it is more important to do what is strategically right than what is immediately profitable.

Philip Kotler

2

The learning objectives:

•What is strategy?•what is strategic planning?•Marketing Planning process

1. Strategy

The logics by which the business unit hopes to achieve its marketing objectives.

Discussion

What ‘s the difference between the strategies and the tactics?

Market-Oriented Strategic Planning

Objectives

Skills

Resources

Opportunities

Market-Oriented Strategic Planning

Objectives

Skills

Resources

Opportunities

Profitand

Growth

Corporate Headquarters Planning

Define the corporate missionEstablish strategic business units (SBUs)Assign resources to SBUsPlan new business, downsize older businesses

The McKinsey 7-S Framework

SkillsSkills

Sharedvalues

Sharedvalues

StaffStaff

StyleStyle

StrategyStrategy

StructureStructure

SystemsSystems

Sell the product

The Value-Delivery Process

Make the product

ProcureDesignproduct Make Price Sell Advertise/

promote Distribute Service

Choose the Value Provide the Value Communicate the Value

(a) Traditional physical process sequence

(b) Value creation & delivery sequence

Strategic marketing Tactical marketing

2.Strategic planning

The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. It involves defining a clear company mission, setting supporting objectives,designing a sound business portfolios and coordinating functional strategies.

The Marketing Plan

Executive Summary & Table of Contents

Current Marketing Situation

Opportunity & Issue Analysis

Objectives

Marketing Strategy

Action Programs

Projected Profit-and-loss

Controls

Sal

esS

ales

10105500Time (yearsTime (years)

The Strategic-Planning Gap

Desiredsales

Desiredsales

Integrative growth

Intensive growth

CurrentportfolioCurrentportfolio

Strategic-Strategic-planningplanning

gapgap

DiversificationDiversification growthgrowth

Competitors

Marketingintermediaries

PublicsSuppliers

Factors Influencing Company Marketing Strategy

Mar

ketin

g

info

rmat

ion

syst

em

Marketing

planningsystem

Marketing

organization

system Mar

ketin

g

orga

niza

tion

and

impl

emen

tatio

n

Product

Promotion

Place PriceTargetcustomers

Demographic/Demographic/economiceconomic

environmentenvironment

Social/Social/culturalcultural

environmentenvironment

Technical/Technical/physicalphysical

environmentenvironment

Political/Political/legallegal

environmentenvironment

Steps in strategic planning(page 48)

Mission----objectives and goals business portfolios-----planning,marketing and other functional strategies

mission

The organization’s purpose---- what it wants to accomplish in the larger environment.

Good Mission Statements:

Limited number of goals

Stress major policies & values

Define competitive scopes

Business portfolios

The collection of business and products that make up the company.

Strategic business unit (SBU)

a unit of company that has a separate mission and objectives and that can be planned independently from other company businesses,it can be a company division, a product line with a division, or sometimes a single product or brand.

Three Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid

4. Diversification2. Marketdevelopment

Newmarkets

1. Marketpenetration

Existingmarkets

Existingproducts

3. Productdevelopment

Newproducts

The Boston Consulting Group’s Growth-Share Matrix

20%-20%-18%-18%-16%-16%-14%-14%-12%-12%-10%-10%- 8%-8%- 6%-6%- 4%-4%- 2%-2%- 00M

arke

t G

row

th R

ate

3 ?Question marks

? ??21

Cash cow

6

Dogs

8

710x 4x 2x 1.5x 1x 10x 4x 2x 1.5x 1x

Relative Market Share.5x .4x .3x .2x .1x .5x .4x .3x .2x .1x

Stars

5

4

Market Attractiveness: Competitive- Position Portfolio Classification

MA

RK

ET

AT

TR

AC

TIV

EN

ES

SM

AR

KE

T A

TT

RA

CT

IVE

NE

SS

5.005.00

3.673.67

2.332.33

1.001.00

Lo

wL

ow

Med

ium

Med

ium

Hig

hH

igh

Reliefvalve

Flexiblediaphragms

Fuelpumps

Aerospacefittings

Clutches

Hydraulicpumps

Joints

StrongStrong MediumMedium WeakWeakBUSINESS STRENGTHBUSINESS STRENGTH

1.001.002.332.333.673.675.005.00

Invest/growInvest/grow Selectivity/earningsSelectivity/earnings Harvest/divestHarvest/divest

1

4

2

3

HighHigh

LowLow

HighHigh LowLow

Att

ract

iven

ess

Att

ract

iven

ess

Success ProbabilitySuccess Probability OpportunitiesOpportunities

Opportunity Matrix

1. Company develops a more powerful lighting system

2. Company develops a device for measuring the energy efficiency of any lighting system

3. Company develops a device for measuring illumination level

4. Company develops a software program to teach lighting fundamentals to TV studio personnel

Threat Matrix

1. Competitor develops a superior lighting system

2. Major prolonged economic depression

3. Higher costs4. Legislation to reduce number

of TV studio licenses

1

4

2

3

HighHigh

LowLow

HighHigh LowLow

Ser

iou

snes

sS

erio

usn

ess

Probability of OccurrenceProbability of Occurrence ThreatsThreats

3.marketing process

•1.analyzing marketing opportunities•2.selecting target markets•3.developing the marketing mix•4.Managing the marketing effort.

Strategic-Planning, Implementation, and Control Process

Measuringresults

Diagnosingresults

Takingcorrective

action

ImplementationImplementationPlanningPlanning

Corporateplanning

Divisionplanning

Businessplanning

Productplanning

Organizing

Implementing

ControlControl

Market Segmentation

Dividing a market into distinct groups of buyers on the basis of needs,characteristics, or behaviors who might require separate products or marketing mixes.

Market segment

A group of consumers who respond in a similar way to a given set of marketing effort.

Market targeting

The process of evaluating each market segment’s attractiveness and selecting one or more segment to enter.

Marketing positioning

Arranging for a product to occupy a clear,distinctive, and desirable place relative to competing products in the minds of target consumers.

Marketing mix

4P’S----product,price,promotion,place4C’s---customer solution.customer cost, convenience, communication

Managing the marketing effort

Marketing analysis

Marketing planning

Implementation

control

Assignment

1.reading material:P63—P66, P702.Page 38,79