Strategic Planning and Marketing Process - Marketing lecture
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Transcript of Strategic Planning and Marketing Process - Marketing lecture
Strategic Planning and Strategic Planning and Marketing ProcessMarketing Process
Strategic planningStrategic planningThe process of developing and The process of developing and
maintaining a strategic fit between the maintaining a strategic fit between the
organization’s goals and capabilities organization’s goals and capabilities
and its changing marketing and its changing marketing
opportunities. opportunities.
Planning--what are we Planning--what are we going do and how are we going do and how are we going to do it?going to do it?
Why Plan?Why Plan?• Address changing environment Address changing environment
and consumersand consumers
• Develop shared goals within Develop shared goals within organizationorganization
• Address competitive threatAddress competitive threat
Planning is no Planning is no fun!fun!
Who likes to think Who likes to think
about the future?about the future? It is just an unnatural It is just an unnatural
act!act!
If you fail to plan,If you fail to plan,you plan to fail.you plan to fail.
Planning requires that Planning requires that you:you:
Anticipate the futureAnticipate the future
Determine actions that Determine actions that are needed to achieve are needed to achieve objectivesobjectives
What doyou see?
The Planning The Planning ProcessProcess
Environmental AnalysisEnvironmental Analysis
Mission & Objective SettingMission & Objective Setting
Marketing Strategy DevelopmentMarketing Strategy Development
Action PlansAction Plans
Characteristics Characteristics of a Strategic of a Strategic
PlanPlan
Broad in ScopeBroad in Scope Long Range: 3 - 5 + YearsLong Range: 3 - 5 + Years Focus on Organizational ObjectivesFocus on Organizational Objectives Initiated and Managed by Top ManagementInitiated and Managed by Top Management Becomes Basis for Tactical Planning & Becomes Basis for Tactical Planning &
OperationsOperations
Strategic PlanningStrategic Planning
Conducted by Board, Conducted by Board, CEO, Division VPsCEO, Division VPs
Sets ObjectivesSets Objectives Fundamental StrategiesFundamental Strategies
Tactical Planning Tactical Planning Middle Management - Sales Mgr., Middle Management - Sales Mgr.,
Mkt. Research Director, Advertising Mkt. Research Director, Advertising DirectorDirector
Quarterly & Semi-Annual PlansQuarterly & Semi-Annual Plans Departmental Policies and ProceduresDepartmental Policies and Procedures Budget AllocationsBudget Allocations
Operational PlanningOperational Planning
District Sales Managers, District Sales Managers, Staff Marketing Staff Marketing SupervisorsSupervisors
Daily and Weekly PlansDaily and Weekly Plans Departmental Rules & Departmental Rules &
ProceduresProcedures
It is more important to do It is more important to do what is strategically right what is strategically right than what is immediately than what is immediately
profitable.profitable.
--Phillip Kotler--Phillip Kotler
SWOT AnalysisSWOT AnalysisSStrengthstrengths
WWeaknesseseaknesses
OOpportunitiespportunities
TThreatshreats
Steps in Strategic Steps in Strategic PlanningPlanning
Defining the
CompanyMission
Setting CompanyObjectivesand Goals
Designingthe Business
Portfolio
Planning, marketing,and other functionalStrategies
Corporate LevelBusiness unit,
product,and market
level
Strategic Planning involves Strategic Planning involves developing an overall developing an overall company strategy for long-company strategy for long-run survival and growth.run survival and growth.
This process involves:This process involves: Defining a MissionDefining a Mission: Statement of an organization’s : Statement of an organization’s
purpose; should be market oriented.purpose; should be market oriented. Setting Company ObjectivesSetting Company Objectives: Supporting goals and : Supporting goals and
objectives to guide the entire company.objectives to guide the entire company. Designing a Business Portfolio: Designing a Business Portfolio: Collection of businesses Collection of businesses
and products that make up the company.and products that make up the company. Planning Functional Strategies: Planning Functional Strategies: Detailed planning for Detailed planning for
each department designed to accomplish strategic each department designed to accomplish strategic objectives.objectives.
Defining the Company’s Defining the Company’s Business and MissionBusiness and Mission
Market OrientedMarket Oriented
RealisticRealistic
Fit Market EnvironmentFit Market Environment
Distinctive CompetenciesDistinctive Competencies
MotivatingMotivating
Specific
Characteristics
of a Good Mission
Statement:
A Mission Statement is a Statement of the Organization’s Purpose.
