Strategic Management And Leadership SAMPLE MATERIAL
ALPathways PlusSAMPLEMLevel 7ATERIStrategic Managementand LeadershipUnit 7008V1Developing a Marketing Strategy
Pathways PlusUnit 7008V1: Developing a Marketing StrategyCopyright Chartered Management Institute, Management House, Cottingham Road, Corby,Northants NN17 1TT.Ray RowlingsBob CrosonRoger Merritt AssociatesTrevor WestonSuzanne PattinsonDecent TypesettingRevised July 2013ERIAuthor:Consultant:Series consultant:Project manager:Editor:Page layout by:ALFirst edition 2009ISBN 0-85946-508-XATBritish Library Cataloguing-in-Publication Data. A CIP catalogue record for this publication is available fromthe British Library.MAll rights reserved, save as set out below. No part of this publication may be reproduced, stored in aretrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying,recording or otherwise, without the written permission of the copyright holder except in accordance withthe provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by theCopyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England WIT 4LP.MPLEApplications for the copyright holder’s written permission to reproduce any part of this publication should beaddressed to the publisher. Permissions may be sought directly from the Chartered Management Institute inCorby, UK. Phone Publications on ( 44) (0) 1536 207379, or email publications@managers.org.uk.This publication is sold subject to the condition that it shall not, by way of trade or otherwise, be lent,re-sold, hired out, or otherwise circulated without the publisher’s prior consent in any form of binding orcover other than that in which it is published and without a similar condition being imposed on thesubsequent purchaser.Approved centres may purchase a licence from the publisher, enabling PDF files of the publication to beprinted or otherwise distributed solely within the centre for teacher and student use only according to theterms and conditions of the licence.Further information is available on the licence from the Chartered Management Institute.Phone ( 44) (0) 1536 207379, or email publications@managers.org.uk.SAEvery effort has been made to trace holders of copyright material reproduced here. In cases where this hasbeen unsuccessful or if any have inadvertently been overlooked, the publishers will be pleased to addressthis at the first opportunity.The publishers would like to thank the following for permission to reproduce copyright material:Palgrave Macmillan for the table of the 4Cs on page 47 from Mastering Marketing Management, 2002,by Roger I. Cartwright.Pearson Education for Fig 1.2c, Blended mix of promotional tools, p.43; table, p.43-4; table ofmarketing plan structure, p.50-1 (from Kotler, J. et al, Principles of Marketing, 2005 and for Fig 2.2a,Allocation of targeted marketing and sales efforts, p.55, (from Chisnall, P., Strategic BusinessMarketing, 19952
ContentsAbout Pathways Plus .5Introduction .9ALSection 1 Marketing planning . 11Topic 1: Strategy and marketing planning . 12ERI1.1 Marketing and strategic objectives . 121.2 The marketing planning process . 171.3 A marketing audit . 21Topic 2: Components of marketing planning and risks . 24AT2.1 Using a SWOT analysis . 242.2 Marketing objectives . 262.3 Core marketing strategy . 282.4 Managing marketing risks . 31MSection summary . 34MPLESection 2 Developing the marketing plan . 35Topic 1: Managing the marketing mix . 361.1 An effective marketing mix . 361.2 The 7Ps framework . 381.3 The 4Cs framework . 47Topic 2: Managing actions and budgets. 502.1 Action programmes . 50SA2.2 Managing the budget . 532.3 Controlling the action programme . 56Section summary . 60Section 3 Agreeing and reviewing the marketingplan . 61Topic 1: Organisation and implementation . 621.1 Marketing organisation. 623
1.2 Implementing marketing plans . 661.3 Marketing control . 69Topic 2: Gaining agreement for the plan. 742.1 Gaining support and commitment . 742.2 Implementation strategies . 772.3 Evaluating and reviewing the marketing plan . 80ALSection summary . 83Further reading . 85ERIBefore you move on . 86Preparing for assessment . 86SAMPLEMATThe Management and Leadership Standards . 864
