Chapter 3: Strategic Marketing Plan

business planning
an ongoing process of making decisions that guides the firm both on the short term and in the long term
business plan
a plan that includes the decision that guide the entire organization
marketing plan
a document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy
strategic planning
a managerial decision process that matches an organization’s resources and capabilities to its market opportunities for long-term growth and survival (planning down by top-level corporate management)
strategic business units (SBUs)
individual units within the firm that operate like separate business, with each having its own mission, business objectives, resources, managers, and competitors
functional planning
a decision process that concentrates on developing detained plans for strategies and tactics for the short term, supporting an organization’s long-term strategic plan
operational planning
a decision process that focuses on developing detailed plans for day-to-day activities that carry out an organization’s functional plans
steps to a strategic plan
1: define the mission
2: evaluate the internal and external environment
3: set organizational or SBU objectives
4: establish the business portfolio
5: develop growth strategies
mission statement
a formal statement in an organization’s strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, product, and resources
situation analysis
an assessment of a firm’s internal and external environments
internal environment
the controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the organization
external environment
the uncontrollable elements outside an organization that may affect its performance either positively or negatively
SWOT analysis
an analysis of an organization’s strengths and weaknesses and the opportunities and threats in its external environment
business portfolio
the group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities
portfolio analysis
a management tool for evaluating a firm’s business mix and assessing the potential of an organization’s strategic business units
BCG growth-market share matrix
a portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products
stars
SBUs with products that have a dominant market share in high-growth markets
cash cows
SBUs with a dominant market share in a low-growth-potential market
question marks
SBUs with low market shares in fast-growth markets
dogs
SBUs with a small share of a slow-growth market
market penetration strategies
growth strategies designed to increase sales of existing products to current customers, nonusers, and users of competitive brands in served markets
market development strategies
growth strategies that introduce existing products to new markets
product development strategies
growth strategies that focus on selling new products in existing markets
diversification strategies
growth strategies that emphasize both new products and new markets
steps to market planning
1: perform a situation analysis
2: set marketing objectives
3: develop marketing strategies
4: implement and control marketing plan
product strategies
include decisions such as product design, packaging, branding, support services
pricing strategy
determines how much a firm charges for a product
promotional strategy
how marketers communicate a product’s value proposition to the target market
distribution strategies
outline how, when, and where the firm will make the product available to targeted customers
control
a process that entails measuring actual performance, comparing this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis
return on marketing investment (ROMI)
quantifying just how an investment in marketing has an impact on the firm’s success, financially and otherwise
action plans
individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan. aka marketing programs
operational plans
plans that focus on the day-to-day execution of the marketing plan.