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:
II. Different Levels of Planning
Business Unit Level
Strategic Business Units (division within the
organization that markets a set of related products to
a clearly defined group of customers)
III. Components of the Strategic Plan
defines the core purpose of the organization – why it
statements of what the organization wishes to
accomplish in the on-going, long-run operation of the
Profits sales market share customer satisfaction
major directions the organization will take in pursuing its
Business Portfolio Analysis Market-Product Analysis
Business Portfolio Analysis
A technique which uses market growth rate
and relative market share to identify what
combination of SBUs will best achieve
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
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.
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
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
FIGURE 2-6 Ben & Jerry’s: a SWOT analysis to get it
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,
Should be measureable, attainable,
specific, and consistent with
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
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
FIGURE 2-7 Elements of the marketing mix that comprise a
cohesive marketing program
Process of putting the marketing plan
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.
market share analysis
expense to sales analysis