ch-3 (market oriented strategic planning)

7/25/2019 Ch-3 (Market Oriented Strategic Planning)

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Chapter-3

Market Oriented Strategic Planning

CHAPTER 3.

MARKET ORIENTED STRATEGIC PLANNING.

Market oriented strategic planning is the managerial process o de!eloping "

maintaining a !ia#le it #et$een an organi%ation o#&ecti!es' skills' reso(rces and its changingmarket opport(nities.

Aim: Shape' Reshape companies #(siness " prod(cts so that the) )ield targeted proits and

gro$ths.

Strategic Planning has Action Areas.

- Managing companies #(siness as an in!estment portolio.

- Assessing each #(siness acti!it) #) considering market*s gro$th rate " companies

position " it in that market.

- +e!eloping a strateg),game plan to achie!e long r(n o#&ecti!es.

Strategic Planning takes into acco(nt that large organi%ations consist o o(r organi%ational

le!els.

- Corporate le!el.

- +i!isional le!el.

- (siness (nit le!el.

- Prod(ct le!el.

CORPORATE DIVISIONAL BUSINESS PRODUCT BRAND

LEVEL LEVEL LEVEL LEVEL LEVEL

SC A/A/ A0TO 1T+.-------------------2 H1R------SCT P

A/A/ A0TO 456A6CE 1T+. 3 H1R M'C-------

AA/ E1ECTR5CA1S. A

A/A/ SE7ASHRAM

A/A/888888888888-----------------

----------------------

----------------------

---------------------------

A/A/ A115A69

Corporate H: creates strategic plan to g(ide the $hole enterprise to a proita#le(t(re.

Each di!ision creates a di!isional plan co!ering the allocation o (nds to each

#(siness (nit $ithin di!ision.

Each #(siness (nit de!elop a #(siness (nit strategic plan to carr) that #(siness to a

proita#le (t(re.

Each prod(ct le!el de!elops a marketing plan to achie!e its o#&ecti!e. 5n its prod(ct

marketing.

Marketing plan made (p o

o Strategic Marketing Plan.

o Tactical Marketing Plan.

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Strategic Marketing Plan de!elops ' o(tlines.

- road marketing o#&ecti!e.

- Strateg) #ased on anal)sis o c(rrent market sit(ation and opport(nities ,#ased on STP.

Tactical Marketing Plan o(tlines speciic marketing plan. 5t ma) incl(de- Ad!ertising

- Merchandising

- Pricing

- Channels ,< P*s o Marketing.

Nature of High Performing Business=

- Model proposed #) Arth(r +. 1ittle ,cons(lting irm.

- 4o(r ke) s(ccess actors Stakeholders

- Processes

- Reso(rces

- Organisation.

>Set strategies to satis) ke) stakeholders #) impro!ing critical #(siness and aligningreso(rces " organi%ing?.

Stakeholders=

- Stock holders

- C(stomers

- Emplo)ees

- S(ppliers

- +istri#(tors.

(siness m(st stri!e to satis) threshold e@pectation o each stakeholders gro(p.

Stakeholders gro(p are inter related d)namicall).

Processes=

- A compan) can accomplish its satisaction goals onl) #) managing " linking $ork

processes.

- Traditionall) compan) $ork carried o(t in departments. This ma) create pro#lems.

Hence oc(s sho(ld #e on core #(siness processes s(ch as

o 6e$ prod(ct de!elopment.

o Sales generation.

o Order (lillment.

Cross (nctional team created or each processes.

S

P

R O

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Resources=

- To carr) o(t processes compan) needs reso(rces.

Reso(rces co(ld #e - 1a#o(r' People.

- Materials.

- Machine- 5normation

- Energ).

Reso(rces ma) #e - O$ned

- 1eased

- Rented.

- Earlier companies $o(ld tr) to o$n most reso(rces.

- Toda) companies o(tso(rce less critical reso(rces i this gi!es increased B(alit) " cost

red(ction.

