marketing for most module 03 - market oriented strategic planning

Marketing for MOSTModule 03 - Market Oriented Strategic

Planning

技術経営コンソーシアム

開発担当者： Ritsumeikan Asia Pacific University 　教授 : Takamoto, Akihiro

更新日 October, 2003

Marketing for MOST: Module 3 – Market Oriented Strategic Planning

Module 03: Market Oriented Strategic Planning

1. What is Market-Oriented Strategic Planning?

2. Defining the Mission of the Organisation

3. Analysing the Business Environment

4. Defining the Business Domain

5. Defining Objectives and Goals

6. Strategy Formulation

7. Program Formulation, Implementation, Evaluation and Control

8. Oriental Philosophy of Strategy


• Market oriented strategic planning is the managerial process of developing and maintaining a viable fit between the organization’s objectives, skills, and resources and its changing market opportunities. The aim of strategic planning is to shape and reshape the company's businesses and products so that they yield target profits and growth.

What is Market Oriented Strategic Planning


• Q1: Why is Market Oriented Strategic Planning needed?– Mega Competition– Only the fittest survives

• Q2: What is the alternative to being ‘market oriented’? What are the other things to which a company can be oriented?

What is Market Oriented Strategic Planning


What is Market-Oriented Strategic Planning?

• Market Oriented Strategic Planning according to MUANGSUWAN A-non.

ObjectivesAnd

Resources

Organization

Changing

market

environment

CustomerNeeds

&Wants

ObjectivesAndResources

Organization

Changing

market

opportunity

CustomerNeeds

&Wants


Defining the mission of the Organization

• Ask:–What is our business?

–Who is the customer?

–What do customers value?

–What should our business be?



• A clear mission statement acts as an “invisible hand” that guides people in the organisation.



• Good Mission Statements according to P. Kotler:

1. Focus on a limited number of goals

2. Stress the major policies and values

3. Define the major competitive scopes

– (industry, products, competence, market-segment, vertical integration, geographical scope)



• P. Kotler says:– “Mission statements are at their

best when they are guided by a vision, an almost impossible dream that provides a direction for the company for the next 10 to 20 years.”



An excellent mission statement has:1. Uniqueness which the employees can

feel proud of.

2. A tangible quality to which the employees can relate daily.

3. A reflection of the leadership vision.



• Case 3-1: “Our Credo” by Johnson and Johnson

• Case 3-2: Mission Statement of Starbucks

• Case 3-3: Mission Statement of the Japan Industrial Daily.

• Case 3-4: Mission Statement of Kaiser Sand and Gravel (see left)



• Concerning the Mission Statement by the Japan Industrial Daily:

– I liked it;– I think people are a lot like water.

– Dimitrova, Elitza

– I realized how powerful and inspiring a good mission statement could be. Thought I could not fully understand the Japanese words, I felt the strength in it

– FUN, Yee Luh

– Though it appeared philosophical, it was crystal clear and struck my heart. Each and every line said what the firm wanted to say. It is a fantastic mission statement.

– DOGRA, Shinjani.



• Exercise:– Produce your own Mission Statements:

• For your Business / Project• For your Professional Ccareer• For your Life.



• My Mission Statement for Daily Life:• Wake up early.• Get a good, healthy breakfast.• Get out.• The outside world is pretty tough.• But show a pretty face all the time.• Be positive

• PERERA, Sumudu.


Macro-Environment

Analysing the Business Environment

Micro-Environment

Company

InternalEnvironment


• Micro-Environment– The forces close to the company that affect

its ability to serve its customers – the company, suppliers, marketing channel firms, customer markets, competitors, and public.



• Macro-Environment– The Larger societal forces that affect the

microenvironment – demographic, economic, natural, technological, political, and cultural forces.



• The Organisations Internal Environment:– Top Management– Marketing– Finance– Accounting– R & D– Purchasing– Manufacturing– Distribution– Customer Relations– Human Resource Development– Corporate Culture – ETC…



• A Public:– Any Group that has an actual or potential interest in or

impact on an organisation’s ability to achieve its objectives.

• Demography:– The study of human population in terms of size,

density, location, age, gender, race, occupation, and other statistics.

• Compare:– Psychographics:

• The study and classification of people according to their attitudes, aspirations, etc, especially in market research.



• Exercise:– Do a SWOT Analysis of yourself at

APUBS

– Do a SWOT Analysis of any organisation or team you now belong to.



Defining the Business Domain

• What is your business?

• Who is the customer?

• What is value to the customer?

• What will be your business?

• What should be your business?



Product Oriented () vs. Market-Oriented() Definitions:

Company and Definitions of their Business

• BMW– A car maker ()– “Frende am Fahren” ()

• Dentsu– Advertising Firm ()– Communications Excellence ()

• Sony– Electronics manufacturer ()– “Dreams come true” ()

• Shiseido– We sell cosmetics ()– We offer lifestyle, health, hopes and dreams ()



Defining the Business à la D. Abell

Here is your Business!

