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Chapter2 Strategic Planning And The Marketing Process

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Chapter2 Strategic Planning And The Marketing Process

  1. 1. <ul><li>Resources: </li></ul><ul><li>Marketing an Introduction / Gary Amstrong, Philip Kotler </li></ul>Strategic Planning and Marketing Process
  2. 2. Strategic Planning <ul><li>“ If u fail to plan, you are planning to fail”. </li></ul><ul><li>Companies usually prepare annual plan, long-range plans, and strategic plans. </li></ul><ul><li>The annual and long range plans deal with the companies current businesses and how to keep them going. </li></ul>
  3. 3. Strategic Planning (cont) <ul><li>Marketers define strategic planning as the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities . </li></ul>
  4. 4. Steps in Strategic Planning Planning Marketing and other functional strategies Defining the Company Mission Setting Company Objectives and Goals Designing the Business Portfolio Corporate Level Business Unit, Product and Market Levels
  5. 5. Mission Statement and objectives <ul><li>What is our Business? </li></ul><ul><li>Who is the Customer? </li></ul><ul><li>What do Consumers value? </li></ul><ul><li>What should our business be? </li></ul><ul><li>A mission statement is a statement of the organization’s purpose – what it wants to accomplish in the larger environment. </li></ul>
  6. 6. Mission Statement and objectives We offer product and services that deliver value to Middle Americans We run discount stores Wal – Mart We make businesses more productive by helping them scan, store, retrieve, revise, distribute, print and publish documents We make copying, fax and other office machines Xerox Market Oriented Product Oriented Company
  7. 7. Business Portfolio <ul><li>Business portfolio – the collection of businesses and products that make up the company. </li></ul><ul><li>The company must analyze it’s current business portfolio and decide which businesses ( strategic business units - SBU ) should receive more, less or no investment and develop growth strategies for adding new products or businesses to the portfolio. </li></ul><ul><li>SBU – is a unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses. </li></ul>
  8. 8. The BCG Growth Share Matrix
  9. 9. Marketing and other business functions <ul><li>Marketing alone cannot produce superior value for customers. All departments must work together in this important task. </li></ul><ul><li>Each company department can be thought of as a link in the company’s value chain . </li></ul>
  10. 10. The Marketing Process Factors influencing company marketing strategy
  11. 11. Target Consumers <ul><li>Market Segmentation is the process that divides a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products or marketing mixes. </li></ul><ul><li>Market Targeting involves each market segment’s attractiveness and selecting one or more segments to enter. </li></ul><ul><li>Market Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. </li></ul>
  12. 12. Developing the Marketing Mix <ul><li>Marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market . </li></ul>
  13. 13. Developing the Marketing Mix <ul><li>4 Ps and 4Cs. </li></ul><ul><li>Product – Customer Solution </li></ul><ul><li>Price – Customer Cost </li></ul><ul><li>Place – Convenience </li></ul><ul><li>Promotion - Communication </li></ul>
  14. 14. Managing the Marketing Effort
  15. 15. Contents of Marketing Plan <ul><li>Executive Summary – Presents a brief overview of the proposed plan for quick management review </li></ul><ul><li>Current Marketing situation – Present relevant background data on the market, product, competition, and distribution. </li></ul><ul><li>Threats and Opportunities analysis – Identifies the main threats and opportunities that might impact the product. </li></ul><ul><li>Objectives and issues – Defines the company’s objectives for the product in the areas of sales, market share, and profit, and the issues that will affect these objectives. </li></ul>
  16. 16. Contents of Marketing Plan <ul><li>Marketing strategy – Presents the broad marketing approach that will be uses to achieve the plan’s objectives. </li></ul><ul><li>Action programs – Specifies what will be done, who will do it, when it will be done, and how much it will cost. </li></ul><ul><li>Budgets – A projected profit and loss statement that forecasts the expected financial outcomes from the plan. </li></ul><ul><li>Controls – Indicates how the progress of the plan will be monitored. </li></ul>

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