Ora!i"atio!=

Organi%ation consists o Companies Str(ct(res

- Companies policies

- Companies c(lt(re.

5n changing market sit(ation compan) sho(ld #e a#le to change' adapt organi%ation.

CORPORATE STRATEGIC PLANNING= , Corporate' +i!isinal.

Acti!ities to #e (ndertaken - +eine corporate di!ision.

- Esta#lishing S0*s.

- Assigning reso(rces to each S0.

- Planning ne$ #(siness.

Defining Corporate Mission=

- An organi%ation e@ists to accomplish something. This is its speciic mission' p(rpose.

- Compan)*s mission shaped #)

- Histor) ,o Aims' policies' Achie!ements.

- C(rrent preerences o o$ners' management.

- Market en!ironment.

- Reso(rces ,Mission sho(ld #e achie!a#le.

- +istincti!e competencies ,compan) sho(ld #ase its mission on $hat it does#est.

- 4(ndamentals B(estions to #e asked

- hat is o(r #(sinessD

- ho is the c(stomerD

- hat is the !al(e to c(stomerD

- hat $ill' sho(ld o(r #(siness #eD

- ood mission statement has three characteristic.

- 4oc(s on limited n(m#er o goods.

- Stress policies' !al(es that compan) $ants to hono(r.

- +eine ma&or competiti!e scopes $ithin $hich the compan) $o(ld operate.

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eg.- a&a& A(to 1imited.

- 4oc(ses on 2- $heeler " 3- $heeler ,limited goods.

- Polic) is >$hiche!er prod(ct $e make m(st #e cheapest in that segment?.

Competiti!e scopes incl(de - 5nd(str) scope- Prod(ct' Application scope

- Competence scope

- Market segment scope

- !ertical scope

- geographical scope.

Establishing SBUs=

- Companies oten deine their #(siness in terms o prod(ct. eg.- A(to #(siness.

- Market deinition o #(siness ma) #e #etter i.e. #(sinesss !ie$ed as c(stomer satis)ing

process rather than goods prod(cing process.

- (siness ma) #e deined (sing three dimension- C(stomer gro(p.

- C(stomer needs

- Technolog).

Eg.- small sot$are compan) de!eloping application sot$are or co-operati!e #anks.

C(stomer gro(p - Co-operati!e #ank.

C(stomer need - Transaction processing.

Technolog) - Application Sot$are platorm.

This compan) ma) e@pand ater sometime. 4or this it co(ld redeine an) o the dimensions

o c(rrent #(siness (nit.

To Assign Resoures to eah SBUs=

- P(rpose o identi)ing each S0 is to de!elop separate strategies " assign appropriate

reso(rces.

- (siness portolio ma) incl(de

- 4(t(re $inners

- Past champions

- C(rrent #read $inners.

- To go #e)ond impressions one needs anal)tical tools to classi) each S0 #ased on its

proit potential.

Anal)tical tools co(ld #e=- C Model ,ro$th Share matri@.

- E Model ,M(ltiactor Portolio Matri@.


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BCG Growth Share Matrix=

COMPANY MARKET

SHARE

MARKET SHARE OF

MARKET LEADER

ANNUAL MARKET

GROWTH RATE

D A1 3FG


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o eca(se it $ants to o!ertake leader in market.

Star=

- Star is a market leader in a high gro$th market.

- A s(ccess(l B(estion mark #ecomes a star

- Compan) ma) need to spend

o To keep (p $ith the high market gro$tho To ight competition

- Hence stars ma) not necessaril) prod(ce a lot o mone) to compan).

Cash Co#=

- hen a markets ann(al gro$th rate alls #elo$ ;JG a star #ecomes a cash co$ i it still

has the largest relati!e market share.

- 5n!estment in Plant' EB(ipment is not reB(ired.

- eing market leader #(siness en&o)s scale economics " higher proit margin.

