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Transcript of stategic plananing
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8/8/2019 stategic plananing
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Copyright 2000 Prentice Hall
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Chapter 2
Chapter 2
Strategic Planning
and the
Marketing Process
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Copyright 2000 Prentice Hall
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Strategic Planning Process
Strategic Planning Process
Strategic PlanningStrategic Planning is the process of developing and
maintaining a strategic fit between theorganizations goals and capabilities and itschanging marketing opportunities.
This process involves: Defining the Company Mission: Statement of an
organizations purpose - what it wants to accomplish inthe larger environment.
Setting Company Objectives and Goals: Supporting
objectives for each level of management. Designing the Business Portfolio:Collection of
businesses and products that make up the company.
Planning Functional Strategies: Detailed planning foreach department designed to accomplish strategic
objectives.
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Copyright 2000 Prentice Hall
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Copyright 1998 Prentice Hall
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Market
Oriented
Market
Oriented
Fit Market
Environment
Fit Market
Environment
Motivating
Motivating Realistic
Realistic
Distinctive
Competencies
Distinctive
CompetenciesSpecific
Specific
Characteristics
of Good MissionStatements
Characteristics
of Good MissionStatements
Mission Statements
Mission Statements
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Designing the Business Portfolio
Designing the Business Portfolio
The best portfolio is the one that best fits the
companys strengths and weaknesses toopportunities in the environment.
A Strategic Business Unit (SBU) is a unit of thecompany:
that has a separate mission and objectives, and
that can be planned independently from othercompany businesses.
The company must:
analyze its currentbusiness portfolio or StrategicBusiness Units (SBUs), and
decide which SBUs should receive more, less, or noinvestment, and
develop growth strategies for adding newproducts
or businesses to the portfolio.
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Analyzing Current SBUs:
Boston Consulting Group
Approach
Analyzing Current SBUs:
Boston Consulting Group
Approach
Question Marks
High growth, low share Build into Stars/ phase out Require cash to hold
market share
Question Marks
High growth, low share Build into Stars/ phase out Require cash to hold
market share
Stars
High growth & share Profit potential May need heavy
investment to grow
Cash Cows
Low growth, high share Established, successful SBUsProduce cash
Cash Cows Low growth, high share Established, successful SBUsProduce cash
Dogs Low growth & share Low profit potential
Dogs Low growth & share Low profit potential
Relative Market ShareHigh Low
Mark
etGrowt h
Rate
Low
High
?
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Can be Difficult, Time-Consuming, & Costly to Implement
Can be Difficult, Time-Consuming, & Costly to Implement
Difficult to Define SBUs & Measure Market Share/ Growth
Difficult to Define SBUs & Measure Market Share/ Growth
Focus on Current Businesses, But Not future Planning
Focus on Current Businesses, But Not future Planning
Can Lead to Unwise Expansion or Diversification
Can Lead to Unwise Expansion or Diversification
Problems With Matrix Approaches
Problems With Matrix Approaches
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2- 72- 7Developing Growth StrategiesDeveloping Growth Strategies
1. Market
Penetration
2. MarketDevelopment
3. Product
Development
4. Diversification
ExistingMarkets
New
Markets
ExistingProducts
NewProducts
Product/ Market Expansion Grid
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2- 82- 8Product/ Market Expansion GridProduct/ Market Expansion Grid
Market PenetrationMarket Penetration: making more sales to currentcustomers without changing products. How? Cutprices, increase advertising, get products into morestores.
Market DevelopmentMarket Development: identifying and developingnew markets for its current products. How?Identify new demographic or geographic markets.
Product DevelopmentProduct Development: offering modified or new
products to current markets. How? New styles,sizes, colors, or other modified products.
DiversificationDiversification: start up or buy new businesses
outside of its current products and markets.
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2- 92- 9Marketings Role in Strategic
Planning
Marketings Role in Strategic
Planning
Provides aGuiding
Philosophy
Provides aGuiding
Philosophy
Provides Inputsto
Strategic Planners
Provides Inputsto
Strategic Planners
Designs Strategiesfor Reaching
Units Objectives
Designs Strategiesfor Reaching
Units Objectives
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A Companys Value ChainA Companys Value Chain
CustomerCustomerPurchasingPurchasing
OperationsOperations
MarketingMarketing
Information SystemsInformation Systems
Each Department in a Company Carries Out
Value-Creating Activities to Design, Produce,Market, Deliver, and Support the Firms Products.
