Strategic Planning and Brand Management: Key Concepts
Strategic Planning Overview
Strategic planning: Headquarters designs the 1CORP STRATEGY plan (guiding the enterprise: how many resources for each unit, what business to start/stop). Each business unit develops a 2PLAN for a profitable future. Each MK3OFFERS a MK plan to achieve its objectives.
Corporate strategy: Define line of business, determine objectives for each line of business, assign resources.
Business strategy: Using resources for competitive advantage.
Functional strategy: Maximize performance.
Strategic Marketing
Marketing definition + mission of the company, analyzes environment and market (competitive analysis: positioning, behavioral study, segmentation and attractiveness), internal analysis of resources, formulates objectives, designs strategies.
Operational Marketing
Marketing mix design (4Ps), coordinates functions, marketing audit, relationship marketing.
Managing Marketing Offers: The G-STIC Approach
Set goals based on the 5Cs, develop strategy (target + value proposal), design the tactics (7 Tactics of marketing offering = product & service, brand, price, communication, incentives, distribution), define an implementation plan to reach the audience, identify control metrics to monitor goal progress.
Marketing Plan Advantages
- Creative thinking about the future
- Coordinates activities
- Helps communication
- Monitors objectives
Brand builders: (meaning, memorable, likeable). Defensive: to preserve it (transferable, adaptable, protectable).
Brand Importance
To consumers: sign of quality, identify source, pact with producer, decision making.
To manufacturers: competitive advantage, endow associations, legal protection, controllable, sign of quality to consumers.
Brand Management Essentials
Marketing: Process that companies use to create value for customers and build relationships to capture value from them in return.
Brand: Concept -> a name, term, symbol, design, that seeks to identify the goods or services of a seller, and differentiate them from the competition.
Why Brands are Important
To consumers: sign of quality, identify source, pact with producer, easy decision making.
To manufacturers: competitive advantage, endow unique associations, legal protection, controllable, sign of quality to consumers.
Brand equity: The value that explains (and quantifies) when consumers react more favorably to the marketing of a branded product or service versus non-branding.
Customer view: Sum of all the associations held about the brand.
Company view: Brand equity is the consumer perspective expressed as an intangible asset on the balance sheet.
Strategic Brand Management
Strategic Brand Management is the designing and implementation of marketing activities to build, measure, and manage brand equity.
- Identify brand positioning (mental maps, competitive frame, brand mantra)
- Plan brand marketing programs (mixing brand elements, integrate brand marketing activities)
- Measure brand performance (brand audits, value chain, tracking)
- Grow brand equity (brand product matrix, expansion strategy)
Strategic Business Unit (SBU)
A strategic business unit (SBU) is a single business, or a collection of related businesses, that can exist separately from the rest of the company. It has its own set of competitors and a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit.
Example: Proctor and Gamble