strategic planning and process

8/3/2019 Strategic Planning and Process

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Copyright 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Strategic PlanningStrategic Planningand the Marketingand the Marketing

ProcessProcess


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Copyright 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2-2

ObjectivesObjectives

1. Identify the steps in the marketing planningprocess.

2. Describe successful planning tools andtechniques, including Porters Five Forcesmodel, first and second mover strategies,

SWOT analysis, and the strategic window.3. Identify the basic elements of a marketing

strategy.

4. Describe the environmental characteristics that

influence strategy decisions.5. Describe the methods for marketing planning,

including business portfolio analysis and theBCG matrix.


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Marketing Planning: The Basics forMarketing Planning: The Basics for

Strategy and TacticsStrategy and Tactics

Planning: Process of anticipating future

events and conditions and of determining the

best way to achieve organizational goals

Marketing planning: Implementing planning

activities devoted to achieving marketing

objectives


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Strategic Planning versus Tactical PlanningStrategic Planning versus Tactical Planning

Strategic planning: Process of determining

an organizations primary objectives and

adopting courses action that will achieve

those objectives

Tactical planning: Process that guides the

implementation of activities specified in the

strategic plan.


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Strategic Planning versus Tactical PlanningStrategic Planning versus Tactical Planning

Top management

Greater proportions of their time engaged

in planning

Usually focus their planning activities on

long-range strategic issuesMiddle level managers

Focus on operational planning; creating

and implementing tactical plans

Supervisors

Developing the specific programs to meet

goals in their areas of responsibility


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Steps in the Marketing Planning ProcessSteps in the Marketing Planning Process


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Defining the Mission of the OrganizationDefining the Mission of the OrganizationMissionMission: the essential purpose that

differentiates one company from others

The mission statement specifies the

organizations overall goals andoperational scope and provides general

guidelines for future management actions


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Determine Organizational ObjectivesDetermine Organizational ObjectivesAn organization lays out its basic objectives,

or goals, in its mission statement

These objectives in turn guide development

of supporting marketing objectives and plans

Well-developed objectives should state

specific, quantitative intentions along with

deadlines for achieving them


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Assessing Organizational Resources andAssessing Organizational Resources and

Evaluating Environmental Risks andEvaluating Environmental Risks and

OpportunitiesOpportunities

This step involves a back-and-forth

assessment of strengths, risks, andavailable opportunities.


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Formulating, Implementing, andFormulating, Implementing, and

Monitoring a Marketing StrategyMonitoring a Marketing Strategy

Marketing strategy: a firms overall

program for selecting and satisfying a

target market

A marketing strategy is aimed at satisfying

consumers in the selected target market

through a careful balance of the elements

of the marketing mix each of whichrepresents a subset of the overall

marketing strategy


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Successful Strategies: Tools andSuccessful Strategies: Tools and

TechniquesTechniques

All planning strategies have the goal of

creating a sustainable competitive

advantage for a firm.

An advantage where other companies cannot

provide the same offering or value.


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PortersPorters

Five ForcesFive Forces

ModelModel


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First Mover and Second Mover StrategiesFirst Mover and Second Mover Strategies

First mover strategy: Theory advocatingthat the company that is first to offer a

product in a marketplace will be the long-term market winner.

Second mover strategy: Theory thatadvocates observing closely theinnovations of first movers and thenintroducing new products that improve onthe original offering to gain advantage inthe marketplace.


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SWOTSWOT

Analysis

Analysis


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Elements of a Marketing StrategyElements of a Marketing Strategy

Blending the four strategy elements ofmarketing decision-making to satisfy chosen

target markets

Product

Price

Distribution

Promotion


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Target MarketTarget Market

Group ofpeople

toward

whom the

firm decidesto direct its

marketing

efforts


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Marketing Mix VariablesMarketing Mix Variables

Product StrategyProduct Strategy

What goods or services to offer

Customer service

Package design

Brand namesTrademarks

Warranties

Product Life Cycle

Positioning

New-product development


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Marketing Mix VariablesMarketing Mix Variables

Distribution StrategyDistribution Strategy

Planning that ensures that consumers find

their products in the proper quantities at the

right times and places.Modes of transportation

Warehousing

Inventory control

Order processing

Marketing channels


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Marketing Mix VariablesMarketing Mix VariablesPromotional StrategyPromotional Strategy

Blending together the various elements

of promotion to communicate most

effectively with the target market

Informing, persuading, and influencing a

consumers purchase decision.

IMC


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Marketing Mix VariablesMarketing Mix VariablesPricing StrategyPricing Strategy

Deals with the methods of setting profitable

and justifiable prices


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Methods for Marketing PlanningMethods for Marketing Planning

Business Portfolio AnalysisBusiness Portfolio Analysis

Strategic Business UnitsStrategic Business Units (SBUs) are key

business units within diversified firms

A division, product line, or single productmay define an SBU

Firms redesign their SBUs as market

conditions dictate


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The BCG MatrixThe BCG Matrix

Market Share/ Market Growth MatrixMarket Share/ Market Growth Matrix: amarketing planning tool that classifies afirms SBUs or products according toindustry growth rates and market shares

relative to competing productsStars

Cash Cows

Dogs

Question Marks


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Figure 2.10Figure 2.10

BCG Market Share/Market Growth Matrix

strategic planning and process

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