Marketing Planning

Tools
 The Strategic-Planning
Gap
Desired
Desired
sales
sales
Diversification growth
Strategic-
planning
Integrative growth gap
Sales

Intensive growth

Current
Current
portfolio
portfolio

0 5 10
Time (years)
 Sales & Profit Life
Cycles
Sales & profits ($)

Introduction Growth Maturity Decline

Time
 The Boston Consulting
Group’s Growth-Share
Matrix
Market Growth Rate

20%- Stars Question marks

4
?
18%-
3 1
16%-
14%-
12%- 5
?2 ?

?
10%-
8%- Cash cow Dogs
6%- 8
4%-
2%- 6
0
7
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x
Relative Market Share
 Three Intensive Growth
Strategies: Ansoff’s
Product/Market Expansion Grid
Existing New
products products

Existing 1. Market 3. Product

markets penetration development

New 2. Market
markets development 4. Diversification
 Market Attractiveness:
Competitive- Position Portfolio
Classification
BUSINESS STRENGTH
Strong Medium Weak
MARKET ATTRACTIVENESS

5.00 3.67 2.33 1.00

5.00 Joints
Low Medium High

Hydraulic Aerospace
pumps fittings
3.67
Clutches
Fuel
pumps
Flexible
2.33 diaphragms
Relief
valve
1.00
Invest/grow Selectivity/earnings Harvest/divest
 Opportunity Matrix
Success Probability Opportunities
High Low
1. Company develops a
more powerful
Attractiveness

lighting system
High 1 2 2. Company develops a
device for measuring
the energy efficiency
of any lighting system
3. Company develops a
device for measuring
illumination level
Low 3 4 4. Company develops a
software program to
teach lighting
 Threat Matrix
Probability of Occurrence Threats
High Low 1. Competitor
develops a
superior lighting
Seriousness

High 1 2 system
2. Major prolonged
economic
depression
3. Higher costs
4. Legislation to
Low 3 4 reduce number of
TV studio licenses
 Marketing
Strategy Marketing
intermediaries
Demographic/ M Technical/
economic pl ark physical
sy ann etin

st at ng
n
environment environment

em io
sy rm eti
st in g
em g
fo r k
in Ma Product

Suppliers Place Target Price

customers Publics

tio nd
en ion g

n
ta a
em at tin
M ganyst
or s
ar i em

Promotion

pl niz ke
ke za

imrga Mar
tin tio

Political/ Social/
g n

legal cultural
o

environment environment
Competitors
Product Differentiation

Conform-
Fea- Perfor-
Form Quality ance
tures mance
Quality

Dura- Relia- Repair-

Style Design
bility bility ability
Services Differentiation

Ordering
Ordering Customer
Customer
Installation
Installation

Miscellaneous
Ease
Ease Consulting
Consulting

Services
Customer
Customer Maintenance
Maintenance
Delivery
Delivery Training
Training &&Repair
Repair
 Preemptive
Preemptive
Superior
Superior Affordable
Affordable
Establishing
Differences Worth
Distinctive
Distinctive Profitable
Profitable
Important
Important
 The Value-Delivery
Process
(a) Traditional physical process sequence
Make the product Sell the product
Design Procure Make Price Sell Advertise/ Distribute Service
product promote

(b) Value creation & delivery sequence

Choose the Value Provide the Value Communicate the Value

Strategic marketing Tactical marketing