The document outlines the strategic planning process for marketing. It discusses 7 key steps: 1. Defining the organizational mission and purpose. 2. Establishing strategic business units (SBUs) with separate missions, markets, and strategies. 3. Setting specific marketing objectives for each SBU both quantitatively and qualitatively. 4. Performing a SWOT analysis to assess internal strengths/weaknesses and external opportunities/threats. 5. Developing marketing strategies for each SBU using frameworks like the Boston Matrix, Product/Market Grid, GE Business Screen, and Porter's Generic Strategies. 6. Implementing tactical plans that specify short-term actions to achieve strategic

1. Marketing planning
By: Kalpana Ambepitiya
PhD (Marketing) (Reading), MBA (Finance) (IGNOU-India),
MPA (Colombo-Sri Lanka), PGD (Finance) (IGNOU-India),
BBMgmt Hons (Marketing) (Kelaniya-Sri Lanka)

2. Strategic planning is Critical
• A strategic business plan describes the overall
direction an organization will pursue within its
environment and also guides the allocation of
resources. It provides the logic that integrates
the perspectives of functional departments and
operating units, and points them all in the same
direction.
• A strategic marketing plan outlines the actions
necessary, who is responsible, when and where
they will be completed, and how they will be
coordinated. A marketing plan is carried out
within the context of a firm’s broader strategic
business plan.

3. Strategic Planning
Strategic planning is the process of developing and
maintaining a strategic fit between the
organization’s goals and capabilities and its
changing marketing opportunities
2-4

4. Market-Oriented Mission
Mission statement: The organization’s purpose, what it
wants to accomplish in the larger environment
Market-oriented mission statement: Defines the
business in terms of satisfying basic customer needs
2-5

5. Business Portfolio
The business portfolio is the collection of businesses
and products that make up the company
2-7

6. Strategic business unit
• Strategic business unit (SBU) is a unit of the company that
has a separate mission and objectives that can be planned
separately from other company businesses
• Company division
• Product line within a division
• Single product or brand
2-10

7. The Strategic Planning Process
1.
Defining
Organizational
Mission
2.
Establishin
g SBUs
3.
Setting
Marketing
Objectives 4.
Performing
Situation
Analysis
5.
Developing
Marketing
Strategy
6.
Implementing
Tactical
Plans
7.
Monitoring
Results
Feedback

8. Step One in the Strategic Planning Process
1. Define
Organizational
Mission
1. Defining
Organizational
Mission
Defining the organizational mission refers to a
long-term commitment to a type of business and a
place in the market. It “describes the scope of the firm
and its dominant emphasis and values,” based on a
firm’s history, current management preferences,
resources, and distinctive competence, and on
environmental factors.

9. Step Two in the
Strategic Planning Process
2.
Establishing
SBUs
Each of a firm’s Strategic Business Units (SBU
) has six attributes:
• A specific target market
• Its own senior marketing executive
• Control over its resources
• Its own marketing strategy
• Clear-cut competition
• Distinct differential advantages

10. Step Three in the
Strategic Planning Process
3.
Setting
Marketing
Objectives
Marketing objectives establish the firm’s goals for
each SBU. Objectives are described in both
quantitative terms (dollar sales, percentage profit
growth, and market share), and qualitative terms
(image, level of innovativeness, and industry leadership
role).
Without clearly identified objectives, firms often fail.

11. Step Four in the
Strategic Planning Process
4.
Performing
Situation
Analysis
The situation analysis is known as
SWOT Analysis
• Internal factors include:
•Strengths
•Weaknesses
• External factors include:
•Opportunities
•Threats
The SWOT analysis is a continuous review of a
firm’s market position.

12. Step Five in the
Strategic Planning Process
5.
Developing
Marketing
Strategy
A marketing strategy outlines the way in which the
marketing mix is used to attract and satisfy the target
market.
A separate strategy is necessary for each SBU.
Four strategic planning approaches are:
• Product/Market Opportunity Matrix
• Boston Consulting Group Matrix
• General Electric Business Screen
• Porter Generic Strategy Model

13. Boston Consulting Group Matrix (1)
??
Relative Market Share
Industry
Growth
Rate
High Low
Low
High

14. ?
Relative Market Share
Industry
Growth
Rate
H
H L
L
Intensify
Marketing
Efforts to
Increase
Share
Intensify
Marketing
Efforts
or Leave
Market
Use Profits to
Aid Growing SBUs,
Maintain Position
Reduce Efforts
or Divest
Boston Consulting Group Matrix (1)

15. The Boston Group Approach
Growth share matrix is a portfolio planning method that
evaluates a company’s strategic business units in terms of
their market growth rate and relative share
Strategic business units are classified as:
• Stars
• Cash Cows
• Question marks
• Dogs
2-12

16. Stars are high-growth, high-share businesses or products
requiring heavy investment to finance rapid growth. They
will eventually turn into cash cows.
Cash cows are low-growth, high-share businesses or products
that are established and successful SBUs requiring less
investment to maintain market share
2-13

