Introduction

Strategic Marketing Management

What is Strategy?
Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.
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Characteristics of Strategic Decisions

Long-term direction Scope of an organisations activities Competitive advantage Strategic fit with business environment Organisation resources and competences Values and expectations of power players
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Implications of Strategic Decisions

Complexity Integration Uncertainty Relationships and networks Operational Change decisions

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Levels of Strategy
Corporatelevel strategy
Business-level strategy Operational strategy

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What is a Strategic Business Unit?

A strategic business unit (SBU) is a part of an organisation for which there is a distinct external market for goods or services that is different from another SBU.
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Vocabulary of Strategy

Mission Vision Goal Objective

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Strategic capability Strategies Business model Control

Vocabulary of Strategy: Nokia Vision/Mission

Connecting is about helping people feel close to what matters. Wherever, whenever, Nokia believes in communicating, sharing, and in the awesome potential in connecting the 2 billion who do with the 4 billion who dont.
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Vocabulary of Strategy: Kingston University

Mission
To promote participation in higher education, which it regards as a democratic entitlement; to strive for excellence in learning, teaching, and research; to realise the creative potential and fire the imagination of all its members; and to equip its students to make effective contributions to society and the economy.
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THE PLANNING PROCESS

Planning is simply the process of deciding in the present what to do in the future. It involves laying down courses of action for a specified time period which will utilise resources in the most effective manner and which will work towards the achievement of a specified goal.

The process can be split into five stages

Where are we now? Where do we want to be? How can we get there? Which way is best? How can we ensure arrival?

Consider the following

A Student planning a holiday

Consider the following

Planning Gap
Planning Gap this is the difference between the desired future and the likely future The activities that is undertaken to identify the gap is known as gap analysis.

Planning Gap

Importance of planning
Planning is the life-blood of the organisation. NO PLANNING NO FUTURE!
Risk reduction Reduction of uncertainty Setting targets and standards Guidance Gains commitment Improves decision making

DEVELOPING PLANS

A plan is the outcome of the planning process.

formal plan which is very detailed, or an outline plan which is a skeleton of what is proposed.

At any level in the organisation, every plan should have:

1.Objectives 3.Strategies

2.Tactics/programmes

4.Controls.

Policy
Policy is expressed in statements made by the company about how it wants to operate. Policy relates directly to how the business is conducted. Examples of policy statements include: General statements of business operations:
It is company policy to donate 10% of all net profits to local charity.

Detailed operational practices:

Personnel procedures equal opportunities policy. Customer care procedures policy of refunds with no questions asked.

Objectives What is Being Aimed For

Objectives should be "SMART".

Specific Measurable Achievable Realistic Timed

Objectives may be quantitative or qualitative.

Quantitative
Quantitative objectives are those in which outcomes are expressed in terms of numbers relating to money, percentages, periods of time, output figures, etc. Egs are:
"To achieve 5% year-on-year growth in profit after tax for the next five years." "To effectively reduce operating costs by a total of 20% over the next five years and, in the same time period, to achieve growth in profit after tax by 8% each year." "To achieve 15% return on investment in the next tax year."

Sometimes the actual target figures will be given in the statement:

"To achieve 5,000,000 increase in profit in 2002, which represents a growth of 15% on 2000 profit levels."

 Qualitative objectives relate to service levels to be achieved, image, position, ethics, etc. The following is an excerpt from a statement of objectives published in the annual statement of a police force in northern England: "Within five years or as soon as is practicable, to have a police force which: is more open, relaxed and honest with ourselves and the public; is more aware of our environment, sensitive to change and positioning ourselves to respond to change; is more closely in touch with our customers, puts them first and delivers what they want quickly, effectively and courteously; is the envy of all other forces."

Qualitative

Strategies How to Achieve the Objective

The functions of a plan are to minimise conflict and to get the maximum from resources, by ensuring the coordination not just of purpose but of approach i.e. strategy. The strategy is simply the statement of method(s) that will be used to achieve the objective. These can be complex or simple, depending on the circumstances and the level or complexity of the plan itself.

 The tactics/programmes are the details of the plan. They spell out: Responsibilities - Who has to do something for example, personnel department to recruit new people, marketing department to design advertising, purchasing department to obtain materials, etc. Time -When something has to be done for example, Quarter 1/Year 1, or first week. The time is important and it must fit in with the overall time of the objectives. Every plan should have a timetable so that people can see how it is progressing. Money - The allocation of the allowed budget for example, 10% to personnel, 15% to marketing, 25% to production, etc. Depending on the level, the plan may be very specific on what has to be done with the money.

Tactics/Programmes The Operational Activities Involved

Controls Measurements
once you know what the time, money or any other aspects are for a plan, you can automatically set the measurement criteria. A control is therefore a standard, a target or an expectation. Our sample objective has two controls (8% and two years) which allow us to measure outcome. Control can be based on anything that is appropriate to the circumstances of the plan, e.g. number of orders per salesman; number of items manufactured, etc.

From Planning to Plans

It is important to distinguish between the activities of planning the things which are done to produce the plan and the plan itself, which is the outcome of the planning activity. The relationship between the two is shown in the following table.