About Pathways PlusDevelopment guidesThere are 12 development guides in the Pathways Plus series tocover the 14 units of the qualifications at CMI Level 7: StrategicManagement and Leadership.Personal leadership development as a strategicmanager(ISBN: 0-85946-572-1)7002V1Developing performance management strategies(ISBN: 0-85946-577-2)7003V1Financial management(ISBN: 0-85946-582-9)7004V1Strategic information management(ISBN: 0-85946-587-X)7005V1Conducting a strategic management project(ISBN: 0-85946-592-6)ATERIAL7001V17006V1/ Reviewing organisational strategy plans and7011V1 performance/Strategic planning(ISBN: 0-85946-597-7)Financial planning(ISBN: 0-85946-503-9)M7007V1Developing a marketing strategy(ISBN: 0-85946-508-X)7009V1Strategic project management(ISBN: 0-85946-513-6)7010V1Implementing organisational change strategies(ISBN: 0-85946-518-7)7012V1Strategic human resource planning(ISBN: 0-85946-523-3)MPLE7008V1SA7013V1/ Strategic leadership/Strategic leadership practice7014V1 (ISBN: 0-85946-528-4)7021V1Introduction to strategic management and leadership(ISBN: 0-85946-533-0)7022V1Developing risk management strategies(ISBN: 0-85946-538-1)7023V1Strategic corporate social responsibility(ISBN: 0-85946-543-8)For further details on the development guides:Phone:( 44) (0)1536 207379Fax:( 44) (0)1536 207384Email:publications@managers.org.uk5
Developing a Marketing StrategyHow to use the development guideThe development guides provide a critical commentary to theideas of writers and thinkers in the management and leadershipfield. They offer opportunities for you to investigate and applythese ideas within your working environment and job role.StructureALEach guide is divided into sections that together cover theknowledge and understanding required for the equivalent unit orunits of the Chartered Management Institute Level 7 StrategicManagement and Leadership qualifications.ActivitiesATERIEach section starts with a clear set of objectives linked to thelearning outcomes of the qualification. You don’t have tocomplete the sections in the order they appear in the guide (themind map at the beginning of each guide will help you decidewhich sections and topics are of particular need or interest) butyou should try to cover all sections if you are aiming for a fulldiploma qualification.MThroughout the guides there are activities for you to complete.These activities are designed to help you reflect on your ownsituation and apply your research to your organisation. Space andtables are provided within the activities for you to enter yourown thoughts or findings, but in some cases you may choose tocopy out the table or make notes in a separate notebook.MPLETimingsTimings are suggested for each activity to give you a rough ideaof how long you should devote to them. They’re not hard andfast, and you must decide whether you will benefit fromspending longer on some activities than stated.SASRSupporting resourcesThe text of the guides is designed to provide you with anintroduction to the subject and a commentary on some of thekey issues, models and thinkers in the field. The activities arethere to help provide a framework for your thinking. A keycomponent of Pathways Plus (Pathways Plus because thedevelopment guides work together with the online supportingresources to provide an overall learning journey) is the list ofreferences given throughout the text and at the end of eachtopic guiding you to the most appropriate supporting resourcesfor you to explore yourself. These are marked with the symbol SR(as shown above).You have the opportunity to select those resources that are ofmost interest or relevance to you and to use them as a source ofguided research on a particular topic. Many of the supportingresources are immediately available by logging into CMI’s online6
About Pathways PlusALP management and leadership portal, ManagementDirect (MDir)(http://mde.managers.org.uk/members), or where you work foran organisation that subscribes to this service use the specificlink for your ion name) . Theseresources are marked in the reference list at the end of eachtopic with P standing for Pathways Plus. Once logged intoManagementDirect click on More . on the navigation bar andselect Senior Manager Resources, this will take you straight tothe list of supporting resources as listed in the Pathways Plustopics. When there, click on the title of your development guide,the section and the topic you’re interested in and then clickstraight to the article, video, checklist, extract or report thatyou want to find.ERIFor those resources that are not available through the CMI site,you will be directed to other sources (some also online) to reachwhat you need.Preparing for assessmentATFurther information on assessment is available in the StudentGuide produced as part of the Pathways Plus series. If you haveany further questions about assessment procedures, it’simportant that you resolve these with your tutor or centrecoordinator as soon as possible.MFurther readingMPLESuggestions for further reading and links to managementinformation are available via ManagementDirect through theStudy Support section of the Institute's website athttp://mde.managers.org.uk/members. Alternatively, emailask@managers.org.uk or telephone 01536 207400. You will alsofind titles for further reading in the Bibliography at the end ofthis workbook.SAThe CMI Management Library holds an extensive range of booksand pamphlets for loan to members. A postal loan service isoffered to members in the UK only. You will only pay your returnpostal charges. Go to www.managers.org.uk/library to reviewthe collection and to place your requests.7
