1. Copyright 2000 Prentice Hall2-1 Chapter 2 Strategic Planning: Making Choices in a Dynamic Environment

2. Copyright 2000 Prentice Hall2-2 Planning at Different Management Levels (Fig. 2.1)

3. Copyright 2000 Prentice Hall2-3 Strategic Planning by Top Management. Strategic Planning Matches an Organization’s Resources and Capabilities to its Market Opportunities for Long-Term Growth and Survival. Business Mission SWOT Analysis Organizational Goals & Objectives Business Portfolio Growth Strategies

4. Copyright 2000 Prentice Hall2-4 Strategic Planning: Define the Business Mission What customers should we serve? How should we develop the firm’s capabilities? What business are we in? What products & benefits can we create for our customers? A Mission Statement Describes the Organization's Overall Purpose

5. Copyright 2000 Prentice Hall2-5 Mission Statement for AT&T “We aspire to be the most admired and valuable company in the world. Our goal is to enrich our customers’ personal lives and to make their businesses more successful by bringing to market exciting and useful communications services, building shareowner value in the process.” (www.att.com/factbook/co_mission.html)

6. Copyright 2000 Prentice Hall2-6 Strategic Planning: Evaluate the Environment: SWOT Analysis SWOT Analysis Assessment of Organization’s Internal & External Environments SWOT Analysis Assessment of Organization’s Internal & External Environments External Environment Identify Opportunities & Threats to a Firm From Consumers, Competitors, the Economy, etc. Internal Environment Identify Strengths & Weaknesses in Firm’s Employees, Technologies, Facilities, Finances, etc. Internal Environment Identify Strengths & Weaknesses in Firm’s Employees, Technologies, Facilities, Finances, etc.

7. Copyright 2000 Prentice Hall2-7 Strategic Planning: Set Organizational Goals and Objectives n n Objectives (Goals) are specific accomplishments or outcomes that an organization hopes to achieve by a specific time. n n Direct outgrowth of the mission statement. n n May relate to: – – revenue/sales, profitability, ROI, or – – innovation, customer relations, etc.

8. Copyright 2000 Prentice Hall2-8 Strategic Planning: Establish the Business Portfolio (Fig. 2.4) Different Products Owned by a Larger Firm.

9. Copyright 2000 Prentice Hall2-9 Strategic Planning: Develop Growth Strategies (Fig. 2.5) Product/ Market Expansion Grid

10. Copyright 2000 Prentice Hall2-10 Tactical (Marketing) Planning by Middle Management Tactical Planning Concentrates on Developing Detailed Plans for Strategies and Tactics for the Short Term that Support an Organization’s Long- Term Strategic Plan. Evaluate Marketing Environment Set Marketing Objectives Develop Marketing Strategies

11. Copyright 2000 Prentice Hall2-11 Creating a Competitive Advantage n n A competitive advantage is the ability of a firm to outperform the competition, providing customers with a benefit the competition can’t. How? – –Step 1. Identify distinctive competency (firm’s capability superior to that of its direct competition). – –Step 2. Turn a distinctive competency into a differential benefit (one that is important to customers).

12. Copyright 2000 Prentice Hall2-12 Evaluating the Marketing Environment and Setting Objectives Evaluating the Marketing Environment Setting Marketing Objectives Sales Objectives Product-Oriented Objectives Market Objectives

13. Copyright 2000 Prentice Hall2-13 Developing Marketing Strategies Selecting a Target Market Selecting a Target Market Marketing Strategies- Activities to Achieve the Marketing Objectives Marketing Strategies- Activities to Achieve the Marketing Objectives Developing the Marketing Mix

14. Copyright 2000 Prentice Hall2-14 Developing Marketing Mix Programs Product Strategies Pricing Strategies Promotion Strategies How Marketers Communicate Product Benefits and Features to Target Market. Distribution Strategies Outlines How, When, and Where the Firm Makes the Product Available to Customers. Determines What Specific Price a Firm Charges for a Product. Decisions about Product Design, Packaging, Branding, Positioning, and Features.

15. Copyright 2000 Prentice Hall2-15 Preparing a Marketing Plan Situation Analysis Marketing Problems and Opportunities Marketing Objectives Control Plans Marketing Strategies Marketing Action Plans Implementation Plans Contingency Plans

16. Copyright 2000 Prentice Hall2-16 Implementing the Marketing Plan Organizing the Marketing Function Organizing the Marketing Function Marketing Budgets Total amount of money spent on marketing, and Allocation of money for each activity under the marketer’s control, such as for: – product development – promotional activities Marketing Budgets Total amount of money spent on marketing, and Allocation of money for each activity under the marketer’s control, such as for: – product development – promotional activities Strategies are Put Into Action on a Day-to-Day Basis Through: Strategies are Put Into Action on a Day-to-Day Basis Through: Functional Structure Geographic Structure Product Structure

17. Copyright 2000 Prentice Hall2-17 Controlling the Marketing Plan Measuring Actual Performance, Comparing it to Planned Performance, and Making Necessary Changes in Plans and Implementation. Trend Analysis Marketing Research Marketing Audit

18. Copyright 2000 Prentice Hall2-18 Chapter Summary n Explain the strategic planning process. n Tell how firms gain a competitive advantage and describe the factors that influence marketing objectives. n Describe the steps in the marketing planning process. n Explain the factors involved in the implementation and control of the marketing plan.