(Your Customer) WHO?

How?

WHAT? (needs to be satisfied)



Core Competence:

1. Is a source of Competitive Advantage

2. Has a potential breadth of applications

3. It is difficult for competitors to imitate(C.K Prahalad & Gary Hamel)



What is Marketing Myopia?

See Ref: What is Marketing Myopia

And also: Marketing Myopia – By Theodore Levitt



What are the causes of Marketing Myopia?• Misreading the customer want as their

need.• Because of their product oriented definition

(perception) of their business – they are not market oriented.


Defining Objectives and Goals

• Some Managers use the term goals to describe objectives that are specific with respect to magnitude and time.

• How do you use the following terms:– Aims, Goals, Objectives, Purposes?


Strategy Formulation

• The essence of strategy formulation is coping with competition

• The state of competition in an industry depends on five basic forces

…Michael E. Porter



PotentialEntrants

Suppliers Buyers

Substitutes

IndustryCompetitors

Rivalry Among Existing Firms

Threat of

New Entrants

Bargaining power of buyers

Bargaining power of suppliers

The Five Forces governing competition in an Industry (Michael E. Porter)



STRATEGIC ADVANTAGE

DIFFERENTIATIONOVERALL COST

LEADERSHIP

FOCUS

Uniqueness perceived by the customer

Low Cost Position

Industry Wide

Three Generic Strategies by Michael Porter

Particular Segment Only

STR

ATEG

IC T

AR

GET



• Practice:– What do you think of

Michael Porters three Generic Strategies and five forces?

– Do they help you sharpen your strategy?



• By the Way, What is Strategy?– How about tactics?

– According to the Concise Oxford Dictionary:• Strategy = a plan of action or policy in business or politics etc.• Tactics = the plans and means adopted in carrying out a scheme or

achieving some end.

• Very Ambiguous!!!



• How about:– Strategy is concerned with broad and long-term policy

and direction.– Tactics are concerned with opportunism and day to day

conditions. The tactics have two purposes: to carry forward the overall strategy and to respond to the situation of the moment. The strategy is carried out by means of the tactics.



• Strategy is a deliberate search for a plan of action that will develop a business’s competitive advantage and compound it.

-o0o-• The objective is to enlarge the scope of your

advantage, which can happen only at someone else's expense.

(Bruce D. Henderson)



• “Some make the deep-seated error of considering the physical conditions of a country as the most important for its inhabitants; whereas it cannot, I think, be disputed that the nature of the other inhabitants with which each has to compete is generally a far more important element of success.”

Charles Darwin.



• Natural Competition is evolutionary

• Strategic competition is revolutionary

(Bruce D. Henderson)



• Case Study:Napoleon succumbs to the strategy of Kutuzov

• See Ref: napoleon.pdfNapoleon’s retreat from Moscow portrayed by Ernest Meissonier (1815-91)


Program Formulation, Implementation, Evaluation and Control

• Marketing Programs, and Action Plans– What will be done ?– When will it be done ?– Who is responsible for doing it?– How much will it cost?



• Peter Drucker said:– “Be effective rather than efficient”.

– Effectiveness means the ability to get the right things done.

– Efficiency is the ability to do things right.



• What is “McKinsey 7-S framework?

– Why is it so important?



• Marketing Control– Marketing Control is the process of

measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that marketing objectives are achieved.

– Don’t forget contingency plans!


Oriental Philosophy of Strategy

– Strategic Philosphies of Sun Tzu

– Sun Tzu said: The art of war is of vital importance to the State. It is a matter of life and death, a road to either safety or to ruin. Hence it is a subject of inquiry, which can on no account be neglected.

– (Laying Plans, Sun Tzu)

– If you know the enemy and you know yourself, you need not fear the result of a hundred battles.

– (Attack by Stratagem, Sun Tzu)

– Marketing is the contemporary art of war.– (Aki Takamoto)



– Sun Tzu Said:– “Water shapes its course according to the

nature of the ground over which it flows; the soldier works out his victory in relation to the foe whom he is facing. Therefore, just as water retains no constant shape, so in warfare there are no constant conditions. (weak points and strong).



– Reminder:• There is no definite form for management

Act just like water,Which follows the shape of any container,While retaining the power to break downa thousand feet high dam.



Sun Tzu Said:– In the practical art of war, the best thing

of all is to take the enemy’s country whole and intact; to shatter and destroy it is not so good.

– Hence to fight and conquer in all your battles is not supreme excellence; supreme excellence consists in breaking the enemy’s resistance without fighting.

– (Attack by Stratagem)

marketing for most module 03 - market oriented strategic planning

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