Presentation on theme: "Strategic Planning and the Marketing Process"— Presentation transcript:
1 Strategic Planning and the Marketing Process Chapter 2Strategic Planning and the Marketing Process“If you do not know where you are going, any road will take you there!”
2 Formal PlanningMany companies operate without formal plans, yet these plans can provide many benefits such as:Encouraging management to think ahead systematically.Forcing managers to clarify objectives and policies.Better coordination of company efforts.Clearer performance standards for control.Helping the company to anticipate and respond quickly to environmental changes and sudden developments.
3 Strategic PlanningStrategic 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 (Fig. 2.1) Business unit,product,and marketlevelCorporate LevelPlanning,marketing,and otherfuctionalStrategiesSetting CompanyObjectivesand GoalsDefining theCompanyMissionDesigningthe BusinessPortfolio
5 Fit Market Environment Distinctive Competencies Defining the Company’s Business and MissionA Mission Statement is a Statement of the Organization’s Purpose.Characteristics of a Good Mission Statement:Market OrientedRealisticFit Market EnvironmentDistinctive CompetenciesMotivatingSpecific
6 Mission Statement – Dell Corporation Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of:Highest qualityLeading technologyCompetitive pricingIndividual and company accountabilityBest-in-class service and supportFlexible customization capabilitySuperior corporate citizenshipFinancial stability
7 Mission Statement – McDonald’s “To be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness and value, so that we make every customer in every restaurant smile. To achieve our mission, we are focused on three worldwide strategies:Be the best employer for our people in each community around the world.Deliver operational excellence to our customers in each of our restaurants.Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald's system through innovation and technology. “
8 Mission Statements – Cont’d "To provide economy and quality minded travelers with a premier, moderate priced lodging facility which is consistently perceived as clean, comfortable, well-maintained, and attractive, staffed by friendly, attentive and efficient people" – Courtyard by Marriott“We at Four Seasons will be recognized as a national premier resort by providing a quality experience for our guests' property owners, and ourselves, through maximum service, value, and satisfaction while maintaining an economically sound business environment.” – Four Seasons
11 Designing the Business Portfolio The 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 (SBU’s)decide which SBU’s should receive more, less, or no investmentdevelop growth strategies for adding new products or businesses to the portfolio
12 Analyzing Current SBU’s: Boston Consulting Group Approach Relative Market ShareHigh LowStarsHigh growth & shareProfit potentialMay need heavyinvestment to growQuestion MarksHigh growth, low shareBuild into Stars or phase outRequire cash to holdmarket share?Market Growth RateLow HighCash CowsLow growth, high shareEstablished, successfulSBU’sProduce cashDogsLow growth & shareLow profit potential
13 Problems With Matrix Approaches Can be Difficult, Time-Consuming, & Costly to ImplementDifficult to Define SBU’s & Measure Market Share/ GrowthProblems With Matrix ApproachesFocus on Current Businesses, But Not future PlanningCan Lead to Unwise Expansion or Diversification
14 Developing Growth Strategies in the Age of Connectedness Product/ Market Expansion GridExistingProductsNewProductsExistingMarkets1. MarketPenetration3. ProductDevelopmentNewMarkets2. MarketDevelopment4. Diversification
15 Product/ Market Expansion Grid Market Penetration: making more sales to current customers without changing its products.How? Add new stores in current market areas, improve advertising, prices, service or store design.Market Development: develop newmarkets for its current products.How? Identify new demographic or geographic markets.
16 Product/ Market Expansion Grid Product Development: offering modified or new products to current markets.How? New styles, flavors, colors, or modified products.Diversification: new products for new markets.How? Start up or buy new businesses.
17 Planning Cross-Functional Strategies Marketing’s Role in Strategic PlanningGuidingPhilosophyInputs toStrategicPlannersDesignsStrategies
18 The Marketing Process (Fig. 2.5) Demographic-EconomicEnvironmentTechnological-NaturalEnvironmentMarketingIntermediariesTargetConsumersProductPlacePricePromotionImplementationMarketingPlanningControlAnalysisSuppliersPublicsPolitical-LegalEnvironmentSocial-CulturalEnvironmentCompetitors
19 Connecting With Customers Market Segmentation: determining distinct groups of buyers (segments) with different needs, characteristics, or behavior.Market Targeting: evaluating each segment’s attractiveness and selecting one or more segments to enter.
20 Connecting With Customers Market Positioning: arranging for a product tooccupy a clear, distinctive, and desirable placerelative to competing products in the minds oftarget consumers. i.e. Chevy Blazer is “like a rock.”
21 Developing the Marketing Mix PriceAmount of moneythat consumershave to pay toObtain the productProduct“Goods-and-service”combination that acompany offers atarget marketTargetCustomersIntendedPositioningActivities thatpersuade targetcustomers to buythe productPromotionCompany activitiesthat make theproduct availablePlace
22 The 4 P’s & 4C’s of the Marketing Mix ProductPricePlacePromotion4 C’sCustomer SolutionCustomer CostConvenienceCommunication
23 Managing the Marketing Effort (Fig. 2.7) Marketing Analysis of Company’s SituationManaging the Marketing Effort (Fig. 2.7)ControlMarketingPlanningDevelop StrategicPlansDevelopMarketingImplementationCarry OutThePlansMeasureResultsEvaluateResultsTakeCorrectiveAction
24 Contents of a Marketing Plan (Table 2.2) Executive SummaryCurrent Marketing SituationThreats and Opportunity AnalysisObjectives and IssuesMarketing StrategyAction ProgramsBudgetsControls
25 Review of Concept Connections Explain company-wide strategic planning and its four steps.Discuss how to design business portfolios and growth strategies.Explain functional planning strategies and asses marketing’s role in strategic planning.Describe the marketing process and the forces that influence it.List the marketing management functions, including the elements of a marketing plan.