chapter 2 strategic planning and the marketing process 2-1
TRANSCRIPT
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Chapter 2STRATEGIC PLANNING
and the
Marketing Process
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STRATEGIC PLANNING: types of plans
• Annual plan
• Long-range plan
• Strategic plan
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STRATEGIC PLANNING: annual plan
• Marketing objectives
• Implementation details
• Detailed budget
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STRATEGIC PLANNING: long range plan
• Long-term objectives
• Major strategies
• Resources required
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STRATEGIC PLANNING
STRATEGIC PLANNING:process
• Identify opportunities in environment
• Match opportunities with capabilities
• Build goals around opportunities
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STRATEGIC PLANNING:steps in strategic planning
Definingthe
companymission
Definingthe
companymission
Settingcompany objectivesand goals
Settingcompany objectivesand goals
Designingthe
businessportfolio
Designingthe
businessportfolio
Planning,marketing,and otherfunctionalstrategies
Planning,marketing,and otherfunctionalstrategies
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STRATEGIC PLANNING:defining the mission
• MISSION STATEMENT• Purpose• Guides people’s efforts• Understand values• Ethical behaviour
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STRATEGIC PLANNING:mission statement criteria
• Market-oriented
• Realistic
• Specific
• Appropriate for the environment
• Based on competencies
• Motivating2-8
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STRATEGIC PLANNING:setting goals and objectives
• Business objectives• Marketing objectives• for each level• specific and verifiable• Supporting marketing strategies
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Designing the Business Portfolio
Analyzingthe
currentportfolio
Planfunctionalstrategies
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Developgrowth
strategies
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Designing the Business Portfolio:analyzing the current portfolio
• Identify key businesses
• Assess attractiveness of each business
• Determine appropriate support level
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The BCG Growth-Share MatrixThe BCG Growth-Share Matrix
Low
? ? ?? ? ?
Lo
w
High
Hig
h
Mar
ket
gro
wth
rat
e
Relative market share
Star
Cash cow
Question mark
Dog
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The GE Planning GridBusiness strength
AverageStrong Weak
High
Medium
LowIndu
stry
att
ract
iven
ess
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A
B
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Designing the Business Portfolio:problems with matrix approaches
• Difficult and time consuming
• Costly
• Focus on current business over future
• Overemphasis on market share and growth
• About 75% of Fortune 500 still find useful
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Designing the Business Portfolio:developing growth strategies
4. Diversification4. Diversification2. Market development
2. Market development
3. Product development
3. Product development
Existingproducts
Newproducts
Existingmarkets
Newmarkets
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1. Marketpenetration
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Designing the Business Portfolio:planning functional strategies
• Marketing’s Role• guiding philosophy the marketing concept• identify opportunities• evaluate potential• develop unit marketing strategies
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TargetConsumers
Product
Place Price
Promotion
Mar
ketin
g
Imple
men
tatio
n
MarketingPlanning
MarketingControl
Mar
ketin
g
Analys
is
Competitors
MarketingChannels
PublicsSuppliers
Technological-natural
environment
Political-legal
environment
Social-cultural
environment
Demographic-economicenvironment
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Target Consumers
Market TargetingMarket Targeting
Market PositioningMarket Positioning
Market Segmentation
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Target Consumers:market segmentation
• Group of consumers• With a similar response• To a given set of marketing stimuli
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Target Consumers:market targeting
• Evaluating each segment’s attractiveness• Selecting one or more segments to enter• Single or multiple segment strategy
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Target Consumers:market positioning
• Product occupies:• position in consumer’s mind• clear• distinct• desirable relative to competition
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The Marketing Mix
ProductProduct
Targetconsumers
Targetconsumers
PromotionPromotion
PricePrice
PlacePlace
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Marketing StrategiesFor Competitive Advantage
Market-leaders
Market-followers
Market nichers
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Managing the Marketing Effort
PLANNING
Strategic Plans
Marketing Plans
PLANNING
Strategic Plans
Marketing Plans
IMPLEMENTATION
Carry OutPlans
IMPLEMENTATION
Carry OutPlans
AnalysisAnalysis
CONTROL
Measure Results
Evaluate Results
CorrectiveAction
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Marketing Planning:marketing plan contents
• Executive summary
• Current target market and marketing mix
• Analysis of opportunities and threats
• Objectives and issues
• Marketing strategy
• Action programs
• Budgets and controls
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Marketing Implementation
People
Organizationstructure
Decision &Reward systems
Fit with company culture
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Marketing Organization
• By marketing function performed
• By geographic areas covered
• By product or brand responsibility
• By markets served
• Multiple approaches for large companies
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Marketing ControlSet GoalsSet Goals
MeasurePerformance
MeasurePerformance
EvaluatePerformance
EvaluatePerformance
Take CorrectiveAction
Take CorrectiveAction
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