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2- 112- 11Speed Bump:
Linking
the Concepts
Speed Bump:
Linking
the Concepts
What does Strategic Planning have to do
with marketing? What are Levi Strauss & Co.s mission and
strategy?
What roles do other functional departmentsplay?
How can Levi Strausss marketers workmore effectively with these other functions
to maximize overall customer value?
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The Marketing ProcessThe Marketing Process
TargetConsumers
Product
Place Price
Promotion
Marke
ting
Im
plem
entatio
n
Marketin
g
Planning
Marke
ting
Control
M
arke
ting
An
alysis
Competitors
MarketingIntermediaries
PublicsSuppliers
Demographic-Economic
Environment
Technological-Natural
Environment
Political-Legal
Environment
Social-Cultural
Environment
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2- 132- 13Process of Selecting Target
Consumers
Process of Selecting Target
Consumers
Market SegmentationMarket Segmentation: process of dividing a market intodistinct groups buyers (segments) with different needs, etc.who might require separate products.
Market SegmentMarket Segment - consumers who respond in similar way to a givenset of marketing efforts.
Market TargetingMarket Targeting: evaluating each market segmentsattractiveness and selecting one or more target segments toenter.
Market PositioningMarket Positioning: products clear, distinctive and desirableplace relative to competing products in the minds of targetsegments.
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Marketing Mix- The Five PsMarketing Mix- The Five Ps
TargetCustomers
IntendedPositioning
TargetCustomers
IntendedPositioning
ProductGoods-and-service
combination acompany offers a
target market
ProductGoods-and-service
combination acompany offers a
target market
Amount of money
consumers haveto pay to obtain
the product
Amount of money
consumers haveto pay to obtain
the product
Activities that
persuade targetcustomers to buy
the product
Activities that
persuade target
customers to buy
the product
Company activities
that make the
product available totarget customers
Company activities
that make the
product available to
target customers
Price
Promotion Place
PEOPLE
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Four Marketing Management
Functions
Four Marketing Management
Functions
Planning
Develop
Strategic
Plans
Develop
Marketing
Plans
Planning
Develop
Strategic
Plans
Develop
Marketing
Plans
Implementation
Carry Out the
Plans
Implementation
Carry Out the
Plans
Marketing Analysis of Companys SituationMarketing Analysis of Companys Situation
Control
MeasureResults
EvaluateResults
TakeCorrective
Action
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Contents of a Marketing PlanContents of a Marketing Plan
Executive Summary
Current Marketing Situation
Threats and Opportunities
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls
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Marketing ImplementationMarketing Implementation
Marketing StrategyMarketing Strategy
Marketing PerformanceMarketing Performance
Implementation
Climate and
Culture
Action
Programs
Decision
and
Reward
Organizational
Structure
Human
Resources
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Marketing Department OrganizationMarketing Department Organization
MarketManagement
MarketManagement
Combination
Plan
Combination
Plan
ProductManagement
ProductManagement
GeographicGeographic
FunctionalFunctional
Ways toCarry OutMarketingActivities
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Organizational Structure of Mktg Deptt.
Functional Prod/Mktg/Fin./HR
Geographical P.Louis/ Rodrigues
Product Beer/Soda/Water
Organizational Structure of Mktg Deptt.
Functional Prod/Mktg/Fin./HR
Geographical P.Louis/ Rodrigues
Product Beer/Soda/Water
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Marketing ControlMarketing Control
Set Marketing GoalsSet Marketing Goals
Measure
Performance
Measure
Performance
Evaluate
Performance
Evaluate
Performance
Take Corrective
Action
Take Corrective
Action
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M k ti A dit
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2- 212- 21Marketing AuditsMarketing Audits
Marketing
Organization
MarketingOrganization
Marketing
Environment
Marketing
Environment
MarketingSystems
MarketingSystems
Marketing
Strategy
Marketing
Strategy
Areas ofAssessment
in Marketing
Audits
Areas of
Assessment
in Marketing
AuditsMarketing
Productivity &
Profitability
MarketingMix
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R t St
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2- 222- 22Rest Stop:
Reviewing
theConcepts
Rest Stop:
Reviewing
theConcepts
Explain company-wide strategic planning and itsfour steps.
Discuss how to design business portfolios anddevelop growth strategies.
Explain functional planning strategies and
marketings role in strategic planning. Describe the marketing process and the forces
that influence it.
List the marketing management functions,
including the elements of a marketing plan.