Chapter 2 Marketing strategic planning it is more important to do what is strategically right than what is immediately profitable. Philip Kotler

2 The learning objectives: What is strategy? what is strategic planning? Marketing process

1.Strategy The logics by which the business unit hopes to achieve its marketing objectives.

Discussion What ‘ s the difference between the strategies and the tactics?

2.Strategic planning The process of developing and maintaining a strategic fit between the organization ’ s goals and capabilities and its changing marketing opportunities. It involves defining a clear company mission, setting supporting objectives,designing a sound business portfolios and coordinating functional strategies.

Steps in strategic planning (page 48) Mission----objectives and goals business portfolios-----planning,marketing and other functional strategies

mission The organization ’ s purpose---- what it wants to accomplish in the larger environment.

Business portfolios The collection of business and products that make up the company.

Strategic business unit (SUB) a unit of company that has a separate mission and objectives and that can be planned independently from other company businesses,it can be a company division, a product line with a division, or sometimes a single product or brand.

Tools for business portfolios 1.Growth-share matrix (Boston Consulting Group Approach) 2.The General Electric Approach

3.marketing process 1.analyzing marketing opportunities 2.selecting target markets 3.developing the marketing mix 4.Managing the marketing effort.

Market Segmentation Dividing a market into distinct groups of buyers on the basis of needs,characteristics, or behaviors who might require separate products or marketing mixes.

Market segment A group of consumers who respond in a similar way to a given set of marketing effort.

Market targeting The process of evaluating each market segment ’ s attractiveness and selecting one or more segment to enter.

Marketing positioning Arranging for a product to occupy a clear,distinctive, and desirable place relative to competing products in the minds of target consumers.

Marketing mix 4P ’ S----product,price,promotion,place 4C ’ s---customer solution.customer cost, convenience, communication

Managing the marketing effort Marketing analysis Marketing planning Implementation control

Assignment 1.reading material:P63 — P66, P70 2.Page 38,79