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

The learning objectives: What is strategy? what is strategic planning? Marketing Planning process

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 Resources Skills Opportunities

Market-Oriented Strategic Planning Objectives Resources Profit and Growth Skills Opportunities

Corporate Headquarters Planning Define the corporate mission Establish strategic business units (SBUs) Assign resources to SBUs Plan new business, downsize older businesses

The McKinsey 7-S Framework Strategy Structure Systems Skills Shared values Staff Style

The Value-Delivery Process (a) Traditional physical process sequence Make the product Sell the product Procure Design product Make Price Sell Advertise/ promote Distribute Service (b) Value creation & delivery sequence Choose the Value Provide the Value Communicate the Value 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

The Strategic-Planning Gap Sales 10 5 Time (years) Desired sales Strategic- planning gap Diversification growth Integrative growth Intensive growth Current portfolio

Factors Influencing Company Marketing Strategy Competitors Marketing intermediaries Publics Suppliers Demographic/ economic environment Social/ cultural Technical/ physical Political/ legal Marketing information system planning organization organization and implementation Product Promotion Place Price Target customers

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

The collection of business and products that make up the company. 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 penetration Existing markets products 3. Product development New products 2. Market development New markets 4. Diversification

The Boston Consulting Group’s Growth-Share Matrix 20%- 18%- 16%- 14%- 12%- 10%- 8%- 6%- 4%- 2%- Market Growth Rate Stars 5 4 3 ? Question marks 2 1 Cash cow 6 Dogs 8 7 10x 4x 2x 1.5x 1x Relative Market Share .5x .4x .3x .2x .1x

Market Attractiveness: Competitive- Position Portfolio Classification Strong Medium Weak BUSINESS STRENGTH 1.00 2.33 3.67 5.00 MARKET ATTRACTIVENESS 5.00 3.67 2.33 1.00 Low Medium High Clutches Hydraulic pumps Joints Flexible diaphragms Fuel pumps Aerospace fittings Relief valve Invest/grow Selectivity/earnings Harvest/divest

Opportunity Matrix 1 2 3 4 Success Probability Opportunities High Low 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 1 2 High Attractiveness 3 4 Low

Probability of Occurrence Threat Matrix Threats Probability of Occurrence High Low 1. Competitor develops a superior lighting system 2. Major prolonged economic depression 3. Higher costs 4. Legislation to reduce number of TV studio licenses 1 2 High Seriousness 3 4 Low

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 Corporate planning Division Business Product Organizing Implementing Measuring results Diagnosing Taking corrective action

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,place 4C’s---customer solution.customer cost, convenience, communication

Managing the marketing effort Marketing analysis Marketing planning Implementation control

Assignment 1.reading material:P63—P66, P70 2.Page 38,79