- Hence cash co$ generates mone) or compan).

Dogs=

- +ogs ha!e $eak market shares in a lo$ gro$th market.

- enerates lo$ Proit' 1oses.

- Ma) generate some cash.

- Oten cons(mes lot o management time.

- Compan) sho(ld hold on to dogs i

o T(rnaro(nd in market gro$th rate is e@pected.

o Chances or market leadership e@ists.

- Sentimental reasons sho(ld #e a!oided.

Each S0 is plotted on the -S Matri@. Then compan) can determine $hether its portolio is health). Portolio is (n#alanced

i

o +ogs' :(estion marks are too man).

o Stars' Cash co$s are too e$.

Each S0*s can no$ #e assigned

o O#&ecti!e.

o Strateg) to (lill o#&ecti!es.

o Reso(rces' (dgets to implement strateg).

Strategies co(ld #eo (ild

o Hold

o Har!est

o +i!est

Build=

- O#&ecti!e is to increase market share o S0

- At times short term earnings ma) #e orgone to (lill this o#&ecti!e.

- ood strateg) or B(estion mark $hen market share m(st increase i the) are to #ecome

stars.

- Ma) also #e (sed or stars in certain sit(ation.

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#old=

- O#&ecti!e is to preser!e S0*s market share.

- Appropriate or cash co$s $ho are strong i the) are to contin(e )ielding cash.

#ar$est=

- O#&ecti!e is to increase S0*s short term cash lo$ regardless o long term eect.

- S(ita#le or $eak cash co$s.

- Also (sed at times or B(estion mark " dogs.

Di$est=

- O#&ecti!e is to Sell' 1iB(idate the #(siness #eca(se reso(rces can #e #etter (sed

else$here.

- S(ita#le or +ogs' :(estion marks that are acting as a drag on companies proits.

NOTE= As time passes S0*s change their position in the gro$th share matri@ eg.- B(estion

mark star cash co$ dog.

Hence companies sho(ld e@amine not onl) c(rrent position o S0 #(t also its

mo!ing position ,histor) " (t(re.

Reso(rce allocation' Strateg) planning to #e done #ased on a#o!e.

$eneral Eletri $ro#th%Share Matri&=,M(ltiactor Portolio Matri@.

- S0*s appropriate o#tain needs to take into acco(nt

o Market attracti!eness

o (siness strength.

O!er and a#o!e it*s position in the -S Matri@.

Loic=

Har!est line

+i!est line

Har!est

+i!est


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ATTARCT57E6ESS

5' L 567EST' RO

S'E L SE1ECT575T "

EAR656

H'+ L HAR7EST "

+57EST

0S56ESS STRE6TH

Chapter-3


- Companies are s(ccess(l to the e@tent that the) enter attracti!e markets " posses

reB(ired #(siness strengths to s(cceed in the markets.

- 6either a strong compan) in an (nattracti!e market nor a $eak compan) in an attracti!e

market $ill do $ell.

To meas(re this t$o dimension strategic planners need to identi) the actors (nderl)ingeach dimension " ind a $a) to meas(re them " com#ine them into an idea.

U!er"#i$ Fa%toria" & Wei$ht'=

Mar(et Attra%ti)ee''=

eightage a&a& A(to 1td. eighted A!g.;. O!erall Market Si%e J.2J


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2. Ann(al Market ro$th Rate J.2J


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,A;'A2 L ,3.


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- Concentrate in!estments in segments $here proita#ilit) is good " risk are relati!el)

1o$.

,IBuild Selecti$el%=

- Speciali%e aro(nd limited strengths.

- Seek $a)s to o!ercome $eakness.

- ithdra$ i indications o s(staina#ilit) gro$th are lacking.,)a!ae 'or Ear!i!s=

- Protect position in most proita#le segments.

- 0pgrade prod(ct line.

- Minimi%e in!estment.

