Market-Oriented Strategic Planning Chapter 3 Winning Markets: Market-Oriented Strategic Planning Marketing Management Tenth Edition Philip Kotler

Objectives Corporate and division strategic planing Business unit planning The marketing process Product level planning The marketing plan

Market-Oriented Strategic Planning Objectives Resources Skills Opportunities

Market-Oriented Strategic Planning Objectives Resources Profit and Growth Skills Opportunities

Corporate Headquarters Planning Define the corporate mission Establish strategic business units (SBUs) Assign resources to SBUs Plan new business, downsize older businesses

Strategic-Planning, Implementation, and Control Process Corporate planning Division Business Product Organizing Implementing Measuring results Diagnosing Taking corrective action

Good Mission Statements: Limited number of goals Stress major policies & values Define competitive scopes

The Boston Consulting Group’s Growth-Share Matrix 20%- 18%- 16%- 14%- 12%- 10%- 8%- 6%- 4%- 2%- Market Growth Rate Stars 5 4 3 ? Question marks 2 1 Cash cow 6 Dogs 8 7 10x 4x 2x 1.5x 1x Relative Market Share .5x .4x .3x .2x .1x

Market Attractiveness: Competitive- Position Portfolio Classification Strong Medium Weak BUSINESS STRENGTH 1.00 2.33 3.67 5.00 MARKET ATTRACTIVENESS 5.00 3.67 2.33 1.00 Low Medium High Clutches Hydraulic pumps Joints Flexible diaphragms Fuel pumps Aerospace fittings Relief valve Invest/grow Selectivity/earnings Harvest/divest

The Strategic-Planning Gap Sales 10 5 Time (years) Desired sales Strategic- planning gap Diversification growth Integrative growth Intensive growth Current portfolio

Three Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid penetration Existing markets products 3. Product development New products 2. Market development New markets 4. Diversification

Opportunity Matrix 1 2 3 4 Success Probability Opportunities High Low 1. Company develops a more powerful lighting system 2. Company develops a device for measuring the energy efficiency of any lighting system 3. Company develops a device for measuring illumination level 4. Company develops a software program to teach lighting fundamentals to TV studio personnel 1 2 High Attractiveness 3 4 Low

Probability of Occurrence Threat Matrix Threats Probability of Occurrence High Low 1. Competitor develops a superior lighting system 2. Major prolonged economic depression 3. Higher costs 4. Legislation to reduce number of TV studio licenses 1 2 High Seriousness 3 4 Low

The McKinsey 7-S Framework Strategy Structure Systems Skills Shared values Staff Style

The Value-Delivery Process (a) Traditional physical process sequence Make the product Sell the product Procure Design product Make Price Sell Advertise/ promote Distribute Service (b) Value creation & delivery sequence Choose the Value Provide the Value Communicate the Value Strategic marketing Tactical marketing

The Marketing Plan Executive Summary & Table of Contents Current Marketing Situation Opportunity & Issue Analysis Objectives Marketing Strategy Action Programs Projected Profit-and-loss Controls

Factors Influencing Company Marketing Strategy Competitors Marketing intermediaries Publics Suppliers Marketing information system planning organization organization and implementation Demographic/ economic environment Social/ cultural Technical/ physical Political/ legal Product Promotion Place Price Target customers

Review Corporate and division strategic planing Business unit planning The marketing process Product level planning The marketing plan