CHAPTER 2


STRATEGIC PLANNING
 Strategic Planning

It is the managerial process of creating and maintaining a fit
between the organizational objectives and resources and the
evolving market opportunities
Goal of Strategic Planning

Its goal is long run profitability and growth. Thus, its decision
require long-term commitments of resources.

TO CREATE A SUSTAINABLE COMPETITIVE ADVANTAGE

What Strategic Planning

Long term profit and

Why
growth

How Marketing plan

A MARKETING PLAN

 A Marketing Plan

 It is the process of anticipating future events and
determining stategies to acieve organizatonal objectives
 Involves designing activities relating to marketing
objectives and the changing marketing environment
 It is the basis for all marketing strategies and decisions
 It is where product lines, distribution channels, marketing
communications, and pricing are all found
 Writing a Marketing Plan


 Provides clearly stated activities that help employees and
managers understand and work toward common goals
 Actual and expected performance can be compared
 Allows the manager to understand the marketing
environment in relation with the internal operation of the
business
 It serves as the reference point for the success of future
objectives
 Allows the marketing manager to enter the market place
with an awareness of the opportunities and risks
Elements of Marketing Plan

 Business vision/mission
 Performing a situation analysis
 Defining objectives
 Identifying the target market
 Establishing the components of the marketing mix
 Budgets
 Implementation timetables
 Required marketing research efforts
Elements of a Marketing Plan

 Philosophy


 Establishes the values and beliefs of the
organization on how business should be conducted
distinct from other firms
 Establishes the relationship between the
organization and its stakeholders, employess,
customers, shareholders, suppliers, government and
the public at large
 Organizational Policies


 Provide guides to action for employees of th
organization
 Help ensure that all units and levels of an
organization operate within the guiding
philosophy
 Facilitate coordination and communication
between various organizational units
 Examples of Organizational Policies


1. To answer all written consumer complaints in
writing (public relations dept.)
2. To distribute at least 30 percent of net earnings to
stockholders ( certain organization)
3. To accept all returns that are accompanied by a
sales slip ( retail store)
4. To require a minimum down payment of 10
percent of the purchase price(mortgage company)
Vision and Mission
Statement

 Vision Statement


Firm’s vision statement answers the questio,

“WHAT DO WE WANT TO BECOME?”

 Developing a vision statement is often considered the

first step in strategic planning
 Preceding even development of a mission statement
 Usually a single statement
 Mission Statement


 Enduring statement of purpose that distinguish one business
form
 Identifies the scope of a firm’s operations in product and market
terms
 Addresses the question: “What is our business?”
 Describes the values and priorities of an organization
 Includes the nature and scope of present operations
 Assess the potential attractiveness of future markets and
activities
 Charts the future direction of an organization
 SWOT Analysis


It is a situation analysis usually conducted by
marketers because they to understand the current and
potential environment that the product or service will be
marketed.
 Components of a situation analysis


INTERNAL EXTERNAL

Strengths Opportunities

 Social
 Production costs
 Demographic
 Marketing skills
 Economic
 Financial resources
 Technological
 Image
 Political/legal
 Technology
 Competition

Weaknesses Threats
 Setting the Marketting Plan


Before marketing plan can be developed, objectives
must be stated. This will be the basis for measuring the
success of the marketing plan activities.
The use of SMART goals is a common technique to
create strategic goals for an organizational business or
marketing plan
 SMART

 Specific in nature
 Easily measurable
 Reasonably attainable
 Relevant to the mission statement or strategic
direction
 SMART


S Details exactly what neds to be done

M Achievements or progress can be measured

A Objective is accepted by those responsible

R Objective is applicable to the task or projects

T
Time period for achievement is clearly stated
 SPECIFIC


A specific goal usually answer the five “W”
questions:

1. What : What do you want to accomplish?

2. Why: Specific reasons, purpose or benefits of
accomplishing the goal.
3. Who: Who is involved?
4. Where: Identify the location.
5. Which: Identify requirements and constraints.
 MEASURABLE


 A measurable goal will usually answer questions
such as:
How much?
How many?
How will I know when it is accomplished?

 It stresses the need for concrete criteria for

measuring toward the attainment of the goal
 MEASURABLE


 A measurable goal will usually answer questions
such as:
How much?
How many?
How will I know when it is accomplished?

 It stresses the need for concrete criteria for

measuring toward the attainment of the goal
 ATTAINABLE


 An attainable goal will usually answer questions
such as:
How can the goal be accomplished?
Is it within the allotted or resources available?

 It is helpful to document an action plan with the

steps to take to achieve goal.
 REALISTIC


 An realistic goal can answer yes to these questions:
Is this a doable goal?
Is the timing right for this goal?
Is the goal too easy? Too hard?

 Goals that are structured within the firm’s

available resources or assigned budgets and
expertise of those concerned aligned with other
goals would be considered a realistic.
 TIME-BOUND


 An time-bound goal will usually answer the question:
When?
What can I do 6 months from now?
What can I do today?
 It stresses the importance of grounding within a time
frame, giving them a target date.
 It is a final anchor in making the objective real and
tangible
 This final factor is often implied in MBO
 Management By Objective
(MBO)

 It is a planning and control method of management
that seeks congruence between management and
employee goals
 Performance goals are jointly agreed upon by
management and the employee and subsequently
evaluated
 Examples of Marketing Objectives
Poorly-stated objectives
Our objective is to maximize profit.
Our objective is to better serve our
customers
Our objective is to be the leader in
this field
Well-stated objectives

 Our objective is to attain a 9 percent
return on investment from Jan. 1,
2018 until December 31, 2018, with a
payback on new investments of no
longer than Dec. 31,2018
 Our objective is to attain customer
satisfaction rating of 95 percent on the
2018 annual customer satisfaction
survey, and to retain 90 percent of our
2018 customers as repeat purchases in
2019
 Our objective is to increase
market share from 20 percent in
2018 to 30 percent in 2019 by
increasing marketing
expenditures by 9 percent over
2018 levels from Jan.1, 2019 to
Dec. 1, 2019
 Competitive Advantage

 Performing SWOT analysis allows firms to identify
their competitive advantage
A competitive advantage is an advantage over
competitors gained by offering consumers greater value,
either by means of lower prices or by providing greater
benefits and service that justifies higher prices.

A set of unique features of a company and its products

that are perceived by the target market as significant and
superior to the competition (McDaniel,Carl et al. , 2011)