Strategic marketing planning. Open Library - open library of educational information

Marketing strategy- formation of goals, achieving them and solving the problems of the manufacturing enterprise for each individual product, for each individual market for a certain period. The strategy is formed in order to carry out production and commercial activities in full accordance with the market situation and the capabilities of the enterprise.

The enterprise strategy is developed on the basis of research and forecasting of product market conditions, studying buyers, studying products, competitors and other elements of the market economy. The most common marketing strategies are:
1. Market penetration.
2. Market development.
3. Product development.
4. Diversification.

Depending on the marketing strategy, marketing programs are formed.
Marketing programs can be targeted:
- for maximum effect regardless of the risk;
- at a minimum of risk without expecting a big effect;

- for various combinations of these two approaches. Marketing Tactics
- formation and solution of enterprise problems in each market and for each product in a specific period of time (short-term) based on the marketing strategy and assessment of the current market situation with constant adjustment of tasks as market and other factors change: for example, changes in the price index, intensification of competition , seasonal drop in demand, decrease in buyer interest in the product, and more. Examples of setting tactical objectives could be the following:
1. Conduct an enhanced advertising campaign due to the drop in demand.
2. Expand the product range based on updated data on consumer needs.
3. Expand the range of services provided by customer service departments to attract new customers.
4. Increase market share due to reduction in sales by competitors.
5. Structurally improve the product in accordance with the requirements of a specific market.

6. Carry out measures to stimulate staff.
Marketing planning in market conditions consists of 2 parts:
- strategic planning;

Strategic planning is the managerial process of creating and maintaining a strategic fit between a firm's efforts and its marketing capabilities and opportunities.

It is based on a clearly formulated program of the company and includes the following stages (Fig. 14.1).

Fig. 14.1. Stages of strategic planning

Stage 1 "Program" contains a specific goal. She must answer the questions:
- What is our enterprise?
- Who are our clients?
- What is valuable to these clients?
- What will the enterprise be like?
- What should it be like?

Questions must be answered from the point of view of meeting the needs and requests of customers.

The program should be neither too broad nor too narrow.

Stage 2: The firm's program outlined in the previous stage is expanded into a detailed list of supporting efforts and tasks for each level of management.
Stage 3: The business portfolio development plan is developed based on an assessment of the attractiveness of each product produced by the company in a specific market.
For this, the following indicators are taken into account:
- size and capacity of the market;
- market growth rates;
- the amount of profit received from it;
- intensity of competition;

- cyclicality and seasonality of business activity;

- possibility of cost reduction.

The main planned indicator at this stage is the sales volume of each type of product. (The economic portfolio is the sum of these goods).

Stage 4: The company's growth strategy is developed on the basis of an analysis carried out at 3 levels, presented in table. 14.1.	Table 14.1	1st level
2nd level	3rd level	Intensive growth
Integration growth	Diversification growth 1. Deep penetration into the market 2. Expansion of market boundaries. 3.Product improvement	Regressive integration Progressive Integration Horizontal integration

2nd level Concentric diversification

Horizontal diversification

Conglomerate diversification

Integrated growth is justified when an enterprise can share in the benefits by moving forward, backward, or horizontally within its industry. Regressive integration involves a firm's attempts to gain ownership or greater control suppliers

(moving backwards in the industry); for example, a company buys a supplier company.

Progressive integration involves a firm's attempts to gain ownership or greater control of the distribution system (forward movement), for example, by purchasing a wholesaler of its firm's goods.

Horizontal integration is a firm's attempts to gain ownership or place tighter control over a number of competitors' enterprises (horizontal relocation).

Diversification growth is justified when an industry does not provide the firm with opportunities for further growth, or when growth opportunities outside the industry are much more attractive and the firm can use its accumulated experience.
There are 3 types of diversification:
- concentric - expansion of the range with goods similar to existing ones;
- horizontal - replenishment of the assortment with goods that are not related to existing ones, but may arouse interest among the existing clientele;

- conglomerate - replenishment of the assortment with goods that are not related either to the technology used or to existing markets.

A firm's strategic planning determines what activities it will engage in and outlines the objectives of those activities. The current plan is a collection of separately developed plans for each product and each market.

Plans for production, release of goods, and plans for market activities are being developed. All these plans are collectively referred to as the “Marketing Plan”.
The composition of the elements of the marketing plan is presented in Fig. 14.3:
Fig. 14.2. Current planning stages
Summary of Benchmarks
includes:

- sales volume in rubles and as a percentage of last year;

- the amount of current profit in rubles and as a percentage of last year; - budget for achieving these goals in rubles and as a percentage of the planned sales amount;“Market segments are described, main products are listed, competitors are listed and distribution channels are indicated (sales agents, retail outlets, direct deliveries, stores...).

- the amount of current profit in rubles and as a percentage of last year; Dangers and Opportunities" lists all the dangers and opportunities that may arise for the product.

Hazard is a complication arising from an unfavorable trend or event that, in the absence of targeted marketing efforts, could lead to the product's life cycle being undermined or terminated.

A marketing opportunity is an attractive direction of marketing efforts in which a firm can achieve a competitive advantage.

