Structure of strategic planning in marketing. Strategic Marketing Planning

is a set of actions, decisions taken by management that lead to the development of specific strategies designed to achieve goals.

Strategic planning can be presented as a set of management functions, namely:

  • resource allocation (in the form of company reorganization);
  • adaptation to the external environment (using the example of Ford Motors);
  • internal coordination;
  • awareness of organizational strategy (thus, management needs to constantly learn from past experience and predict the future).

Strategy is a comprehensive, integrated plan designed to ensure that its objectives are implemented and achieved.

Key points of strategic planning:

  • the strategy is developed by senior management;
  • the strategic plan must be supported by research and evidence;
  • strategic plans must be flexible to allow for change;
  • planning should be beneficial and contribute to the success of the company. At the same time, the costs of implementing activities should be lower than the benefits from their implementation.

Strategic Planning Process

The following stages of strategic planning are distinguished:

- the overall primary purpose of the organization, the clearly expressed reason for its existence. Restaurant chain fast food Burger King provides people with inexpensive food instant cooking. This is implemented in the company. For example, hamburgers should be sold not for 10, but for 1.5 dollars.

The mission statement can be based on the following questions:

  • Which entrepreneurial activity does the company do?
  • What is the firm's external environment that determines its operating principles?
  • What type of working climate within the company, what is the culture of the organization?

The mission helps create customers and satisfy their needs. The mission must be found in the environment. Reducing the mission of an enterprise to “making a profit” narrows the scope of its activities and limits the ability of management to explore alternatives for decision making. Profit - necessary condition existence, an internal need of the company.

Often, a mission statement answers two basic questions: Who are our customers and what needs of our customers can we satisfy?

The character of the leader leaves an imprint on the mission of the organization.

Goals- are developed on the basis of the mission and serve as criteria for the subsequent management decision-making process.

Target characteristics:

  • must be specific and measurable;
  • oriented in time (deadlines);
  • must be achievable.

Assessment and analysis of the external environment. It is necessary to assess the impact of changes on the organization, threats and competition, and opportunities. There are factors at play here: economic, market, political, etc.

Management survey of the internal strengths and weaknesses of the organization. It is useful to focus on five functions for the survey: marketing, finance, operations (production), human resources, culture and image of the corporation.

Exploring Strategic Alternatives. It should be emphasized that the company’s strategic planning scheme is closed. The mission and procedures of other stages should be constantly modified in accordance with the changing external and internal environment.

Basic strategies of the organization

Limited growth. Used in mature industries, when satisfied with the current state of the company, low risk.

Height. Consists of an annual significant increase in the indicators of the previous period. It is achieved through the introduction of new technologies, diversification (expanding the range) of goods, capturing new related industries and markets, and merging corporations.

Reduction. According to this strategy, a level is set below what was achieved in the past. Implementation options: liquidation (sale of assets and inventories), cutting off excess (sale of divisions), reduction and reorientation (reduce part of the activity).

Combination of the above strategies.

Choosing a strategy

There are various methods for choosing strategies.

The BCG Matrix is ​​widely used (developed by Boston Consulting Group, 1973). With its help, you can determine the position of the company and its products, taking into account the capabilities of the industry (Fig. 6.1).

Rice. 6.1. BCG Matrix

How to use the model?

BCG Matrix, developed by the same name consulting company, by 1970 it was already widely used in practice.

Focus on this method given cash flow, directed (consumed) in a separate business area of ​​the company. Moreover, it is assumed that at the stage of development and growth, any company absorbs cash (investments), and at the stage of maturity and the final stage, it brings (generates) positive cash flow. To be successful, the cash generated from a mature business must be invested into a growing business to continue making a profit.

The matrix is ​​based on the empirical assumption that the more profitable company is the one that has larger size. The effect of reducing unit costs with increasing firm size has been confirmed by many American companies. Analysis is carried out using the matrix portfolio(set) of manufactured products in order to develop a strategy for the future fate of the products.

BCG matrix structure. The x-axis shows the ratio of the sales volume (sometimes the value of assets) of the company in the corresponding business area to the total sales volume in this area of ​​its largest competitor (the leader in this business). If the company itself is a leader, then go to the first competitor that follows it. In the original, the scale is logarithmic from 0.1 to 10. Accordingly, weak (less than 1) and strong competitive positions of the company’s product are identified.

