SOSTACⓇ Planning System
Helen Strong
SOSTACⓇ Planning System: Purpose
PR Smith’s SOSTAC® Planning System model provides marketers with a simple and formal structure for the development of marketing plans. It provides a holistic approach to measuring the environmental influences.
SOSTACⓇ Planning System: Structure and Description
Starting at the apex of the cycle, researchers will provide a situational analysis of both external and internal factors. These are fed into the strategic planning where the marketing objectives are developed, taking account of the overall business objectives.
Once the objectives have been set, then the overall marketing strategy is reviewed, with careful reflection and analysis of the potential impact of strategies on turnover. At an operational level the strategies are translated into tactics, which are designed to turn the strategic plan into reality.
From there implementation is achieved via action plans, which require management oversight and control. Implementation is usually the most risky part of the entire marketing plan (see Figure 30.1).
SOSTACⓇ Planning System: Strategic Implications
The importance of this process is that the marketing objectives take account of the trends in the environment, and implementation of the strategies is firmly tied in to an action plan. It is widely recognized that the stumbling block to many plans is in erratic or inefficient implementation. This model gives the process a framework for success.
Figure 30.1 SOSTACⓇ model
Source: Smith 2011
SOSTACⓇ Planning System: Implementation
The critical question is: What are the implications of the situation and trends for our organization, its products, and strategies?
At the start of the strategic planning process, researchers will provide all the information required from a situational analysisSA. The questions to ask are: Where are we now? What is happening in the environment that will affect my business, the industry, and my target market? What are my competitive advantages? How are we performing against budget? Where do we stand in relation to competitors? Is our marketing mix (7Ps) the most appropriate one within this market?
Marketing objectives will be set to take the situation and the business objectives into account. Essentially, the objectives are a considered statement as to where the company wants to be in terms of sales and selected markets. In time-honored style, the objectives will be specific; measurable; actionable; realistic; time defined (SMART) in nature.
From here the model moves to the strategic element. How are the objectives going to be achieved? Relying on information provided by the researcher, the marketer needs to determine the products that will be on offer; the target market segments that will be covered; the brand image and positioning of the products; and finally how marketing mix elements will be adjusted to best support the objectives.
An increasingly important element of the mix is that of communication. With the growing impact of social media and the benefits that can occur when consumers engage with a company, researchers will be called upon to provide the evidence to inform the allocation of adspend. Do social media work in this market? Is the target market active on the Internet? If yes, where and how? What about content marketingG and inbound marketing—the strategies of the connected marketing company?
Specific tactics that address the strategic objectives are developed. For example, the strategy may be to increase market coverage. The tactic could be to expand distribution via a third-party distributor, which services smaller outlets. Perhaps if the Internet is going to be used for advertising, will one use banner ads or pay per click on pop-up advertisements?
The action plan is an important feature of this model. Marketers are reminded to allocate responsibilities and define who does what, and when. This is where the budgets need to be defined, line by line to ensure that the correct resources are provided to implement the plans. You may want to consider using a road map approach so that the people who are implementing the plan or who are affected by it buy into the proposed activities.
Finally, the control or monitoring of performance: Here the researcher needs to have the systems set up to collect and analyze the performance data, which will allow evaluation and readjustment of plans according to outcomes. Metrics will include web analytics, sales tracking by product line, by area, by outlet, and so on. Customer satisfaction surveys will be necessary to keep in touch with the consumer needs.
Within this area, the reporting format and frequency need to be in line with the speed of change in the market. Retailers require almost daily, definitely weekly input regarding the success or otherwise of their promotions. Other industries may only require monthly performance review.
SOSTACⓇ Planning System: Conclusions
This model depends on a variety of different research techniques to provide information. The researcher needs to recognize the types of decisions that have to be made and ensure that appropriate data is available for analysis and interpretation.
With a formal plan in place, one has a greater chance of successful implementation.
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