,FLimited E*+a!sio! ( #ar$est=

- 1ook or $a)s to e@pand $ithin high risk.

- Minimi%e in!estment " Rationali%e operations.

,Di$est=

- Sell at time that $ill ma@imi%e cash !al(e.

- C(t i@ed costs " a!oid in!estments mean$hile.

O!erall once o#&ecti!es " #(dgets are set or a S0 marketing needs to carr) o(t

plan eicientl) " proita#l).

Criti,ue of Portfolio mo(els=

Be!e'its=

- Helps managers think strategicall) ' (nderstand #(siness #etter.

- 5mpro!es strateg) plan B(alit).

Pit'alls=

- 6eed to #e (sed $ith (nderstanding. At times oc(s too m(ch on high gro$th #(siness

$hich ma) lead to neglect o c(rrent #(siness.

- Ratings and $eights can #e manip(lated to prod(ce desired location on matri@.

- At times (sers ma) a!erage o(t ratings. 5n s(ch cases S0*s remain in the central part

o the matri@ leading to am#ig(o(s interpretation.

- Models ail to delineate s)nergies #et$een t$o or more #(sinesses. A losing #(siness

ma) pro!ide a core competenc) or a $inning #(siness.

O$erall=

- Portolio Models ha!e pro!ided insight " helped to impro!e managerial anal)tical "

strategic capa#ilities.- 4acilitated #etter decision making than mere impression.

Planning Ne# Business=

- Compan)*s plans or e@isting #(siness allo$ it to pro&ect total sales' proits o!er time

period.

- 5 pro&ected sales " proits are less than $hat corporate' management desires there is a

gap in the strategic plan.

- This gap co(ld #e illed #) de!eloping' acB(iring ne$ #(siness.

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- Options to ill strategic planning gap co(ld #eo 5ntensi!e gro$th opport(nities.

o 5ntegrati!e gro$th opport(nities

o +i!ersiication gro$th opport(nities.

-ntensi.e $ro#th /pportunities=

- There are opport(nities to achie!e (rther gro$th $ithin the compan)*s c(rrent #(siness.

- 6ormall) irst co(rse o action or gro$th.

- To detect ne$ intensi!e gro$th opport(nities (se A6SO44*s prod(ct or market

e@pansion grid.

O+tio!: ,- . )arket Pe!etratio! Strate%.

- Tr) to gain more market share $ith c(rrent prod(cts in c(rrent market.

- Approaches=

o Enco(rage c(rrent c(stomer to #() more per period #) increased (sage rate or

sho$ing additional (ses. Eg= r(shing $ith Colgate dental cream t$ice

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o Attract c(stomers rom $eaker competition ,+etect $eakness in competition

C(stomer +eli!ered 7al(e. Eg= Colgate capt(ring market o 4orhans.

o Enco(rage non (sers to start (sing. ,$orks id non (ser gro(p is large.

Eg= Colgate dental cream campaign in r(ral market especiall) or children.

O+tio!: /- . )arket De$elo+me!t Strate%.- 1ook or ne$ markets $hose needs ma) #e met #) c(rrent prod(cts.

- Approaches=

o 5 c(rrent market is in retail,indi!id(al c(stomer look at instit(tional

markets,gro(ps. Eg= Nahalgaon 6TPC Hero-Honda in Ang(l Orissa.

o Seek additional distri#(tion channels. Eg= CS+ s(pplies +,s(pplies "

distri#(tion

o Seek additional geographical market. Eg= All geographical location.

O+tio!: 0- . Product De$elo+me!t Strate%.

- 5n!ol!es de!elopment o ne$'additional prod(cts or eat(res to deli!er s(perior C+7.Eg= +ierent t)pes o handles a!aila#le in #ikes.

- Categori%e c(stomer into gro(ps and oer dierent C+7 to dierent gro(ps at dierent

prices.

