Chapter Two Strategic Planning and the Marketing Process With Duane Weaver

Outline Strategic Planning – defined SBU – defined Business Portfolio BCG – Growth Share Matrix (analytical tool) Opportunity Analysis Value Chain Segmentation Mix Plan Control

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

Strategic Business Unit (SBU) A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses. Can be a company division, a product line within a division or sometimes a single product or brand.

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.

***BCG Growth-Share Matrix*** Stars ??? Cows Dogs Fix or abandon Use cash to make into a star Nurture to generate cash Defend position Industry attractiveness, market share, cash generation Business strength, growth rate, cash use

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 philosophy. Provide inputs to strategic planners. Design strategies to research objectives. Measure results.

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 behaviours who might require separate products or marketing programs.

Market Positioning Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers. Process begins with differentiating the company’s marketing offer so it gives consumers more value.

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

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

A Marketing Plan Executive summary. Current marketing situation. Market description. Product review. Competitive review. Review of distribution. Threat and opportunity analysis (SWOT). Objectives and issues. Marketing strategy. Action program. Budgets. Controls.

Marketing Dept Organization Functional Geographic Product management Market or customer management Combination of two or more common

Marketing Control Process Set goals Measure performance Evaluate performance Take corrective action

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