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Module 2 Develop Market Strategies and plan Dr. Mohamed Zamil AL-Akhtaby.

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Presentation on theme: "Module 2 Develop Market Strategies and plan Dr. Mohamed Zamil AL-Akhtaby."— Presentation transcript:

1 Module 2 Develop Market Strategies and plan Dr. Mohamed Zamil AL-Akhtaby

2 Strategic Planning Strategic Planning is the Process of Developing and Maintaining a Strategic Fit Between the Organization’s Goals and Capabilities and Its Changing Marketing Opportunities.

3 Steps in Strategic Planning Defining the Company Mission Setting Company Objectives and Goals Designing the Business Portfolio Planning, marketing, and other functional Strategies Corporate Level Business unit, product, and market level

4 Vision statement Defines your long-term dream It’s inspirational statement -WHAT TO DO? Vision & Mission Statement Mission Statement Products and services provided your business – values -HOW TO DO?

5 Nokia Vision : Our vision is a world where everyone can be connected Mission : Nokia helps people to fulfill this need and we help people feel close to what matters to them. We focus on providing consumers with very recent technology that is a joy to use, and beautiful.

6 Otsuka Pharmaceutical Co. Vision Is the creation of products to serve the better health of people around the world. Mission Clinical studies are carried in research centers in the USA,Germany, UK and Japan aiming for products of universal value. With a collaboration among marketing, research sectors so that customers' real needs may be feedback for further product development.

7 Companywide Strategic Planning The mission statement is the organization’s purpose, what it wants to accomplish in the larger environment Market-oriented mission statement defines the business in terms of satisfying basic customer needs Defining a Market-Oriented mission

8 Market Oriented Realistic Fit Market Environment Distinctive Competencies Motivating Specific Characteristics of a Good Mission Statement: A Mission Statement is a Statement of the Organization’s Purpose. Defining the Company’s Business and Mission

9 Defining a Market-Oriented Mission We help you organize the world’s information and make it universally accessible and useful.

10

11 Steps in Strategic Planning Defining the Company Mission Setting Company Objectives and Goals Designing the Business Portfolio Planning, marketing, and other functional Strategies Corporate Level Business unit, product, and market level

12 Setting Company Objectives and Goals

13 Steps in Strategic Planning Defining the Company Mission Setting Company Objectives and Goals Designing the Business Portfolio Planning, marketing, and other functional Strategies Corporate Level Business unit, product, and market level

14 Company wide Strategic Planning Analyzing the Current Business Portfolio Strategic business unit (SBU) is a unit of the company that has a separate mission and objectives that can be planned separately from other company businesses

15 Corporate Level Division Level Business Unit Level Marketing Level Company wide Strategic Planning Analyzing the Current Business Portfolio

16 Company wide Strategic Planning The business portfolio is the collection of businesses and products that make up the company Portfolio analysis: is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company Designing the Business Portfolio

17 Company wide Strategic Planning Analyzing the Current Business Portfolio 1.Identify key businesses (strategic business units, or SBUs) that make up the company 2.Assess the attractiveness of its various SBUs 3.Decide how much support each SBU deserves

18 Analyzing Current SBU’s: Boston Consulting Group Approach Question Marks High growth, low share Build into Stars or phase out Require cash to hold market share Question Marks High growth, low share Build into Stars or 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 SBU’s Produce cash Cash Cows Low growth, high share Established, successful SBU’s Produce cash Dogs Low growth & share Low profit potential Dogs Low growth & share Low profit potential ? Relative Market Share High Low Market Growth Rate Low High

19 Can be Difficult, Time-Consuming, & Costly to Implement Difficult to Define SBU’s & Measure Market Share/ Growth Focus on Current Businesses, But Not future Planning Can Lead to Unwise Expansion or Diversification Problems With Matrix Approaches

20 1. Market Penetration 2. Market Development 3. Product Development 4. Diversification Existing Markets New Markets Existing Products New Products Developing Strategies for Growth and Downsizing Product/market expansion grid strategies Product/ Market Expansion Grid

21 Corporate Growth Strategies Market Penetration is a strategy for company growth by increasing sales of current products to current market segments without changing the product –Increase market share –Increase product usage Increase frequency of use Increase quantity used Communicate new applications for the product.

22 Corporate Growth Strategies Market Development is a strategy for company growth by expanding markets for existing products  Targeting new segments Nonusers Occasional users  Geographic expansion Developing more distribution channels Exporting to new countries

23 Product Development is a strategy for company growth by offering modified or new products to current market segments  Product-line extension  New products Corporate Growth Strategies

24 NESPRESSO Founded 2000 Growth rate 30% 50 Countries Quality (Coffee, Machine) Customer delight (Internet call center 7M) B2B

25 Corporate Growth Strategies Integration Backward Integration Forward integration –Pros Access to scarce resources of supply Tighter control over its value delivery network –Cons Risk inherent in committing substantial resources in one business. Investment incurred often offsets the additional profitability

26 Corporate Growth Strategies Concentric (related) Diversification occurs when a firm internally develops or acquires another business that may or may not have customers in common with its current businesses but that might contribute to internal synergy such sharing production facilities or marketing and distribution skills.

27 Corporate Growth Strategies Conglomerate (Unrelated) Diversification involves two businesses that have no commonalities. Reasons for engaging in such strategy may be: –Decrease in demand on core company businesses. –Company has more cash than it needs to expand its current business –Targeted growth is not achieved by other strategies +

28 Akhtaby1@hotmail.com Thank you


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