List of tasks and problems is formed in the form of specific goals (for example, to achieve a 15% market share with the existing 10%, or to increase profits to 20%...). To achieve these goals, a marketing strategy is developed, that is, a scenario for actions in target markets, indicating these markets, new products, advertising, sales promotion... Each strategy needs to be justified and clarified how it takes into account the above threats and opportunities.

Marketing strategy- a rational logical structure, guided by which the company expects to solve its marketing problems. The marketing strategy must precisely name the market segments on which the company will focus its main efforts. After developing a marketing strategy, a detailed program of activities for the production and sale of goods is developed, assigning responsible executors, setting deadlines and determining costs. This program will allow you to draw up a budget for the current year.

At the same time, the business manager must consider the marketing mix and outline specific strategies for such elements of the marketing mix as:
- new goods;
- organization of local sales;
- advertising;
- sales promotion;
- distribution of goods;
- prices.

Budgets: The action plan in the action program allows the manager to develop an appropriate budget that forecasts profits and losses. The budget contains 3 main columns: receipts, expenses, profit.

"Receipts" contains a forecast regarding the number and average price of commodity units that are planned for sale.

The "Expenses" column indicates the costs of production, distribution and marketing.

In the "Profit" column - the difference between "Receipts" and "Expenditures".

The approved budget serves as the basis for purchasing materials, developing production schedules, planning labor requirements, and conducting marketing activities.

Control procedure: This sets out the procedure for monitoring the progress of the entire planned plan. Typically, goals and budget allocations are outlined by month or quarter. This means that the top management of the company can evaluate the results achieved in specific periods of time and identify production. failed to achieve the set targets.

When developing a marketing budget, two schemes are used. The first is planning based on target profit indicators. The second is planning based on profit optimization.

Let's look at the first diagram in stages:
1. Estimation of the total market volume for the next year. It is formed by comparing growth rates and market volumes in the current year.
2. Forecasting market share next year. For example, maintaining market share, expanding the market, entering a new market.
3. Forecast of sales volume for the next year, that is, if the market share is n%-, and the forecasted total market volume in natural units is m units, then the estimated volume will be X units.
4. Determining the price at which the product will be sold to intermediaries (unit price).
5. Calculation of the amount of income for the planned year. Determined by multiplying sales volume by unit price.
6. Calculation of the cost of goods: the sum of fixed and variable costs.
7. Gross profit forecast: the difference between gross revenue (income) and gross cost of goods sold.
8. Calculation of the benchmark target profit from sales, in accordance with the planned profitability ratio.
9. Marketing expenses. Defined as the difference between the amount of gross profit and target profit according to the plan. The result shows how much can be spent on marketing, taking into account tax costs.
10. Distribution of the marketing budget according to the following components of the marketing mix: advertising, sales promotion, marketing research.

The second planning scheme is based on profit optimization. Optimizing profits requires the company's management to clearly understand the relationship between sales volume and the various components of the marketing mix. The term sales response function can be used to provide a relationship between sales volume and one or more stages of the marketing mix. The sales reaction function is a forecast of the likely sales volume over a certain period of time under different cost conditions for one or more elements of the marketing mix (Fig. 14.3.)

Fig. 14.3. Possible form of the sales reaction function

A preliminary assessment of the sales reaction function in relation to the company’s activities can be done in three ways: statistical, experimental, expert.

The purpose of monitoring the implementation of plans is timely adoption of management decisions in case of deviation from its parameters.

The main means of control are: analysis of sales opportunities, analysis of market share, analysis of the relationship between marketing costs and sales and monitoring of customer attitudes.

Firms use three types of marketing control of their market activities:
- monitoring the implementation of annual plans;
- profitability control;
- strategic control.

Monitoring the implementation of annual plans is to continuously monitor current marketing efforts and results achieved to ensure that sales and profit targets for the year are achieved. The main means of control are analysis of sales opportunities, analysis of market share, analysis of the relationship between marketing costs and sales, monitoring customer behavior.

Profitability control requires identifying all costs and establishing the actual profitability of the company’s activities by product, sales territory, market segments, trading channels and orders of varying volumes.

Strategic control- this is an activity to analyze the implementation of marketing tasks, strategies and programs of the company. Such control is carried out through a marketing audit, which is a comprehensive, systematic, impartial and regular study of the marketing environment, objectives, strategies and operational activities of the company. The purpose of a marketing audit is to identify emerging marketing opportunities and emerging problems and to issue recommendations regarding a plan of future and current actions to comprehensively improve the company's marketing activities. The structure of complex analysis and control of marketing activities is given in the algorithm diagram.

The development of a plan is preceded by a systematic understanding of the situation, clearer coordination of the company’s efforts, more precise setting of tasks, which should lead to increased sales and profits. The main stages of planning are strategic and tactical.
Strategic planning consists of developing a company program, forming its tasks and goals, analyzing the business portfolio and long-term planning for the organization's growth.
To ensure the growth of the company, the following strategies are used: intensive growth, integration growth, diversification growth.
Based on strategic plans, the company develops tactical plans (marketing plans). The main sections of the marketing plan are: a summary of benchmarks, a statement of the current marketing situation, a list of threats and opportunities, a list of tasks and problems, a statement of marketing strategies, action programs, budgets and control procedures.
The company uses three types of marketing control: control over the implementation of annual plans; profitability control; strategic control.