- 0se technolog) to alter prod(ct satis)ing same' similar c(stomer need' $ant. Eg=

comp(ters desktops laptopsQ

-ntegrati.e $ro#th /pportunit0=

- 5ncrease sales' proits thro(gh integration $ithin ind(str).

- 5ntegration co(ld #e=

o ack$ard ,+e!elop' AcB(ire s(pplier.

o 4or$ard ,+e!elop' AcB(ire hole seller' Retailer.o Hori%ontal ,AcB(ire competitor $ith go!ernment appro!al.

Eg= A motor man(act(ring compan) ma) acB(ire copper $ire actor) ,ack$ard.

6e@t step it ma) !ent(re into an man(act(ring ,4or$ard. Apart rom that it ma)

also acB(ire competitor*s motor man(act(ring (nit ,Hori%ontal.

Di.ersifiation $ro#th opportunities=

- Makes sense $hen good opport(nit) can #e o(nd o(tside present #(siness.

o ood opport(nit) - 5nd(str) is highl) attracti!e.

- Compan) has #(siness strategic reB(ired to #e s(ccess(l.

+i!ersiication co(ld #e=

-;- Concentric +i!ersiication=

- 6e$ prod(cts that ha!e technical marketing s)nergies $ith e@isting prod(ct line.

- 6e$ prod(ct ma) appeal to a dierent c(stomer gro(p.

Eg= a&a& scooter to motorc)cle.

-2- Hori%ontal +i!ersiication=

- 6e$ prod(cts that co(ld appeal to its c(rrent c(stomer e!en tho(gh ne$ prod(cts

are technologicall) (nrelated to its c(rrent prod(cts. Eg=- a&a& A(to to a&a& A(to

4inance.

-3- Conglomerate +i!ersiication=

- 6e$ #(siness that ha!e no relationship to compan)*s c(rrent technolog)' Prod(cts

" Markets. Eg=- a&a& A(to to a&a& Allian%.

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6ote=

- To p(rs(e gro$th companies need to not onl) de!elop' acB(ire ne$ #(siness #(t also

care(ll) di!est $eak old #(siness to release needed reso(rces to red(ce costs.

- +o$nsi%ing co(ld #e done thro(gh

o Preening= Remo!ing (nproita#le' dead' d)ing parts o #(siness to increase

perormance.o Har!est= As disc(ssed earlier.

o +i!est= As disc(ssed earlier.

BUSINESS STRATEGIC PLANNING +BSP,-- Once Corporate' +i!ision strategic plan is de!eloped a clear strategic plan or each

indi!id(al S0 needs to #e dra$n.

Proced(re or SP=

0S56ESS M5SS5O6

EKTER6A1 E675RO6ME6T 56TER6A1 E675RO6ME6T

OA1 4ORM01AT5O6

STRATE 4ORM01AT5O6

PRORAM 4ORM01AT5O6

5MP1EME6TAT5O6

BUSINESS MISSION=

- Speciic mission $ithin #roader corporate mission need to #e o(tlined.

- Process=

o 4oc(s on speciic o#&ecti!es in terms o

C(stomer gro(ps. E@=- 5ncome categories.

C(stomers needs. E@=- Prod(ct categori%ation.

Technolog). E@=- Technolog) le!els.

E&ternal En.ironment Anal0sis=- Once the #(siness Mission is orm(lated the #(siness en!ironment emerges $ith clarit).

This #(siness en!ironment needs to #e monitored or Operations' Threats.

- 5n general #(siness (nit needs to monitor

o Macro Economic 4orces ,+emographic' Economic' Technological' 1egal' Social'

C(lt(ral' Political.

o Micro En!ironment Actors ,C(stomers' Competitor' +istri#(tion Channel'

S(pplier.

o Marketing 5ntelligence s)stem needs to #e set (p to monitor Trends'

de!elopment.

4or each de!elopment or change in trend opport(nities and threats need to #e

identiied.

