1. The Role Of Marketing in
Strategic Planning
Syndicate 3
2. Aim and Definition
Strategic Planning
…is the managerial process of developing and
maintaining a strategic fit between the organization's
objectives and resources and its changing market
opportunities.
Org Objectives Resources
Changing Environment
Strategic Fit
3. Ideas defining Strategic Planning
•Managing a company’s business as an investment
portfolio.
•Accessing accurately the future profit potential
of each business.
•Underline strategic planning
4. Major Organizational Levels
Corporate Level:
Responsible for strategic planning of whole organization
Division Level:
Responsible for allocation of funds to each business unit’s strategic plan
Business Level:
Responsible for developing business unit’s strategic planning
Product Level:
Responsible for developing marketing plan to achieve objecties
5. Nature of Performance Business
•Stake Holder
A business must strive to satisfy minimum expectations of each
stakeholder
•Processes
Companies build cross functional teams that manage core business
process to be superior competitive
•Resources
Companies identify their core competencies and use them as the
basis of strategic planning
•Organization
Companies align their organization’s structure/policies and culture
to the changing requirement of the business strategy
7. Dynamic relationship amongst
stakeholders group in a high performance
business
Stockholder satisfaction
Customer satisfaction
Higher quality Products and services
Higher quality environment
(Employee satisfaction)
Growth Profit
Continuous
improvement
Breakthrough
innovations
8. Corporate Strategic Planning
Corporate mission
A corporate mission focuses on broad purposes of the
organization and is a general criteria for determining
long term organizational effectiveness.
source: Marketing Institute of Singapore
9. Elements of Defining Corporate
Mission
•History
•Current Preferences of the owner
•Resources
•Distinctive competencies
Cont…
10. Examples of Corporate Mission
SINGAPORE AIRLINES is engaged in air transportation
and related businesses. It operates world-wide as the flag
carrier of the Republic of Singapore, aiming to provide
services of the highest quality at reasonable prices for
customers and a profit for the company.
Cont…
11. Examples of Corporate Mission
MARRIOTT’S Mission Statement:
We are committed to being the best lodging and
food service company in the world, by treating employees
in ways that create extraordinary customer service and
shareholder value
12. Corporate Mission Statement
A mission statement provides company employees with
a shared sense of purpose, direction and opportunity.
Characteristics and Focused Goals
•Industry scope
•Products and application scope
•Competencies scope
•Market segment scope
•Vertical scope
•Geographical scope
13. Strategic Business Unit
A set of products or product lines
• With clear independence from other
products or product lines
• For which a business or marketing
strategy should be designed
Source: Marketing Institute of Singapore
14. Establishing SBUs
Unique business mission
Definable set of competitors
Integrative planning done
independently
Responsible for resource
management in all areas
Large enough but not so large as to
become bureaucratic
(Source: Subhash Jain, Marketing Planning & Strategy, 6th Ed.)
15. Boston consulting group approach
A leading management consulting firm
which was responsible for developing the
growth- share matrix.
17. Alternative objectives of SBU’s
•Build- To increase SBU’s market share, even
if it means to forego short term earnings.
•Hold- To preserve the SBU’s market share.
•Harvest- To increase SBU’s short term cash
flow, regardless of the long term effect.
•Divest- To sell or liquidate the business in
order to use the resources more efficiently.
18. Planning new businesses
1. Intensive growth opportunities-
• Ansoff product-market expansion grid.
• market penetration strategy
• market development strategy
• product development strategy
Cont…
21. Business strategy planning
1. Business mission- defines specific goals and
policies as a separate business.
2. External environment analysis-
• Macro environment forces- economic, political,
socio-cultural.
• Micro – customers, competitors
• Opportunities- scope for company’s profitability.
• Threats-classified according to the seriousness &
profitability of occurrence.
Cont…
23. Business strategy planning
5. Strategy formulation-
• Overall cost leadership
• Differentiation
• Focus
6. Program formulation.
7. Implementation.
8. Feedback and Control.
24. Conclusion
Sun Tze on Strategy
“Know your enemy, know yourself,
and your victory will not be
threatened. Know the terrain, know
the weather, and your victory will be
complete.”
-Marketing Institute of Singapore