TOPIC 10. STRATEGIC PLANNING

AND MARKETING CONTROL

2. Approaches to strategic planning: product-market matrix, BCG matrix, " Pims ", Porter's strategic model

3. Marketing control

1. Strategic marketing planning and its stages

Planning is the process of establishing goals, strategies and specific ways to implement them. Marketing planning is usually divided into strategic (usually long-term) and tactical (current). The strategic marketing plan is aimed at implementing the strategic objectives of marketing activities, and the current plan (most often annual) characterizes the marketing situation of the enterprise in the current year.

Strategic planning- this is the managerial process of creating and maintaining strategic alignment between the goals of the company and its potential chances in the field of marketing.

A strategic marketing plan, as a rule, is long-term and is developed over several years. It includes the following interrelated sections:

· marketing long-term goals of the enterprise;

· marketing strategies;

· development of the enterprise's business portfolio.

Marketing goals There can be any goals aimed at converting the needs of customers into the income of the enterprise, at achieving the desired results in specific markets, as well as goals - missions that embody the social significance of the enterprise.

Marketing goals are achievable only if:

· the enterprise has available resources;

· do not contradict environmental conditions;

· correspond to the internal capabilities of the enterprise.

The formation of the marketing goals of an enterprise should be based on “SWOT” - analysis (the first letters of the English words: strengths - strengths, weaknesses - weaknesses, opportunities - opportunities, threats - dangers). As a result of this analysis, the company’s position in the competition for product markets is identified and marketing goals are set.

The marketing goals of an enterprise are achieved through a marketing strategy. Marketing strategy- an integral set of fundamental principles, methods for solving key problems to achieve the general goal of the company. General marketing strategies specify the development strategy of the enterprise as a whole and include specific strategies for marketing activities in target markets. Marketing strategies can be very diverse, for example:

· increasing the volume of production of goods of the old range for developed markets;

· penetration into new markets;

· development of new products;

· market formation;

· diversification.

Business portfolio - a list of products manufactured by the enterprise. The development of a business portfolio is a set of strategic directions for the development of production and product range.

The strategic planning process includes:

1) definition of corporate missions . The mission (program) of the company is its long-term orientation towards any type of activity and the corresponding place in the market. What consumer groups are served, what functions are performed.

2) setting goals. There are the following categories of goals: higher goals, subordinate goals (higher goals are specified in terms of specific functions). By content, goals are classified into:

· market goals: sales, market share;

· financial (profit, profitability);

· goals related to the product and society - quality, ensuring the guarantee of the enterprise.

3) agricultural development plan (business portfolio). SHP - strategic business units, i.e. independent divisions responsible for a product range, with a concentration on a specific market and a manager with full responsibility for combining all functions into a strategy.

SHP are the main elements of building a strategic marketing plan. Characteristics: specific orientations, precise target market, control over resources, own strategy, clearly defined competitors, clear differentiating advantage. The concept of agricultural production systems was developed by McKinsey for General Electric in 1971, which operates 30 agricultural production systems (household appliances, lighting, electric motors, engines, etc.).

4) situational analysis . The company's capabilities and the problems it may encounter are determined. Situational analysis seeks answers to two questions: what is the current position of the company and where is it moving in the future. They study the environment, opportunities, and identify strengths and weaknesses in comparison with competitors.

5) with marketing strategy . How the marketing structure should be applied to satisfy target markets and achieve organizational goals. Each agricultural enterprise needs a separate strategy, these strategies must be coordinated.

Company growth strategy can be developed based on analysis carried out at three levels. At the first level, opportunities are identified that the company can take advantage of at its current scale of activity (opportunities intensive growth ). At the second level, opportunities for integration with other elements of the industry’s marketing system are identified (opportunities integration growth ). At the third stage, opportunities opening up outside the industry are identified (opportunities diversification growth ).

INTENSIVE GROWTH. Intensive growth is justified in cases where the company has not fully exploited the opportunities inherent in its current products and markets. There are three types of intensive growth opportunities.

1. Deep market penetration consists of the firm finding ways to increase sales of its existing products in existing markets through more aggressive marketing.

2. Expanding market boundaries consists of the firm's attempts to increase sales by introducing existing products into new markets.

3. Product improvement consists of a firm's attempts to increase sales by creating new or improved products for existing markets.

INTEGRATION GROWTH. Integration growth is justified in cases where the industry has a strong position and/or when the firm can obtain additional benefits by moving backwards, forwards or horizontally within the industry. Regressive integration consists of a firm's attempts to gain ownership or greater control of its suppliers. To strengthen control over the supply chain, the Modern Publishing Company publishing house can buy a paper supply company or a printing company. Progressive Integration consists of a firm's attempts to gain ownership or greater control of the distribution system. The Modern Publishing Company may see benefits in acquiring wholesale magazine distributors or subscription bureaus. Horizontal integration consists of the firm’s attempts to gain ownership or place under tighter control a number of competing enterprises. The Modern Publishing Company could simply buy other health magazines off the shelf.

