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Introduced by: Mr. ABDUALRAHMAN ALFAISALY Mrs. REEM ABDUALRAHMAN ALALIANI In Collaboration with: Dr, Ayman Abdel Motti Suliman ©2000 Prentice Hall Objectives Corporate and division strategic planing Business unit planning The marketing process Product level planning The marketing plan ©2000 Prentice Hall Market-Oriented Strategic Planning ©2000 Prentice Hall Objectives Resources Skills Opportunities Market-Oriented Strategic Planning Objectives Resources Profit and Growth Skills ©2000 Prentice Hall Opportunities Corporate Headquarters Planning Define the corporate mission Establish strategic business units (SBUs) Assign resources to SBUs Plan new business, downsize older businesses ©2000 Prentice Hall Strategic-Planning, Implementation, and Control Process Planning Corporate planning Implementation Organizing Division planning Business planning Product planning ©2000 Prentice Hall Control Measuring results Diagnosing results Implementing Taking corrective action Good Mission Statements: Limited number of goals Stress major policies & values Define competitive scopes ©2000 Prentice Hall Market Growth Rate The Boston Consulting Group’s Growth-Share Matrix 20%18%16%14%12%10%8%6%4%2%0 Stars 4 3 5 ?2 ? 1 Dogs Cash cow 8 6 10x ©2000 Prentice Hall Question marks 7 4x 2x 1.5x 1x .5x .4x .3x .2x .1x Relative Market Share MARKET ATTRACTIVENESS Low Medium High Market Attractiveness: CompetitivePosition Portfolio Classification Strong BUSINESS STRENGTH Medium 5.00 5.00 3.67 2.33 Weak 1.00 Joints Aerospace fittings Hydraulic pumps 3.67 Clutches 2.33 Flexible diaphragms Fuel pumps Relief valve 1.00 Invest/grow ©2000 Prentice Hall Selectivity/earnings Harvest/divest The Strategic-Planning Gap Desired sales Diversification growth Strategicplanning gap Sales Integrative growth Intensive growth Current portfolio 0 ©2000 Prentice Hall 5 Time (years) 10 Three Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid Existing products Existing markets 1. Market penetration New markets 2. Market development ©2000 Prentice Hall New products 3. Product development 4. Diversification Opportunity Matrix Attractiveness Success Probability High Low High 1 2 Low 3 4 ©2000 Prentice Hall Opportunities 1. Company develops a more powerful lighting system 2. Company develops a device for measuring the energy efficiency of any lighting system 3. Company develops a device for measuring illumination level 4. Company develops a software program to teach lighting fundamentals to TV studio personnel Threat Matrix Seriousness Probability of Occurrence High Low High 1 2 Low 3 4 ©2000 Prentice Hall Threats 1. Competitor develops a superior lighting system 2. Major prolonged economic depression 3. Higher costs 4. Legislation to reduce number of TV studio licenses The McKinsey 7-S Framework Structure Strategy Systems Shared values Skills Style Staff ©2000 Prentice Hall The Value-Delivery Process (a) Traditional physical process sequence Make the product Design Procure Make product Sell the product Price Sell Advertise/ promote Distribute Service (b) Value creation & delivery sequence Choose the Value Provide the Value Communicate the Value Strategic marketing ©2000 Prentice Hall Tactical marketing The Marketing Plan Executive Summary & Table of Contents Current Marketing Situation Opportunity & Issue Analysis Objectives Marketing Strategy Action Programs Projected Profit-and-loss Controls ©2000 Prentice Hall Factors Influencing Company Marketing Marketing Strategy intermediaries Demographic/ economic environment Technical/ physical environment Product Suppliers Place Target Price customers Publics Promotion Political/ legal environment ©2000 Prentice Hall Social/ cultural environment Competitors Review Corporate and division strategic planing Business unit planning The marketing process Product level planning The marketing plan ©2000 Prentice Hall