SAMPLEMATERIALDeveloping a Marketing Strategy8
IntroductionWelcome to this development guide on strategic marketing. Thisguide is about identifying, developing, agreeing and monitoring amarketing plan that supports strategic objectives.It’s divided into three sections:ALSection 1 looks at understanding the marketing plan, the linksbetween strategy and marketing and the key components of amarketing plan and risks.ERISection 2 considers developing the marketing plan andfocuses on the key aspects of managing the marketing mixand marketing actions and budgets.Sections 3 focuses on agreeing and reviewing the marketingplan, taking into account the organisation, gaining agreementfrom the various stakeholders involved and thenimplementing it.Key questionsATMarketing planning, according to David Jobber, consists oftackling five key questions with nine key stages.Stages in marketingplanningBusiness missionMarketing auditSWOT analysisSection 1Where are weheading?Marketing auditSWOT analysisSection 1Where would welike to be?Marketing objectivesSection 1How do we getthere?Core strategyMarketing mix decisionsOrganisationImplementationSection 1Section 2ControlSection 3MWhere are we nowand how did we gethere?MPLESAAddressedin this guideAre we on course?Section 3Section 3Source: Jobber, D., 2001, Principles and Practices of Marketing, McGraw-HillPublishing CompanyThese questions and stages provide a helpful framework forexploring marketing planning, in particular, strategic marketingplanning, and so provide a basic structure for this developmentguide.9
Developing a Marketing StrategyDevelopment guide mind mapSection 1: MarketingplanningAssessmentSection 3: Agreeingand reviewing themarketing planALStrategicmarketingERISection 2:Developing themarketing planATIf you’re studying for the Level 7 in Strategic Management andLeadership qualifications you will be assessed by your approvedcentre on your knowledge and understanding of the followinglearning outcomes:Unit 7008V1:Understand how the marketing plan supports strategicobjectives2Understand the construction of a marketing plan3Be able to construct a marketing plan4Understand how to promote the marketing plan in support ofstrategic objectivesSAMPLEM110
Section 1 Marketing planningIntroductionALThis section will help you understand how the marketing plansupports strategic objectives. It begins by considering therelationship between strategy and marketing planning, and thenmoves on to explore the components of marketing planning andthe risks associated with it.Learning outcomesThis section covers the following learning outcome:Understand how the marketing plan supportsstrategic objectivesSection mind mapERI7008V1.1ATThere are two topics in this section as shown below. Check thesubjects within each one and then continue with the areas youneed to explore.MMPLE1.1 Marketingand strategyobjectivesSection 1:MarketingplanningTopic 1:Strategy andmarket planning2.4 ManagingmarketingrisksTopic 2:Components ofmarketingplanning andrisksSA1.2 Themarketingplanningprocess1.3A marketingaudit2.3 Coremarketingstrategy2.1 Using aSWOT analysis2.2 Marketingobjectives11
Developing a Marketing StrategyTopic 1:Strategy and marketing planningIntroductionALIn this topic you’ll consider the links between strategy andmarketing planning. You’ll begin with marketing and strategicobjectives, looking first at a definition of marketing strategy andthen at how marketing strategies are developed. You’ll then lookat the role of marketing in strategic planning, in particular, at astrategic windows and external analysis.ERIThe topic then moves on to the marketing planning process. Itfocuses on strategy and marketing planning, key planningquestions, a process for marketing planning and planning atbusiness and product level.The topic concludes by exploring the marketing audit, looking atboth external and internal marketing audit techniques.Marketing and strategic objectivesAT1.1An organisation’s marketing strategy should support its strategicobjectives and strategic planning. The Chartered Institute ofMarketing defines marketing strategy as follows:MThe set of objectives which an organisation allocates to itsmarketing function in order to support the overall corporatestrategy, together with the