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SCCaT Stephen Cashman Consultancy & Training The essentials of strategic marketing planning AMA Speaker’s Tour - Autumn 2003 Birmingham - Bristol - Glasgow - London

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Page 1: Stephen Cashman Consultancy & Training - CultureHiveculturehive.co.uk/wp-content/uploads/2013/04/Thinking-Big-slides.pdf · Stephen Cashman Consultancy & Training ... Using the two

SCCaTStephen Cashman Consultancy & Training

The essentials of strategic marketing planning

AMA Speaker’s Tour - Autumn 2003

Birmingham - Bristol - Glasgow - London

Page 2: Stephen Cashman Consultancy & Training - CultureHiveculturehive.co.uk/wp-content/uploads/2013/04/Thinking-Big-slides.pdf · Stephen Cashman Consultancy & Training ... Using the two

Overview of session

The ‘Thinking BIG!’ SMP framework

Marketing, strategy & strategic marketing -working definitions

Mission as the starting point

Using the two pivotal tools: SWOT & TOWS

Identifying strategy sets using TOWS

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The underlying stages of marketing planning

1. Goal setting - Why are we here & where shall we go?

2. Situational analysis - Where are we now, what’s out there, and what are we dealing with?

3. Action planning & targeting - What shall we do & who should we do it with?

4. Implementation - How do we best put our plans into action?

5. Evaluation - How will we know when we’ve got to our goal and if it all worked?

Page 4: Stephen Cashman Consultancy & Training - CultureHiveculturehive.co.uk/wp-content/uploads/2013/04/Thinking-Big-slides.pdf · Stephen Cashman Consultancy & Training ... Using the two

The ‘Thinking BIG!’ strategic marketing planning [SMP] framework

SMP phase 1

STRATEGIC GOAL SETTING

SMP phase 2

STRATEGIC ANALYSIS

SMP phase 3

MAKING & SELECTING STRATEGIES

SMP phase 4

STRATEGIC ACTION

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The marketing concept

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Thoughts on strategy - 1

It’s important:

‘Every company needs a strategy - either explicit or implicit’

Costas Marikides [1995]

‘The survival, growth and prosperity of any organisation depends on the quality and viability of the strategy the organisation is pursuing’

Andrew Kakabadse, Ron Ludlow & Susan Vinicombe [1988]

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Thoughts on strategy - 2

But beware! :

‘The word “strategy” has become one of the most common and badly used words in business writing.’ Paul Fifield [1992]

‘There is no single, universal accepted definition [of strategy]. Different authors and managers use the term differently.’ Mintzberg & Quinn [1998]

‘Strategy is very important. But no one knows what it means. Every professor in the world has a different version of what strategy means.’Jo Owen [2002]

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Thoughts on strategy - 3

Helpful thoughts:‘Strategy is concerned with making major decisions affecting the long-term direction of the business’

Drummond & Ensor [1999]

‘[Strategic management] is a systematic approach to a major responsibility of management - to position and relate the firm to its environment in a way that assures its success and makes it secure from surprises’

Ansoff & McDonnell [1990]

Page 9: Stephen Cashman Consultancy & Training - CultureHiveculturehive.co.uk/wp-content/uploads/2013/04/Thinking-Big-slides.pdf · Stephen Cashman Consultancy & Training ... Using the two

Key characteristics of strategy

It’s something that’s very important

No hard & fast definitions - can depend upon perspective

Concerned with addressing big organisationalissues

About aligning the organisation with its environment in order to maintain ‘fit’

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So Strategic Marketing …

is the application of a strategic approach

to an organisation’s marketing activities

which thus contributes to the achievement

of the organisation’s overall goals

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Tactics vs Strategy

Aspect TACTICS STRATEGYEmphasis

Purpose

Time-frameExtent

Focus

Navigation

The quick fix

Achieving operational goals

The wider game

Reaching underlying ends

Short-term Long-term

Local GlobalImmediate needs& issues

Adapts to create long-term change

Take the 2nd left Get to London

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Practical activity 1 So how strategic is your marketing activity?

Is it more tactical or more strategic and why?

Aspect of marketing activity

Page 13: Stephen Cashman Consultancy & Training - CultureHiveculturehive.co.uk/wp-content/uploads/2013/04/Thinking-Big-slides.pdf · Stephen Cashman Consultancy & Training ... Using the two

The ‘Thinking BIG!’ strategic marketing planning [SMP] framework

SMP phase 1

STRATEGIC GOAL SETTING

SMP phase 2

STRATEGIC ANALYSIS

SMP phase 3

MAKING & SELECTING STRATEGIES

SMP phase 4

STRATEGIC ACTION

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The importance of mission

Missions tend to combine:

The aspirations that management & stakeholders hold for the organisation

Its overall purpose or reason for being

The things that it considers important - its values

And its overall, very long term goals.

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The mission should inform & shape all other activity

The ‘MOST’ hierarchy:

Mission

Objectives

Strategies

So initialmarketing objectivesdetail how marketing willcontribute tothe achievement of the mission

Tactics

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HELP!!!

‘We don’t seem to have a mission, or I don’t know what it is’

So:Ask yourself ‘why not?’

