Principles of

Contemporary Marketing
Kurtz & Boone

Chapter 2
Strategic Planning in Contemporary Marketing
 CHAPTER 2 Strategic Planning in Contemporary Marketing

Chapter Objectives

1. Distinguish between strategic planning and tactical planning.

2. Explain how marketing plans differ at various levels in an
organization.
3. Identify the steps in the marketing planning process.
4. Describe successful planning tools and techniques, including
Porter’s Five Forces model, first and second mover strategies,
SWOT analysis, and the strategic window.

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 CHAPTER 2 Strategic Planning in Contemporary Marketing

Chapter Objectives

5. Identify the basic elements of a marketing strategy.

6. Describe the environmental characteristics that influence
strategic decisions.
7. Describe the methods for marketing planning, including
business portfolio analysis and the BCG matrix.

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 CHAPTER 2 Strategic Planning in Contemporary Marketing

Marketing Planning: The Basis for Strategy

and Tactics
o Planning - Anticipating future events and
conditions and determining the best way to achieve
organizational objectives
o Marketing planning - Implementing planning activities
devoted to achieving marketing objectives

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 CHAPTER 2 Strategic Planning in Contemporary Marketing

Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
 CHAPTER 2 Strategic Planning in Contemporary Marketing

Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
 CHAPTER 2 Strategic Planning in Contemporary Marketing

Steps in the Marketing Planning Process

o Defining the organization’s mission

o Mission - Essential purpose that differentiates one
company from another
o Examples:
o Microsoft Office: “Real life tools”
o Sephora: “The beauty authority”
o IBM: “Welcome to the decade of smart”

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 CHAPTER 2 Strategic Planning in Contemporary Marketing

Steps in the Marketing Planning Process

o Defining the organization’s objectives

o Objectives - Guide the development of marketing
objectives and plans
o Examples:
o Generate a 15 percent profit over the next 24 months
o Add 25 new outlets within the next year
o Cut manufacturing costs by 10 percent

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 CHAPTER 2 Strategic Planning in Contemporary Marketing

Assessing Organizational Resources and Evaluating

Environmental Risks and Opportunities

o Resources include: o Strengths help planners:

o Production o Set objectives
o Marketing o Develop plans
o Finance o Take advantage of
o Technology marketing
opportunities
o Employees

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 CHAPTER 2 Strategic Planning in Contemporary Marketing

Formulating, Implementing, and Monitoring a

Marketing Strategy
o Marketing strategy - Selecting and satisfying target
consumers through the marketing mix elements
o The final steps of the planning process:
o Marketers put the marketing strategy into action
o Marketers monitor performance to ensure that
objectives are achieved

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 CHAPTER 2 Strategic Planning in Contemporary Marketing

Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
 CHAPTER 2 Strategic Planning in Contemporary Marketing

First Mover and Second Mover Strategies

o First mover strategy – The company first to offer a

product in a marketplace will be the long-term market
winner
o Second mover strategy – Observing the innovations of
first movers and then improving on them to gain
advantage in the marketplace

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 CHAPTER 2 Strategic Planning in Contemporary Marketing

Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
 CHAPTER 2 Strategic Planning in Contemporary Marketing

The Strategic Window

o Limited periods when key requirements of a market
and a firm’s particular competencies best fit together
o Requires a thorough analysis of:
o Current and projected external environmental
conditions
o Current and projected internal company capabilities
o How, whether, and when the firm can reconcile
environmental conditions and company capabilities

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 CHAPTER 2 Strategic Planning in Contemporary Marketing

Elements of a Marketing Strategy

o The target market

o Marketing mix variables

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 CHAPTER 2 Strategic Planning in Contemporary Marketing

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 CHAPTER 2 Strategic Planning in Contemporary Marketing

The Marketing Environment

o Five external dimensions that affect the marketing mix

variables:
o Competitive
o Political-legal
o Economic
o Technological
o Social-cultural

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 CHAPTER 2 Strategic Planning in Contemporary Marketing

Methods for Marketing Planning

o Business portfolio analysis

o An evaluation of a company’s products and divisions to
determine the strongest and weakest

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 CHAPTER 2 Strategic Planning in Contemporary Marketing

Strategic Business Units

o Key business units within diversified firms

o Each strategic business unit (SBU):
o Has its own managers, resources, objectives, and
competitors
o Pursues its own distinct mission and develops its own
plans independently
o SBUs help focus the attention of company managers

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 CHAPTER 2 Strategic Planning in Contemporary Marketing

Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.