On the y-axis, the assessment is made for the last 2-3 years; you can take the weighted average value of production volumes per year. You also need to take inflation into account. Next, based on the strategy options, the direction of investment is selected cash.

"Stars". They bring high profits, but require large investments. Strategy: maintain or increase market share.

"Cash Cows". They generate a stable income, but the cash flow may suddenly end due to the “death” of the product. Does not require large investments. Strategy: maintain or increase market share.

"Question Marks". It is necessary to move them towards the “stars” if the amount of investment required for this is acceptable for the company. Strategy: maintaining or increasing or reducing market share.

"Dogs". They can be significant in the case of occupying a highly specialized niche in the market, otherwise they require investment to increase market share. It may be necessary to stop producing this product altogether. Strategy: be content with the situation or reduce or eliminate market share.

Conclusion: the BCG matrix allows you to position each type of product and adopt a specific strategy for them.

SWOT analysis

This method allows you to establish a connection between the strengths and weaknesses of the company and external threats and opportunities, that is, the connection between the internal and external environment of the company.

Strengths: competence, adequate financial resources, reputation, technology. Weaknesses: outdated equipment, low profitability, insufficient understanding of the market. Opportunities: entering new markets, expanding production, vertical integration, growing market. Threats: new competitors, substitute products, slowing market growth, changing customer tastes.

Opportunities can turn into threats (if a competitor uses your capabilities). A threat becomes an opportunity if competitors were unable to overcome the threat.

How to apply the method?

1. Let's make a list of the organization's strengths and weaknesses.

2. Let's establish connections between them. SWOT Matrix.

At the intersection of four blocks, four fields are formed. All possible pairing combinations should be considered and those that should be taken into account when developing a strategy should be selected. Thus, for couples in the SIV field, a strategy should be developed to use the company's strengths to capitalize on the opportunities that have arisen in the external environment. For SLV - due to the opportunities to overcome weaknesses. For the SIS, it is to use forces to eliminate the threat. For a couple in the field, SLU is to get rid of a weakness while preventing a threat.

3. We build a matrix of opportunities to assess the degree of their importance and impact on the organization’s strategy.

We position each specific opportunity on the matrix. Horizontally we plot the degree of influence of the opportunity on the organization’s activities, and vertically we plot the likelihood that the company will take advantage of this opportunity. Opportunities that fall into the fields of BC, VU, SS have great value, they need to be used. Diagonally - only if additional resources are available.

4. We build a threat matrix (similar to step 3).

Threats that fall into the VR, VC, SR fields are a great danger, immediate elimination. Threats in the VT, SK, and HP fields are also eliminated immediately. NK, ST, VL - a careful approach to eliminating them. The remaining fields do not require immediate elimination.

Sometimes, instead of steps 3 and 4, an environmental profile is compiled (i.e., factors are ranked). Factors are threats and opportunities.

Importance for the industry: 3 - high, 2 - moderate, 1 - weak. Impact: 3 - strong, 2 - moderate, 1 - weak, 0 - absent. Direction of influence: +1 - positive, -1 - negative. Degree of importance - multiply the previous three indicators. Thus, we can conclude which factors are more important for the organization.

Implementation of the strategic plan

Strategic planning is only meaningful when it is implemented. Any strategy has certain goals. But they need to be implemented somehow. There are certain methods for this. To the question: “how to achieve the company’s goals?” This is exactly what strategy answers. At its core, it is a method of achieving a goal.

Concepts of tactics, policies, procedures, rules

Tactics- this is a specific move. For example, an advertisement for Fotomat film, which is consistent with the company's strategy to promote 35mm film to the market.

There are problems with the implementation of rules and procedures. Conflict may arise over the methods of providing employees with information about new company policies. It is necessary not to force, but to convince the employee that the new rule will allow him to perform this work most effectively.

Methods for implementing the strategy: budgets and management by objectives.

Budgeting. Budget— plan for resource allocation for future periods. This method answers the questions of what tools are available and how to use them. The first step is to quantify the goals and the amount of resources. A. Meskon identifies 4 stages of budgeting: determining sales volumes, operational estimates for departments and divisions, checking and adjusting operational estimates based on proposals from top management, drawing up a final budget for the items of receipt and use of resources.

