Strategic Planning

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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
Business unit, product, and market level
Corporate Level
Planning, marketing, and other
functional Strategies
Setting Company Objectives and Goals
Defining the Company Mission
Designing the Business Portfolio
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The Strategic-Planning, Implementation, and
Control Process
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Corporate and Division Strategic Planning

• All corporate headquarters undertake four
  planning activities
• Defining the Corporate Mission
• Establishing Strategic Business Units (SBUs)
• Assigning resources to each SBU
• Planning new businesses, downsizing, or
  terminating older businesses

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Defining the Companys Business and Mission
A Mission Statement is a Statement of the
Organizations Purpose.
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Designing the 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 adding new products
  or businesses to the portfolio

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Corporate and Division Strategic Planning

• Three characteristics of SBUs
• Single business or collection of related
  businesses that can be planned for separately
• Has its own set of competitors
• Has a manager who is responsible for strategic
  planning and profit

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Analyzing Current SBUs The Boston Consulting
Groups Growth-Share Matrix
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Analyzing Current SBUsGEs Strategic
Business-Planning Grid
Business Strength



Strong
Average
Weak
C



High
A



Medium
Industry Attractiveness
D
B
Low
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Five Forces Determining Segment Structural
Attractiveness
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Three Intensive Growth Strategies Ansoffs
Product-Market Expansion Grid
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The Marketing Process
Demographic- Economic Environment
Technological- Natural Environment
Marketing Intermediaries
Publics
Suppliers
Political- Legal Environment
Social- Cultural Environment
Competitors
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The Marketing Process

• The Value Delivery Sequence

Two Views of the Value-Delivery Process
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Connecting With Customers

• Market Segmentation determining distinct groups
  of buyers (segments) with different needs,
  characteristics, or behavior.
• Market Targeting evaluating each segments
  attractiveness and selecting one or more segments
  to enter.
• Market Positioning arranging for a product to
  occupy a clear, distinctive, and desirable place
  relative to competing products in the minds of
  target consumers.

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Steps in Analyzing Competitors
Identifying the companys competitors
Assessing competitors objectives,
strategies, strengths and weaknesses, and
reaction patterns
Selecting which competitors to attack or avoid
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Identifying Competitors

• Number of Sellers and Degree of Differentiation
• Pure monopoly
• Oligopoly
• Pure oligopoly
• Differentiated oligopoly
• Monopolistic competition
• Pure competition

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Competitor Map Eastman Kodak
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Analyzing Competitors

• Three Variables to Monitor When Analyzing
  Competitors
• Share of market
• Share of mind
• Share of heart

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Basic Competitive Strategies
Overall Cost Leadership
Focus
Differentiation
Middle of the Road
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Competitive Strategies Value Disciplines
Companies Gain Leadership Positions by Delivering
Superior Value to their Customers Through These
Strategies
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Hypothetical Market Structure
10 Market Nichers
20 Market Follower
30 Market Challenger
40 Market Leader
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Competitive Marketing Strategies
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Specific Attack Strategies

• Price discounts
• Lower-priced goods
• Value-priced goods
• Prestige goods
• Product proliferation

• Product innovation
• Improved services
• Distribution innovation
• Manufacturing-cost reduction
• Intensive advertising promotion

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Competitive Marketing Strategies
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Market Follower Strategies
Counterfeiter
Cloner
Imitator
Adapter
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The Marketing Process
Demographic- Economic Environment
Technological- Natural Environment
Marketing Intermediaries
Publics
Suppliers
Political- Legal Environment
Social- Cultural Environment
Competitors
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The 4 Ps 4Cs of the Marketing Mix

• 4 Ps
• Product
• Price
• Place
• Promotion

• 4 Cs
• Customer Solution
• Customer Cost
• Convenience
• Communication

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The Marketing Process
Demographic- Economic Environment
Technological- Natural Environment
Marketing Intermediaries
Publics
Suppliers
Political- Legal Environment
Social- Cultural Environment
Competitors
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Marketing Environment

• Marketing Environment- consists of the actors and
  forces outside marketing that affect marketing
  managements ability to develop and maintain
  successful relationships with its target
  customers.
• Includes
• Microenvironment - forces close to the company
  that affect its ability to serve its customers.
• Macroenvironment - larger societal forces that
  affect the microenvironment.

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The Companys Microenvironment

• Companys Internal Environment- functional areas
  inside a company that have an impact on the
  marketing departments plans.
• Suppliers - provide the resources needed to
  produce goods and services and are an important
  link in the value delivery system.
• Marketing Intermediaries - help the company to
  promote, sell, and distribute its goods to final
  buyers. i.e. resellers.

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The Companys Microenvironment

• Customers - five types of markets that purchase a
  companys goods and services.
• Competitors - those who serve a target market
  with similar products and services against whom a
  company must gain strategic advantage.
• Publics - any group that perceives itself having
  an interest in a companys ability to achieve its
  objectives.

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Major Forces in the Companys Macroenvironment
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Managing the Marketing Effort
Marketing Analysis of Companys Situation
Control
Marketing Planning Develop Strategic Plans
Develop Marketing Plans
Marketing Implementation Carry
Out The Plans

Measure Results
Evaluate Results
Take Corrective Action
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Contents of a Marketing Plan
Executive Summary
Current Marketing Situation
Threats and Opportunity Analysis
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls