Strategic Planning Process (Marketing)

Strategic Planning
involves developing an overall company strategy for long-run survival and growth.
Strategic Planning Process involves:
– Defining a Mission:
– Setting Company Objectives:
– Designing a Business Portfolio:
– Planning Functional Strategies:
Defining a Mission:
– Statement of an organization’s purpose; should be market oriented.
Setting Company Objectives:
– Supporting goals and objectives to guide the entire company.
Designing a Business Portfolio:
– Collection of businesses and products that make up the company.
Planning Functional Strategies:
– Detailed planning for each department designed to accomplish strategic objectives.
Characteristics of good Mission Statements:
– Market Oriented
– Realistic
– Specific
– Fit Market Environment
– Distinctive Competencies
– Motivating
Designing the Business Portfolio
– The best portfolio is the one that best fits the company’s strengths and weaknesses to the opportunities in the environment.
Designing the Business Portfolio – the company must:
The company must:
– analyze its current business portfolio or Strategic Business Units (SBU’s)
– decide which SBU’s should receive more, less, or no investment
– develop growth strategies for adding new products or businesses to the portfolio
Developing Growth Strategies – Product/Market Expansion Grid
1. Market Penetration (Exist M & P)
2. Market Development (New M, Exist P)
3. Product Development (Exist M, New P)
4. Diversification (New M, New P)
Market Penetration
increase sales to present customers with current products. How? Cut prices, increase advertising, get products into more stores.
Market Development
develop new markets with current products. How? Identify new demographic or geographic markets.
Product Development
offering modified or new products to current customers. How? New styles, flavors, colors, or modified products.
Diversification
new products for new markets. How? Start up or buy new businesses.
Marketing’s Role in Strategic Planning
– Process of Selecting Target Consumers
– Market Segmentation
– Market Targeting
– Market Positioning

– Marketing Strategies for competitive advantage:
– Market-Leader
– Market Challenger
– Market-Follower
– Market-Nicher

Market Segmentation
Determining distinct groups of buyers (segments) with different needs.
Market Targeting
Evaluating and selecting which target segments to enter.
Market Positioning
Products distinctive and desirable place in the minds of target segments compared to competing products.
The marketing Mix – The 4 Ps
Target Customers Intended Positioning
– Product
– Price
– Promotion
– Place
Product
“goods-and-service” combination that a company offers a target market
Price
amount of money that consumers have to pay to obtain the product
Promotion
Activities that persuade target customers to buy the product
Place
Company activities that make the product available
Elements of a Marketing Plan
Executive Summary
Current Marketing Situation
Threats and Opportunities
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls
Marketing Control
Set marketing goals
Measure Performance
Evaluate Performance
Take corrective action
To prepare an effective marketing strategy, a company must study competitors as well as actual and potential customers. Marketers need to identify competitors’ strategies, objectives, strengths, and weaknesses.
True
A market leader
has the largest market share in the relevant product market. To remain dominant, the leader looks for ways to expand total market demand, attempts to protect its current market share, and perhaps tries to increase its market share.
A market challenger
attacks the market leader and other competitors in an aggressive bid for more market share. Challengers can choose from five types of general attack; challengers must also choose specific attack strategies.
A market follower
is a runner-up firm willing to maintain its market share and not rock the boat. A follower can play the role of counterfeiter, cloner, imitator, or adapter.
A market nicher
serves small market segments not being served by larger firms. The key to nichemanship is specialization. Nichers develop offerings to fully meet a certain group of customers’ needs, commanding a premium price in the process.