Management by Objectives— MBO (Management by Objectives). This method was first used by Peter Drucker. McGregor spoke about the need to develop a system of benchmarks in order to then compare the performance of managers at all levels with these benchmarks.

Four stages of MBO:

  • Developing clear, concisely formulated goals.
  • Developing realistic plans to achieve them.
  • Systematic control, measurement and evaluation of work and results.
  • Corrective actions to achieve planned results.

The 4th stage is closed on the 1st.

Stage 1. Development of goals. The goals of a lower level in the company's structure are developed on the basis of a higher level, based on strategy. Everyone participates in setting goals. A two-way exchange of information is required.

Stage 2. Action planning. How to achieve your goals?

Stage 3. Testing and evaluation. After the period of time established in the plan, the following are determined: the degree of achievement of goals (deviations from control indicators), problems, obstacles in their implementation, reward for efficient work(motivation).

Stage 4. Adjustment. We will determine which goals were not achieved and determine the reason for this. It is then decided what measures should be taken to correct the deviations. There are two ways: adjusting methods for achieving goals, adjusting goals.

The validity and effectiveness of MBO has been proven more than high performance people with specific goals and information about the results of their work. The disadvantages of implementing MBO include a great emphasis on formulating goals.

Evaluating the Strategic Plan

Beautiful matrices and curves are not a guarantee of victory. Avoid focusing on immediate implementation of the strategy. Don't trust standard models too much!

Formal assessment is performed based on deviations from specified evaluation criteria. Quantitative (profitability, sales growth, earnings per share) and qualitative assessments (personnel qualifications). It is possible to answer a number of questions when evaluating a strategy. For example, is this strategy in the best possible way achieving goals, using company resources.

The success of Japanese management lies in its commitment to long-term plans. USA - pressure on shareholders, demands for immediate results, which often leads to collapse.

Measurement accuracy. Accounting methods for inflating income and profits. Enron Company. Standards need to be developed. It’s easier to face the truth.

Checking the consistency of the strategy structure. Strategy determines structure. You cannot impose a new strategy on the existing structure of the organization.

Strategic Market Planning

In solving the strategic problems of an organization, strategic planning plays a significant role, which means the process of developing and maintaining a strategic balance between an organization's goals and capabilities in changing market conditions. The purpose of strategic planning is to determine the most promising areas of the organization’s activities that ensure its growth and prosperity.

Interest in strategic management was due to the following reasons:

  1. Awareness that any organization is an open system and that the main sources of success of the organization are in the external environment.
  2. In conditions of intensified competition, the strategic orientation of an organization’s activities is one of the decisive factors for survival and prosperity.
  3. Strategic planning allows you to adequately respond to the uncertainty and risk factors inherent in the external environment.
  4. Since the future is almost impossible to predict and extrapolation used in long-term planning does not work, it is necessary to use scenario, situational approaches that fit well into the ideology strategic management.
  5. In order for an organization to best respond to the influence of the external environment, its management system must be built on principles different from those previously used.

Strategic planning aims to adapt the organization's activities to constantly changing environmental conditions and to capitalize on new opportunities.

In general, strategic planning is a symbiosis of intuition and the art of the organization’s top management in setting and achieving strategic goals, based on mastery of specific methods of pre-plan analysis and development of strategic plans.

Since strategic planning is primarily associated with production organizations, it is necessary to highlight different levels of management of such organizations: the organization as a whole (corporate level), the level of production areas economic activity(divisional, departmental level), the level of specific areas of production and economic activity (the level of individual types of business), the level of individual products. The management of the corporation is responsible for developing a strategic plan for the corporation as a whole, for investing in those areas of activity that have a future. It also decides to open new businesses. Each division (department) develops a divisional plan in which resources are distributed between the individual types of business of this department. A strategic plan is also developed for each business unit. Finally, at the product level, a plan is formed within each business unit to achieve the goals of producing and marketing individual products in specific markets.

For competent implementation of strategic planning, organizations must clearly identify their areas of production and economic activity, in other terminology - strategic economic units (SHE), strategic business units (SBU).

It is believed that the allocation of CXE must satisfy the following three criteria:

1. SHE must serve a market external to the organization, and not satisfy the needs of other divisions of the organization.

