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It is more important to do what is strategically right than what is immediately profitable. Philip Kotler.

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Presentation on theme: "It is more important to do what is strategically right than what is immediately profitable. Philip Kotler."— Presentation transcript:

1 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 Planning process

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

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

5 Market-Oriented Strategic Planning
Objectives Resources Skills Opportunities

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

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

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

9 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

10 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.

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

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

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

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

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

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

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

19 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

20 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 x 2x 1.5x 1x Relative Market Share .5x .4x .3x .2x .1x

21 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

22 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

23 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

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

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

26 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.

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

28 Market targeting The 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 analysis Marketing planning Implementation control

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

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