Company and Marketing Strategy

Chapter 2

Strategic Planning
Strategic planning is defined as:
The process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities. Includes company mission, setting objectives, designing a business portfolio and coordination among functional startegies
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Steps in the Strategic Planning Process

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Marketing Management Market-Oriented Mission

A mission statement asks..
What is our business? Who is the customer? What do consumers value? What should our business be?

A mission statement should be:

An invisible hand Neither too narrow nor too broad Fitting of market environment Based on distinctive competencies Motivating

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Strategic Planning

Business portfolio: The collection of

businesses and products that make up the company.
Designing the business portfolio is a key step in the strategic planning process.

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Strategic Planning
Portfolio Analysis
Step 1: Analyze the current business portfolio Step 2: Shape the future business portfolio

Identify strategic business units (SBUs) Assess each SBU:

The BCG growthshare matrix classifies SBUs into one of four categories using:
Market

growth rate The SBUs relative market share within the market.
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Growth-Share Matrix

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Analyzing the Current Marketing Management Business Portfolio

Build
Increase market share Works well for question marks

Harvest
Increases shortterm cash flow Good for weak cash cows, question marks and dogs

Hold
Preserve market share Good for cash cow

Divest
Sell or liquidate Good for dogs and question marks

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Strategic Planning
Portfolio Design
Step 1: Analyze the current business portfolio Step 2: Shape the future business portfolio

Determine the future role of each SBU and choose the appropriate resource allocation strategy:
Build Hold Harvest Divest

SBUs change positions over time

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Product / Market Expansion Grid

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The Marketing Process

Key Elements
Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort
The strategic planning and business portfolio analysis processes help to identify and evaluate marketing opportunities. The purpose of the marketing process is to help the firm plan how to capitalize on these opportunities.
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The Marketing Process

Key Elements
Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort

The segmentation process divides the total market into market segments. Target marketing chooses which segment(s) are pursued. Market positioning for the product is then determined.
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Marketing Strategy
Strategy
1. Market Segmentation 2. Target marketing 3. Market Positioning
Customers grouped by: Geographic Demographic Psychographic Behavioral Market segment is a groups of consumers who respond in similar ways to marketing efforts.
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Marketing Strategy
Strategy
1. Market Segmentation 2. Target marketing 3. Market Positioning
Evaluation of each segments attractiveness Selection of segments with greatest long-term profitability A company can choose one or several segments to target
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Marketing Strategy
Strategy
1. Market Segmentation 2. Target marketing 3. Market Positioning
The place the product occupies in the consumers mind Products are positioned relative to competing products Marketers look for clear, distinctive and desirable place in positioning

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The Marketing Process

Key Elements
Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort
Competitor analysis guides competitive marketing strategy development. Strategy leads to tactics via the marketing mix:
The Four Ps product, price, place, promotion (seller viewpoint) The Four Cs customer solution, cost, convenience, and communication (customer viewpoint)
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Marketing Mix
The marketing mix includes controllable and tactical marketing tools knows as the 4Ps The 4Ps include Product Place Promotion Price
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The Marketing Mix

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The Marketing Process

Key Elements
Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort
Marketing analysis
Provides information helpful in planning, implementation, and control

Marketing planning
Strategies and tactics

Marketing implementation
Turns plans into action

Marketing control
Operating control Strategic control
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Managing the Marketing Effort

Marketing Functions

Analysis Planning Implementation Control

Finding opportunities Avoiding threats Understanding strengths Analyzing weaknesses

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Managing the Marketing Effort

Marketing Functions Marketing plans include:
Executive

Analysis Planning Implementation Control

summary Analysis of current situation Objectives Targets and positioning Marketing mix Budget Controls

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Managing the Marketing Effort

Marketing Functions

Analysis Planning Implementation Control

Plans are turned into action with day-to-day activities Good implementation is a challenge

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Managing the Marketing Effort

Marketing Functions

Analysis Planning Implementation Control

Evaluation of the results of marketing strategies Checks for differences between goals and performance

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Managing the Marketing Effort

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The Marketing Process

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