2. It must have its own, distinct from others, consumers and competitors.

3. SHE management must control all the key factors that determine success in the market. Thus, CHEs can represent a single company, a division of a company, a product line, or even a single product.

In strategic planning and marketing, several analytical approaches have been developed that make it possible to solve the problems of assessing the current state of a business and the prospects for its development. The most important of them are the following:

  1. Analysis of business and product portfolios.
  2. Situational analysis.
  3. Analysis of the impact of the chosen strategy on the level of profitability and the ability to generate cash (PIMS - the Profit of Market Strategy).

Assessing the degree of attractiveness of an organization's various identified CXEs is usually carried out along two dimensions: the attractiveness of the market or industry to which the CXE belongs, and the strength of the position of the given CXE in that market or industry. The first, most widely used method of CXE analysis is based on the use of the “market growth rate - market share” matrix (Boston Consulting Group matrix - BCG); the second is on the CXE planning grid (General Electric Corporation matrix, or Mag-Kinzy). The "market growth rate - market share" matrix is ​​designed to classify a CXE organization using two parameters: relative market share, which characterizes the strength of CXE's position in the market, and market growth rate, which characterizes its attractiveness.

A larger market share makes it possible to earn greater profits and have a stronger position in competition. However, here it should immediately be noted that such a strict correlation between market share and profit does not always exist; sometimes this correlation is much softer.

The role of marketing in strategic planning

There are many points of intersection between strategies for the organization as a whole and marketing strategies. Marketing studies the needs of consumers and the organization's ability to satisfy them. These same factors determine the mission and strategic goals of the organization. When developing a strategic plan, they operate with marketing concepts: “market share”, “market development” and
etc. Therefore, it is very difficult to separate strategic planning from marketing. In a number of foreign companies, strategic planning is called strategic marketing planning.

The role of marketing is manifested at all three levels of management: corporate, CXE and at the market level of a particular product. At the corporate level, managers coordinate the activities of the organization as a whole to achieve its goals in the interests of pressure groups. At this level, two main sets of problems are solved. The first is what activities should be undertaken to satisfy the needs of important customer groups. The second is how to rationally distribute the organization's resources among these activities to achieve the organization's goals. The role of marketing at the corporate level is to determine those important factors external environment (unmet needs, changes in competitive environment etc.), which should be taken into account when making strategic decisions.

At the individual CHE level, management is more focused on making decisions for the specific industry in which the business competes. At this level, marketing provides a detailed understanding of market demands and the selection of the means by which these requests can best be satisfied in a specific competitive environment. A search is carried out for both external and internal sources of achievement competitive advantages.

Management of activity in the market for a specific product focuses on adoption rational decisions according to the marketing mix.

Choosing a strategy

After analyzing the strategic state of the organization and the necessary adjustments to its mission, you can move on to analyzing strategic alternatives and choosing a strategy.

Typically, an organization chooses a strategy from several possible options.

There are four basic strategies:

  • limited growth;
  • height;
  • reduction;
  • combination.

Limited growth(several percent per year). This strategy is the least risky and can be effective in industries with stable technology. It involves defining goals based on the level achieved.

Height(measured in tens of percent per year) is a strategy typical for dynamically developing industries, with rapidly changing technologies, as well as for new organizations that, regardless of their field of activity, strive to quickly take a leading position. It is characterized by the establishment of an annual significant excess of the level of development over the level of the previous year.

This is the most risky strategy, i.e. As a result of its implementation, you may suffer material and other losses. However, this strategy can also be identified with perceived luck, a favorable outcome.

Reduction. It assumes the establishment of a level below that achieved in the previous (base) period. This strategy can be used in conditions when the company's performance indicators acquire a steady tendency to deteriorate.

Combination(combined strategy). Involves a combination of the alternatives discussed above. This strategy is typical for large firms operating in several industries.

Classification and types of strategies:

Global:

  • minimizing costs;
  • differentiation;
  • focusing;
  • innovation;
  • prompt response;

Corporate

  • related diversification strategy;
  • unrelated diversification strategy;
  • capital pumping and liquidation strategy;
  • change course and restructuring strategy;
  • international diversification strategy;

Functional

  • offensive and defensive;
  • vertical integration;
  • strategies of organizations occupying various industry positions;
  • competition strategies at various stages life cycle.

