Part 3: Best Practices - The Strategic Marketing Plan

ProcessInitiatives

A Strategic Plan Framework Can Be Extensive

1. Develop the Strategy• Mission, values, vision• Strategic Analysis• Strategy formulation

2. Plan the Strategy• Strategy

Map/Themes• Measures/targets• Initiatives portfolio• Funding/STRATEX

3. Align the Organization• Business Units• Support Units• Employees

Strategic Marketing Plan• Strategy Map• Balanced Scorecard• STRATEX

6. Test and Adapt• Profitability• Strategy correlations• Emerging Strategies

4. Plan Operations• Key Process

improvement• Sales Planning• Resource capacity

plan• Budgeting

The Operating Plan• Dashboards• Sales forecast• Resource

requirements• Budgets

5. Monitor and Learn• Strategy Reviews• Operating Reviews• Surveys• One-on-ones

Execution

Performance measures

Performance measures

Source: Norton and Kaplan, The Execution Premium

The Strategic PlanClarify the Vision:• Mission, values• Vision statement• Strategic Shifts from/to

Value GapStrategic change agenda

Enhanced Vision

Develop the Strategy:• Strategic Analysis• Strategy formulation

Translate the Strategy:• Strategic Mapping• Measures and targets

Develop the Plan:• Strategic Initiatives• Strategic funding• Accountability

Strategic Plan

Strategic Issues

Strategy Direction Statements

Strategic ThemesBalanced Scorecard

Investment PortfolioTheme Teams

STRATEX

Source: Norton and Kaplan, The Execution Premium

A Strategic Marketing Plan

• Subset of Strategic Plan.• 180 days to formulate and implement.• Focuses on core competencies, leveraging strengths

and opportunities.• Innovation and growth orientation.• Contains marketing plan and budget.• 8 Profitability drivers.• Refer to the recommended format at

http://www.thesavvystrategist.com Password: billtyson

Elements of Good Strategy• Starts with a challenge.• Is focused on leveraging core skills.• Supported by a SWOT analysis.• Based on 3 time-tested principles:

– Creation of a unique and valuable position, involving a different set of activities than your rivals.

– Making tradeoffs in competing – choosing (and defining) what you will not do.

– Creating a “fit” between company activities so to develop synergies (as a result, the whole being greater than the sum of the parts) between interlocking parts

• Has a “Kernel” at the core

The Kernel of Good Strategy• Bare bones, heart of the strategy.• A diagnosis - that defines or explains the nature of the

challenge. – A good diagnosis simplifies the often overwhelming complexity of

reality by identifying certain aspects of the situation as critical. • A guiding policy for dealing with the challenge.

– This is an overall approach chosen to cope with or overcome the obstacles identified in the diagnosis.

• A set of coherent actions that are designed to carry out the guiding policy. – These are steps that are coordinated with one another to work

together in accomplishing the guiding policy.

Rumelt, Richard (2011). Good Strategy Bad Strategy: The Difference and Why It Matters (p. 104). Crown Business. Kindle Edition.

Bad Strategy• Fluff. Fluff is a form of gibberish masquerading as strategic

argument. It uses “Sunday” words (words that are inflated and unnecessarily abstruse) and apparently esoteric concepts to create the illusion of high-level thinking.

• Failure to face the challenge. Bad strategy fails to recognize or define the challenge. When you cannot define the challenge, you cannot evaluate a strategy or improve it.

• Mistaking goals for strategy. Many bad strategies are just statements of desire rather than plans for overcoming obstacles.

• Bad strategic objectives. A strategic objective is set by a leader as a means to an end. Strategic objectives are “bad” when they fail to address critical issues or when they are impracticable.

  Product and Services Alternatives

Market Options

Present Products/Services

Improved Products/Services

New Products/Services

Existing Market

Q1-Market Penetration

Q2-Product Extension (variants/limitations)

Q3-Product Development - Line extension

Expanded Market

Q4-Market Extension

Q5-Market Segmentation/Product Differentiation

Q6-Product Development/Market Expansion

New Market Q7-Market Development

Q8-Product/Services Extension and Market Development

Q9-Diversification

Where Do We Go From Here ?3 by 3 Framework

Start HereX

Business Model Redesign

In addition to being “the heart of strategy” it is one of the 4 key components of a business model which include: 1) the customer value proposition, 2) a revenue/profit formula, 3) marshaling the appropriate resources and 4) aligning necessary processes and workflows such as operations and manufacturing.

Source: Reinvent Your Business Model by Mark W. Johnson, Clayton M. Christenson, and Henning Kagermann, Harvard Business Review, December 2008 edition, page 50.

Constructing or Deconstruct Your Value Chain

Value Chain Activities• Primary activities:

– inbound logistics: materials handling, warehousing, inventory control, transportation;

– operations: machine operating, assembly, packaging, testing and maintenance;– outbound logistics: order processing, warehousing, transportation and

distribution;– marketing and sales: advertising, promotion, selling, pricing, channel

management;– service: installation, servicing, spare part management;

• Support activities:– firm infrastructure: general management, planning, finance, legal, investor

relations;– human resource management: recruitment, education, promotion, reward

systems;– technology development: research & development, IT, product and process

development;– procurement: purchasing raw materials, lease properties, supplier contract

negotiations.

Questions?

