strategic planning process in marketing
TRANSCRIPT
STRATEGIC PLANNING PROCESS IN MARKETING
STRATEGIC MARKET PLANNING - DEFINITION
STRATEGIC MARKET PLANNING IS THE PROCESS OF COMMUNICATING AND SHARING DATA BETWEEN DIFFERENT DEPARTMENTS OF AN ORGANISATION TO COLLECTIVELY FORMULATE FUTURE STRATEGIES AND IMPLEMENT THEM WITH MAXIMUM EFFICIENCY
CORPORATE AND DIVISIONAL STRATEGIC PLANNING
FIVE BASIC ACTIVITIES OF ORGANISATIONS
SETTING CORPORATE MISSION
FORMING STRATEGIC BUSINESS UNITS
ALLOCATING RESOURCES TO EACH STRATEGIC BUSINESS UNITS
PLANNING NEW BUSINESS ACTIVITIES
DOWNSIZING EXISTING BUSINESS
MISSION & VISION STATEMENTFUTURE
TODAY
MSSION VISION
VALUES
CORE VALUESDESIRED VALUESAPPROVED VALUESVALUE BY CHANCE
ESTABLISHMENT 0F STRATEGIC BUSINESS UNITS
RESOURCE ALLOCATION TO
STRATEGIC BUSINESS UNITS
BCG MATRIX
STARS
QUESTION MARKS
CASH COWS
DOGS
MAR
KET
GRO
WTH
RA
TE
RELATIVE MARKET SHARE
GE MATRIX
HARVESTINVEST
EARNING
INDUSTRY ATTRACTIVENESS
BUSI
NESS
STR
ENGT
H
Intensive GrowthAnsoff Matrix (Igor Ansoff)
Existing Product
New Product
Existing Markets
Market Penetration
Product Development
New Markets Market Development
Diversification
Integrative Growth Forward integration
Backward integration
Horizontal integration
Diversification Concentric Diversification
Horizontal Diversification
Conglomerate Diversification
Reasons for failure
Focus in related areas
Industry – group evaluation
Before diversifying decision makers need to answer following questions
1. What are the competitive strength of the company?
2. What strategic resources are essential to be successful in the new market?
3. Can we attain those crucial strategic resources ?
4. Will diversification divide the strategic resources that are to be essentially kept together?
5. Will the company stand out as a winner or will it become just another player in the market?
6. What can the company learn from diversification and is it preparation to learn this?
Downsizing Order Business
Gradually removing old & sick business that are not adding any value to the company
Lay Offs