4EE+ACN

A6+

CO6TRO1

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Attracti!eness

O++ortu!ities= H5 1O

- Marketing opport(nities is an area o #()er need in H5

$hich a compan) can perorm proita#l).

- Opport(nit) classiied according to= S0CCESS

- Attracti!eness o Opport(nities. 1O- Pro#a#ilit) o S(ccess.

Threats=

- +e!elopment in e@ternal en!ironment.

- An en!ironmental threat is a challenge posed #) an (na!o(ra#le trend or de!elopment

that $o(ld lead in the a#sence o deensi!e marketing action to red(ction in Sales'

Proit.

- Threats can #e classiied as=

o Serio(sness.

o Pro#a#ilit) o occ(rrence.

SER5O0S6ESS

Contingenc) H5 1O

Plan

H5

OCC0RA6CE

PROA515T

1O

- ased on a#o!e #(sinesses o!erall attracti!eness ma) #e categori%ed as

o 5deal (siness= High Opport(nit)' 1o$ Threats.

o Spec(lati!e (siness= High Opport(nit)' High Threats.

o Mat(re (siness= 1o$ Opport(nit)' 1o$ Threats.

o Tro(#led (siness= 1o$ Opport(nit)' High Threats.

-nternal En.ironment Anal0sis=

- 5denti)ing #(siness attracti!eness are not adeB(ate. (siness needs to ha!e rele!antcompetencies.

- Hence Strength' eakness need to #e e!al(ated periodicall).

Checklist 'or Stre!ths( 1eak!esses=

Competenc) Perormance 5mportance

Ma&or

Strength

Minor

Strength

6e(tral Ma&or

eakness

Ma&or

eakness

Hi Med 1o

+A,Mar(eti$

Fa%tor'

; Compan)

Spec(lati!e

(siness

Tro(#led

(siness

5deal

(siness

Mat(re

(siness

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Rep(tation

2 Market

Share

3 Prod(ct

:(alit)


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Emplo)ees

3

Entreprene(rial

Orientation


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o +ierentiation.

o 4oc(s.

O!erall cost leadership=

- Achie!e lo$er prod(ction and distri#(tion costs.

- Price lo$er than competitor and $inning increases market share.

4or this #(siness (nit m(st #e good' #etter than competitors at

- Engineering - man(act(ring

- P(rchasing - ph)sical distri#(tion

- Pro#lem co(ld #e the emergence o other irms $ith e!en lo$er costs

- Ne) to s(ccess is to achie!e lo$est cost among those competitors adopting similar

dierentiation' oc(s strateg).

+ierentiation=

(siness (nit concentrates on achie!ing s(perior perormance in an import c(stomer

#et$een area !al(ed #) a large part o the market.

E@ample=- #(siness (nit can stri!e to #e, One o=

- ser!ice leader. , T7S motors

- :(alit) leader. , amaha

- St)le leader. , 6one

- Technolog) leader. , Hero Honda

(siness (nit c(lti!ate those strengths that $ill gi!e it a competiti!e ad!antage in one or

more #eneits.

4oc(s=

- (siness (nit oc(s on one or more narro$ market gro(ps than going ater a large

market.

- (siness gets to kno$ special c(stomer gro(p*s needs and p(rs(es either cost

leadership or dierentiation $ithin targeted market gro(ps.

Strategic ro(p=

- 4irms p(rs(ing same strateg) directed to same c(stomer gro(p constit(te a strategicgro(p.

- 4irms that carries o strateg) #est $ill make more proits.

- 1ack o clear strateg) ,Middle-O-The-Road leads to poor proits.

Program 4orm(lation=

- Once principal strateg) is de!eloped detailed s(pporting programs need to #e $orked

o(t. E@=- O!erall Strateg) L Technological 1eadership.

Programs

o Make R " + stronger.

o ather technical intelligence.

o Train technical sales orce.

o Ad!ertise technical leadership.

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- Programs costs to #e e!al(ated.

- Cost eneit Anal)sis to indicate clearl) $hether program is &(stiied or not.

