Strategic Marketing

Session 2
Key Points:

Strategic Planning
Business Portfolio
BCG Growth Share Matrix
Business Portfolio
Developing Strategies for Growth &
Downsizing
Planning Marketing
The Marketing Process
 Strategic Planning

 Developing & maintaining a strategic fit between the

organization’s goals & capabilities and its changing
marketing opportunities.

 Planning activities occur at:

the business unit,
Product levels, and
market levels

 And include:
Defining the purpose and mission
Setting objectives and goals,
Designing the business portfolio
Developing detailed marketing and departmental plans
 Business Portfolio
o The collection of businesses and products that make up the company.

 Identify strategic business

Portfolio Design
 Assess each SBU:
 Step 1:
Analyze the current
business portfolio
 Step 2:
Shape the future
business portfolio
units (SBUs)
 The BCG growth-share
matrix classifies SBUs into
one of four categories
using the:
 Market growth rate,
and
 SBU’s relative market
share within the
market.
 BCG Growth-Share Matrix

High
Market Question
Stars
Growth Marks

Low Cash
Market Dogs
Cows
Growth

High Relative Low Relative

Market Share Market Share
Business Portfolio

 Determine the future role of

Portfolio Design each SBU and choose the
appropriate resource
allocation strategy:
 Step 1:
 Build
Analyze the current
 Hold
business portfolio  Harvest
 Step 2:  Divest
Shape the future
business portfolio  SBUs change positions over
time
Developing Strategies for Growth & Downsizing

Product/Market Expansion Grid

Existing Products New Products

Existing Market Product

Markets Penetration Development

New Market
Diversification
Markets Development
 Planning Marketing

 Marketing plays a key role in the strategic planning

process.

 Marketers must practice CRM and Partner

Relationship Management.
With other departments of the same SBU to support value-
chain,

As well as with other firms in the marketing system to help

to build a superior value delivery-network.
The Marketing Process

 The strategic planning

Key Elements and business portfolio
analysis processes help to
identify and evaluate
 Analyzing marketing marketing opportunities.
opportunities
 Selecting target  The purpose of the marketing
markets process is to help the firm
plan how to capitalize on
 Developing the these opportunities.
marketing mix
 Managing the
marketing effort
The Marketing Process

 The segmentation process

Key Elements divides the total market into
market segments.
 Analyzing marketing
 Target marketing determines
opportunities which segment(s) are
 Selecting target pursued.
markets
 Developing the  The market positioning for the
product is then determined.
marketing mix
 Managing the
marketing effort
The Marketing Process

 Competitor analysis guides

Key Elements competitive marketing strategy
development.
 Analyzing marketing
opportunities  Strategy leads to tactics by way of
 Selecting target the marketing mix:
markets  The “Four Ps” – product,
price, place, promotion (seller
 Developing the
viewpoint)
marketing mix
 The “Four Cs” – customer
 Managing the solution, cost, convenience,
marketing effort and communication (customer
viewpoint)
The Four P’s
 The 4 Cs

Customer solution Customer Cost

Convenience Communication
The Marketing Process

 Marketing analysis
Key Elements Provides information
helpful in planning,
 Analyzing marketing implementation, and
opportunities control
 Selecting target  Marketing planning
markets Strategies and tactics
 Developing the  Marketing implementation
marketing mix Turns plans into action
 Managing the  Marketing control
marketing effort Operating control
Strategic control
Marketing audit
Balancing Customer & Competitor Orientations

 Companies can become so competitor centered that

they lose their customer focus.

 Types of companies:
Competitor-centered companies
Customer-centered companies
Market-centered companies
Thank You