Chapter Two Strategic Planning and the Marketing Process

1. Chapter TwoStrategic Planning and the Marketing Process With Duane Weaver

2. Outline • Strategic Planning – defined • SBU – defined • Business Portfolio • BCG – Growth Share Matrix (analytical tool) • Opportunity Analysis • Value Chain • Segmentation • Mix • Plan • Control

3. What Is Strategic Planning? Strategic Planningis the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.

4. Steps in Strategic Planning • Corporate level • Define the company mission. • Set company objectives and goals. • Design the business portfolio. • Business unit, product and market levels • Plan marketing and other functional strategies.

5. Strategic Planning:The Mission Statement Answers • What is our business? • Who is the customer? • What does the customer value? • What should our business be?

6. Strategic Business Unit (SBU) • A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses. • Can be a company division, a product line within a division or sometimes a single product or brand.

7. Business Portfolio • The business portfolio is the collection of businesses and products that make up the company. • The company must: • Analyze its current business portfolio or Strategic Business Units (SBUs). • Decide which SBUs should receive more, less or no investment. • Develop growth strategies for growth or downsizing.

8. Stars ??? Use cash to makeinto a star Businessstrength,growth rate,cash use Defend position Cows Dogs Nurture to generate cash Fix or abandon Industry attractiveness, marketshare, cash generation ***BCG Growth-Share Matrix***

9. Existing Products New Products Existing Markets Market Penetration Product Development New Markets Market Development Diversification Analyze Opportunities • Product-Market Expansion Grid identifies four potential growth areas.

10. Marketing’s Role in Strategic Planning • Provide a guiding philosophy. • Provide inputs to strategic planners. • Design strategies to research objectives. • Measure results.

11. The Value Chain/Network • Value chain. • the series of departments which carry out value-creating activities to design, produce, market, deliver and support a firm’s products. • Value delivery network. • the network made up of the company, suppliers, distributors and ultimately, customers who “partner” with each other to improve the performance of the entire system.

12. The Marketing Process • Analyze current situation. • Analyze marketing opportunities. • Select target markets. • Develop the marketing mix. • Manage the marketing effort.

13. Market Segmentation • The process of dividing a market into distinct groups of buyers with different needs, characteristics or behaviours who might require separate products or marketing programs.

14. Market Positioning • Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers. • Process begins with differentiating the company’s marketing offer so it gives consumers more value.

15. The Marketing Mix The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.

16. The Four Ps and the Four Cs • PRODUCT provides CUSTOMER SOLUTION • PRICE represents CUSTOMER COST • PLACE provides CONVENIENCE • PROMOTION is two-way COMMUNICATION

17. Executive summary. Current marketing situation. Market description. Product review. Competitive review. Review of distribution. Threat and opportunity analysis (SWOT). Objectives and issues. Marketing strategy. Action program. Budgets. Controls. A Marketing Plan

18. Marketing Dept Organization • Functional • Geographic • Product management • Market or customer management • Combination of two or more common

19. Marketing Control Process • Set goals • Measure performance • Evaluate performance • Take corrective action

20. Thanks!