DIVERSIFICATION GROWTH. Diversified growth is justified in cases where the industry does not provide the firm with opportunities for further growth or when growth opportunities outside the industry are significantly more attractive. Diversification does not mean that a firm should grab every opportunity that comes along. The company must identify for itself areas where the experience it has accumulated will be used, or areas that will help eliminate its current shortcomings. There are three types of diversification.

1. Concentric diversification, those. replenishment of its product range with products that, from a technical and/or marketing point of view, are similar to the company’s existing products. Typically, these products will attract the attention of new classes of customers. For example, the Modern Publishing Company could acquire its own production of paperback books and take advantage of an already established network of distributors for its magazines to sell them.

2. Horizontal diversification, that is, replenishing its assortment with products that are in no way related to those currently produced, but may arouse the interest of the existing clientele. For example, the Modern Publishing Company might open its own health clubs in hopes that subscribers to its health magazine will become members.

3. Conglomerate diversification, those. replenishment of the assortment with products that have nothing to do with the company's technology or its current products and markets. The Modern Publishing Company may want to enter new areas of activity, such as the production of personal computers, the sale of real estate franchises, or the opening of businesses fast food service.

6) tactics represents specific actions performed to implement a given marketing strategy. You need to make 2 important decisions - determine: 1) investments in marketing; 2) the sequence of marketing operations over time.

7) control for the results. When implementing marketing plans, various deviations may occur, so monitoring their implementation is necessary. Marketing control is aimed at establishing the effectiveness of the enterprise. Monitoring the implementation of the strategic marketing plan consists of regularly checking the compliance of the initial strategic goals of the enterprise with the available market opportunities. Monitoring the implementation of the tactical plan consists of identifying deviations of results from the planned level. To do this, they use budgets, sales schedules, and costs. In some cases, plans are revised.

TOPIC 10. STRATEGIC PLANNING

AND MARKETING CONTROL

2. Pims

3. Marketing control

1. Strategic marketing planning and its stages

Strategic planning- this is the managerial process of creating and maintaining strategic alignment between the goals of the company and its potential chances in the field of marketing.

A strategic marketing plan, as a rule, is long-term and is developed over several years. It includes the following interrelated sections:

· marketing long-term goals of the enterprise;

· marketing strategies;

· development of the enterprise's business portfolio.

Marketing goals are achievable only if:

· the enterprise has available resources;

· do not contradict environmental conditions;

· correspond to the internal capabilities of the enterprise.

· increasing the volume of production of goods of the old range for developed markets;

· penetration into new markets;

· development of new products;

· market formation;

· diversification.

The strategic planning process includes:

2) setting goals. There are the following categories of goals: higher goals, subordinate goals (higher goals are specified in terms of specific functions). By content, goals are classified into:

· market goals: sales, market share;

· financial (profit, profitability);

· goals related to the product and society - quality, ensuring the guarantee of the enterprise.

1. Deep market penetration consists of the firm finding ways to increase sales of its existing products in existing markets through more aggressive marketing.

2. Expanding market boundaries consists of the firm's attempts to increase sales by introducing existing products into new markets.

3. Product improvement consists of a firm's attempts to increase sales by creating new or improved products for existing markets.

2. Approaches to strategic planning: product-market matrix, BCG matrix, " Pims ", Porter's strategic model

Igor Ansoff's product-market matrix

The matrix provides for the use of 4 alternative marketing strategies to maintain or increase sales. The choice of strategy depends on the degree of market saturation and the company’s ability to constantly update production.


	Penetration	Market development
	Product Development	Diversification

Fig.1. I. Ansoff’s matrix taking into account opportunities for goods-markets

1. Market penetration strategy effective when the market is growing or not yet saturated. The company is trying to expand sales of existing goods in existing markets by intensifying product distribution and aggressive promotion (price reduction, advertising, packaging, etc.).

2. Market development strategy effective when a local firm seeks to expand its market. The goal is to expand the market:

a) new segments emerge as a result of changes in lifestyle and demographic factors;

b) new areas of application are identified for well-known products;

c) the firm can penetrate new geographic markets;

d) the company enters new market segments, the demand for which has not yet been satisfied;

e) it is necessary to use new marketing methods;

g) product variations - offering existing products in a new way;

f) internationalization and globalization of markets.

3. Product development (innovation) . This strategy is effective when the agricultural enterprise has a number of successful brands and enjoys the trust of consumers.

a) selling new products in old markets - genuine innovation (new to the market);

b) quasi-new products (or modifications);

c) Me-too products (new products for the company).

4. Diversification

The company moves away from its original areas of activity and moves to new ones. Reasons: stagnating markets, risk reduction, financial benefits. The production program includes products that have no direct connection with previous products.

Forms of diversification:

A) horizontal- the automobile company also produces motorcycles;

b) vertical- a textile manufacturing company opens a clothing manufacturing company;

V) lateral- without a discernible material relationship - Pepsi-Cola in the production of sports equipment, Philip Morris in the production of cigarettes and food products.

Matrix advantages:

1) visual structuring of reality;

2) ease of use.

