Chapter 2 – Strategic Planning and the Marketing Process

2 TYPES OF MARKETING PLANNING 1.STRATEGIC PLANNING –long term planning –determining the primary objectives of organization 2.TACTICAL PLANNING –implementation of activities specified by strategic plans –usually applied to short term plans 3.OPERATIONAL PLANNING –Daily/weekly Planning

Planning at Different Organizational Levels See Table 2.1 (pg 41)

STEPS IN MARKETING PLANNING PROCESS 1. Defining the Mission –mission statements provide general guidelines for future mgmt actions – 2. Determining Objectives –basic objectives are derived from mission statement –should be specific about goals & time period for goals

3. & 4. Assessing Organizational Resources & Evaluating Risks & Opportunities –SWOT analysis: important strategic planning tool that compares internal organ strengths & weaknesses to external opport & threats

Figure 2.3 SWOT Analysis –Leverage –Problem –Constraints –Vulnerability STRATEGIC WINDOW

5. Formulating a Marketing Strategy –Target Market, Marketing Mix, Environment 6. Implementing

TOOLS USED IN MARKETING PLANNING 1. STRATEGIC BUSINESS UNITS –divisions w/in diverse company – –SBU's possess: 1. distinct mission 2. their own managers 3. identifiable customer segments 4. specific competitors 5. ability to be planned indep of other units in firm

2. Market Share/Market Growth Matrix (BCG Matrix) 3. Market Attractiveness/Business Strength Matrix SBU’s usually go thru a life cycle –question mark -> star -> cash cow -> dog

4. SPREADSHEET ANALYSIS –software to answer "what if" questions SALES FORECASTING –2 broad categories of forecasting