17. Question marks are low-share business units in high-growth
markets requiring a lot of cash to hold their share
Dogs are low-growth, low-share businesses and products that
may generate enough cash to maintain themselves but do not
promise to be large sources of cash
2-14

18. Product/Market Opportunity Matrix (1)
Market
Product
New
Present
Present New
Market
Penetration
Strategy
Market
Development
Strategy
Product
Development
Strategy
Diversification
Strategy

19. Product/Market Opportunity Matrix (2)
Market
Product
New
Present
Present New
Expand sales of present
products in current
market by pricing,
promotion, and
distribution strategies
Seek greater sales of
present products from
new markets or new
uses
Develop new or
modified products
to appeal to
present market
Develop new
products aimed
at new markets

20. Companywide Strategic Planning:
Defining Marketing’s Role
• Product/market expansion grid strategies
• Market penetration
• Market development
• Product development
• Diversification
2-17
Developing Strategies for Growth and Downsizing

21. Market penetration is a growth strategy increasing
sales to current market segments without changing
the product
Market development is a growth strategy that
identifies and develops new market segments for
current products
2-18

22. Product development is a growth strategy that offers
new or modified products to existing market
segments
Diversification is a growth strategy through starting up
or acquiring businesses outside the company’s
current products and markets
2-19

23. Copyright Atomic Dog Publishing, 2001
General Electric Business Screen
Industry Attractiveness
CompanyBusinessStrengths
Low
Medium
High
LowMediumHigh
Harvest/
Divest
Strategy
Selectivity/
Earnings
Strategy
Invest/
Grow
Strategy

24. • Business Unit Strength
The horizontal axis of the GE matrix is the strength of the
business unit. Some factors that can be used to determine
business unit strength include:
• Market share
• Growth in market share
• Brand equity
• Distribution channel access
• Production capacity
• Profit margins relative to competitors
• The business unit strength index can be calculated by
multiplying the estimated value of each factor by the factor's
weighting, as done for industry attractiveness.

25. • Industry Attractiveness
The vertical axis of the GE matrix is industry attractiveness,
which is determined by factors such as the following:
• Market growth rate
• Market size
• Demand variability
• Industry profitability
• Industry rivalry
• Global opportunities
• Macro environmental factors (PEST)

26. • Strategic Implications
Resource allocation recommendations can be made to grow,
hold, or harvest a strategic business unit based on its position
on the matrix as follows:
• Grow strong business units in attractive industries, average
business units in attractive industries, and strong business
units in average industries.
• Hold average businesses in average industries, strong
businesses in weak industries, and weak business in attractive
industries.
• Harvest weak business units in unattractive industries,
average business units in unattractive industries, and weak
business units in average industries.

27. Cost
Leadership
Strategy
Differentiation
Strategy
Cost
Focus
Strategy
Differentiation
Focus
Strategy
The Porter Generic Strategy Model
Competitive Advantage
Competitive
Scope
Broad Target
Narrow Target
Lower Cost Differentiation

28. • Cost Leadership
In cost leadership, a firm sets out to become the low cost
producer in its industry. The sources of cost advantage are
varied and depend on the structure of the industry. They may
include the pursuit of economies of scale, proprietary
technology, preferential access to raw materials and other
factors. A low cost producer must find and exploit all sources of
cost advantage. if a firm can achieve and sustain overall cost
leadership, then it will be an above average performer in its
industry, provided it can command prices at or near the industry
average.
• 2. Differentiation
In a differentiation strategy a firm seeks to be unique in its
industry along some dimensions that are widely valued by
buyers. It selects one or more attributes that many buyers in an
industry perceive as important, and uniquely positions itself to
meet those needs. It is rewarded for its uniqueness with a

29. 3. Focus
• The generic strategy of focus rests on the choice of a narrow
competitive scope within an industry. The focuser selects a
segment or group of segments in the industry and tailors its
strategy to serving them to the exclusion of others.
The focus strategy has two variants.
(a) In cost focus a firm seeks a cost advantage in its target segment
(b) differentiation focus a firm seeks differentiation in its target
segment. Both variants of the focus strategy rest on differences
between a focuser's target segment and other segments in the
industry. The target segments must either have buyers with
unusual needs or else the production and delivery system that
best serves the target segment must differ from that of other
industry segments. Cost focus exploits differences in cost
behaviour in some segments, while differentiation focus exploits
the special needs of buyers in certain segments.

30. Step Six in the
Strategic Planning Process
6.
Implementing
Tactical
Plans
A tactical plan specifies the short-run actions
(tactics) that a firm undertakes in implementing a
given marketing strategy. It has three basic elements:
• Specific Tasks
• Time Frame
• Resource Allocation

31. Step Seven in the
Strategic Planning Process
7.
Monitoring
Results
Monitoring results compares the actual
performance of a firm, SBU, or product against the
planned performance for a specified period.
Successful companies often employ the following
strategies to assure success:
• Continuous monitoring of performance
• Regular use of proper strategy adjustments
• Maintenance of a customer-oriented focus
• Stressing positive written and oral communication
among employees and channel members.