Flaws:

1) growth orientation;

2) restrictions on 2 characteristics (technology and costs are not taken into account).

Matrix Boston Consulting Group

One of the first was the Growth-Share matrix proposed by Boston Consulting Group from Massachusetts. On the vertical axis is the market growth rate, on the horizontal axis is the share in this market.

Demand growth rate, %

High tempo

Low temps

Low share High share Market share, %

Rice. 2. BCG marketing strategy matrix

The BCG matrix allows a company to classify each of its agricultural enterprises by its market share relative to its main competitors and the annual growth rate in the industry. Using this matrix, a firm can determine:

· which of its agricultural enterprises plays a leading role in comparison with its competitors;

· what are the dynamics of its markets.

This matrix was used primarily to estimate funding needs.

This model is based on the concept of the product life cycle (PLC) and the experience curve. The theoretical basis of various models is portfolio analysis, which is one of the most commonly used strategic planning tools.

1. Experience curve. As production volumes and experience increase, resource costs per unit of production decrease. Studies have shown that when production volumes are doubled, unit costs are reduced by an average of 20-30%. To do this, we need to increase market share.

2. Life cycle concept (Portfolio concept). An enterprise is described as a collection of strategic production units ( SPE) or SHP, i.e. independent from each other areas of activity of the enterprise, which are characterized by a specific customer-related market task, differ in products and customer groups. SPEs that occupy a strategic starting position in the matrices are combined into homogeneous aggregates. For them, normative strategies can be defined that are used for strategic planning.

The matrix distinguishes 4 main types of SPE.

1. "Stars" - Agricultural enterprises occupying a leading position, having won a high market share in a developing industry (rapid growth in growing sectors of the economy). "Stars" bring in large profits, which are used to strengthen their own positions (to finance continued growth). Market share is maintained through price reductions, active advertising, and product changes. When growth slows down, they turn into “cash cows”.

2. "Cash cows" Agricultural enterprises that have gained large market shares in mature industries (slow growth). They have loyal customers and it is difficult for competitors to attract them. Due to high profits, it can finance the growth of other agricultural enterprises. The company's marketing strategy is reminder advertising, price discounts, maintaining distribution channels.

3. "Difficult child", or "question mark" - Agricultural enterprises with small market shares in rapidly growing industries. The leading position in the market is occupied by competitors' products. Increasing market share requires significant funds. They promise high growth rates, but require large investments. The company must decide whether to increase promotional spending, actively seek new distribution channels, improve product characteristics and lower prices, or exit the market.

4. "Dog", or "lame ducks" - Agricultural enterprises with a low market share in stagnating industries (phase of saturation or degeneration). They do not have a large market share or high growth rates. A company with such an agricultural enterprise may try to enter a specialized market or leave the market. Within a certain time, such products must be excluded from Portfolio Analysis.

Flaws of this strategy: SPEs are assessed according to only two criteria. Quality, marketing costs, investment intensity are left unattended.

PIMS ( profit impact of market strategies )

PIMS - program for the impact of market strategy on profits.

The program involves collecting data from a number of corporations in order to establish the relationship between various economic parameters and two characteristics of the functioning of the organization: investment income and cash flow. A 1983 study found that marketing-related factors influenced revenue: market share relative to the top three competitors; value added by the company; industry growth; product quality; level of innovation/differentiation and vertical integration (possession of subsequent distribution channels for products). In terms of cash flow, PIMS data suggests that growing markets require a company's funds, relatively high market share improves cash flow, and high levels of investment absorb cash.

An empirical study of factors influencing enterprise profitability (long-term profitability) was conducted in the 70s by the Institute of Strategic Planning (Cambridge, USA). During the project, 300 enterprises around the world were studied (3,000 North American and European companies). This model, which uses about 30 variables, is believed to identify 67% of a company's success factors.

The use of empirical material is its great advantage. Factors that have the strongest impact on profit (in descending order): 1) capital intensity; 2) product quality; 3) the company's market share; 4) labor productivity.

Big advantage models: 1) try to measure the relative quality of a product; 2) an attempt is made to assess the correspondence of the production structure to the structure of needs. Flaw: technical approach to strategy planning.

Porter's strategic model

Harvard Business School professor Michael Porter developed the concept of competitive strategy in 1975-1980, during a period of slow growth and stagnation in many industries.

M. Porter's research led to the following conclusion: almost all large enterprises with a large market share, and small specialized firms, have a chance to achieve the required level of profitability. An important component of this strategy is an in-depth analysis of competition.

According to Porter, competition analysis involves 4 diagnostic components: 1) future goals (goals of competitors); 2) the competitor’s assumptions regarding the industry and other operating companies; 3) current competitor strategy; 4) opportunities (goals, assessments - strengths and weaknesses).

Porter's Five Forces of Competition:

1) penetration of new competitors;

2) the threat of the emergence of substitute goods;

3) buyers' capabilities;

4) supplier capabilities;

5) competition in the market.

General Porter's strategic model examines 2 basic marketing planning concepts and alternatives to each: target market selection and strategic advantage (uniqueness or price).

Combining these two concepts, Porter's model identifies the following basic strategies:

· cost advantage;

· differentiation;

· concentration.