Part 4: Innovative Marketing and Distribution Approaches

Innovative Marketing and Distribution Approaches

• Mobile as the Big Disruptor• Mobile AD program• Cross Sell Upsell Platform• Lead Generation via service sites

Mobile as the Big Disruptor

• How is mobile changing the business of insurance?

• How are consumers embracing mobile?• How are insurers and technology firms

responding?• Critical Success Factors• Additional Innovative Marketing and

Distribution Approaches

Your customers are re-imagining what insurance means to them...

…and Insurers are Responding• Insurers are considering or piloting customer-facing mobile applications to help consumers

access policy/account information, file claims, pay premiums, locate offices/agents, and access financial tools and calculators

• Now almost every top insurance carrier has one, showing that the apps race is definitely on

• Insurers are also investing in mobile apps that improve the productivity of company resources such as mobile e-mail services, sales force apps, and field service apps

• Insurers continue to emulate the mobile tech adoption path of banking peers

© 2011 Forrester Research, Inc. Reproduction Prohibited

That demand for digital experiences is pressuring insurers to shift to doing the right things from just doing stuff right

Source: Forrsights Budgets And Priorities Tracker Survey, Q2 2011 (6-22-2011)Base: 2,741 IT Decision makers; 74 North American Insurance IT Decision makers

© 2011 Forrester Research, Inc. Reproduction Prohibited

...with mobile playing a starring role

Base: 185 NAM Insurance Network and Telecom DecisionmakersSource: Forrsights Networks And Telecommunications Survey, Q1 2011

About 60% of online retailers surveyed have defined the role mobile will play in the business

June 2011 “The State Of Retailing Online 2011: Marketing, Social, And Mobile”

© 2011 Forrester Research, Inc. Reproduction Prohibited

...and they have definite revenue goals for their mobile strategy

...meanwhile, we’ve finally reached the inflection point in the US for mobile banking

50 million US adult mobile bankers by 2015!

© 2011 Forrester Research, Inc. Reproduction Prohibited

4%

17%

25%

48%

54%

60%

66%

55%

79%

80%

66%

69%

Mobile

Automated phone

Office/branch

Phone with a rep

Web site

Mail

SatisfactionUse

Source: North American Technographics® Financial Services Online Benchmark Recontact Survey, Q2 2010 (US)

Base: US online adults who own at least one insurance product and have used each channel at least once in the past 12 months

Channels used to interact with an insurer over the past 12 monthsPercentage of users who are satisfied or extremely satisfied with each channel

...but in insurance, mobile adoption is low, even if customers are happy

Mobile Brings Intersection of Medium and Context

Sensors

Personal Information Mgmt

Porta

ble

Touch

GPSPhysical Awareness

Intimate and InteractiveLocation Aware

Personal, Social, C

onnected

Rele

vant

whe

re n

eede

d

Always onAlways on us

Mobile services – both Web and applications – have to offer three core benefits to drive usage

Convenience Quotient

Immediacy Simplicity Context

Geico uses the mobile camera to return a quote by email

Basic information is captured from the driver’s license

Next steps are communicated.

...while UK aggregator, comparethemarket.com, lets shoppers get a quote by taking a picture of the license plate

iPhone app that enable a user to: Create a profile (done once, usable

many times thereafter).

Initiate a quote request for a new auto policy by taking a picture of a license plate and submit the quote request.

App sends the user’s profile info plus any other info on the quote request.

Quotes from multiple carriers generated and presented in one screen back to the user on the iPhone.

Allstate’s Digital Locker gives insureds more reasons to engage, driving additional sales

© 2011 Forrester Research, Inc. Reproduction Prohibited

The more tech-savvy your customers are, the more likely they are to change insurers

“How likely are you to switch some of your business away from the firms below?” (% indicating likely or very likely)

Base: 7,727 Online AdultsSource: North American Technographics Customer Experience Online Survey, Q4 2010 (US)

Core Insurance Solutions

Policy

PolicyPolicy

BillingPolicy

FundsPolicy

Claims

Security Integration

Mobile Enabled Applications

Multi-Channel Delivery

Native Devices Mobile Web

Services

Roadmap

Consultancy

Development

Example Mobile Insurance FrameworkExtending the reach of business assets into the mobile space

Mobile FrameworkHosted or On-Premise

Broker/Agent2Work™Consumer

Cloud

Manage

Testing

Policy

Other

Adapters

Mobility Challenges

Missing necessary tech and business skills

Supporting numerous platforms

Security exposures

Delivering on end user experience

Required infrastructure investment

Identifying meaningful process improvements

Supporting B.Y.O.T. (Bring Your Own Technology)

Developing acceptable ROI

Impediments To Successful Adoption

Putting the App in the Ecosystems

• Privacy policy• EULA• Distribution

– App Store or Enterprise deployment for iPhone– App World or OTA for Blackberry– Market for Android including OTA capabilities

• Gathering data– Ecosystems include online tools for monitoring downloads– Web application monitoring tools for browser access

Innovative Marketing and Distribution Approaches

• Mobile AD program• Wisemuv.com - Digital Cross Sell Upsell

Platform• Lead Generation via service sites:

– License America– Legal Einstein – Will Service– Social Security Solutions

Questions?

Resources - • Access everything through

http://www.billtyson.com• See Strategy-In-Action blog at:http://www.billtyson.wordpress.com• For a copy of the Recommended Format for a

Strategic Marketing Plan, please visit my web site at: http://www.strategicmarketingplus.com and go to the contact page.

• AIPAGIA Presentation is available at:http://www.linkedin.com/in/billtyson