Download Strategic Planning and the Strategic Marketing Process

Strategic Planning and the
Strategic Marketing Process
I. What is Strategic Planning?
• The process of developing and
maintaining a viable fit between the
organization’s objectives and
resources and its changing
environment.
• It involves developing a:
 clear mission
 supporting objectives
 supporting strategies
II. Different Levels of Planning
 Corporate Level
 Business Unit Level
Strategic Business Units (division within the
organization that markets a set of related products to
a clearly defined group of customers)
 Functional Level
III. Components of the Strategic Plan
 Organizational Mission
defines the core purpose of the organization – why it
exists.
 Organizational Objectives
statements of what the organization wishes to
accomplish in the on-going, long-run operation of the
firm.
Profits
sales
market share
customer satisfaction
 Organizational Strategies
major directions the organization will take in pursuing its
objectives.
Business Portfolio Analysis
Market-Product Analysis
WHERE CAN AN “A” IN A COURSE IN
ICE CREAM MAKING LEAD?
Slide 2-5
Business Portfolio Analysis
 A technique which uses market growth rate
and relative market share to identify what
combination of SBUs will best achieve
organization objectives.
 Market growth rate – annual rate of sales
growth of the SBU’s industry.
 Relative market share – the sales of the
SBU divided by the sales of the largest firm
in the industry.
FIGURE 2-3 Boston Consulting Group portfolio analysis
for Kodak, as it might appear in 2004
Kodak digital
camera
Kodak film sales: US,
Canada, & W. Europe
Kodak digital
photo printer
Kodak selfservice kiosk
Slide 2-21
Business Portfolio Analysis (cont.)
 Cash Cows – SBU’s that have a high market
share of a low sales growth market.
 Stars – SBU’s that have a high market
share of a high sales growth market.
 Question marks – SBU’s that have a low
market share of a high sales growth
market.
 Dogs – SBU’s that have a low market share
of a low sales growth market.
Market-Product Analysis
 Indicates that a firm can grow in a
number of ways either by
concentrating on current or new
products; or on current or new
customers.
 Four strategies: market penetration,
market development, product
development, product diversification
FIGURE 2-4 Four market-product strategies: alternative
ways to expand sales revenues for Ben & Jerry’s
Slide 2-27
IV. Strategic Marketing Process
Process whereby an organization
allocates it marketing mix resources
to reach its target markets.
Planning
Implementation
Evaluation
Planning Phase – Situation Analysis
 This is a complete analysis of the firm’s
situation which assesses internal
strengths and weaknesses and external
threats and opportunities (SWOT)
 Internal analysis (controllable factors) –
assess the firm itself to identify
strengths and weaknesses
 External analysis (uncontrollable
factors) – assess the firm’s external
environment to identify opportunities
and threats
FIGURE 2-6 Ben & Jerry’s: a SWOT analysis to get it
growing again
Slide 2-34
Planning Phase – Marketing
Objectives
 Specific levels of performance desired
for a product or product line to be
achieved by a given date.
 Stated in terms of market share,
sales, profit
 Should be measureable, attainable,
specific, and consistent with
organizational objectives
Planning Phase – Target Market
 One or more specific groups of
potential consumers toward which an
organization directs its marketing
program.
 Market segmentation is used to
identify target markets.
 Why focus on the needs of a
subgroup of a market rather than the
entire market?
Planning Phase: Product
Positioning
 The process where marketers try to
create a product image or identity in
the minds of their target market
relative to competitive products.
Planning Phase: Marketing Mix
Program
 Product – good, service, or idea to satisfy
the consumer’s needs.
 Price – what is exchanged for the product.
 Promotion – means of communication
between the seller and buyer.
 Place – means of getting the product to the
consumer
 Marketing mix decisions are based on the
needs of the target market and the
positioning strategy.
FIGURE 2-7 Elements of the marketing mix that comprise a
cohesive marketing program
Slide 2-40
Implementation Phase
 Process of putting the marketing plan
into action.
 Involves great attention to detail
Evaluation
 Involves measuring the results of the
actions from the implementation
phase and comparing them with goals
set in the planning phase.
sales analysis
market share analysis
expense to sales analysis