Strategic planning

The process of developing and maintaining a strategic fit between the organization’s
goals and its changing marketing opportunities. (figure 2.1 p 318)

Mission statement
A statement of the organization’s purpose – what it wants to accomplish in the larger
environment.
Mission statements should be market oriented and defined in terms of satisfying basic
customer needs. Products and technologies eventually become outdated, but basic
market needs may last forever. Mission statements should be meaningful and specific
yet motivating.

Setting Company objectives and goals

Companies’ needs to turn its broad mission into detailed supporting objectives for
each level of managementMarketing strategies and programs must be developed to
support these marketing objectives . And each manager should have objectives and be
responsible for reaching them.

 Designing the business Portfolio

Business portfolio
The collection of business and products that make up the company.
business portfolio planning involves two steps. First the company must analyze its
current business portfolio and determine which businesses should receive more, less or
no investment. Second, it must shape the future portfolio by developing strategies for
growth and downsizing.

Portfolio analysis
The process by which management evaluates the products and businesses that make
up the company.
steps:
1:managers should identify their strategic business units-SBU. (key businesses that
make up the company) can be a company division, single product or brand etc.
-purpose of strategic planning: to find ways in which the company can best use its
strengths to take advantage of attractive opportunities in the environment.

The Boston Consulting Group Approach

Growth-share matrix
A portfolio-planning method that evaluates a company’s SBUs in terms of market
growth rate and relative market share.

 Question mark (Fragezeichen; Nachwuchsprodukte)

- low-share business units in high-growth markets
- require a lot of cash to hold their share
 - management has to think hard about what question marks it should try to build
into stars and which should be phased out
Einführungsphase

 Stars (Wachstum; brillante Sterne der Company)

- High-growth, high-share businesses or products
- need heavy investments to finance their rapid growth
Later cashcows
Sollten dennoch möglichst lang stars bleiben

 Cash cows ( großem relative Marktanteil mit geringem Wachstum)

- low-growth, high-share businesses or products
- established & successful SBU need less investment to hold their market share
Sollten ohne weitere Investitionen gemolken warden

 Dogs (Problemprodukte; Gefahr von Verlusten)

- low-growth, low-share businesses or products
- may generate enough cash to maintain themselves, but do not promise to be
large sources of cash
Innovation oder Eliminierung