WINNING MARKETS: MARKET-

ORIENTED STRATEGIC PLANNING

Characteristics of Corporate Planning:
Vision
Mission
SBU
Product Portfolio Models:
BCG Model
GE Model
Strategies for Planning A New Business
Business Strategic Planning
The Marketing Process
Contents of A Marketing Plan

CORPORATE AND DIVISION STRATEGIC
PLANNING
Defining the Mission:
History
Preferences
Environment
Resources
Distinctive Competencies.
Characteristics of Mission Statements:
Goals
Company policies with suppliers, customers. etc.
CORPORATE AND DIVISION STRATEGIC
PLANNING
Characteristics of Mission Statement (cont.):
Competitive scope:
Industry, product, competence, market-segment, vertical,
geographical
Establishing Strategic Business Units (SBU):
Single business:
customer group
Satisfies its own set of competitors:
customer needs
Single managers responsible for planning and technology
improvements
DIVISION STRATEGIC PLANNING
(CONT.)
Assigning Resources to Each SBU:
Boston Consulting Group Model(BCG):
Market share and market growth
Strategies:
Build-increase market share
Hold-maintain market share
Harvest-increasing short-term cash flow
Divest-liquidation.
Mistakes:
expect all SBU will have same growth pattern,
very little cash retained for cash cows.
Analyzing Current SBUs: Boston
Consulting Group Model






















Question Marks

High growth, low share
Build into Stars/ phase out
Requires cash to hold
market share

Stars

High growth & share
Profit potential
May need heavy
investment to grow
Cash Cows

Low growth, high share
Established, successful
SBUs
Produces cash


Dogs

Low growth & share
Low profit potential
Relative Market Share
High Low
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DIVISION STRATEGIC PLANNING
(CONT.)
The General Electric Model(GE):
Market Attractiveness and Business Strengths.
Critiques of Portfolio Models:
Positives:
help to understand economies of business better
quality of plans may be improved
communication with top management may be improved.
pinpoint information gab
help to eliminate weaker businesses
open opportunities to invest to more profitable businesses.
Negatives:
too mach emphasis to market share,
Can be manipulated to produce desired location
fail to delineate synergy between two or more business.
Analyzing Current SBUs:
GE Strategic Business-Planning Grid






































Business Strength
High
Medium
Low
Strong Average Weak
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PLANNING NEW BUSINESSES
Intensive Growth:
Product/market expansion grit
Market Penetration
Market Development\Product Development
Integrative Growth:
Backward Integration
Forward Integration
Horizontal Integration
Developing Growth Strategies
1. Market
Penetration
2. Market
Development
3. Product
Development
4. Diversification
Existing
Markets
New
Markets
Existing
Products
New
Products
Product/ Market Expansion Grid
PLANNING NEW BUSINESSES
Diversification Growth:
Related industries
concentric diversification
horizontal diversification
Unrelated Industries
Conglomerate diversification
Downsizing Older Businesses:
Pruning.
BUSINESS STRATEGIC PLANNING
Business Vision/Mission
SWOT ANALYSIS:
External Environmental Analysis:
Opportunity and Treat Analysis
Marketing Opportunity-success probability:
Environmental Treat-probability of occurrence:
Ideal business-opportunities are high and treat is low
Speculative business-high on both opportunities and treat
Mature business-low in opportunities and low in treat
Troubled business-low in opportunities and high in treats
Internal Environmental Analysis:
Strength and Weaknesses:
BUSINESS STRATEGIC PLANNING
(CONT.)
Goal Formulation:
MBO
Profit (short-term profit or long-term growth) vs. nonprofit goals,
or high growth Vs low risk.
ROI
Realistic goals
Strategy Formulation:
Cost Leadership:
learning curve
Differentiation:
service, quality, technology
Focus:
target market
BUSINESS STRATEGIC PLANNING
(CONT.)
Strategic Alliances:
product/service alliances
promotional alliances
logistic alliances
pricing collaborations:
airlines,hotels and car rental
Program Formulation:
supporting programs-R&D
Implementation
Feedback and Control
THE MARKETING PROCESS
Value Delivery Process:
Production process:
Strategic Marketing:
Marketing is at the top
segmentation
targeting
positioning
Tactical Marketing
Provide and communicate the value-Japanese approach:
zero Customer feedback
zero product-improvement time
zero purchasing time(JIT)
zero set-up time
zero defects.
THE MARKETING PROCESS (CONT.)
Analyzing Marketing Opportunities:
Marketing research :
Macro/Micro environment
Consumer and business markets.
Developing Marketing Strategies:
Differentiation and positioning
Planning Marketing Programs:
Marketing mix:
Product, Price, Promotion and Place
Managing Marketing Effort:
Implementation of marketing programs
CONTENTS OF MARKETING PLAN
Executive Summary
Current Marketing Situation:
Market
Product
Competition
Distribution
Macro-environment

CONTENTS OF MARKETING PLAN
(CONT.)
Opportunity and Issue Analysis:
Opportunities/Treats Analysis.
Strengths/Weaknesses Analysis.
Issue Analysis.
Objectives/Goals:
Financial.
Marketing.
CONTENTS OF MARKETING PLAN
(CONT.)
Marketing Strategy:
Targeting, positioning:
product
price
promotion
distribution, service, R&D and marketing research.
Action Programs
Projected Profit-and-Loss Statement
Controls
MARKETING PLANNING
Customer and Competitor Oriented
More Realistic
Team Approach
Top Management Involvement
Continuing Process
Cover shorter term (one year and so)
Some Take Seriously, others use as a
guideline