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Chapter Two
Strategic Planning and the
Marketing Process
With Duane Weaver
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Outline
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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 organization’s 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 Planning:
The 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***
Stars
Business
strength,
growth rate,
cash use
Defend position
Cows
Nurture to
generate cash
???
Use cash to make
into a star
Dogs
Fix or abandon
Industry attractiveness, market
share, cash generation
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Analyze Opportunities
• Product-Market Expansion Grid identifies
four potential growth areas.
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Existing
Products
New
Products
Existing
Markets
Market
Penetration
Product
Development
New
Markets
Market
Development
Diversification
Marketing’s 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 valuecreating activities to design, produce, market,
deliver and support a firm’s 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
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Analyze current situation.
Analyze marketing opportunities.
Select target markets.
Develop the marketing mix.
Manage the marketing effort.
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
company’s 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.
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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
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Functional
Geographic
Product management
Market or customer management
Combination of two or more common
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Marketing Control Process
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Set goals
Measure performance
Evaluate performance
Take corrective action
Thanks!
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