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Lecture: Industrial Marketing Through Strategic Planning, Implementation and Control

Industrial marketing is basically a business to business (B2B) activity done between companies. Making a strategic plan and than putting that plan into implement is an important part of IM.

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Raiana Tabitha
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5 views

Lecture: Industrial Marketing Through Strategic Planning, Implementation and Control

Industrial marketing is basically a business to business (B2B) activity done between companies. Making a strategic plan and than putting that plan into implement is an important part of IM.

Uploaded by

Raiana Tabitha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Industrial Marketing

Through
Strategic Planning,
Implementation
and Control
Lecture – 13
SZAIST - Hyderabad
Nature of Strategic Planning
o Strategic planning is made and implemented at:
 Corporate Level,
 Division Level,
 Business Unit,
 Product Levels

o Marketing Plans operate at strategic and tactical


levels
4 Ps of Strategy

Creating a Competitive Advantage in business requires strategy,


which can be broken down into four Ps:

1)Plan, (proposal for doing something)


2)Pattern, (model / design used as a guide)
3)Position, (put / arrange in a particular way)
4)Perspective. (particular attitude towards something)

Once you have these parameters down, you also have a road map to
accomplishing your Business Goals.
Corporate & Division Strategic Planning

o Planning activities include:


 Defining the Corporate Mission
 Establishing Strategic Business Units (SBUs) &
Assigning Resources to SBUs
 Planning New Businesses, Downsizing Older
Businesses
Corporate Mission & Vision

A COMPANY'S MISSION constitutes the future picture of how


you want the company to develop. The mission is the
management's view of what the company wants to achieve in
the future. And sometimes it is developed with the entire
organization participating in order to establish it.

A MISSION STATEMENT is a definition of the company's


business, who it serves, what it does, its objectives, and its
approach to reaching those objectives.

A VISION STATEMENT is a description of the desired future


state of the company. An effective vision inspires the team,
showing them how success will look and feel.
Corporate Mission & Vision Statements
Corporate & Division Strategic Planning

Mission Statements Define The Company’s Major


Competitive Scopes:

• Industry Scope • Vertical Scope


• Products Scope • Market-segment Scope
• Applications Scope • Geographical Scope
• Competence Scope
Corporate & Division Strategic Planning

Strategic Business Units share “3” characteristics:

 Single business or collection of businesses


which can be managed separately
 Has own set of competitors
 Has manager responsible for strategic
planning and profits
Corporate & Division Strategic Planning

o SBUs are treated as investment portfolios.


Resources are allocated by:

 The BCG Growth-Share Matrix


 Stars
 Cash Cows
 Question Marks
 Dogs

 The General Electric Market-Attractiveness Model


Corporate & Division Strategic Planning

o Planning New Businesses and Downsizing Old


Businesses

 Involves taking advantage of one or more of the


following:
 Intensive Growth (strategy related to product &
market)
 Integrative Growth (strategy when firm acquires some
channel of distribution)
 Diversification Growth (entering a new market or industry)
 Harvesting Or Divesting Old Businesses
Business Strategic Planning

PLANNING INVOLVES EIGHT STEPS

 Business Mission  Strategy Formulation


 SWOT Analysis: (Internal)  Program Formulation
 SWOT Analysis: (External)  Implementation
 Goal Formulation  Feedback and Control
Strategic Business Planning

SWOT Analysis  Monitoring key


forces for
trends
 Opportunities and
threats stemming  For each trend,
from the external conduct an
environment MOA –
 Internal strengths Marketing
and weaknesses Opportunity
Analysis
MOA – Marketing Opportunity Analysis

Market Opportunity Analysis is the process of researching where


and how you can reach more potential clients or grow your revenue
share.

It involves identifying

a)Competitions,
b)Understanding Your Audience,
c)Uncovering Potential Risks
Strategic Business Planning

SWOT Analysis  Brand Awareness,


Image, Reputation
 Opportunities and  Distribution, Pricing,
threats stemming Customer
from the external Loyalty, Product
environment Benefits
 Internal strengths  Finance, R&D,
and weaknesses Manufacturing
Business Strategic Planning

 Effective Goals Should Be Formulated So That


They Are:
 Arranged hierarchically from broader to
more specific objectives
 Stated in quantitative terms
 Realistic
 Consistent with each other and the company
Mission
Business Strategic Planning

Strategy dictates the game plan for achieving


goals. Porter’s generic strategies offer a starting
point for strategic thinking:
 Overall Cost Leadership
 Differentiation
 Focus
Business Strategic Planning

Program formulation and implementation involves:

 Developing supporting programs


 Estimating implementation costs
 Carefully managing the details so great strategy
isn’t ruined by poor implementation

Feedback and control is crucial


The Marketing Process

“2” Views of the Value Delivery Process:

 Traditional Physical Process Sequence


• Make the product . . . Sell the product

 Value Creation and Delivery Sequence


• Choose the value …………………
• Provide the value ……………………..
• Communicate the value…………..
Indialustrial Marketing Process

 Steps in the Process:

 Analyzing Market Opportunities


 Developing Marketing Strategies
 Planning Marketing Programs
 Managing The Marketing Effort
The Marketing Process

Marketing Plan Contents

 Executive Summary  Marketing Strategy


 Current Situation  Action Programs
 Opportunity
 Financial Projections
 Issue Analysis
 Controls
 Objectives
Managing The Marketing Process

Marketing Departments can be organized by:

 Function
 Geographic Area
 Products or Brands
 Customers or Markets
 Corporate Divisions
 Global Aspects
Managing The Marketing Process

Building a Companywide Marketing Orientation


Requires:

 Commitment From Top Management


 Training Programs; Employee Empowerment
 Recognitions And Rewards Programs
 Modern Marketing Planning System
 Process-outcome Focus
Managing The Marketing Process

 Injecting more creativity into the organization


can be beneficial

 Successfully implementing programs requires


four sets of skills:
o Diagnostic skills
o Identification of company level
o Implementation skills
o Evaluation skills
Managing The Marketing Process

Types of Control  Responsibility of


top and middle
 Annual plan management
 Examines
 Profitability
whether planned
 Efficiency results are
 Strategic achieved
Managing The Marketing Process

Five tools are used to evaluate annual plan


performance:
 Sales Analysis
 Market-share Analysis
 Marketing Expense-to-sales Analysis
 Financial Analysis
 Market-based Scorecard Analysis
Managing The Marketing Process

Types of Control  Responsibility of


Marketing
 Annual plan Controller
 Examines where
 Profitability
the company is
 Efficiency “making” and
 Strategic “losing” money
Managing The Marketing Process

Types of Control  Responsibility of


Line & Staff & / or
Marketing
 Annual plan Controller
 Evaluates and
 Profitability attempts to
improve spending
 Efficiency efficiency of
 Strategic marketing
expenditures
Managing The Marketing Process

Types of Control  Responsibility of


Top Management
and Marketing
 Annual plan Auditor
 Profitability  Examines whether
company is
 Efficiency pursuing its best
 Strategic opportunities
Managing The Marketing Process

 Strategic controls should be conducted


periodically via:
o Marketing-effectiveness Reviews
o Marketing Audits

 Additional reviews to consider:


o Marketing excellence review
o Ethical and social responsibility review

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