7 Corporate Headquarters Planning Define the corporate missionEstablish strategic business units (SBUs)Assign resources to SBUsPlan new business, downsize older businesses
8 The McKinsey 7-S Framework StrategyStructureSystemsSkillsSharedvaluesStaffStyle
9 The Value-Delivery Process (a) Traditional physical process sequenceMake the productSell the productProcureDesignproductMakePriceSellAdvertise/promoteDistributeService(b) Value creation & delivery sequenceChoose the ValueProvide the ValueCommunicate the ValueStrategic marketingTactical marketing
10 2.Strategic planningThe 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.
11 The Marketing Plan Executive Summary & Table of Contents Current Marketing SituationOpportunity & Issue AnalysisObjectivesMarketing StrategyAction ProgramsProjected Profit-and-lossControls
12 The Strategic-Planning Gap Sales105Time (years)DesiredsalesStrategic-planninggapDiversification growthIntegrative growthIntensive growthCurrentportfolio
13 Factors Influencing Company Marketing Strategy CompetitorsMarketingintermediariesPublicsSuppliersDemographic/economicenvironmentSocial/culturalTechnical/physicalPolitical/legalMarketinginformationsystemplanningorganizationorganization andimplementationProductPromotionPlacePriceTargetcustomers
14 Steps in strategic planning (page 48) Mission----objectives and goals business portfolios-----planning,marketing and other functional strategies
15 missionThe organization’s purpose---- what it wants to accomplish in the larger environment.
16 Good Mission Statements: Limited number of goalsStress major policies & valuesDefine competitive scopes
17 The collection of business and products that make up the company. Business portfoliosThe collection of business and products that make up the company.
18 Strategic business unit (SBU) 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.
20 The Boston Consulting Group’s Growth-Share Matrix 20%-18%-16%-14%-12%-10%-8%-6%-4%-2%-Market Growth RateStars543?Question marks21Cash cow6Dogs8710x x 2x 1.5x 1xRelative Market Share.5x .4x .3x .2x .1x
21 Market Attractiveness: Competitive- Position Portfolio Classification StrongMediumWeakBUSINESS STRENGTH1.002.333.675.00MARKET ATTRACTIVENESS5.003.672.331.00LowMediumHighClutchesHydraulicpumpsJointsFlexiblediaphragmsFuelpumpsAerospacefittingsReliefvalveInvest/growSelectivity/earningsHarvest/divest
22 Opportunity Matrix 1 2 3 4 Success Probability Opportunities HighLow1. Company develops a more powerful lighting system2. Company develops a device for measuring the energy efficiency of any lighting system3. Company develops a device for measuring illumination level4. Company develops a software program to teach lighting fundamentals to TV studio personnel12HighAttractiveness34Low
23 Probability of Occurrence Threat MatrixThreatsProbability of OccurrenceHighLow1. Competitor develops a superior lighting system2. Major prolonged economic depression3. Higher costs4. Legislation to reduce number of TV studio licenses12HighSeriousness34Low
24 3.marketing process 1.analyzing marketing opportunities 2.selecting target markets3.developing the marketing mix4.Managing the marketing effort.
25 Strategic-Planning, Implementation, and Control Process CorporateplanningDivisionBusinessProductOrganizingImplementingMeasuringresultsDiagnosingTakingcorrectiveaction
26 Market SegmentationDividing a market into distinct groups of buyers on the basis of needs,characteristics, or behaviors who might require separate products or marketing mixes.
27 Market segmentA group of consumers who respond in a similar way to a given set of marketing effort.
28 Market targetingThe process of evaluating each market segment’s attractiveness and selecting one or more segment to enter.
29 Marketing positioning Arranging for a product to occupy a clear,distinctive, and desirable place relative to competing products in the minds of target consumers.
30 Marketing mix 4P’S----product,price,promotion,place 4C’s---customer solution.customer cost, convenience, communication
31 Managing the marketing effort Marketing analysisMarketing planningImplementationcontrol