7.7. Strategic Planning Process
Strategic management provides the overarching framework within which marketing strategies are developed and executed. In this context, the strategic planning process for marketing integrates these broader organizational goals with targeted efforts to reach and influence specific market segments. There are seven interrelated steps in the strategic planning process for marketing:
- Define the organizational mission.
- Establish strategic business units.
- Set marketing objectives.
- Perform a situation analysis.
- Develop a marketing strategy.
- Implement tactical plans.
- Monitor results.
Organizational Mission
An organization’s mission statement comprises its purpose, competition, target market, products and services and the stakeholders involved, including consumers, employees, owners and the community. For instance, a hospital’s mission might be to deliver both inpatient and outpatient medical services to the community while adhering to budgetary constraints. Each department within the organization would align its mission with this overarching mission. Consequently, the mission of the foodservice department within the hospital would be to provide meals to patients, employees and visitors within the confines of the departmental budget. (Gregoire, 2017)
Strategic Business Units (SBUs)
Following the definition of its mission, an organization should create strategic business units (SBUs). Each SBU operates as a distinct entity within the organization, focusing on a specific market and managed by a responsible individual who integrates all functions into a cohesive strategy. SBUs form the foundation for a strategic marketing plan. In business terminology, the hospital represents the corporate level, while the foodservice department functions as an SBU. Each SBU has a well-defined market segment, a strategy aligned with the corporate mission, its own mission and its unique competitors.
Marketing Objectives
A marketing objective specifies what is to be achieved through marketing efforts. Each SBU within an organization must establish its own clear and straightforward objectives for marketing performance. Objectives are typically expressed in both quantitative terms (such as dollar sales, percentage profit growth, market share) and qualitative terms (such as image, uniqueness, customer service). Many restaurants and other foodservice entities combine both quantitative and qualitative measures in their objectives.
Situation Analysis
Situation analysis involves identifying marketing opportunities and potential challenges facing an organization. It requires the manager to understand the current state of the organization and its future direction.
Development of Strategy
A marketing strategy serves as a comprehensive plan for reaching and effectively serving a specific target market. It involves selecting the target market and developing a detailed marketing mix to meet the needs and preferences of that market. The strategy must be precise and clearly defined, outlining the specific objectives to be achieved and the methods that will be used to reach those goals. A well-crafted marketing strategy ensures that all efforts are aligned with the organization’s overall mission and that resources are used efficiently to achieve the desired outcomes.
Tactical Plans
Tactical plans are the actionable steps taken to implement the marketing strategy. While the strategy sets the overall direction and goals, tactics focus on the practical actions needed to achieve those goals. These include specific initiatives and day-to-day activities that support the broader strategic objectives. Effective tactical plans ensure that every action is purposefully aligned with the strategy, enabling the organization to move steadily toward its marketing objectives with a clear and focused approach.
Monitor Results
Monitoring results is a critical aspect of the strategic planning process, involving the regular comparison of actual performance against established goals and standards. Tools such as budgets, schedules and performance analyses are employed to track progress and assess outcomes. When actual performance falls short of the standards set by the strategy, corrective actions are taken to realign efforts and ensure that objectives are met. Additionally, organizations often prepare contingency plans to address any unexpected challenges, ensuring that performance remains on track even in the face of unforeseen obstacles.
Example: Launching a New Product
Imagine a company planning to launch a new product. The strategic goal might be to capture a new market segment. Tactical planning would involve designing marketing strategies and identifying distribution channels. Operational planning would focus on the logistics of producing and delivering the product, including managing production schedules and ensuring quality control.
In summary, strategic planning is about setting clear goals, designing actionable plans and implementing them effectively. By following these steps and using the SMART framework, organizations can enhance their chances of achieving success and maintaining a competitive edge.