Take action of some sort

If needs, be devise a ‘marketing mission’ and set of ‘marketing objectives’ to be agreed with colleagues

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Practical activity 2 Developing marketing objectives from the mission

Implied marketing objectivesMission aspect

Page 18: Stephen Cashman Consultancy & Training - CultureHiveculturehive.co.uk/wp-content/uploads/2013/04/Thinking-Big-slides.pdf · Stephen Cashman Consultancy & Training ... Using the two

The ‘Thinking BIG!’ strategic marketing planning [SMP] framework

SMP phase 1

STRATEGIC GOAL SETTING

SMP phase 2

STRATEGIC ANALYSIS

SMP phase 3

MAKING & SELECTING STRATEGIES

SMP phase 4

STRATEGIC ACTION

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SMP Phase 2: Strategic Analysis

aka - ‘situational analysis’

“Where are we now, how did we get here & what are we dealing with?”

Internal - Marketing audit & review

External - PEST, competitor & trend analysis

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The ‘pivotal’ tools

Used to transform analysis into planned actions

SWOT summarises the analysis

Then TOWS distills proposed strategic actions from the SWOT summary

Page 21: Stephen Cashman Consultancy & Training - CultureHiveculturehive.co.uk/wp-content/uploads/2013/04/Thinking-Big-slides.pdf · Stephen Cashman Consultancy & Training ... Using the two

The ‘Thinking BIG!’ strategic marketing planning [SMP] framework

SMP phase 1

STRATEGIC GOAL SETTING

SMP phase 2

STRATEGIC ANALYSIS

SMP phase 3

MAKING & SELECTING STRATEGIES

SMP phase 4

STRATEGIC ACTION

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Making SWOT work

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Practical activity - 3

+ve factors -ve factors

WEAKNESSESSTRENGTHSInternal to current reality

OPPORTUNITIES THREATSExternalto current reality

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TOWS

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Examples of TOWS strategies

1.Strength: Organisation is perceived as being approachable by community

Opportunity: Local Authority is seeking an organisation to run family-friendly events

Resulting strategy: The creation and running of a programme of events customised to be family friendly, to be funded by LA.

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Examples of TOWS strategies

2.Weakness: Main programming strand is perceived as being expensive

Threat: Decreasing number of users being drawn from socially excluded areas

Resulting strategy: Introducing a new pricing policy for socially excluded families including a discounted family ticket

Page 27: Stephen Cashman Consultancy & Training - CultureHiveculturehive.co.uk/wp-content/uploads/2013/04/Thinking-Big-slides.pdf · Stephen Cashman Consultancy & Training ... Using the two

‘Strategy set’ spotting

A strategy set:

is an overall group of strategies that have common aspects or are intended to address a similar set of issues.

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How to build strategy sets

1. Use the TOWS grid to stimulate & generate ideas

2. When all your initial thinking is done, sort & group the strategies into sets.

3. Now give the resulting sets a pithy ‘headline’ name.

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First generate the ideas

Threats

Opportunities

WeaknessesStrengths

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Then sort into sets

Threats

Opportunities

WeaknessesStrengths

Page 31: Stephen Cashman Consultancy & Training - CultureHiveculturehive.co.uk/wp-content/uploads/2013/04/Thinking-Big-slides.pdf · Stephen Cashman Consultancy & Training ... Using the two

Then sort into sets

Page 32: Stephen Cashman Consultancy & Training - CultureHiveculturehive.co.uk/wp-content/uploads/2013/04/Thinking-Big-slides.pdf · Stephen Cashman Consultancy & Training ... Using the two

Then sort into sets

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Identifying strategy sets entails a mental ‘gear shift’ on the SMP ‘rollercoaster’

General

Specific

Mission

Objectives

Analysis

Detailed strategies

Strategysets

Action plans

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Practical Activity 4

Working with a partner, and using the short SWOT analysis developed earlier:

Complete the TOWS grid on the next slide

And identify the implied strategy sets

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Practical Activity 4 - worksheet

STRENGTHS WEAKNESSES

OPPORTUNITIES SO strategies WO strategies

ST strategiesTHREATS WT strategies

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Pulling it altogether

With the strategy sets identified, now all you need do to complete the SMP is to develop:

A branding & positioning plan

A marketing mix plan

An implementation plan (including budgets and timetables)

And an evaluation plan.

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The ultimate strategic consideration

Relates to approaches based on EFFECTIVENESS rather than efficiency

“Efficiency is about doing things right.

Effectiveness is doing the right thing”Peter Drucker [1947] The Effective Executive

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References & resources

Ansoff, I. & McDonnel, E. [1990] Implanting Strategic Management, Prentice Hall.

Drucker, P. [1947] The Effective Executive, Butterworth-Heinemann.

Drummond, G. & Ensor, J. [1999] Strategic Marketing: planning & control, Butterworth-Heinemann.

Fifield, P. [1992] Marketing Strategy, Butterworth-Heinemann / CIM.

Kakabadse, A., Ludlow, R. & Vinicombe [1988] Working in Organisations, Penguin Books.

Marikides, C [1995] ‘Strategic management - an overview’ in Crainer, S. The Financial Times Handbook of Management, Financial Times / Pitman Publishing.

Mintzberg, H. & Quinn, J B [1998] Readings in the Strategy Process (3rd edition), McGraw-Hill.

Owen, J. [2002] Management Stripped Bare: what they don’t teach you at business school, Kogan Page.

The ‘Thinking BIG!’ hand-drawn diagrams were produced by Sugar Free Design 020 7243 2100