Lecture – 3 Syed Far Abid Hossain

Chapter Two Strategic Planning and the Marketing Process Marketing: An Introduction Second Canadian Edition Armstrong, Kotler, Cunningham, Mitchell and Buchwitz Chapter Two Strategic Planning and the Marketing Process

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

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.

Strategic Planning Defining a clear company mission. Mission Statement Setting supporting objectives. Designing a sound business portfolio. Coordinating functional strategies. Mission Statement States the organization’s purpose. Market and customer-oriented. Provides direction to internal stakeholders.

Mission Statement Answers What is our business? Who is the customer? What does the customer value? What should our business be?

Successful Mission Statements Are specific. Are realistic. Are motivating. Are customer-centric. Fit the market environment.

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.

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

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

Lecture – 4 Syed Far Abid Hossain

The Value Chain/Network 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.

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

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

Select Target Segment Segment market. Target segment. Position. Divide larger market into groups of people with similar demands and responses. Target segment. evaluate segments and select one or more segments to enter. Position. Create differentiation relative to competing products in minds of target customers.

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

Create Marketing Mix Product – offers the right product, service or experience. Price – controls perceived value and satisfaction. Place – allows customers easy access to product and support. Promotion – communicates the offer and the value proposition.

Lecture – 5 Syed Far Abid Hossain

The Four Ps and the Four Cs PRODUCT provides CUSTOMER SOLUTION PRICE represents CUSTOMER COST PLACE provides CONVENIENCE PROMOTION is 2-way COMMUNICATION

Manage Marketing Effort Build strong operational marketing plan. Carry out the plan. Organize marketing department. control value chain and value network. Exercise control. Set goals. Measure and evaluation performance. Take corrective action.

A Marketing Plan Executive summary. Current marketing situation. Summary of main goals/recommendations. Table of contents follows. Current marketing situation. Market description. Product review. Competitive review. Review of distribution.

Marketing Plan (cont’d) Threat and opportunity analysis. External trends and factors in the marketing environment. May affect the firm and its strategies. Objectives and issues. What the company wants to achieve with the plan. Sales, profits, market share, positioning.

Marketing Plan (cont’d) Marketing strategy. Marketing mix elements and expenditures. How the strategy fits the opportunity. Action program. How the strategy will be implemented. Budgets. Forecasted revenues and expenses. Controls.

Marketing Control Process Set goals. What do we want to achieve? Measure performance. What is happening? Evaluate performance. Why is it happening? Take corrective action. What should we do about it?

Questions 1a. Describe the Steps in Strategic Planning B. Assume yourself as the Marketing Manager of a renowned company and answer the company’s mission statement questions. C. What are the criteria for Successful Mission Statements? D. How can you Analyze market Opportunities? E. Describe the Marketing Control Process. F. How to write A Marketing Plan?