Chapter Two Strategic Planning and the Marketing Process

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Chapter TwoStrategic Planning and the Marketing
Process

• With Duane Weaver

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Outline

• Strategic Planning defined
• SBU defined
• Business Portfolio
• BCG Growth Share Matrix (analytical tool)
• Opportunity Analysis
• Value Chain
• Segmentation
• Mix
• Plan
• Control

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What Is Strategic Planning?

• Strategic Planning is the process of developing
  and maintaining a strategic fit between the
  organizations goals and capabilities and its
  changing marketing opportunities.

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Steps in Strategic Planning

• Corporate level
• Define the company mission.
• Set company objectives and goals.
• Design the business portfolio.
• Business unit, product and market levels
• Plan marketing and other functional strategies.

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Strategic PlanningThe Mission Statement Answers

• What is our business?
• Who is the customer?
• What does the customer value?
• What should our business be?

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Strategic Business Unit (SBU)

• A unit of the company that has a separate mission
  and objectives and that can be planned
  independently from other company businesses.
• Can be a company division, a product line within
  a division or sometimes a single product or brand.

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Business Portfolio

• The business portfolio is the collection of
  businesses and products that make up the
  company.
• The company must
• Analyze its current business portfolio or
  Strategic Business Units (SBUs).
• Decide which SBUs should receive more, less or no
  investment.
• Develop growth strategies for growth or
  downsizing.

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BCG Growth-Share Matrix
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Analyze Opportunities

• Product-Market Expansion Grid identifies four
  potential growth areas.

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Marketings Role in Strategic Planning

• Provide a guiding philosophy.
• Provide inputs to strategic planners.
• Design strategies to research objectives.
• Measure results.

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The Value Chain/Network

• Value chain.
• the series of departments which carry out
  value-creating activities to design, produce,
  market, deliver and support a firms products.
• Value delivery network.
• the network made up of the company, suppliers,
  distributors and ultimately, customers who
  partner with each other to improve the
  performance of the entire system.

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The Marketing Process

1. Analyze current situation.
2. Analyze marketing opportunities.
3. Select target markets.
4. Develop the marketing mix.
5. Manage the marketing effort.

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Market Segmentation

• The process of dividing a market into distinct
  groups of buyers with different needs,
  characteristics or behaviours who might require
  separate products or marketing programs.

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Market Positioning

• Arranging for a product to occupy a clear,
  distinctive and desirable place relative to
  competing products in the minds of target
  consumers.
• Process begins with differentiating the companys
  marketing offer so it gives consumers more value.

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The Marketing Mix

• The set of controllable, tactical marketing tools
  that the firm blends to produce the response it
  wants in the target market.

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The Four Ps and the Four Cs

• PRODUCT provides CUSTOMER SOLUTION
• PRICE represents CUSTOMER COST
• PLACE provides CONVENIENCE
• PROMOTION is two-way COMMUNICATION

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A Marketing Plan

• Executive summary.
• Current marketing situation.
• Market description.
• Product review.
• Competitive review.
• Review of distribution.
• Threat and opportunity analysis (SWOT).
• Objectives and issues.
• Marketing strategy.
• Action program.
• Budgets.
• Controls.

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Marketing Dept Organization

• Functional
• Geographic
• Product management
• Market or customer management
• Combination of two or more common

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Marketing Control Process

1. Set goals
2. Measure performance
3. Evaluate performance
4. Take corrective action

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