Setting Company Setting Company Objectives and Goals Objectives and Goals
M arke tin gS tra teg y
M arke tin gS tra teg y
M arke tin gO b jec tive # 1
M arke tin gS tra teg y
M arke tin gO b jec tive # 2
M arke tin gS tra teg y
M arke tin gS tra teg y
M arke tin gO b jec tive # 3
M iss ionS ta tem en t
Designing the Designing the Business PortfolioBusiness Portfolio
Business Portfolio:Business Portfolio:
The collection of business and products that make up the companyThe collection of business and products that make up the company
Portfolio Analysis:Portfolio Analysis:
A tool by which management evaluates the various business making A tool by which management evaluates the various business making up the companyup the company
Strategic Business Unit (SBU):Strategic Business Unit (SBU):
A unit of the company that has a separate mission and objectives and A unit of the company that has a separate mission and objectives and that can be planned independently from other company businessthat can be planned independently from other company business
The best portfolio is the one that best fits the company’s strengths and The best portfolio is the one that best fits the company’s strengths and weaknesses to the opportunities in the environment.weaknesses to the opportunities in the environment.
The company must:The company must: Analyze its Analyze its currentcurrent business portfolio or Strategic Business Units business portfolio or Strategic Business Units
(SBU’s)(SBU’s) Decide which SBU’s should receive more, less, or no investmentDecide which SBU’s should receive more, less, or no investment Develop growth strategies for adding Develop growth strategies for adding newnew products or businesses to products or businesses to
the portfoliothe portfolio
The Boston Consulting The Boston Consulting Group’s Growth-Share Group’s Growth-Share
MatrixMatrix
3 ?
10x 4x 2x 1.5x 1x 10x 4x 2x 1.5x 1x
20%-20%-18%-18%-16%-16%-14%-14%-12%-12%-10%-10%- 8%-8%- 6%-6%- 4%-4%- 2%-2%- 00
Mar
ket
gro
wth
rat
e
Relative market share
Stars
Cash cow
Question marks
Dogs
? ??5
4
2
1
68
7.5x .4x .3x .2x .1x .5x .4x .3x .2x .1x
Marketing ProcessMarketing Process
Product/Market Product/Market Expansion GridExpansion Grid
Market-penetrationstrategy
(Diversificationstrategy)
Product-developmentstrategy
Market-developmentstrategy
CurrentCurrentmarketsmarkets
NewNewmarketsmarkets
CurrentCurrentproductsproducts
NewNewproductsproducts
Product/ Market Expansion Product/ Market Expansion GridGrid
Market Penetration:Market Penetration:
Making more sales to current customers without changing its Making more sales to current customers without changing its products. products.
How? Add new stores in current market areas, How? Add new stores in current market areas, improve advertising, adjust prices, service or store improve advertising, adjust prices, service or store design.design.
Market Development: Market Development:
develop new markets for its current develop new markets for its current products. products.
How? Identify new demographic or How? Identify new demographic or geographic markets.geographic markets.
Product Development:Product Development:
Offering modified or new products to current Offering modified or new products to current markets. markets.
How? New styles, flavors, colors, or modified How? New styles, flavors, colors, or modified products.products.
Diversification:Diversification:
New products for new markets. New products for new markets.
How? Start up or buy new businesses. How? Start up or buy new businesses.
Strategic Planning, Strategic Planning, Implementation, and Implementation, and
Control ProcessControl Process
Corporateplanning
Divisionplanning
Businessplanning
Productplanning
Organizing
Implementing
Measuringresults
Diagnosingresults
Takingcorrective
action
PlanningPlanning ImplementationImplementation ControlControl
Marketing Strategy Marketing Strategy Planning ProcessPlanning Process
Marketing Strategy Marketing Strategy Planning ProcessPlanning Process
CustomersCustomersNeeds and otherNeeds and other
SegmentingSegmentingDimensionsDimensions
CompanyMission, Objectives,
& Resources
CompetitorsCurrent &
Prospective
CustomersCustomersNeeds and otherNeeds and other
SegmentingSegmentingDimensionsDimensions
CompanyMission, Objectives,
& Resources
CompetitorsCurrent &
Prospective
S.W.
O.T.
External Market EnvironmentExternal Market Environment
CustomersCustomersNeeds and otherNeeds and other
SegmentingSegmentingDimensionsDimensions
CompanyMission, Objectives,
& Resources
CompetitorsCurrent &
Prospective
S.W.O.T.
External Market EnvironmentExternal Market Environment
Targeting &Segmentation
Positioning &DifferentiationPositioning &Differentiation
CustomersCustomersNeeds and otherNeeds and other
SegmentingSegmentingDimensionsDimensions
CompetitorsCurrent &
Prospective
S.W.O.T.
External Market EnvironmentExternal Market Environment
Targeting &Segmentation
Positioning &DifferentiationPositioning &Differentiation
Narrowing down to focused strategy with quantitative and qualitative screening criteria
CompanyMission, Objectives,
& Resources