Strategic Planning

Strategic planning is defined as:
“The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.”

Planning activities occur at the business unit, product, and market levels, and include:
Defining the purpose and mission
Setting objectives and goals
Designing the business portfolio
Developing detailed marketing and departmental plans

Mission statements should . . .
serve as a guide for what the organization wants to accomplish.
be “market-oriented” rather than “product-oriented”.
be neither too narrow, nor too broad.
fit with the market environment.
be motivating.

Mission statements guide the development of objectives and goals.
Objectives are developed at each level in the organization hierarchy.
Strategies are developed to accomplish these objectives.

Business portfolio:
“The collection of businesses and products that make up the company.”
Designing the business portfolio is a key element of the strategic planning process.

•Step 1: Analyze the current business portfolio
•Step 2: Shape the future business portfolio

Step 1: Analyze the current business portfolio

•Identify strategic business units (SBUs)
•Assess each SBU:
The BCG growth-share matrix classifies SBUs into one of four categories using the:
Market growth rate
SBU’s relative market share within the market.

Step 2: Shape the future business portfolio

•Determine the future role of each SBU and choose the appropriate resource allocation strategy:
Build
Hold
Harvest
Divest
•SBUs change positions over time

Strategic Planning

•Matrix approaches to formal planning share many problems:
Difficult, time-consuming, and costly to implement.
Focus only on current businesses.

•Designing the business portfolio also involves:
Developing strategies for growth by identifying, evaluating, and selecting promising new market opportunities.
Product/market expansion grid
Developing strategies for downsizing the business portfolio.

BCG Growth-Share Matrix

Product/Market Expansion Grid

Planning Marketing

•Marketing plays a key role in the strategic planning process.
•Marketers must practice CRM and Partner Relationship Management.
Partnering with other departments in the company as well as other firms in the marketing
system helps to build a superior value delivery-network.

The Marketing Process

•Analyzing marketing opportunities
•Selecting target markets
•Developing the marketing mix
•Managing the marketing effort


Analyzing marketing opportunities

•The strategic planning and business portfolio analysis processes help to identify and evaluate
marketing opportunities.
•The purpose of the marketing process is to help the firm plan how to capitalize on these
opportunities.

Selecting target markets

•The segmentation process divides the total market into market segments.
•Target marketing determines which segment(s) are pursued.
•The market positioning for the product is then determined.


Developing the marketing mix

•Competitor analysis guides competitive marketing strategy development.
•Strategy leads to tactics by way of the marketing mix:
The “Four Ps” – product, price, place, promotion (seller viewpoint)
The “Four Cs” – customer solution, cost, convenience, and communication (customer viewpoint)

Managing the marketing effort

•Marketing analysis
Provides information helpful in planning, implementation, and control
•Marketing planning
Strategies and tactics
•Marketing implementation
Turns plans into action
•Marketing control
Operating control
Strategic controlMarketing audit