broad methods to achieve theseobjectives.And Hammonds in Kotler and Keller suggests the following:MPLESR 2A key ingredient of the marketing management process isinsightful, creative marketing strategies and plans that canguide marketing activities. Developing the right marketingstrategy over time requires a blend of discipline andflexibility. Firms must stick to a strategy but must also findways to constantly improve it.SAKotler and Keller propose that a marketing plan operates at twolevels:Strategically: A strategic marketing plan identifies targetmarkets and the value proposition, based on an analysis ofmarket opportunities.Tactically: A tactical marketing plan drills down and definesmarketing tactics, which should include:product featurespromotionmerchandisingpricingsales channelsservice.12
Section 1 Marketing planningYou’ll explore the tactical level in Section 2.In today’s business environment the marketing planning processreceives inputs from various parts of the organisation. Theseplans are then implemented and outcomes monitored, and, ifnecessary, corrective action is undertaken. Kotler and Kellerpropose a helpful model for considering the planning, control andimplementation cycle, as shown below.ImplementingCorporate planningOrganisingDivision planningImplementingControllingALPlanningMeasuring resultsBusiness planningTaking correctiveactionATProduct planningERIDiagnosing resultsFigure 1.1a: Planning, implementing and controlling cycleSource: Kotler and Keller (2006)MImplementing and controlling the marketing plan are consideredin Section 3 of this guide. The table below sets out Kotler andKeller’s discussion on the four stages of planning as outlinedabove.Summary of activityCorporateplanning anddivision planning(Kotler and Kellerdon’t see anydifferences inapproach forthese two stages)This is generally covered by four planningactivities:Defining the corporate missionEstablishing strategic business units (SBUs)Assigning resources to each SBUAssessing growth opportunitiesBusiness planningThis is seen as a six-step process consisting ofthe following:1 Defining the business mission (in line withthe broader corporate mission).2 SWOT analysis — focused on the externalenvironment (opportunities and threats)and an internal analysis (strengths andweaknesses).3 Goal formulation — objectives relating toprofitability, growth, market share, riskcontainment, innovation and reputation.4 Strategic formulation — the plan(strategy) for achieving the goals. KotlerSAMPLEPlanning stage13
Developing a Marketing StrategyALAT6ERI5and Keller suggest this could be based onPorter’s definition of overall costleadership, differentiation or a focus onspecific niche segments. They also discussstrategies such as strategic alliances.Programme formulation andimplementation — Kotler and Kellerdefine these as support programmes forthe strategy developed previously. Theyhighlight that great strategies can beruined by poor implementation.Programmes need to be costed and theneeds of stakeholders taken intoconsideration.Feedback and control — an organisationneeds to track the results ofimplementing the strategy and supportingprogrammes. The market place willchange, which the organisation needs torecognise. It must have effective systemsand procedures that monitor the externalenvironment and internal capabilities.Kotler and Keller suggest this stage is bestmet by the development of a marketing planfor individual products and services,demonstrating how they will meet theirobjectives.The key components of the plan are asfollows:Executive summary and table of contents— summary of main goals andrecommendations, plus some navigationand directions for the reader.Situation analysis — background data onthe market environment.Marketing strategy — defines theobjectives, the target market, thepositioning of the product or service, plusinput on finances and human resourcerequirements to support implementation.It should also be specific about brandingand customer strategies.Financial projections — could include salesand expense forecasts and a breakevenanalysis.Implementation controls — outline thecontrols for monitoring and adjusting theplan. Internal and external measures areidentified. It could include contingencyplans to respond to certain externalenvironment developments.SAMPLEMProduct planning14
