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.

Steps in the
Strategic Planning Process

Market-Oriented
Marketing Management
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

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.

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

Identify strategic business

units (SBUs)
Assess each SBU:
The BCG growth-share
matrix classifies SBUs
into one of four
categories using:
Market

growth rate
The SBUs relative market
share within the market.

Growth-Share Matrix

Analyzing the Current

Marketing Management
Business Portfolio
Build
Increase market
share
Works well for
question marks

Hold
Preserve market
share
Good for cash
cow

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

Divest
Sell or liquidate
Good for dogs
and question
marks

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

Product / Market
Expansion Grid

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.

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.

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.

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

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

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)

Marketing Mix
The marketing mix includes controllable
and tactical marketing tools knows as the
4Ps
The 4Ps include
Product
Place
Promotion
Price

The Marketing Mix

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

Managing the
Marketing Effort
Marketing Functions Finding
opportunities
Avoiding threats
Analysis
Understanding
Planning
strengths
Implementation
Analyzing
Control
weaknesses

Managing the
Marketing Effort
Marketing plans include:
Marketing Functions
Executive

Analysis
Planning
Implementation
Control

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

Managing the
Marketing Effort
Marketing Functions Plans are turned
into action with
day-to-day
Analysis
activities
Planning
Good
Implementation
implementation is
a challenge
Control

Managing the
Marketing Effort
Marketing Functions Evaluation of the
results of
marketing
Analysis
strategies
Planning
Checks for
Implementation
differences
between goals and
Control
performance

Managing the
Marketing Effort

The Marketing Process