Strategic Planning Strategic planning is the managerial decision process that matches the organization’s resources and capabilities to its market opportunities for long-term growth Firms may become multi-product companies with self-contained divisions –Strategic Business Units (SBUs) –Example: The Walt Disney Company
Management Levels
Strategic Planning at the Corporate Level Defining the Organization’s Mission Establish Corporate Objectives Allocate Resources to the SBUs
Defining the Organization’s Mission A mission may begin with these questions: –What business are we in? –What customers should we serve? –How should we develop the firm’s capabilities and focus its efforts?
The Business Portfolio For firms with different SBUs, planning also includes allocating resources among the businesses Each SBU is a separate profit center within the larger corporation Each SBU is responsible for its own costs, revenues, and profits
BCG Matrix
Evaluating the Environment: SWOT Analysis Strengths/Weaknesses - internal issues requiring management decisions Opportunities/Threats – external environmental events
Competitive Advantage Turn a distinctive competency into a differential benefit Differential benefits set products apart from competitors’ products by providing something unique that customers want Identify what a firm does really well Distinctive competency - a firm’s capability that is superior to that of its competitors
Product-Market Growth Matrix
The Marketing Management Process
Marketing Planning Analyzing the Marketing Environment Setting Marketing Objectives Developing Marketing Strategies
Developing Marketing Strategies Selecting a Target Market Developing Marketing Mix Programs –Product Strategies –Pricing Strategies –Promotion Strategies –Distribution Strategies
Executing the Marketing Plan Implementing the Marketing Plan The Marketing Budget Organizing the Marketing Function Controlling the Marketing Plan Trend Analysis Marketing Research