To stay ahead of your competitors, you need to focus on one of three strategies.

1. Cost advantage strategy (cost leadership). The main idea is that all actions and decisions of the company should be aimed at reducing costs. The company focuses on mass production, on this basis it should minimize unit costs and offer low prices. This allows you to have a higher profit share compared to your competitors. A company that has achieved leadership in cost reduction cannot afford to ignore the principles of differentiation.

3. Differentiation strategy. The company's product must be different from competitors' products and must be unique. For example, Mercedes. The company is targeting a large market. This strategy involves higher costs. Differentiation may lie in the product itself, distribution methods, marketing conditions, etc.

Prerequisites: special fame of the enterprise; extensive research; appropriate design; use of high quality materials.

Advantages:

·consumers acquire loyalty to the brand, their sensitivity to price decreases;

·customer loyalty and product uniqueness create high barriers to entry into the market;

·high profits facilitate relationships with suppliers.

4. A strategy of concentration or focus. The company identifies a specific market segment through low prices or unique distribution. There are two types of strategy: the company tries to achieve advantages in reducing costs or through product differentiation.

According to Porter's model, the relationship between market share and profitability is U-shaped.

A firm with a small market share can succeed by developing a clearly focused strategy. A company with a large market share may succeed as a result of its overall cost advantage or differentiated strategy. A company can become stuck in the middle if it does not have an efficient and unique product or an overall cost advantage.

In contrast to the BCG matrix and the PIMS program, according to Porter's model, a small firm can make a profit by concentrating on a single competitive “niche”, even if its overall market share is insignificant. A company doesn't have to be big to perform well.

Risk associated with individual strategies

1. Cost strategy:

a) technological changes may depreciate previous investments;

b) competitors may adopt cost-cutting techniques;

C) unpredictable cost increases may result in a narrowing price gap relative to competitors.

2. Risk of differentiation:

a) the price gap of the cost leader may become so important that for buyers financial considerations will be more important than brand loyalty;

b) consumer value systems may change, which will affect consumer demand.

3. Non-progressive strategy - firms from developed countries supply the markets of developing or underdeveloped countries with obsolete and lower quality goods.

4. "Reinvention" strategy - New products are specially developed for foreign markets. This strategy is riskier and requires more time and money.

The strategy is implemented in 3 ways:

· by analogy (concentric diversification);

· further development (horizontal);

· creation of completely new products (conglomerate).

The Procter and Gamble company used a concentric product policy when entering the European market, developing a new laundry detergent, Ariel, that meets European standards.

3. Marketing control

The marketing department needs to constantly monitor the progress of marketing plans. Marketing control systems are needed in order to be confident in the effectiveness of the company. Marketing control is carried out through audits, audits and inventory of the availability of material resources. Three types of marketing control can be distinguished.

lies in the fact that marketing specialists compare current indicators with the target figures of the annual plan and, if necessary, take measures to correct the situation. Profitability control is to determine the actual profitability of various products, territories, market segments and trade channels. Strategic control consists of regularly checking the compliance of the company's initial strategic settings with existing market opportunities. Let's look at these types of marketing controls.

Monitoring the implementation of annual plans

The purpose of monitoring the implementation of annual plans is to ensure that the company has actually reached the sales, profits and other target parameters planned for a particular year. This type of control includes four stages. First, management should include monthly or quarterly milestones in the annual plan. Secondly, management must measure the firm's market performance. Third, management must identify the causes of any major disruptions in the firm's operations. Fourthly, management must take measures to correct the situation and eliminate the gaps between the goals set and the results achieved. And this may require changing action programs and even changing targets.

What specific techniques and methods of monitoring the implementation of plans does management use? Four main means of control are: analysis of sales opportunities, analysis of market share, analysis of the relationship between marketing costs and sales and observation of customer attitudes. If, when using one of these means, shortcomings in the implementation of the plan are identified, measures are immediately taken to correct the situation.

ANALYSIS OF SALES OPPORTUNITIES. Analysis of sales opportunities consists of measuring and assessing actual sales in comparison with planned ones. The company can start by analyzing sales statistics. Let's say that the annual plan included sales in the first quarter in the amount of $4,000. By the end of the quarter, goods worth $2,400 were sold. Sales volume turned out to be $1,600, or 40%, less than expected. The company should carefully understand why exactly it was not possible to achieve the planned level.

At the same time, the company must check whether all specific products, territories and other breakdown units have achieved their share of turnover. Let's say a company trades in three sales territories. One territory underfulfilled the plan by 7%, the second overfulfilled it by 5%, and the third underfulfilled it by as much as 45%. The third area is the most worrying. The vice president of sales can specifically look into the reasons for the territory's poor sales performance.

MARKET SHARE ANALYSIS. Sales statistics do not yet indicate the position of the company relative to its competitors. Let's assume that sales volume increases. This growth can be explained either by an improvement in economic conditions, which has a beneficial effect on all firms, or by an improvement in the company’s performance in comparison with its competitors. Management needs to constantly monitor the firm's market share performance. If this share increases, the competitive position of the company strengthens; if it decreases, the company begins to yield to competitors.

