1. Corporate Strategic
Planning
Asia-Pacific Marketing Federation
Certified Professional Marketer
Copyright
Marketing Institute of Singapore
2. Outline
Introduction
Meaning & Role of Strategic
Planning
Corporate Mission
Strategic Business Units (SBU)
Marketing Audit
3. Strategic Planning
…is the managerial process of developing
and maintaining a strategic fit between
the organization's objectives and
resources and its changing market
opportunities.
Org Objectives Strategic Fit Resources
Changing Environment
4. The Role of Strategy
Corporate Strategy:
Mission & •Corporate Operating
Objectives •Business Plans
•Functional
5. Sun Tze on Strategy
“Know your enemy, know yourself, and your
victory will not be threatened. Know the
terrain, know the weather, and your victory
will be complete.”
7. Corporate Mission
Broad purposes of the organization
General criteria for assessing the long-
term organizational effectiveness
Driven by heritage & environment
Mission statements are increasingly
being developed at the SBU level as well
8. Examples of Corporate Mission
SINGAPORE AIRLINES is engaged in air
transportation and related businesses. It
operates world-wide as the flag carrier of the
Republic of Singapore, aiming to provide
services of the highest quality at reasonable
prices for customers and a profit for the
company
9. Examples of Corporate Mission
(cont’d)
MARRIOTT’S Mission Statement:
We are committed to being the best lodging
and food service company in the world, by
treating employees in ways that create
extraordinary customer service and
shareholder value
10. Corporate Culture
The most abstract level of managerial
thinking
How do you define culture?
What is the significance of culture to
an organization?
How does marketing affect culture in
the organization?
11. Corporate Objectives & Goals
An objective is a long-range purpose
Not quantified and not limited to a time period
E.g. increasing the return on shareholders’ equity
A goal is a measurable objective of the
business
Attainable at some specific future date through planned
actions
E.g. 10% growth in the next two years
12. What is a Strategic
Business Unit? (SBU)
A set of products or product lines
With clear independence from other
products or product lines
for which a business or marketing strategy
should be designed
13. Characteristics of a viable SBU
Unique business mission
Definable set of competitors
Integrative planning done independently
Responsible for resource management in
all areas
Large enough but not so large as to
become bureaucratic
(Source: Subhash Jain, Marketing Planning & Strategy, 6th Ed.)
14. Organizational Marketing Levels
Hofer and Schendel suggested that
organizations develop strategies at three
structural levels:
Corporate level—(corporate marketing)
SBU level—(Strategic Marketing)
Product/Market level—(Functional
Marketing)
15. Marketing at the SBU Level—
Strategic Marketing
Strategic Marketing requires
Detailed understanding of market needs,
and
Proactive use of competitive intelligence at
the corporate as well as SBU’s levels
Strategic Marketing
Focuses on what the firm do best at the
SBU level
To secure and maintain a sustainable
competitive advantage
16. What is Competitive Advantage?
“Competitive advantage is a company’s
ability to perform in one or more ways
that competitors cannot or will not
match.” Philip Kotler
“If you don’t have a competitive
advantage, don’t compete.”
Jack Welch, GE
17. Other Characteristics of Competitive
Advantage
Substantiality
Is it substantial enough to make a difference?
Sustainability
Can it be neutralized by competitors quickly?
Ability to be leveraged into visible business
attributes that will influence customers
(Source: Strategic Marketing Management, Aakers)
18. Seeking Competitive Advantages
Positions of advantage
Superior customer value
Lower relative total cost
Performance advantages
Customer satisfaction, Loyalty, Market Share,
Profit
Sources of advantages
Superior skills & knowledge, Superior
resources, Superior business process
19. Key Elements of Marketing Strategy
Formulation
The strategic 3 Cs
Customers, Competitors & the Corporation
Environment analysis -- PEST
Strategic Marketing Decisions
Where to compete
How to compete
When to compete
20. A Viable Marketing Strategy
Must have a clearly defined market
Must have a good match between
corporate strengths and market needs
Must have significant positive
differentiation in the key success
factors of the business
21. Situation Analysis
Internal Analysis—company; capability etc.
External Analysis—customers, market definition,
industry structure
SWOT Analysis
S trengths, W eaknesses, O pportunities
& Threats
Identify & prioritize major problems and
opportunities: selection of key issues
Based on the firm’s core competencies,
decide on future options
22. Marketing Audit
“Marketing audit is a comprehensive,
systematic, independent, and periodic
examination of a company’s—or business
unit’s—marketing environment, objectives,
strategies, and activities with a view to
determining problem areas and
opportunities and recommending a plan of
action to improve the company’s marketing
performance” Philip Kotler
23. Characteristics of Marketing Audit
Comprehensive
Must cover all marketing areas
Systematic
Sequential diagnostic steps
Independent
Internal & external auditors
Periodic
Performed at regular intervals
24. Marketing Audit Procedure
Marketing environment audit
Marketing strategy audit
Marketing organization audit
Marketing system audit
Marketing productivity audit
Marketing function audit
Marketing excellence review
Ethical and social responsibility review
Editor's Notes
Mission statements may be developed at the SBU level in order to make sense, especially for large organization with diverse business interests e.g. NTUC INCOME and NTUC Fairprice
Have a unique business mission, independent of other SBUs Have a clearly definable set of competitors Be able to carry out integrative planning relatively independent of other SBUs Be able to manage resources in all areas Be large enough to justify senior management attention, but small enough to serve as a useful focus for resource allocation
A-Mei, the Taiwanese pop diva sang the Taiwanese anthem at President Chen Shui-bian’s May inauguaration (2000) and raise a political storm. China withdrew her Sprite soft drink ads from TV, newspapers and billboards across the country, almost jeopardising her contract with Coca-cola. Spokesman for Coca-cola was quoted as saying that the company was informed of the withdrawal a day before A-Mei even performed at the inauguration. Puyuma pop star, A-Mei, in a recent Sprite commercial, dances and sings in the old colonial powers quarter of Shanghai. She sings a chorus of "give me true feeling" in Mandarin to promote the product of an American multinational corporation. This ad and her music videos are screened on Hong Kong's TVB, MTV, and on channels of Rupert Murdoch's Star TV Group. Bit 2 In an August 1999 article "China's crazy about A-Mei" by New York Times News Service reporter Seth Faison, A-Mei is described as being "Taiwanese" and No. 1 in China. Feth describes A-Mei's sell out concerts in Beijing as "overpowering any consideration of the current battle over" Taiwan's sovereignty. This is in reference to the latest spat between Taiwan and the PRC due to President Lee's "state to state" relations comments. Bit 3 The shifting images of A-Mei (Chinese name Chuang Hui-mei) are quite market responsive. She has been called a "pop diva", Taiwan's Mariah Carey and other related labels. She is a superstar by regional commercial criteria, her 5 CDs released thus far having sold millions of copies along with concert videos and VCDs. Her brand of cultural products has become well known throughout East Asia. She has large advertising contracts with Fuji Film and Sprite. In general, she's done well commercially.