Cost minimization strategy consists in establishing the optimal value of production volume (use), promotion and sales (use of marketing economies of scale).

Differentiation strategy based on the production of a wide range of goods of one functional purpose and allows the organization to serve large number consumers with different needs.

By producing goods of various modifications, the company increases the circle of potential consumers, i.e. increases sales volume. In this case, horizontal and vertical differentiation are distinguished.

Horizontal differentiation implies that price various types products and the average income of consumers remain the same.

Vertical assumes different prices and the income level of consumers, which provides the firm with access to various market segments.

The use of this strategy leads to an increase in production costs, so it is most effective when demand is price inelastic.

Focus strategy involves serving a relatively narrow segment of consumers who have special needs.

It is effective primarily for firms whose resources are relatively small, which does not allow them to serve large groups consumers with relatively standard needs.

Innovation strategy provides for the acquisition of competitive advantages through the creation of fundamentally new products or technologies. In this case, it becomes possible to significantly increase sales profitability or create new segment consumers.

Rapid response strategy involves achieving success through rapid response to changes in the external environment. This makes it possible to gain additional profit due to the temporary absence of competitors for the new product.

Among corporate strategies, strategies of related and unrelated diversification stand out.

Related diversification strategy assumes that there are significant strategic fits between business areas.

Strategic fits presuppose the emergence of so-called synergistic effects.

Strategic correspondences are identified: production (single production facilities); marketing (similar brands, common sales channels, etc.); managerial (unified personnel training system, etc.).

Unrelated Diversification Strategy assumes that the business areas in their portfolio have weak strategic fits.

However, firms that adhere to this strategy can acquire special stability due to the fact that downturns in some industries can be compensated by upturns in others.

Among functional strategies distinguished primarily offensive and defensive.

Offensive strategies include a set of measures to retain and acquire competitive advantages of a proactive nature: attacking the strengths or weaknesses of a competitor; multi-pronged offensive, etc.

Defensive strategies include measures that are reactionary in nature.

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    TOPIC 10. STRATEGIC PLANNING

    AND MARKETING CONTROL

    1.

    2. Pims

    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 current plan(most often annual) characterizes the marketing situation of the enterprise in the current year.

    Strategic planning- this management process creating and maintaining strategic alignment between the company's goals and its potential marketing opportunities.

    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 customer needs into enterprise income, achieving 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 an enterprise’s marketing goals should be based on “SWOT” - analysis (the first letters 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 was developed by McKinsey for General Electric in 1971, which operates 30 agricultural enterprises ( 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. Study environment, opportunities, determine 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 through the introduction of 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 the firm's attempts to take possession of or place under more tight control their suppliers. To increase control over the supply chain, the Modern Publishing Company may purchase 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 up other health magazines.

    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 areas where will find application the experience it has accumulated, or directions 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 the 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 either the company's technology or its current products and markets. The Modern Publishing Company may want to enter new areas of activity, such as manufacturing personal computers, selling real estate trading privileges or opening fast food establishments.

    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.

    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 are emerging as a result of changing lifestyles and demographic factors;

    b) for good famous products new areas of application are identified;

    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 the 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. Theoretical basis 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. "Problem 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 funds from a company, relatively high market share improves cash flow, and high levels investments consume money.

    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). It is believed that this model, using about 30 variables, can identify 67% of the company's success factors.

    The use of empirical material is its great advantage. Factors that have the most strong influence 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. Important integral part 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 strategy of the competitor; 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 is focused 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.

    Unlike BCG matrices 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 small. 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 - For foreign markets New products are specially developed. 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 and sales costs 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 take advantage different methods 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 early action. necessary measures. The main methods for monitoring customer relations are complaint and suggestion systems, customer panels and customer surveys."

    CORRECTIVE ACTION. When actual figures deviate too much from the annual plan targets, firms take corrective action. Let's consider the following case. A major fertilizer firm's sales performance was falling short of its target targets. 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 have been 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 provides recommendations.

    The essence of marketing planning

    Definition 1

    Marketing planning in general view is a continuous cyclical process, the main goal of which is to bring the organization's capabilities into the best possible correspondence with those opportunities provided by the market, as well as with factors beyond the control of the company.

