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STRATEGIC PLANNING& MARKETING MANAGEMENT

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Chapter 1 STRATEGIC PLANNING& MARKETING MANAGEMENT Strategy Planning,Implementation,and Control Process In this chapter, we focus on 3 parts: 1. – PowerPoint PPT presentation

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Title: STRATEGIC PLANNING& MARKETING MANAGEMENT


1
STRATEGIC PLANNING MARKETING MANAGEMENT
Chapter 1


2
Strategy Planning,Implementation,and Control
Process
Chapter 1 Strategic
Planning Marketing Management
3
In this chapter, we focus on 3 parts
Chapter 1 Strategic
Planning Marketing Management
  • 1. Strategy planning
  • 2. Strategy implementing
  • 3. Strategy controlling

4
1. Strategy planning
Chapter 1 Strategic
Planning Marketing Management
  • 1.1 Content and levels of strategic planning
  • 1.2 Process of strategy-planning
  • 1.3 Planning of marketing

5
1. 1 Content and levels of strategic planning
Chapter 1 Strategic
Planning Marketing Management
  • 1.1.1 What is Strategic Planning
  • 1.1.2 Content of Strategy Planning
  • 1.1.3 Levels of Strategy Planning
  • 1.1.4 Content of Corporate and Division Strategic
    Planning

6
Chapter 1 Strategic
Planning Marketing Management
1.1.1 what is Strategic Planning
Strategic Planning The managerial process of
developing and maintaining a viable
fit between the organizations
goals and skills, and resources and its changing
marketing opportunities.
??????????????????????????
????????????????? Key point
managerial process viable fit Aim
Shape and reshape the companys business
and product so that they yield
target profit and growth.
7
1.1.2 Content of strategy planning
Chapter 1 Strategic
Planning Marketing Management
  • ContentManaging a companys business as an
    investment
  • portfolio
  • Assessing accurately each business by
    considering
  • the markets growth rate and the
    companys position
  • and fit in that market
  • Strategy
  • Importance Railway
  • Automobile Industry Policy

8
Chapter 1 Strategic
Planning Marketing Management
1.1.3 Levels of Strategy Planning
  • (1). Corporate level
  • To guide the whole enterprise into the
    profitable future. It makes decisions on how much
    resource support to allocate to each division, as
    well as which business to start or eliminate .
  • (2). Division level
  • Establishing a division plan covering the
    allocation of funds to each business unit within
    the division.
  • (3). Business unit level
  • Developing a business unit strategy to carry
    that business unit into a profitable future.
  • (4). Product level
  • Developing a marking plan for achieving its
    objectives in its product market.
  • Different from the text!

9
1.1.4 CONTENT OF CORPORATE AND DIVISION STRATEGIC
PLANNING
Chapter 1 Strategic
Planning Marketing Management
  • Define the corporate mission
  • Establishing strategic business units
  • Assigning resources to each SBU
  • Planning new business

10
1.1.4.1 Define the corporate mission
Chapter 1 Strategic
Planning Marketing Management
  • Each companys mission is shaped by five element
  • History
  • Current preference of owners and management
  • Market environment
  • Resource
  • Distinctive competence

11
1.1.4.2 Establishing strategic business units
Chapter 1 Strategic
Planning Marketing Management
  • Most companies operate several businesses
  • Market definitions of a business are superior to
    product definitions
  • Horse-carriageAutomobile
  • Avoid two trend
  • Too narrow
  • Too broad

12
1.1.4.3 Assigning Resource to Each SBU
Chapter 1 Strategic
Planning Marketing Management
General Frame
Growth Defense Shrink/harvest Turnaround Exit
objective Build position for long-term profit Maintain position for long-term profit Use position for short-term profit Short term Survival Long termprotected position Uses assets for short -term cash flow
Competitive position Medium to high Medium to high Low to high Medium to low Medium to low
Industry attractiveness Medium to high Medium to high Low to high Medium to low Medium to low
Market share Build share and diversify markets Hold share protect share and concentrate Segment market and concentrate For go share to increase cash flow
investment Maximum possible Adequate to maintain position Selected investment for adequate returns Short term minimum focus on cost cutting Long termminimum in select areas minimum
13
Growth-share matrix
Chapter 1 Strategic
Planning Marketing Management
Relative Market Share
Market growth Rate
stars question
Cash cows dogs
  • The Boston consulting Groups Growth-share Matrix

