![Page 1: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/1.jpg)
Company and Marketing Strategy
Chapter: 2
![Page 2: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/2.jpg)
Companywide Strategic Planning
• Strategic Planning
The process of developing and maintaining a strategic fit between organization’s goal and capabilities and its changing marketing opportunities
- Sets stage for the rest of company’s planning
1) Annual Plans
2) Strategic Plans
![Page 3: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/3.jpg)
Steps in Strategic Planning
Setting company objectives and goals
Defining the company’s mission
Designing the business portfolio
Planning marketing and other functional strategies
Business unit, product, and market levelCorporate
Level
![Page 4: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/4.jpg)
Defining a Market-Oriented Mission
• Mission Statement
A statement of the organization’s purpose- what it wants to accomplish in the larger environment
- acts as an invisible hand
- Market oriented mission statement
- Meaningful, specific, yet motivating
- Mission should not state profits
![Page 5: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/5.jpg)
Market Oriented Business Definitions
Company Market- Oriented
DefinitionWal- Mart “Save money, live better”
Life Insurance Corporation of India “Zindagi e saath bhi, zindagi ke baad bhi”
Google We help you organize the world’s information and make it universally accessible and useful
Nokia Connect people
![Page 6: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/6.jpg)
Setting Company Objectives and Goals
• Turn mission into objectives
• How will you go about things
![Page 7: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/7.jpg)
Designing the business portfolio
• Business Portfolio
The collection of businesses and products that make up the company
- Should be a best fit to company’s strengths and weaknesses to opportunities
Step: 1- Analyzing the current business portfolio
Step: 2- Future Portfolio
![Page 8: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/8.jpg)
Analyzing the Current Business Portfolio
• The process by which management evaluates the products and businesses that make up the company
- identify the SBU’s
• Growth Share Matrix
A Portfolio- planning method that evaluates a company's strategic business units in terms of its market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs
![Page 9: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/9.jpg)
BCG Growth Share Matrix
Cash Cow Dog
Star Question Mark
Relative market Share
Mar
ket
grow
th r
ate
High Low
Hig
hLo
w
![Page 10: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/10.jpg)
BCG Growth Share Matrix Contd.
• Stars:
- High growth, High share
- Heavy Investment required to sustain share
- Will eventually turn in cash cows
• Cash Cows
- Low Growth, High Share
- Less investment
- a lot of cash produced
![Page 11: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/11.jpg)
BCG Growth Share Matrix Contd.
• Question Marks
- Low share, High Growth
- A lot of investment to hold share
- Which too keep and which to let go
• Dogs
- Low Growth, Low share
- no large sources of cash
![Page 12: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/12.jpg)
Problems with Matrix
• Difficult, time consuming and costly
• No advice on future
![Page 13: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/13.jpg)
Developing strategies for growth and downsizing
• Identify, evaluate and select market opportunities and lay down strategies for capturing them
• Product/market expansion grid
A portfolio- planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
![Page 14: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/14.jpg)
The Product/Market Expansion Grid
Market
Penetration
Market
Development Diversification
Product
Development
Existing Products
New Products
Existing Markets
New Markets
![Page 15: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/15.jpg)
The Product/Market Expansion Grid
• Market Penetration A Strategy for company growth by increasing
sales of current products to current market segments without changing the product
• Market Development A Strategy for company growth by identifying
and developing new market segments for current company products
![Page 16: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/16.jpg)
The Product/Market Expansion Grid
• Product Development A strategy for company growth by offering
modified or new products to current market segments
• Diversification A strategy for company growth through starting
up or acquiring business outside the company's current products and markets
![Page 17: Company and Marketing Strategy Chapter: 2. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit](https://reader033.vdocuments.us/reader033/viewer/2022051315/56649ef55503460f94c08709/html5/thumbnails/17.jpg)
• Downsizing
Reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company's overall strategy