Strategic Marketing Planning (2)

8/3/2019 Strategic Marketing Planning (2)

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Strategic Marketing PlanningStrategic Marketing Planning

Prof. Rushen Chahal


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PLANNING

Analyze situation

Set goals

Select strategies

and tactics

IMPLEMENTATION

Organize

Staff

Direct

EVALUATION

Compare

performance

with goals

Feedback, so management can adapt future plans and their

implementation to the changing environment

The Management Process


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Strategic Marketing ManagementStrategic Marketing Management

y strategic management involves planning,implementation, and evaluation

y implies ongoing revision of the marketing program,based upon feedbackfeedback

y consistent with the firms missionmission statement andbased upon clear goals and objectives

yy strategiesstrategies suggest how firm will reach its goals

yy tacticstactics relate to how strategies will be

implementedyy policiespolicies guide how the firm does business

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Copyright 1998 by The McGraw-Hill Companies, Inc.

Strategic company planning

1. Define org. mission

2. Conduct situation analysis

3. Set org. objectives

4. Select appropriate strategies

Strategic marketing planning

1. Conduct situation anal.

2. Develop marketing obj.

3. Determine positioning anddifferential advantage

4. Select target markets,

measure market demand

5. Design strategicmarketing mix

Annual marketing planning

Prepare annual marketing plan

for each major product and

company division

PLANNING SEQUENCE

IMPLEMENTATION AND EVALUATION


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Strategic MarketingStrategic Marketing

PlanningPlanning

y strategic planning is based upon what ishappening in the firms environment

y matches resources with the opportunities,

changes, and characteristics of the marketplacey must be consistent with the firms mission

y objectives must be actionable and measurable

y formulation of objectives is often based upon

an analysis of strengths, weaknesses,opportunities, and threats ((SWOTSWOT))

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The Planning ProcessThe Planning Process

y involves carrying out a situational analysissituational analysis;often including a SWOT analysis

y setting realistic marketing objectivesmarketing objectives

y determining strategies for positioningpositioning and forgaining a differential advantagedifferential advantage on competitors

y selection of appropriate target markettarget marketsegmentssegments and an assessment of market demand

y identifying a strategic marketing mixmarketing mix that willappeal to the target segments

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Annual MarketingAnnual Marketing

PlanningPlanning

y short-term plan prepared for a firms major

functions

y summarizes strategies that will be used to achieve

specific objectives over the year

y points out other activities that must be

performed in implementation and evaluation

y

outlines who is responsible and what resourcesare to be made available

y represents a road map to guide marketing

activity over the coming year

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Contents of theContents of the

Annual PlanAnnual Plany executive summary

y situation analysis --

including resources

y objectives tailored to

organizational goals

y strategies relating to

segments andmarketing mix

y tactics --activities tocarry out strategies

y financial schedules --

projectionsy timetable to guide

implementation

y evaluation of

performance againstgoals

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Strategic Business UnitsStrategic Business Units

(SBU)(SBU)y To make planning more effective, a large,

diverse organization may divide itself intosmaller planning units called Strategic BusinessStrategic BusinessUnitsUnits

y The unit should:

Be a separately identifiable business

Have a distinct mission

Have separate competitors

Have a separate group of executives chargedwith profit responsibility

Have its own strategic plan3 -9


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The Boston ConsultingThe Boston Consulting

Group MatrixGroup Matrix

y Using this model, a strategic business unit (SBU) can beclassified according to two factors: its market sharerelative to competitors, and the growth rate of theindustry in which the SBU operates.

y The resulting 2 x 2 grid has 4 quadrants that representdistinct categories of SBUs or major products.

y Each category is assigned a name that reflects its marketshare, industry growth rate, cash needs, and appropriate

strategies.y A company should seek a balanced portfolio of SBUs with

a mix of stars, cash cows, and questions marks, buthopefully no dogs.

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Stars

Cash cows Dogs

Question marks

High Low

High

Low

COMPANYS MARKET SHARE

INDUSTRY

G

ROWTHR

ATE


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ProductProduct--MarketMarket

Growth MatrixGrowth Matrixy growth requires examination of both products and

markets;what needs changing?

y Should you stay and fight? Or should you forge an

alliance to meet the challenge? market penetration:market penetration: sell more of present

products/services to present markets

market development:market development: sell present products to new

markets or segments product development:product development: new products/services for

existing markets

diversificationdiversification: new products to new markets

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PRESENT PRODUCTS

PRESENT

MARKETS

NEW PRODUCTS

NEW

MARKETS

Market

penetration

Market

development

Product

development

Diversification

The product-market growth matrix depicts the optionsavailable in considering markets and products.

Product Market Growth Matrix

Strategic Marketing Planning (2)

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