END