Creating strategies that create shareholder value
Strategic marketing planning is made more difficult by the myriad different approaches suggested in textbooks. In truth, however, these differ in jargon and detail but not in principle; there is a core process of strategic marketing planning. This core process involves an iterative loop of understanding the market, choosing the strategy, implementing the plan and monitoring outcomes. It is supported by a raft of strategic management tools and techniques, and this technology of strategic marketing planning can be used to reduce the risk associated with the business plan. This reduction of risk and subsequent improvement in potential to create shareholder value forms the therapeutic process of Marketing Due Diligence.
- Market risk can be reduced by better understanding of the risks inherent in growth strategies and in poorly characterized markets. It can be reduced in practice by intelligent use of market research, understanding the implications of Ansoff's matrix and the predictive power of life cycle analysis.
- Share risk can be reduced by improving the choice of target customers and the value propositions we offer them. It can be reduced in practice by understanding market structure, market segmentation and the difference between a product or service and a value proposition. It can be further reduced by insight into strengths and weaknesses of the company and how they align to the market.
- Profit risk can be reduced ...