1. Market-Oriented Strategic Planning
Chapter 3
Winning Markets:
Market-Oriented Strategic Planning
Marketing Management
Tenth Edition
Philip Kotler

2. Objectives Corporate and division strategic planing
Business unit planning
The marketing process
Product level planning
The marketing plan

3. Market-Oriented Strategic Planning
Objectives
Resources
Skills
Opportunities

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

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

6. Strategic-Planning, Implementation, and Control Process
Corporate
planning
Division
Business
Product
Organizing
Implementing
Measuring
results
Diagnosing
Taking
corrective
action

7. Good Mission Statements:
Limited number of goals
Stress major policies & values
Define competitive scopes

8. 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 x 2x 1.5x 1x
Relative Market Share
.5x .4x .3x .2x .1x

9. 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

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

11. 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

12. 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

13. 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

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

15. 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

16. The Marketing Plan Executive Summary & Table of Contents
Current Marketing Situation
Opportunity & Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls

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

18. Review Corporate and division strategic planing Business unit planning
The marketing process
Product level planning
The marketing plan