14
Chapter 1 Strategic
Planning Marketing Management
  • Stars Spending substantial funds to keep up
    with
  • the high market growth and fight off
  • competitor' attacks
  • Cash cowsFinancing a little capacity
    expansion,use
  • its cash to support other business
  • Dogs Divesting
  • Question marks Treat individually
  • Thinking hard about whether to keep
    pouring
  • money into this business

15
BUSINESS STRENGTH
STRONG MEDIUM WEAK
HIGH MEDIUM LOW
MARKET ATTRACTIVENESS
3.67 2.33 1.00
5.00 3.67
2.33 1.00
Invest/Grow
Harvest/Divest
Selectivity/Earning
Multifactor Portfolio Matrix
16
(No Transcript)
17
1.1.4.4 Planning New Business
Chapter 1 Strategic
Planning Marketing Management
  • Intensive Growth Identify opportunities to
    achieve further growth within the companys
    current business.
  • Integrative growth Identify opportunities to
    build or acquire business that are related to the
    companys current business.
  • Diversification growth Identify opportunities to
    add attractive business that are unrelated to the
    companys current business.

18
Chapter 1 Strategic
Planning Marketing Management
19
Chapter 1 Strategic
Planning Marketing Management
  • Basic competitive strategies
  • A.Overall cost leadership Here the company looks
    hard to achieve the lowest costs of production
    and distribution so that it can price lower than
    its competitors and win a large market share.
  • B.Differentiation Here the company concentrate
    on creating a highly differentiated product line
    and marketing program.so that it comes across as
    the class leader in the industry.
  • C.Focus Here the company focuses its effort on
    serving a few market segments well rather than
    going after the whole market

20
1.2 Process of strategy-planning
Chapter 1 Strategic
Planning Marketing Management
SWOT analysis
21
1.3 Planning of Marketing
Chapter 1 Strategic
Planning Marketing Management
  • 1.3.1 marketing process
  • 1.3.2 the nature and contents of a market
  • 1.3.3 organization of the marketing department

22
1.3.1 Marketing process
Chapter 1 Strategic
Planning Marketing Management
  • Analyzing market opportunities
  • Developing market strategies
  • Planning marketing programs

23
1.3.2 the nature and contents of a market
Chapter 1 Strategic
Planning Marketing Management
  • Executive summary and table of contents
  • Current marketing situation
  • Opportunity and issue analysis
  • Objectives
  • Marketing strategy
  • Action programs
  • Projected profit-and-loss statement
  • controls

?
24
1.3.3 organization of the marketing department
Chapter 1 Strategic
Planning Marketing Management
  • Functional organization
  • Geographic organization
  • Product-or brand-management organization
  • Market-management organization
  • Corporate-divisional organization
  • Global organization

25
2. Strategy implementation
Chapter 1 Strategic
Planning Marketing Management
  • Four sets of skills
  • Diagnostic skills.(determine what went wrong)
  • Identification of company level.(discern whether
    problems occurred in the marketing
    function?program?polity)
  • Implementation skills.(budget resources,organize
    effectively,motivate others)
  • Evaluation skills.(evaluate results)

26
3. Market control
Chapter 1 Strategic
Planning Marketing Management
  • Annual-plan control
  • Profitability control
  • Efficiency control
  • Strategy control ?

27
Chapter 1 Strategic
Planning Marketing Management
Review
  • How is strategic planning carried out at the
    corporate,division,an business-unit levels?
  • What are the major steps in planning the
    marketing process?
  • How can a company effectively manage the
    marketing process?

28
Chapter 1 Strategic
Planning Marketing Management
Questions
  • What are the key factors of the success of a
    strategy?
  • SWOT Analysis S(strengths)
  • W (weaknesses)
  • O (opportunity)
  • T (threats)

29
Chapter 1 Strategic
Planning Marketing Management
Questions
  • Considering the development strategy of the
    automobile industry in China.Can it achieve
    success?
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