Chapter Two Strategic Planning and the Marketing Process
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1 Chapter Two Strategic Planning and the Marketing Process With Duane Weaver
2 Outline Strategic Planning – defined SBU – defined Business Portfolio BCG – Growth Share Matrix (analytical tool)Opportunity AnalysisValue ChainSegmentationMixPlanControl
3 What Is 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.
4 Steps in Strategic Planning Corporate levelDefine the company mission.Set company objectives and goals.Design the business portfolio.Business unit, product and market levelsPlan marketing and other functional strategies.
5 Strategic Planning: The Mission Statement Answers What is our business?Who is the customer?What does the customer value?What should our business be?
6 Strategic Business Unit (SBU) A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses.Can be a company division, a product line within a division or sometimes a single product or brand.
7 Business PortfolioThe business portfolio is the collection of businesses and products that make up the company.The company must:Analyze its current business portfolio or Strategic Business Units (SBUs).Decide which SBUs should receive more, less or no investment.Develop growth strategies for growth or downsizing.
8 ***BCG Growth-Share Matrix*** Stars???CowsDogsFix or abandonUse cash to make into a starNurture to generate cashDefend positionIndustry attractiveness, market share, cash generationBusiness strength, growth rate, cash use
10 Marketing’s Role in Strategic Planning Provide a guiding philosophy.Provide inputs to strategic planners.Design strategies to research objectives.Measure results.
11 The Value Chain/Network the series of departments which carry out value-creating activities to design, produce, market, deliver and support a firm’s products.Value delivery network.the network made up of the company, suppliers, distributors and ultimately, customers who “partner” with each other to improve the performance of the entire system.
12 The Marketing Process Analyze current situation. Analyze marketing opportunities.Select target markets.Develop the marketing mix.Manage the marketing effort.
13 Market SegmentationThe process of dividing a market into distinct groups of buyers with different needs, characteristics or behaviours who might require separate products or marketing programs.
14 Market PositioningArranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers.Process begins with differentiating the company’s marketing offer so it gives consumers more value.
15 The Marketing MixThe set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.
16 The Four Ps and the Four Cs PRODUCT provides CUSTOMER SOLUTIONPRICE represents CUSTOMER COSTPLACE provides CONVENIENCEPROMOTION is two-way COMMUNICATION
17 A Marketing Plan Executive summary. Current marketing situation. Market description.Product review.Competitive review.Review of distribution.Threat and opportunity analysis (SWOT).Objectives and issues.Marketing strategy.Action program.Budgets.Controls.
18 Marketing Dept Organization FunctionalGeographicProduct managementMarket or customer managementCombination of two or more common
19 Marketing Control Process Set goalsMeasure performanceEvaluate performanceTake corrective action