1. Marketing: An Introduction Armstrong, Kotler
Chapter Two
Strategic Planning and the Marketing Process

2. Looking Ahead
Explain companywide strategic planning and its four steps.
Discuss business portfolio design and strategies.
Explain marketing’s role in strategic planning and the importance of value chains and networks.
Describe the elements of a customer-driven marketing strategy and mix.
List the marketing management functions and elements of a marketing plan.

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
We look first at the organization’s overall strategic planning, then we discuss how marketers guided by the strategic plan, work closely inside and outside the company to serve customers, finally we examine marketing strategy and planning.
Corporate level
Define the company mission.
Set company objectives and goals.
Design the business portfolio. Figure 1
Business unit, product and market levels.
Plan marketing and other functional strategies.

5. Figure 1 Steps in Strategic Planning Defining the Company mission
Setting company
Objectives & goals
Designing the
Business portfolio
Planning marketing
And other functional
strategies

6. Corporate level 1- Defining a clear company mission: “Purpose”
Mission Statement of marketing unit ; should be realistic, specific, motivated, and should fit the market environment.
Examples;
Company Product-oriented definition Market-oriented definition
Disney We run theme Parks We create fantasies- a
place where is America
still works the way it’s
supposed to.
Mercedes We build cars With a leadership position in
the industry comes a
responsibility to give back

7. Corporate level 2- Setting company objectives and goals
The company’s mission needs to be turned into detailed supporting objectives for each level of management. Mission leads to business objectives and marketing objectives.
Example; if the business over all objective is to “increase the company market share”. marketing strategic plan might increase products availability and promotion, and that may require more sales people and more budget. Figure 2

8. Figure 2
Marketing

9. Market level 4- Developing strategies for growth and downsizing;
3- 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 (SBUs).
Decide which SBUs should receive more, less or no investment.. Figure 3
4- Developing strategies for growth and downsizing;
Example; product/ market expansion grid. Figure 4

10. The objective is which question marks can be turned to Starts, and
Analyzing the current business portfolio Using; growth share matrix developed by Boston consulting Group ( BCG)
The objective is which question marks can be turned to Starts, and
Which starts can be turned into cash flows, and clear decisions about dogs
Stars
High growth market & high share
Profit potential
“May require heavy
investment to grow”
Question Marks
High growth, low market share
“Require a lot of cash to
hold market share” ?
Cash Cows
Low growth market, high share
we have to establish, successful
SBU’s
“ Less investment, but a lot
Of cash”
Dogs
Low growth market & share
Low profit potential
“ low cash flow may be
generated”

11. Potential Matrix Problems
Can be time consuming and costly.
Difficult to define SBUs and measure market share and growth.
Focus on the current business, not future planning.
Can place too much emphasis on growth.
Can lead to poorly planned diversification.

12. Market level 4- Developing strategies for growth and downsizing;
Example; product/ market expansion grid. Figure 4
Strategies for growth business
Market penetration; making more sales to current customers without changing its products. By improving services, re prices, menu selection.
Market development; opening new market for the existing products. New market target, international market.
Product development; new product for current market. Add a breakfast special, buy one get one free….
Diversification; Buy businesses of outside of its current products and markets. Starbuck coffee sells music CDs.

13. Analyze Opportunities by Tim Horton’s
Product-Market Expansion Grid identifies four potential growth areas. Figure 4
Market
Penetration
Product
Development
Diversification
Existing
Products
New
Markets

14. Marketing strategy and the marketing mix
Marketing strategy; marketing logic to by which the company hopes to achieve a profitable life-long relationship with customers.
It involves deciding which customers to serve (segmentation and targeting) and with what value proposition ( differentiation and positioning),Figure 5

15. Figure 5 Intermediaries Competitors Marketing analysis product
planning
segmentation
Target market
place
Customer
price
positioning
Marketing
control
promotion
Marketing
implementation
Suppliers
Publics

16. Factors Influencing Company Marketing
The Four P’s

17. Market segmentation; dividing the market into different groups of buyers who have different needs, and who might require separate products or marketing mix.
Target marketing; the process of evaluation each market segment’s attractiveness and selecting one ore more segments to enter.
Market positioning; placing a product to occupy a clear and desirable place relative to competitors in consumer’s minds. Blazer “ Like a rock”. Lexus ” The passionate pursuit of excellence’.
Marketing Mix; set of controllable tactical marketing tools (Product, price, place, promotion) to influence the demand for its product in the market.

18. Create Marketing Mix
Product – offers the right product, service or experience.
Price – controls perceived value and satisfaction.
Place – allows customers easy access to product and support.
Promotion – communicates the offer and the value proposition. Figure 6

19. Developing Marketing Mix
Figure 6
Product
Varity
Quality
Design
Features
Brand name
Packaging
services
Price
List price
Discounts
Allowances
Payment period
Credit terms
Target customers
Intended
Positioning
Place
Channels
Coverage
Assortments
Locations
Inventory
Transportation
Logistics
Promotion
Advertising
Personal selling
Sales promotion
Public relation

20. The Four Ps and the Four Cs
PRODUCT provides CUSTOMER SOLUTION
PRICE represents CUSTOMER COST
PLACE provides CONVENIENCE
PROMOTION is 2-way COMMUNICATION

21. Manage Marketing Effort
Build strong operational marketing plan.
Carry out the plan.
Organize marketing department.
Leverage value chain and value network.
Exercise control.
Set goals.
Measure and evaluation performance.
Take corrective action. Figure 7

22. Marketing analysis;
It’s the process of planning, implementing, and control
Analysis
Planning
Develop strategic
plans
Develop marketing
Implementation
Carry out the plan
Control
Measure results
Evaluate results
Take corrective
Action