Strategic Planning and Marketing Process

Strategic planning
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.

Planning--what are we going do and how are we going to do it?

Why Plan?

Address changing environment and consumers Develop shared goals within organization Address competitive threat

Planning is no fun!

Who likes to think about the future? It is just an unnatural act!

If you fail to plan, you plan to fail.

Planning requires that you:
What do you see?
 

Anticipate the future Determine actions that are needed to achieve objectives

The Planning Process

Environmental Analysis Mission & Objective Setting Marketing Strategy Development Action Plans

Characteristics of a Strategic Plan

    

Broad in Scope Long Range: 3 - 5 + Years Focus on Organizational Objectives Initiated and Managed by Top Management Becomes Basis for Tactical Planning & Operations

Strategic Planning
Conducted by Board, CEO, Division VPs  Sets Objectives
 

Fundamental Strategies

Tactical Planning

Middle Management - Sales Mgr., Mkt. Research Director, Advertising Director Quarterly & Semi-Annual Plans Departmental Policies and Procedures Budget Allocations

  

Operational Planning

District Sales Managers, Staff Marketing Supervisors Daily and Weekly Plans Departmental Rules & Procedures

 

It is more important to do what is strategically right than what is immediately profitable. --Phillip Kotler

SWOT Analysis
Strengths Weaknesses Opportunities Threats

Steps in Strategic Planning

Corporate Level

Business unit, product, and market level Planning, marketing, and other functional Strategies

Defining the Company Mission

Setting Company Objectives and Goals

Designing the Business Portfolio

Strategic Planning involves developing an overall company strategy for longrun survival and growth.

This process involves:

Defining a Mission: Statement of an organization’s purpose; should be market oriented. Setting Company Objectives: Supporting goals and objectives to guide the entire company. Designing a Business Portfolio: Collection of businesses and products that make up the company. Planning Functional Strategies: Detailed planning for each department designed to accomplish strategic objectives.

Defining the Company’s Business and Mission

A Mission Statement is a Statement of the Organization’s Purpose.
Market Oriented Market Oriented Realistic Realistic Specific Fit Market Environment Fit Market Environment
Distinctive Competencies Distinctive Competencies

Characteristics of a Good Mission Statement:

Motivating Motivating

Setting Company Objectives and Goals

M S M O M S a b a

i s s i o t a t e m

n e n t

r k e Mt i n a g r k e Mt i n a g r k e j e c Ot i v b e j e # c Ot 1 i v b e j e # c

r kM e a t i r n kM g e a t i r n kM g e a t i r n kM g e a t i r t r a St e t gr a y St e t gr a y St e t gr a y St e t gr a

Designing the Business Portfolio

Business Portfolio:
The collection of business and products that make up the company

Portfolio Analysis:
A tool by which management evaluates the various business making up the company

Strategic Business Unit (SBU):
A unit of the company that has a separate mission and objectives and that can be planned independently from other company business

The best portfolio is the one that best fits the company’s strengths and weaknesses to the opportunities in the environment.

The company must:
  

Analyze its current business portfolio or Strategic Business Units (SBU’s) Decide which SBU’s should receive more, less, or no investment Develop growth strategies for adding new products or businesses to the portfolio

The Boston Consulting Group’s Growth-Share Matrix

20%18%16%14%12%10%8%6%4%2%0 10x

Market growth rate

Stars

4

Question marks

3

?
2x 1.5x 1x

5
Cash cow

?2
7

?

?

1

Dogs

8 6
4x .5x .4x .3x .2x .1x

Relative market share

Marketing Process

Product/Market Expansion Grid

Current products Current markets
Marketpenetration strategy Marketdevelopment strategy

New products
Productdevelopment strategy

New markets

(Diversification strategy)

Product/ Market Expansion Grid
Market Penetration:
Making more sales to current customers without changing its products.

How? Add new stores in current market areas, improve advertising, adjust prices, service or store design.

Market Development:
develop new markets for its current products.

How? Identify new demographic or geographic markets.

Product Development:
Offering modified or new products to current markets.

How? New styles, flavors, colors, or modified products.

Diversification:
New products for new markets.

How? Start up or buy new businesses.

Strategic Planning, Implementation, and Control Process

Planning
Corporate planning Division planning Business planning Product planning

Implementation
Organizing

Control
Measuring results Diagnosing results

Implementing Taking corrective action

Marketing Strategy Planning Process

Customers
Needs and other Segmenting Dimensions

Company
Mission, Objectives, & Resources

Competitors
Current & Prospective

Customers
Needs and other Segmenting Dimensions

Company
Mission, Objectives, & Resources

S. W . O. T.

Competitors
Current & Prospective

External Market Environment

Customers
Needs and other Segmenting Dimensions

Company
Mission, Objectives, & Resources

S. W. O. T.

Targeting & Segmentation

Positioning & Differentiation

Competitors
Current & Prospective

External Market Environment

Narrowing down to focused strategy with quantitative and qualitative screening criteria
Customers
Needs and other Segmenting Dimensions

Company
Mission, Objectives, & Resources

S. W. O. T.

Targeting & Segmentation

Positioning & Differentiation

Competitors
Current & Prospective

External Market Environment

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