Section 1 Marketing planningThe marketing concepts highlighted in the business planning andproduct planning stages above are explored in more detail in thenext topic and also in Section 2.The role of marketing in strategic planningLancaster and Massingham suggest that there’s often someconfusion about the relationship between marketing andstrategic planning. On the one hand, there’s the argument thatan organisation must focus on its ability to satisfy customerneeds (often a definition of the purpose of marketing).Therefore, as planning to meet those needs becomes the focus ofall organisational planning, strategic and marketing planning areintegrated.ALSR 6ERIThe other viewpoint is that marketing is just another functionalarea of the business. Marketing planning is therefore aboutresponding to higher level organisational strategies and plans.ATThese authors propose an alternative viewpoint. They suggestthat in functional planning, for example, marketing planning isoften part of a hierarchy of planning, led by strategic planning.However, markets, customers and competitors are key aspects ofany organisation’s strategic planning, and any marketinginformation should contribute to overall strategic planning. Theyprovide the following examples of how that can work in practice.Sales and market share analysis,product life cycle analysis, profitanalysisInformation on currentmarket positionCompetition analysis, major marketsegments, product portfolio analysis,customer satisfactionMPLEMInformation on pastperformanceInformation on likelyfuture trends andchangesSales and market forecasts, newcompetition factors affecting likelyfuture patterns of demandStrategic windows and marketing planningSASR 5Tony Proctor builds on some earlier work by Abell (dating back to1978) on the concept of ‘strategic windows’. Proctor definesthese as follows:The principle idea behind the concept of a strategic windowis that there are only limited periods during which the fitbetween the key requirements of a market and theparticular competencies of a firm competing in that marketis at an optimum.He suggests that an organisation should try and match investmentin a new product, service or market with the ‘opening of acorresponding strategic window’. The reverse can apply, and anorganisation should consider withdrawing a product or servicefrom a market where there’s no longer a good fit and the windowis either closed or closing. This can often be caused by changes inthe external environment which the organisation isn’t able to15
Developing a Marketing Strategyrespond to. For example, competitors drive the price down belowprofitable levels. This happens frequently with supermarkets,where one organisation will ‘position’ a product at below costlevel (say, white sliced bread) in order to grab market share andencourage shoppers to visit their stores to take advantage of thislow price. In doing so, these customers then purchase the rest oftheir weekly shop.ALThis means that when you’re doing your marketing planning youneed to be aware of strategic windows and only by constantlyscanning the external environment and the internal environmentcan you make effective decisions.Proctor suggests the following as a five-point action plan:Identify the opportunities and threats posed by the openingand closing of strategic windows.2Analyse all the relevant internal and external environmentalfactors acting upon the organisation in the context of thestrategic windows.3Determine the best strategy or set of strategies that arelikely to enable the organisation to take best advantage ofthe strategic window while it’s open.4Ensure that adequate resources are available to implementthe chosen strategies.5Implement the chosen strategy to take best advantage of theopportunities presented by the strategic window and tominimise the risks posed by the threats.MATERI1External analysisLancaster and Massingham relate the value of external analysis tostrategic planning. They suggest that the macro-environment ischanging constantly. Some changes are long term and relativelypredictable, while others occur rapidly and often withoutwarning and cause the most significant opportunities and threatsto a company.MPLESR 6SAThey go on to provide some examples of how such changes mayaffect marketing planning and decision making:Long-term forecasts of world oil reserves suggest major profitopportunities for the developer of alternative energy sourcesand major threats to those oil exploration companies thatdon’t diversify.Sudden revaluations of a nation’s currency can represent asignificant threat to would-be exporters from that country.An unexpected technological breakthrough by a company canrepresent a significant opportunity for the developer of thetechnology and a significant threat to their competitors.16