ANALYSIS OF THE RELATIONSHIP BETWEEN MARKETING AND SALES COSTS. Monitoring the implementation of the annual plan requires making sure that the company does not spend too much in its effort to achieve its sales goals. Constant monitoring of the relationship between marketing costs and sales volume will help the company keep marketing costs at the desired level.

MONITORING CUSTOMER ATTITUDES. Vigilant firms use various methods of monitoring the attitude towards them on the part of customers, dealers and other participants in the marketing system. By identifying changes in consumer attitudes before they affect sales, management is able to take necessary action in advance. The main methods for monitoring customer relations are complaint and suggestion systems, customer panels and customer surveys."

CORRECTIVE ACTION. When actual performance deviates too much from annual plan targets, firms take corrective action. Let's consider the following case. A major fertilizer firm's sales performance was falling behind its target. Trying to improve the situation, the company took a number of increasingly stringent measures: 1) it was ordered to reduce production; 2) selective price reduction began; 3) pressure increased on its own sales staff to ensure that all salespeople met their assigned sales targets; 4) allocations for hiring and training personnel, advertising, public opinion organizing activities, charity, research and development have been cut; 5) temporary and permanent dismissals of employees and their retirement have begun; 6) a number of intricate accounting steps were taken; 7) a reduction in capital investments for the purchase of machinery and equipment began; 8) a decision was made to sell the production of part of the product range to other companies; 9) consideration began to be given to the possibility of selling the company as a whole or merging it with another company.

To eliminate discrepancies with the annual plan indicators, many companies find it sufficient to take less drastic measures.

Profitability control

In addition to monitoring the implementation of the annual plan, many companies also need to monitor the profitability of their activities for various products, territories, market segments, trading channels and orders of varying volumes. Such information will help management decide whether to expand, reduce, or completely curtail the production of certain goods or conduct certain marketing activities. Consider the following example.

The vice president of marketing for a lawn mower manufacturer wants to determine the profitability of selling these mowers through three different sales channels: hardware stores, garden supply stores, and department stores.

At the first stage, all costs of selling the product, its advertising, packaging, delivery and processing of payment documents are identified. At the second stage, the amounts of costs for the listed types of activities during trade through each of the channels of interest are determined. Having determined these costs, at the third stage they prepare a calculation of profits and losses for each channel separately. A firm may find that it actually loses money when selling through garden supply stores, barely breaks even when trading through hardware stores, and makes almost all of its income from department stores.

FINDING THE MOST EFFECTIVE CORRECTIVE ACTIONS. Before making any decision, you must first answer the following questions:

To what extent does making a purchase depend on the type of retail establishment, and to what extent on the brand of the product?

What are the trends in the importance of each of these three channels?

Are the firm's marketing strategies optimal across these three channels?

Having received answers to these questions, marketing management will be able to evaluate a number of options for action, select and take the necessary actions.

Strategic control

From time to time, firms need to make critical assessments of their overall marketing performance. Every firm should periodically re-evaluate its overall approach to the market, using a technique known as a marketing audit. . Marketing audit is a comprehensive, systematic, impartial and regular examination of a firm's (or organizational unit's) marketing environment, objectives, strategies and operations with the aim of identifying emerging problems and opportunities and recommending a plan of action to improve the firm's marketing activities.

The marketing auditor should be given complete freedom to conduct interviews with managers, clients, dealers, salesmen and other persons who can shed light on the state of the company's marketing activities. Based on the information collected, the auditor draws appropriate conclusions and makes recommendations.

Strategic marketing planning is an integral part of the work of any enterprise whose goal is competitiveness and increasing profits. Planning is the most important link in the marketing management system.

Main goals

Strategic planning is needed to achieve the following enterprise goals:

Sales of products of the highest quality;
Increasing the market share controlled by the organization;
Ensuring previously agreed upon delivery time of goods or services;
Taking into account the conditions set by competing enterprises;
Creating and maintaining a positive reputation about products among consumers.

In general terms, the main tasks of strategic marketing planning come down to increasing the company’s profits, improving the social status of the company, as well as increasing sales and successfully planning the possible costs of the enterprise.

Marketing planning stages

The marketing planning process consists of seven stages that are interconnected. They are put into practice with the help of the company's management together with employees of marketing enterprises and, together with marketing tasks, represent a marketing planning system. So, the stages:

Goals, their development, search for optimal solutions;
Finding goals that are more specific and for a shorter period of time, for example, several years;
Identification of ways and means to achieve the above goals;
Monitoring the implementation of the plan, comparing deadlines and work completed to achieve goals.

It is important to understand that planning is a process that is focused on historical data. In accordance with this information, the enterprise is able to more clearly define goals for future periods and, accordingly, monitor the implementation of plans. Refer to the financial statements for the previous half year. The quality of planning directly depends on the level of qualifications of employees.

Special marketing techniques are to be able to adjust previously drawn up plans. This is a very important point. Proper strategic planning contains “safety margins” - these are special reserves that leave room for change.

When planning, it is also important to consider the marketing budget. The marketing budget is part of the marketing strategy, which reflects the planned indicators of income, profit and expenses.

In addition to planning, marketing and marketing control is also an important step.

