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2
CHAPTER
Strategic Planning and the
Marketing Process
Chapter Objectives
1 Distinguish between
strategic planning and
tactical planning.
2 Explain how marketing
plans differ at various
levels in an organization.
3 Identify the steps in the
marketing planning
process.
4 Describe successful
5 Identify the basic
planning tools and
elements of a marketing
techniques, including
strategy.
Porter’s Five Forces
6 Describe the
model, first and second
environmental
mover strategies, SWOT
characteristics that
analysis, and the strategic
influence strategic
window.
decisions.
7 Describe the methods for
marketing planning,
including business
portfolio analysis and the
BCG matrix.
CHAPTER 2 Strategic Planning and the Marketing Process
Strategic Vs. Tactical
CHAPTER 2 Strategic Planning and the Marketing Process
MARKETING PLANNING: THE BASIS FOR
STRATEGY AND TACTICS
• Planning Process of anticipating future events and
conditions and of determining the best way to achieve
organizational objectives.
• Marketing planning Implementing planning activities
devoted to achieving marketing objectives.
CHAPTER 2 Strategic Planning and the Marketing Process
Strategic Planning versus Tactical Planning
Strategic planning: Process of determining an organization’s primary
objectives and adopting courses action that will achieve those objectives
Tactical planning: Process that guides the implementation of activities
specified in the strategic plan.
CHAPTER 2 Strategic Planning and the Marketing Process
Steps in the Marketing Planning Process
CHAPTER 2 Strategic Planning and the Marketing Process
PLANNING AT DIFFERENT ORGANIZATIONAL LEVELS
• Focus on planning changes in different levels of the organization.
CHAPTER 2 Strategic Planning and the Marketing Process
• Defining the Mission of the
Organization
– Mission: the essential purpose that
differentiates one company from others
– The mission statement specifies the
organization’s overall goals and
operational scope and provides general
guidelines for future management actions
CHAPTER 2 Strategic Planning and the Marketing Process
DEFINING THE ORGANIZATION’S MISSION AND
OBJECTIVES
• Mission
 Essential purpose that differentiates one company from another.
 Specifies the organization’s overall goals and operational scope and
provides general guidelines for future management actions
• Examples:
• 3M: “To solve unsolved problems innovatively.”
• Mary Kay Cosmetics: “To give unlimited opportunity to women.”
• Merck: “To preserve and improve human life.”
• Objectives—Guide the development of marketing objectives and plans.
• Examples:
• Generate a 10 percent profit over the next twelve months.
• Attain a 20 percent share of the market by 2010.
• Add 50 new stores within the next year.
CHAPTER 2 Strategic Planning and the Marketing Process
ASSESSING ORGANIZATIONAL RESOURCES AND
EVALUATING ENVIRONMENTAL RISKS AND
OPPORTUNITIES
• Resources include the capabilities of the firm’s production, marketing,
finance, technology, and employees.
• Strengths help planners set objectives, develop plans, and take advantage of
marketing opportunities.
FORMULATING, IMPLEMENTING, AND MONITORING A
MARKETING STRATEGY
• Should be efficient, flexible, adaptable, and implemented company-wide.
• Blends elements of the marketing mix: product, distribution, promotion, and
price.
CHAPTER 2 Strategic Planning and the Marketing Process
SUCCESSFUL STRATEGIES: TOOLS AND
TECHNIQUES
• Goal of tools and techniques is to create sustainable competitive advantage.
PORTER’S FIVE FORCES MODEL
• Porter’s Five Forces Model developed by strategy expert Michael Porter
that identifies five competitive forces that influence planning strategies:
• The threat of new entrants
• The bargaining power of buyers
• The bargaining power of suppliers
• The threat of substitute products
• Rivalry among competitors
CHAPTER 2 Strategic Planning and the Marketing Process
CHAPTER 2 Strategic Planning and the Marketing Process
FIRST MOVER AND SECOND MOVER STRATEGIES
• First mover strategy Theory advocating that the company that is first to
offer a product in a marketplace will be the long-term market winner.
• Second mover strategy Theory that advocates observing closely the
innovations of first movers and then improving on them to gain advantage in
the marketplace.
SWOT ANALYSIS
• SWOT analysis Analysis that helps planners compare internal
organizational strengths and weaknesses with external opportunities and
threats.
THE STRATEGIC WINDOW
• Strategic window Limited periods during which the key requirements of a
market and the particular competencies of a firm best fit together.
• Example: Soaring demand for cars in China.
CHAPTER 2 Strategic Planning and the Marketing Process
SWOT ANALYSIS
• SWOT analysis Analysis
that helps planners compare
internal organizational strengths
and weaknesses with external
opportunities and threats.
CHAPTER 2 Strategic Planning and the Marketing Process
ELEMENTS OF A MARKETING STRATEGY
THE TARGET MARKET
• The group of people toward whom the firm directs its marketing efforts
and merchandise.
• Need to pay attention to growing market segments.
• Example: Growing Hispanic population in United States.
MARKETING MIX VARIABLES
• Marketing mix Blending of the four strategy elements—product,
distribution, promotion, and pricing—to fit the needs and preferences of a
specific target market.
CHAPTER 2 Strategic Planning and the Marketing Process
THE MARKETING ENVIRONMENT
• Five external dimensions that affect the marketing mix variables:
• Competitive, political-legal, economic, technological, and socialcultural factors.
• Rapid technological changes can spur lawsuits and create new forms of
competition.
• Rule of three—The three strongest, most efficient companies dominate 70
to 90 percent of a market.
• Example: Cereal manufacturers—General Mills, Kellogg’s, and Post.
CHAPTER 2 Strategic Planning and the Marketing Process
METHODS FOR MARKETING PLANNING
BUSINESS PORTFOLIO ANALYSIS
• An evaluation of a company’s products and divisions to determine the
strongest and weakest ones.
• Strategic business units Key business units within diversified firms.
• Each has its own managers, resources, objectives, and
competitors.
• Help focus the attention of managers.
• Example: Hewlett-Packard’s iPaq unit for its handheld computer.
CHAPTER 2 Strategic Planning and the Marketing Process
BCG ANALYSIS
• Developed by Boston Consulting Group.
• A market share/market growth matrix that plots market share against market
growth potential.