5mplementation=

- Program orm(lated needs to #e implemented eicientl).

- 4or this Mckinse) -S rame $ork or #(siness s(ccess.

)cki!se% 23S 4rame5ork=

- Hard$are or s(ccess

o Strateg)

o Str(ct(re

o S)stems

- Sot$are or s(ccess

o St)le

o Sta

o

Skillso Shared 7al(e

St)le = Emplo)ees share common $a) o thinking " #eha!ing.

Sta = Compan) has recr(ited capa#le people trained them $ell and assigned them

to right &o#s.

Skills = Emplo)ee ha!e skills needed to carr) o(t compan)*s strateg).

Shared 7al(es = Emplo)ees share similar g(iding !al(es related to their $ork.

Strateg) implementation is s(perior in companies $here sot$are elements are

present in addition to hard$are elements.

4eed#ack " Control=

- As a compan) implements its strateg) it needs track res(lts " monitor de!elopment

in internal " e@ternal en!ironment.

- En!ironment ma) =

e Sta#le.

E!ol!e Slo$l)' Predicta#l).

Change Rapidl)' 0npredicta#l).

O!erall en!ironment is likel) to change.

;

Str(ct(re

Shared

7al(es

Strateg)

Skills

Sta

S)stems

St)le


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- Hence compan) needs to re!ie$' re!ise its 5mplementation' Programs' Strateg)'

O#&ecti!es.

- Hence s)stem or eed#ack " control gains importance.

Ne) to organi%ational health=

- Compan)*s $illingness to e@amine changing en!ironment.- Adaptation o appropriate ne$ oals' Strateg)' Program' 5mplementation or

#eha!io(r.

- High perormance companies tr) to maintain !ia#le it $ith e!ol!ing en!ironment

thro(gh le@i#le #(siness strateg) planning.

PRODUCT LE0EL STRATEGIC PLANNING=

Task o an) #(siness is to deli!er !al(e to the market at a proit.

7al(e-+eli!er) process co(ld #e=

- Traditional.

- Competiti!e.

Traditional=

7al(e deli!er) process made o

- Making prod(ct-

+esign prod(ct.

Proc(re material.

Make prod(ct.

- Selling prod(ct

Price prod(ct. Selling price.

Ad!ertisement' Promotion o prod(ct.

+istri#(tion.

Ater Sales Ser!ice i.e. make the prod(ct and sell it.

- Marketing takes place in second hal o the process.

- Ass(mption is that compan) kno$s $hat to make " market $ill #() eno(gh (nits to

make proits or compan).

- orks $ell in shortage economies.

- 1o$er oc(s on :(alit).

4eat(res

St)le.

7al(e +eli!er) Process 5n Competiti!e En!ironment=

- Process made (p o=

- Strategic Marketing= Choose the !al(e.

C(stomer segmentation.

Market selection' 4oc(s' Tighting.

7al(e Positioning.- Tactical Marketing=

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Prod(ct de!elopment.

Ser!ice de!elopment.

Pricing.

So(rcing' Making.

+istri#(tion' Ser!icing.

- Comm(nicate 7al(e=

Sales orce.

Sales promotion.

Ad!ertising.

- Traditional process ma) not $ork in competiti!e economies $here choices are

a#(ndant.

- Hence >Mass Market? gets #roken (p into smaller markets each $ith its o$n #()ing

criteria.

- Smart competitor needs to #e s(ccess(l in s(ch markets.

Marketing Process=

)arketi! Process co!sists o'=

o Anal)%ing marketing opport(nities.

o +e!elopment marketing strateg).

o Planning marketing strateg).

o Managing marketing eort.

Product le$el strateic +la!!i!=

- Strategic Marketing=

Segmentation.

Targeting.

Positioning.

- Tactical Marketing

Prod(ct.

Price.

Place.

Promotion.

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ch-3 (market oriented strategic planning)

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