Learning Objectives

Explain company-wide strategic

planning and its four steps.
Discuss how to design business
portfolios and develop growth
strategies.

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 Learning Objectives
Describe the elements of a customer-
driven marketing strategy and mix
and the forces that influence it.
List the marketing management
functions, including the elements of a
marketing plan, and discuss the
importance of measuring and
managing return on marketing
investment.
Copyright 2015 Pearson Education, Inc. 2-3
 Strategic Planning
Strategic planning involves adapting
the firm to take advantage of
opportunities in its constantly
changing environment.
Strategic planning helps a firm to
maintain a strategic fit between its
goals and capabilities and its
changing marketing opportunities.

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Figure 2.1 - Steps in
Strategic Planning

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 Mission Statement
Statement of the organizations
purpose
What it wants to accomplish in the larger
environment
Market oriented and defined in terms
of satisfying basic customer needs
Emphasizes the companys strengths
Focuses on customers and the
customer experience the company
seeks to create
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Setting Company Objectives

and Goals
The mission should be converted to
supporting objectives at each level of
management.
The mission leads to setting a
hierarchy of objectives.
Business objectives
Marketing objectives

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 Business Portfolio
Collection of businesses and products
that make up the company
Steps in business portfolio planning:
Analyze the firms current business
portfolio
Develop strategies for growth and
downsizing to shape the future portfolio

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 Portfolio Analysis
Evaluation of the products and businesses
that make up the company by the
management
Steps:
Identifying the strategic business units (SBUs)
Assessing the attractiveness of its various
SBUs and deciding the support each SBU
deserves
The purpose is to direct resources toward
more profitable businesses while phasing out
or dropping weaker ones.
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Figure 2.2 - The BCG
Growth-Share Matrix

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 Figure 2.3 - The Ansoff
Product/Market Expansion
Grid

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 Downsizing
Reduces the business portfolio by
eliminating products or business units
that are not profitable or that no
longer fit the companys overall
strategy
Reasons for downsizing:
Rapid growth of the company
Lack of experience in a market
Change in market environment
Decline of a particular product
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 Marketing Strategy
Marketing logic by which the company
hopes to create customer value and
achieve profitable customer
relationships
Marketing mix: Integration of product,
price, place, and promotion
Activities for best marketing strategy
and mix involve:
Marketing analysis
Planning, implementation, and control
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Market Segmentation and
Market Targeting

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 Positioning
Arranging for a product to occupy a
clear, distinctive, and desirable place
relative to competing products in the
minds of target consumers
Begins with differentiation
Differentiation: Differentiating the market
offering to create superior customer value
The entire marketing program should
support the chosen positioning strategy.

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Figure 2.5 - The Four Ps of
the Marketing Mix

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Figure 2.7 - SWOT Analysis: Strengths (S),
Weaknesses (W), Opportunities (O), and
Threats (T)

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 Contents of a Marketing
Plan
Section Purpose
Executive Brief summary of the main
summary goals and recommendations
Current marketing Gives the market description
situation and the product, competition,
and distribution review
Threats and Helps management to
opportunities anticipate important positive or
analysis negative developments
Objectives and States and discusses marketing
issues objectives and key issues

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 Contents of a Marketing
Plan
Section Purpose
Marketin Outlines the broad marketing logic and the
g specifics of target markets, positioning,
strategy marketing expenditure levels, and strategies
for each marketing mix element
Action Spells out how marketing strategies will be
program turned into specific action programs
s
Budgets Details a supporting marketing budget that is
a projected profit-and-loss statement
Controls Outlines the controls that will be used to
monitor progress, allow management to
review implementation
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 Market Implementation
Turning marketing strategies and
plans into marketing actions to
accomplish strategic marketing
objectives
Addresses the who, where, when,
and how of the marketing activities

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