kotler

1. Chapter 3:
Market-Oriented Strategic
Planning
Otterbein College
Winter 2000

2. 8/5/2022 3-2
Objectives
• Corporate and division strategic planing
• Business unit planning
• The marketing process
• Product level planning
• The marketing plan

3. 8/5/2022 3-3
Objectives
Skills
Resources
Opportunities
Market-Oriented Strategic Planning

4. 8/5/2022 3-4
Objectives
Skills
Resources
Opportunities
Profit
and
Growth
Market-Oriented Strategic Planning

5. 8/5/2022 3-5
Corporate Headquarters Planning
• Define the corporate mission
• Establish strategic business units (SBUs)
• Assign resources to SBUs
• Plan new businesses, downsize older ones

6. 8/5/2022 3-6
Measuring
results
Diagnosing
results
Taking
corrective
action
Implementation
Planning
Corporate
planning
Division
planning
Business
planning
Product
planning
Organizing
Implementing
Control
Strategic Planning, Implementation, & Control Process

7. 8/5/2022 3-7
Limited number of goals
Stress major policies & values
Define competitive scopes
Good Mission Statements

8. 8/5/2022 3-8
3
?
Question marks
?
2
1
Cash cow
6
Dogs
8
7
10x 4x 2x 1.5x 1x
Relative Market Share
.5x .4x .3x .2x .1x
Stars
5
4
Boston Consulting Group’s Growth-Share Matrix
20%-
18%-
16%-
14%-
12%-
10%-
8%-
6%-
4%-
2%-
0
Market
Growth
Rate

9. 8/5/2022 3-9
Market Attractiveness: Competitive
Position Portfolio Classification
MARKET
ATTRACTIVENESS
5.00
3.67
2.33
1.00
Low
Medium
High
Relief
valve
Flexible
diaphragms
Fuel
pumps
Aerospace
fittings
Clutches
Hydraulic
pumps
Joints
Strong Medium Weak
BUSINESS STRENGTH
1.00
2.33
3.67
5.00
Invest/grow Selectivity/earnings Harvest/divest

10. 8/5/2022 3-10
Sales
10
5
0
Time (years)
Desired
sales
Integrative growth
Intensive growth
Current
portfolio
Strategic-
planning
gap
Diversification growth
The Strategic-Planning Gap

11. 8/5/2022 3-11
4. Diversification
2. Market
development
New
markets
1. Market
penetration
Existing
markets
Existing
products
3. Product
development
New
products
Intensive Growth Strategies:
Ansoff’s Product/Market Expansion Grid

12. 8/5/2022 3-12
1
4
2
3
High
Low
High Low
Attractiveness
Success Probability Opportunities
Opportunity Matrix
1. Company develops a more
powerful lighting system
2. Company develops a device
for measuring the energy
efficiency of any lighting
system
3. Company develops a device
for measuring illumination
level
4. Company develops a
software program to teach
lighting fundamentals to TV
studio personnel

13. 8/5/2022 3-13
Threat Matrix
1. Competitor develops a
superior lighting system
2. Major prolonged
economic depression
3. Higher costs
4. Legislation to reduce
number of TV studio
licenses
1
4
2
3
High
Low
High Low
Seriousness
Probability of Occurrence Threats

14. 8/5/2022 3-14
Skills
Shared
values
Staff
Style
Strategy
Structure
Systems
The McKinsey 7-S Framework

15. 8/5/2022 3-15
Sell the product
Make the product
Procure
Design
product Make Price Sell Advertise/
promote Distribute Service
(a) Traditional physical process sequence
(b) Value creation & delivery sequence
Choose the Value Provide the Value Communicate the Value
Strategic marketing Tactical marketing
The Value-Delivery Process

16. 8/5/2022 3-16
Executive Summary & Table of Contents
Current Marketing Situation
Opportunity & Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls
The Marketing Plan