Strategic Planning Strategic planning is the managerial decision process that matches the organization’s resources and capabilities to its market opportunities for long-term growth Firms may become multi-product companies with self-contained divisions –Strategic Business Units (SBUs) –Example: The Walt Disney Company

Management Levels

Strategic Planning at the Corporate Level Defining the Organization’s Mission Establish Corporate Objectives Allocate Resources to the SBUs

Defining the Organization’s Mission A mission may begin with these questions: –What business are we in? –What customers should we serve? –How should we develop the firm’s capabilities and focus its efforts?

The Business Portfolio For firms with different SBUs, planning also includes allocating resources among the businesses Each SBU is a separate profit center within the larger corporation Each SBU is responsible for its own costs, revenues, and profits

BCG Matrix

Evaluating the Environment: SWOT Analysis  Strengths/Weaknesses - internal issues requiring management decisions  Opportunities/Threats – external environmental events

Competitive Advantage  Turn a distinctive competency into a differential benefit Differential benefits set products apart from competitors’ products by providing something unique that customers want  Identify what a firm does really well Distinctive competency - a firm’s capability that is superior to that of its competitors

Product-Market Growth Matrix

The Marketing Management Process

Marketing Planning  Analyzing the Marketing Environment  Setting Marketing Objectives  Developing Marketing Strategies

Developing Marketing Strategies  Selecting a Target Market  Developing Marketing Mix Programs –Product Strategies –Pricing Strategies –Promotion Strategies –Distribution Strategies

Executing the Marketing Plan  Implementing the Marketing Plan  The Marketing Budget  Organizing the Marketing Function  Controlling the Marketing Plan  Trend Analysis  Marketing Research