There are several forms of marketing control:

strategic control - involves monitoring the compliance of strategic marketing decisions with external circumstances and conditions of the company's activities.

operational control - the purpose of such control is to compare planned and actual indicators of the implementation of current plans.

profitability control and cost analysis - involves assessing the payback of marketing activities carried out by the company.

Main Strategies

The role of marketing in strategic planning cannot be overestimated. An example of this is competitive marketing strategies that are aimed at ensuring that the company takes a strong position in the market. According to Porter, this goal can be achieved using three strategies that do not contradict each other:

1. Cost minimization strategy. In most organizations, managers pay great attention to working with costs. Their main goal is to reduce the level of costs for production and sales of products compared to competing firms. This strategy has a number of advantages:

firstly, it protects the company from buyers who seek to reduce prices, since they can only reduce them to the level of competitors’ prices;

secondly, low costs provide the firm with flexibility in relation to suppliers who seek to increase prices;

thirdly, those factors that lead to cost savings are usually at the same time an obstacle to competitors entering the industry;

if a company saves on costs, this puts it in an advantageous position in relation to firms offering substitute products;

It should be noted that this cost saving strategy is not suitable for all companies. It can be implemented by those companies that control fairly large market shares in their industry. When a company becomes a leader in cost minimization and its profitability increases, managers will need to wisely manage additional profits and invest it in production development, equipment upgrades, etc. Thus, the company will be able to maintain its leadership position for a certain time. It is also worth remembering that when implementing such a strategy, competitors will always be able to take advantage of the leader’s cost-saving method and enter the fight. Therefore, it is possible that the leading company will lose and give way to competitors.

2. Differentiation strategy. This is an alternative strategy in which manufacturers are offered a unique product in their industry. Unlike the first strategy, the differentiation strategy allows for the presence of several leaders in the market, each of which will offer some special product or service.

This strategy involves increasing costs because it is necessary to invest money in product development. Such companies need to invest in product design, use the best raw materials for its production and provide quality service.

Like the strategy of minimizing costs, differentiation is fraught with certain risks. If the price for a product from a company that uses a cost minimization strategy is much lower than for a product from a company that uses a differentiation strategy, then the consumer may sacrifice some of the unique properties of the product, its design, etc. and choose a product with a lower price. In addition, the uniqueness that a company offers today may become outdated tomorrow or customer tastes may change. Competing firms that adhere to a cost minimization strategy can imitate the product offered by firms that adhere to a differentiation strategy and thereby lure customers to their side.

3. Concentration strategy. Firms that adhere to this strategy concentrate on satisfying the needs of a narrow circle of consumers, or on offering a narrow range of products. The main difference between this strategy and the previous two is that the company deliberately refuses to compete in the entire industry and competes only in a narrow segment of the market. Firms that adhere to this strategy do not offer cheap or unique products and services. Instead, they serve a very specific group of customers. By competing in a narrow area, this company can also use differentiation or cost minimization strategies.

Consumer rights.

Since in different countries in each branch of production there are different types of markets, there is a constant need for the protection and protection of consumer rights, which is associated with quality, pricing policy, their compliance, as well as a guarantee of protection from the action of substandard goods. When forming a system of relations between producers and consumers. The state takes into account the sovereignty of the consumer, i.e. it is his right to buy what he needs. In 1935, the UN General Assembly developed guidelines for the protection of consumer rights, on the basis of which consumer rights were developed in 1961 in the United States. And in 1992, a law was issued on the protection of consumer rights in Russia, which was revised in 1966.

These principles were intended to promote compliance with business practices consistent with the interests of consumers. There are only 7 of them.

1. The right to choose a product in conditions of sufficient variety of offers at specific prices and while limiting monopolistic influence on the consumer.

2. The right to product safety.

3. The right to be informed about the most important properties of goods, methods of sale, guarantees that help the consumer make a decision.

4. The right to protection from substandard goods and compensation for damage associated with their use.

5. The right to be heard and receive support from the state and public organizations in protecting rights.

6. The right to receive consumer education to make it easier for consumers to make decisions.

7. The right to a healthy environment that does not pose a threat to a decent and healthy life for current and future generations.

Topic 5: “Strategic planning in marketing.”

1. Stages of strategic planning in marketing.

2. Classification of strategic marketing.

3. Marketing strategy matrices:

3.1. analytical models;

3.2. portfolio matrices;

3.3. competitive analysis.

4. Marketing programs.

Strategic planning - the managerial process of creating and maintaining strategic alignment between the company's goals, its potential capabilities and chances in the field of marketing.

Stages of strategic planning(according to F. Kotler):

1. defining the objectives of organizations;

2. creation of economic strategic units (implemented in organizational management structures) and in job descriptions;

3. setting marketing goals;

4. situational analysis - studying the marketing capabilities of the company and the problems associated with their implementation. Situational analysis is determined by the system of relationships between firms and the external environment. The most important are relationships with consumers, less so with suppliers, competitors, and the government;

5. development of a marketing strategy. The result of the situational analysis is the development of several alternative approaches and only one strategy option is selected, on the basis of which the tactics of the procedure and decision-making process are developed;

6. development of marketing tactics;

7. control over results.