Download Strategic Planning and the Marketing Process

Strategic Planning and the Marketing Process
Chapter 2
Formal Planning
Many companies operate without formal plans, yet these plans can provide many benefits such as:
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Strategic Planning - is the Process of Developing and Maintaining a Strategic Fit Between the Organization’s
Goals and Capabilities and Its Changing Marketing Opportunities.
and Capabilities and Its Changing Marketing Opportunities.
Steps in Strategic Planning(Fig. 2.1)
The Mission Statement - a formal statement that describes what management wants the organization to be and the
guidelines for getting there.
Components of a Good Mission Statement
Examples of a Mission Statement
Organizational Objectives
Organizational Strategies
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 (SBU’s)
 decide which SBU’s should receive more, less, or no investment
 develop growth strategies for adding new products or businesses to the portfolio
Analyzing Current SBU’s: Boston Consulting Group (BCG) Approach
High
High
Low
Low
Analyzing Current SBU’s: GE’s Strategic Business-Planning Grid
Strong
Average
Weak
High
Medium
Low
Problems With Matrix Approaches
Developing Growth Strategies in the Age of Connectedness
Existing Products
Existing
Markets
New
Markets
New Products
The Marketing Process (Fig. 2.5)
Connecting With Customers
 Market Segmentation: determining distinct groups of buyers (segments) with different needs,
characteristics, or behavior.
 Market Targeting: evaluating each segment’s 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.
The 4 P’s & 4C’s of the Marketing Mix
4 P’s
 Product
 Price
 Place
 Promotion
4 C’s




Customer Solution
Customer Cost
Convenience
Communication
Managing the Marketing Effort (Fig 2.7)
Marketing Analysis of Company’s Situation
Marketing
Implementation
Marketing
Planning
Control
Measure
Develop Strategic
Plans
Results
Carry Out
The
Plans
Develop
Marketing
Plans
Contents of a Marketing Plan (Table 2.2)
Executive Summary
Current Marketing Situation
Threats and Opportunity Analysis
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls
Evaluate
Results
Take Corrective
Action