Section 1 Marketing planningActivity 1.1aActivity1 hourInvestigate and explore how the marketing planning in yourorganisation relates to your overall strategic planning.MATERIALNote down the key points and any areas for improvement.MPLEYou might find it useful to prepare a short report and discuss itwith a colleague or mentor. You could also present your reportto decision makers in your organisation to test its validity or anyopportunities for organisational development.SA1.2The marketing planning processThe marketing planning process consists of a number of keystages, the key output being the development of a coherentmarketing plan that supports the organisation’s strategy. Thereare some key planning questions that need to be answered whendeveloping a marketing plan. It’s therefore helpful to follow asystematic process that considers planning at both the businessand product or service level.The Chartered Institute of Marketing defines marketing planningas follows:A written plan, usually in depth, describing all activitiesinvolved in achieving a particular marketing objective andtheir relationship to one another in both time andimportance.And a marketing plan is defined as:The selection and scheduling of activities to support thecompany’s chosen marketing strategy or goals.17
Developing a Marketing StrategyStrategy and marketing planningSR 4David Jobber sees marketing planning as the process by which anorganisation analyses its business environment, both internal andexternal, and its capabilities. It then makes decisions on whichmarketing actions to carry out and implements those decisions.ALHe sees marketing planning as part of a broader process ofstrategic planning, where the aim of strategic planning is toshape and reshape an organisation so that it can meet itscorporate objectives (say, increased profits or sales revenuegrowth). Marketing management has a key role in ensuring thisaspect of strategic planning as it is responsible for the interfacebetween the organisation and its environment.ERIStrategic planning is explored in more detail in DevelopmentGuide 7006V1/7011V1 Reviewing organisational strategy plansand performance/Strategic Planning.Key planning questionsATJobber suggests that there are six key planning questions thatcan provide a helpful framework for integrating strategicobjectives and marketing planning. These are shown in the tablebelow, along with some guidance on how these questions may beaddressed.MWhere are we now?SAMPLEHow did we get here?18Factual statementsValue judgementsSuccess against expectationsAnalysis of significant eventscontributing to achievements andshortcomingsWhere are we heading?Focuses on the futureAssuming we carry on as beforewhat are the likely outcomes?Where would we liketo be?Compares our prediction of thefuture with aspirationsDo the aspirations match thepredictions?If not, we may need to changeorganisational behaviourHow do we get there?Opportunity for creativityIdentify optionsDecide on course of actionProvides us with a strategyAre we on course?Periodically check our positionIf we are on course, plan remainsunchangedIf not, then plan needs to bemodified
7009V1 Strategic project management (ISBN: 0-85946-513-6) 7010V1 Implementing organisational change strategies (ISBN: 0-85946-518-7) 7012V1 Strategic human resource planning (ISBN: 0-85946-523-3) 7013V1/ 7014V1 Strategic leadership/Strategic leadership practice (ISBN: 0-85946-528-4) 7021V1 Introduction to strategic management and leadership
PART ONE Introduction to Strategic Management and Business Policy 1 CHAPTER1 Basic Concepts of Strategic Management 2 1.1 The Study of Strategic Management 5 Phases of Strategic Management 5 Benefits of Strategic Management 6 1.2 Globalization and Environmental Sustainability: Challenges to Strategic Management 7 Impact of Globalization 8
The Strategic Management Process 15 Developing a Strategic Vision: Stage 1 of the Strategic Management Process: 17 How a Strategic Vision Differs from a Mission Statement 19 The Importance of Communicating the Strategic Vision 22 The Benefits of an Effective Strategic Vision 22 Setting Objectives: Stage 2 of the Strategic Management Process 22 xxiv
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Sep 05, 2017 · STRATEGIC PLAN FORMAT 2017-2020 . The sample strategic planning format uses a one page Strategic Map format to identify areas of focus for the Plan. From the Strategic Map, a Strategic Plan is created to advance strategic priorities for the coming 1-3 years. The plan accomplishments a
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strategic leadership, provided by Col W. Michael Guillot in “Strategic Leadership: Defining the Challenge.” The author will provide you with components, characteristics, and challenges of decision-making at the strategic level, and also provide you with a list of compe-tencies that are essential for strategic leaders.
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