    Marketing planning should also be understood as a systematic process that includes a number of elements. The main ones are: assessment of marketing opportunities and resources, setting goals in the field of marketing, as well as developing a marketing plan with its subsequent implementation and control.

    The main objectives of marketing planning are:

    • defining goals, principles and criteria for evaluating the planning process;
    • building a structure of plans, forming their reserves and relationships;
    • organization of the planning process.

    The basis of marketing planning is marketing plan(marketing plan).

    Definition 2

    A marketing plan is an organizational and management document that makes it possible to bring together all types of marketing activities of a company in accordance with its goals, organization and resources.

    The system of marketing plans formed at the organizational level has a three-stage structure (Figure 1).

    Figure 1. Planning system in marketing. Author24 - online exchange of student works

    The marketing planning horizon is determined by each company independently. The higher the level of stability of the market situation, the higher the planning horizon and vice versa.

    Marketing planning can be carried out at three levels of hierarchy. The first involves marketing planning at the level of the organization as a whole, the second - at the level of individual strategic business units. In the third case, we are talking about marketing planning at the level of specific distribution channels, markets or products.

    Strategic Marketing Plan

    Definition 3

    Strategic marketing planning should be understood as the process of developing and forming specific marketing strategies aimed at achieving the company’s general development goals by maintaining a strategic correspondence between them, the potential chances and capabilities of the company in the field of marketing.

    A strategic marketing plan is a system of marketing activities, interconnected in terms of resources, timing and responsible executors, related to achieving set goals and solving problems that arise for the company in the area of ​​increasing its competitiveness in the coming period.

    In fact, a strategic marketing plan represents its strategy. Marketing strategy (or marketing strategy) is a long-term system of measures that ensures the achievement of specific goals outlined by the company in the field of marketing. In other words, it can be defined as a master plan for marketing activities in target markets that determines the way to participate in competition.

    Note 1

    The fundamental function of a marketing strategy is considered to be the identification of market needs, both existing and still hidden.

    It is believed that certain principles should be followed when developing strategic marketing plans. In particular, we are talking about the fact that the marketing strategy should be as clear and precise as possible, and also operate with specific numbers and indicators.

    The basis of the marketing planning strategy is compliance with a certain order (algorithm) for choosing and forming a marketing strategy. Let's look at the main stages of strategic marketing planning in more detail.

    Stages of strategic marketing planning

    Formation of marketing strategies is one of the most important functions of business management. In essence, the process of their development itself is the basis of strategic marketing planning. The main stages of its implementation are presented in Figure 2. Let us consider them in more detail.

    Figure 2. Stages of strategic marketing planning. Author24 - online exchange of student works

    The starting point for the formation of strategic marketing plans is the conduct of business analysis, which presupposes the need for a comprehensive analysis of the company, its products, the competitive situation and the market environment directly related to the target markets.

    The second stage involves identifying, based on a previously conducted analysis of the external and internal environment, opportunities and threats, that is, prospects and problems that the company may face.

    At the fourth stage, target markets are selected, as well as marketing goals are formulated. It is believed that the marketing goals underlying the strategic marketing plan must meet a number of S.M.A.R.T criteria, namely, be specific, realistic, achievable, measurable and time-bound.

    The fifth stage is directly related to determining the type of strategy and its content. In particular, we are talking about the need to choose a positioning strategy focused on creating a certain image of the company, as well as determining other marketing strategies necessary to achieve marketing goals.

    At the sixth stage, goals in the field of communications are determined. In particular, the target level of awareness of the target market is determined, which is necessary to ensure the fulfillment of the objectives set in the field of marketing.

    The seventh stage is directly related to the development of tactical marketing tools. All elements of the marketing mix are involved in the process of tactical planning, namely:

    • goods (product);
    • pricing;
    • distribution;
    • promotion, etc.

    The final stage of strategic marketing planning is the formation of a cost budget, analysis of the payback of the measures proposed as part of the implementation of the marketing strategy, as well as the formation calendar plan work.

    The process of strategic marketing planning is also complemented by the implementation of the marketing strategy, monitoring the progress of its implementation and evaluating the results achieved. Together they form a strategic marketing management system.