Strategic Planning and the Strategic Marketing Process - PowerPoint by hcj


									Strategic Planning and the
Strategic Marketing Process
I. What is Strategic Planning?
• The process of developing and
  maintaining a viable fit between the
  organization’s objectives and
  resources and its changing
• It involves developing a:
 clear mission
 supporting objectives
 supporting strategies
II. Different Levels of Planning
 Corporate Level

 Business Unit Level
  Strategic Business Units (division within the
  organization that markets a set of related products to
  a clearly defined group of customers)

 Functional Level
III. Components of the Strategic Plan
 Organizational Mission
  defines the core purpose of the organization – why it

 Organizational Objectives
  statements of what the organization wishes to
  accomplish in the on-going, long-run operation of the
   Profits      sales    market share   customer satisfaction

 Organizational Strategies
  major directions the organization will take in pursuing its
   Business Portfolio Analysis          Market-Product Analysis
Slide 2-5
Business Portfolio Analysis
 A technique which uses market growth rate
  and relative market share to identify what
  combination of SBUs will best achieve
  organization objectives.
 Market growth rate – annual rate of sales
  growth of the SBU’s industry.
 Relative market share – the sales of the
  SBU divided by the sales of the largest firm
  in the industry.
     FIGURE 2-3 Boston Consulting Group portfolio analysis
     for Kodak, as it might appear in 2004

  Kodak digital                                      Kodak digital
    camera                                           photo printer

Kodak film sales: US,                                 Kodak self-
Canada, & W. Europe                                  service kiosk

                                                                 Slide 2-21
Business Portfolio Analysis (cont.)
 Cash Cows – SBU’s that have a high
  market share of a low sales growth market.
 Stars – SBU’s that have a high market
  share of a high sales growth market.
 Question marks – SBU’s that have a low
  market share of a high sales growth
 Dogs – SBU’s that have a low market share
  of a low sales growth market.
Market-Product Analysis
 Indicates that a firm can grow in a
  number of ways either by
  concentrating on current or new
  products; or on current or new
 Four strategies: market penetration,
  market development, product
  development, product diversification
FIGURE 2-4 Four market-product strategies: alternative
ways to expand sales revenues for Ben & Jerry’s

                                                         Slide 2-27
IV. Strategic Marketing Process
 Process whereby an organization
 allocates it marketing mix resources
 to reach its target markets.

  Planning Phase – Situation Analysis
 This is a complete analysis of the firm’s
  situation which assesses internal
  strengths and weaknesses and external
  threats and opportunities (SWOT)
 Internal analysis (controllable factors) –
  assess the firm itself to identify
  strengths and weaknesses
 External analysis (uncontrollable
  factors) – assess the firm’s external
  environment to identify opportunities
  and threats
FIGURE 2-6 Ben & Jerry’s: a SWOT analysis to get it
growing again

                                                      Slide 2-34
Planning Phase – Marketing
 Specific levels of performance desired
  for a product or product line to be
  achieved by a given date.
 Stated in terms of market share,
  sales, profit
 Should be measureable, attainable,
  specific, and consistent with
  organizational objectives
Planning Phase – Target Market
 One or more specific groups of
  potential consumers toward which an
  organization directs its marketing
 Market segmentation is used to
  identify target markets.
 Why focus on the needs of a
  subgroup of a market rather than the
  entire market?
Planning Phase: Product
 The process where marketers try to
  create a product image or identity in
  the minds of their target market
  relative to competitive products.
Planning Phase: Marketing Mix
 Product – good, service, or idea to satisfy
  the consumer’s needs.
 Price – what is exchanged for the product.
 Promotion – means of communication
  between the seller and buyer.
 Place – means of getting the product to the
 Marketing mix decisions are based on the
  needs of the target market and the
  positioning strategy.
FIGURE 2-7 Elements of the marketing mix that comprise a
cohesive marketing program

                                                           Slide 2-40
Implementation Phase
 Process of putting the marketing plan
  into action.
 Involves great attention to detail
 Involves measuring the results of the
  actions from the implementation
  phase and comparing them with goals
  set in the planning phase.

  sales analysis
  market share analysis
  expense to sales analysis

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