Marketing: Strategic Planning

& The Marketing Process

Strategic Planning

The process of developing and maintaining astrategic fit between the organization’s goals

andcapabilities and its changing marketingopportunities.

Steps in Strategic Planning

Defining A Market Oriented Mission StatementA statement of the organization’s purposeOrWhat it wants to accomplish in the largerenvironment.

Requirements:• Market Oriented (In terms of Customers’

Satisfaction)• Realistic• Specific• Fit to the Market Environment• Based on Distinctive Competences • Motivating

Some Mission StatementsFacebook.comFacebook's mission is to give people the power to share and

makethe world more open and connected.

Google.comTo make the world's information universally accessible and

useful.

Pepsico Our mission is to be the world's premier consumer products

company focused on convenient foods and beverages.

Company Objectives and Goals

Mission turned into detailed supporting objectives andgoals for each level of company management.

For instance:• Spend 15% of Profits into R & D to achieve X. • Sell more or reduce costs to cover costs =

Marketing Goal.

Designing The Business PortfolioGuided by the company’s mission statement and objective,

management nowmust plan its Business Portfolio – The collection of Businesses andProducts that make up the Company or the SBU (Strategic Business

Unit).

The best business portfolio is the one that best fits the company’sstrengths and weaknesses to opportunities in the environment.

The company must:• Analyse its current business portfolio and decide which

businesses should receive more or less investment, and• Develop growth strategies for adding new products and

businesses to the portfolio, whilst at the same time deciding when products and businesses should no longer be retained.

A SWOT Matrix Analysis

Portfolio Analysis – BCG Matrix

McKinsey/GE Model Factors that Affect Market Attractiveness - Market Size- Market growth - Market profitability - Pricing trends - Competitive intensity / rivalry - Overall risk of returns in the industry - Opportunity to differentiate products and services - Distribution structure (e.g. retail, direct, wholesale

Factors that Affect Competitive Strength - Strength of assets and competencies- Relative brand strength- Market share- Customer loyalty- Relative cost position (cost structure compared with competitors)- Distribution strength- Record of technological or other innovation- Access to financial and other investment resources

McKinsey/GE Model

Identifying Growth OpportunitiesThrough Product/Market Expansion Grid

Downsizing: Maruti-Suzuki 800

Niche Marketing

A niche market is the subset of the marketon which a specific product is focusing. Ex. DuPont, Intel

Planning Marketing: Partnering to Build Customer Relationships

The Concept of Value ChainThe series of departments that carry out value-creating activities to design, produce, market,

deliver and support a firm’s products or services.Ex. Marketing, IT, HR, Operations, Admin, Supplier,

Buyer, etc

Marketing Mix

The four major areas of decision making in the marketing

process that are blended to obtain the results desired by

the organization. They are often referred as 4Ps ofMarketing. These are:

• Product• Price• Place• Promotion

Sub Elements of Product are:

• Product design, features, brand name, variants,

style, appearance• Product Quality• Package: Design type, material, size,

appearance and labelling• Service: Pre-sale and after-sale, service

standards

Sub Elements of Price are:

• Pricing policies, margins, discounts and rebates &

Offers like-money bank, etc• Terms of delivery, payment terms, credit

terms and installment purchase facilities.

Sub Elements of Promotion are:

• Advertising• Sales Promotion• Public Relations• Personal Selling• Word of Mouth

Sub Elements of Place are:

• Channels of distribution: Channel design, types of

intermediaries, location of outlets, channel remuneration, dealer-principal relations, etc.

• Physical distribution: Transportation, warehousing, inventory levels, order of processing.

4 C’s of Marketing: The Customer Oriented Model

Product – ConsumerPrice – CostPromotion – CommunicationPlace – Convenience

Thank You :)