Strategic Planning for Marketing & Selling

What is Strategic Planning?

An organized and documented method on setting objectives and defining how they will be accomplished It describes how an organization or an individual will get to where he wants to go AND It describes how one will know whether he got there any time

What are the benefits of Strategic Planning?

Improves Organizational Performance Provides Focused and Realistic Direction Clarity about where we are going and how we will get there

Improve Resource Development Efforts

Strategic planning process

Assess strengths, weaknesses, Opportunities and Threats Define Goals and Objectives Establish SMART Action Plans to meet identified Goals and objectives Evaluate Progress

Strategy

Strategy is planning that allows you to get more business than your incidental share. Strategy is about getting customers and keeping them. Drucker: The purpose of a business is to create a customer. Build it and they will come.

STRATEGY IN ACTION

Strategy

The process of strategy includes: Analysis

Formulation Implementation

Strategic Planning and Analysis

Planning how to get more than your fair share involves:

Scanning the overall environment

Scanning and researching the industry environment

Researching direct competitors Researching skills and resources

Analyzing current strategy

Operational Effectiveness Is Not Strategy

Operational effectiveness is necessary to compete but not sufficient to win.

A company can outperform others and win only if it can establish a difference that it can sustain a differential competitive advantage.

In the past barriers to entry were the primary competitive advantage.

Operational effectiveness means doing things better than competitors, strategic positioning means doing things different from competitors.

Strategy Rests On Unique Activities

The essence of strategy is choosing to perform activities differently than rivals do.

Strategic positions can be based on customers needs, customers accessibility, or the variety of a companys products or services.
Change is happening too fast.

Generic Strategies

There are three generic (primary) strategies:

Differentiation Focus (niche marketing) Cost leadership

These definitions characterize strategic positions at the simplest and broadest levels.

Secondary Strategies

Within the three basic strategies, there are several secondary strategies:

Defense: Block competition to avoid losing market share. Offense Flanker Brand Fighting Brand : Attack competition head on. : Establish new position. : Create a new brand to compete with competitive new brand.

Guerrilla Marketing: Force competition to respond with small resources.

Ambush Marketing

Determining Strategy

To determine strategy, answer the following questions:

Which of our products/services are the most distinctive? Which of our products/services are the most profitable?

Which of our customers are the most satisfied?

Which customers, channels, or purchase occasions are most profitable? Which of the activities in our value chain are the most different and effective. How can we make everything better? Now!

Potential Traps

Meaningless differentiation Getting greedy Throwing money at a problem Lack of commitment Innovation stagnation

Profit is Important

Profit is the key to a successful strategy

Compromises and inconsistencies in the pursuit of growth will erode the competitive advantage a company.

Keep an eye on profitable growth.

FROM THE EXPERT

SUMMARY

Must have a clear and simple strategy. Must define how to get more than a fair share. Must be committed to strategic moves and signal commitment to competitors. Must follow through on commitments continually and retaliate quickly and aggressively to counter moves. Must continually innovate

What is Marketing??

Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories?

All of the above, plus much more!

Marketing = ?
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals

American Marketing Association

Marketing = ?

Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

Simple Marketing System

Communication

Goods/services

(a collection of sellers)
Money

Industry

(a collection of Buyers)

Market

Information

Marketing = ?
Marketing

is the sum of all activities that take you to a sales outlet. After that sales takes over. is all about creating a pull, sales is all about push. is all about managing the four Ps
product

Marketing Marketing

price
place promotion

The 4 Ps & 4Cs

Marketing Mix Convenience

Product

Place

Customer Solution

Price

Promotion

Customer Cost

Communication

Difference Between - Sales & Marketing ?

Sales Trying to get the customer to want what the company produces Marketing Trying to get the company produce what the customer wants

Who is a Customer ??
Anyone who is in the market looking at a product / service for

attention, acquisition, use or

consumption that satisfies a want

or a need

Customer

CUSTOMER has needs, wants, demands and desires Understanding these needs is starting point of the entire marketing These needs, wants arise within a framework or an ecosystem Understanding both the needs and the ecosystem is the starting point of a long term relationship

How Do Consumers Choose Among Products & Services?

Value - the value or benefits the customers gain from using the product versus the cost of obtaining the product. Satisfaction - Based on a comparison of performance and expectations.

Performance > Expectations => Satisfaction

Performance < Expectations => Dissatisfaction

Customers - Problem Solution

As a priority , we must bring to our customers WHAT THEY NEED

We must be in a position to UNDERSTAND their problems

Or in a new situation to give them a chance to AVOID the problems

Classification of Services
Banking Pure Intangible Service Good Transportation Major Service with Minor Product Business Hotels Product = Service Computers Major Product with Minor Services Materials / Components

Major Characteristic of Services

Intangibility Services are intangible - cannot be seen, tasted, felt, heard or smelled before purchase. Inseparability - Services are produced and consumed simultaneously. Variability or Heterogeneity Services are highly variable

Perishability Services cannot be stored.

Non Ownership - Services are rendered but there is no transfer of title

Great Words on Marketing

1.

The purpose of a company is to create customerThe only profit center is the customer.

2.

A business has twoand only twobasic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.

3.

While great devices are invented in the Laboratory, great products are invented in the Marketing department.

Competition Centric/Customer Centric Selling Plan

The range of products has emerged from being competition-centric. Technology alone does not deliver, helps people do. Customers need to be educated too Customers are not only present where competition is. Advertising will only sell, Not retain customers. Selling focuses on the needs of the seller; marketing on the needs of the buyer. Trust is not a differentiator at all it is the very minimum that the customer expects!!

So what will the differentiators be :

Technology ? Brand ?

The real differentiator of customer centricity in a commoditised world of financial

products -

Customer Service !