1. Strategic planning consists of 3 actions
broadly:
1. Managing a companies’ portfolios
2.Assesing each business’ strength by
considering the market’s growth rate and the
company’s position fit in the market.
3.Formulating a game plan for each of its
business to achieve long-term objectives.

2. Strategic Planning is done in 4 levels-
1.Corporate Strategic Plan- It decides what
resources to allocate to which business and
what business to diversify into
2. Division Plan- It decides how much funds to
allocate to the SBUs.
3. SBU Plan-
4. Product Plan-

3. This basically subsumes 4 activities:
1. Defining corporate mission
2. Establishing SBU
3. Assigning resources to each SBU
4. Planning new business , downsizing older
ones.

4. Defining the Corporate Mission:
A good mission statement provides employees
with a shared sense of purpose, direction and
opportunity.
Contents of marketing plan
-Executive summary and table of contents-
presents a brief overview of the proposal
-Current marketing situation-presents relevant
data on sales, costs, profits, market,
competitors, distribution, and macro
environment.

5. The value delivery sequence
The traditional physical process sequence
assumes the company knows what to make
and that the market will buy enough units to
produce profits for the company. In the value
delivery sequence there are 3 parts:

6. 1.”Choose the value”-the marketing staff does
segmentation, targeting and positioning of
the market
2. “Provide the value”-after the STP process has
chose the value, the product’s specifications
and services should be detailed , the price
and then the product should be
manufactured and distributed.
3.”Communicate the value”-the customers are
communicated about the value of the product
through the sales force, promotion and
advertisement.

7. The Marketing process consists of analyzing
markets, researching and selecting markets,
designing marketing strategies, planning
marketing programs and organizing,
implementing and controlling the marketing
efforts.

8. 1.Product or service alliance- one company
licenses the other to produce is product, or
two companies jointly market their
complementary product or a new product.
2. Promotional alliance-one company agrees
to carry the promotion for another company’s
product or service.
3. Logistics alliance- one company offers
logistic services to another company’s
product.

9. 4. Pricing collaboration- one more companies
join in a special pricing collaboratin.
5. Program formulation- after developing the
principal strategies, companies must work
out detailed supporting programs for them.

10. 6. Implementation- for the implementation of
strategy, McKinsey has come up with a 7-S
framework
-Style: employees should share a common
way of thinking and behaving.
-Skills: these should be in consonance with
the strategy.
-Staff: includes hiring able people, training
them and then assigning them to the right
jobs.

11. Shared values- employees should share the
guiding values.
7. Feedback and control- A company’s
internal strengths and weaknesses in various
department need to be identified periodically.
Goal formulation- goals are developed to
facilitate the management in planning,
implementation and control of achieving the
targets.

12. Strategic formulation- strategic is the
roadmap for achieving the envisaged goals.
Porter defined strategy as “creation of a
unique and valuable position involving
different set of activities”. Strategy can be
formulated into 3 generic types:
Overall cost leadership- here a business aims
at delivering its products at the lowest prices
in the market and wins a large market share.

13. Differentation – here a business aims at
achieving superior performance in an
important customer area valued by a large
chunk of the market. It could strive to be the
service leader, the quality leader, the style
leader or technology leader.
Focus – here a firm concentrates on one or
more narrow market segments. It first
identifies such a segment and then pursues
either cost leadership or differentiation in
them.

14. The strategic alliances could be in the form of
marketing alliances in the following ways:
Integrative growth- by backward Integration,
Forward Integration, or Horizontal
integration.
Diversification growth- exploiting
opportunities in new business.

15. According to marketing approach,
competitors are companies that satisfy the
same customer need. The market concept of
competition reveals a broader set of actual
and potential competitors. By mapping the
buyer’s steps in obtaining and using the
product a company’s direct and indirect
competitors can be identified.

16. • Strategies: What strategies a company uses
to enter/survive in the market?
• Objectives: What are the objectives of the
competitor’s and what drives its behavior?
Factors shaping a competitor’s include size,
history, current management, and financial
situation.
• Strengths and Weaknesses : A company
needs to gather information on each
competitor’s strengths and weaknesses.

17. Three Important Variables for analyzing
competitors
Share of market- The competitor’s share of
the target market.
Share of mind- The percentage of costumers
who named the competitor in responding to
the statement, “Name the first company that
comes to mind in this industry.”

18. Share of heart- The percentage of customers
who named the competitor in responding to
the statement, “Name the company from
which you would prefer to buy the product.”
Companies that make steady gains in mind
share and heart share will inevitably make
gains in market share and profitability.

19. Competitive Strategies for Market Leaders
Expanding the Total Market
New customers: Potential new users maybe
divided into three groups:
Those who might use it but do not (market-
penetration strategy)
Those who have never used it (new-market
segment strategy)
Those who live elsewhere (geographical-
expansion strategy)

20. More usage: Two ways of increasing usage
Increasing the level or quantity of
consumption: through packaging or product
design or by increasing the availability of
product.
Increasing the frequency of consumption:
identifying completely new and different ways
to use the brand and communicate the
advantages of using the brand more
frequently.

21. Defending Market Share
The most constructive response is continuous
innovation. The leader leads the industry in
developing new product and customer
services, distribution effectiveness, and cost
cutting. It keeps increasing its competitive
strength and value to customers.

22. Position Defense: It involves occupying the
most desirable market space in the minds of
the consumers.
Flank Defense: The market leader should also
erect outposts to protect a weak front or
possibly serve as an invasion base for
counterattack.
Preemptive Defense: A more aggressive
maneuver is to attack before the enemy starts
its offense. A company can lunch a
preemptive defense in several ways.

23. Counteroffensive Defense: The leader can
meet the attacker frontally or hit its flank or
launch a pincer movement. An effective
counterattack is to invade the attacker’s main
territory so that it will have to pull back to
defend the territory.
Mobile Defense: In mobile defense, the leader
stretches its domain over new territories that
can serve as future centers for defense and
offense through market broadening and
market diversification.

24. Contraction Defense: Giving up weaker
territories and reassigning resources to
stronger territories.
Expanding Market Share
A company should consider four factors before
pursuing increased market share:
The possibility of provoking antitrust action
Economic cost
Pursuing the wrong marketing-mix strategy

25. The effect of increased market share on actual
and perceived quality.
Competitive Strategies for Market Challengers
Defining the Strategic Objective and
Opponent(S)
A market challenger must decide whom to
attack
It can attack the market leader. This is a high-
risk but potentially high-payoff strategy
It can attack firms of its own size that are not
doing the job and are underfinanced
It can attack small local and regional firms

26. Choosing a General Attack Strategy
Frontal Attack: The attacker matches its
opponent’s product, advertising, price, and
distribution
Flank Attack: Identifying shifts in market
segments geographic areas that are causing
gaps to develop, and then rushing in to fill
the gaps and develop them into strong
segments.

27. Encirclement Attack: The encirclement
involves launching a grand offensive on
several fronts. Make sense when the
challenger commands superior resources
Bypass Attack: It means bypassing the enemy
and attacking easier markets to broaden
one’s resource base. Three lines of approach:
diversifying into unrelated pro