IME 2

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IME 2

• Strategic Planning Making Choices in a Wired
  World

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Chapter Objectives

• Explain the strategic planning process
• Tell how firms gain a competitive advantage and
  describe the factors that influence marketing
  objectives
• Describe the steps in the marketing planning
  process
• Explain how marketers implement and control the
  marketing plan

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Types of Planning
NET FLIX
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Strategic Planning Guiding the Business

• Strategic planning is the managerial decision
  process that matches the organizations 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

Organizations rarely plan to fail, but they often
fail to plan -famous quote, origin unknown.
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Strategic Planning at the Corporate Level

• Defining the Organizations Mission
• Establish Corporate Objectives
• Allocate Resources to the SBUs

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Defining the Organizations Mission

• A mission may begin with these questions
• What business are we in?
• What customers should we serve?
• How should we develop the firms capabilities and
  focus its efforts?

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Avoiding Marketing Myopia

• Describes firms with shortsighted visions and
  missions
• Example What business is Amtrak in?
• What business is Kodak in?

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Establishing Corporate Objectives

• Grow directly from a mission statement
• Specify outcomes that an organization seeks to
  achieve in a certain time period
• Example Altria (Philip Morris)
• To profitably grow our worldwide tobacco, food,
  and beer business
• To enhance shareholder value through a balanced
  program of dividends and share repurchases

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Planning for Growth 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

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Portfolio Management

• The range of products owned by a large firm is
  called a business portfolio
• Portfolio analysis allows a firm to assess the
  potential of its products and businesses
• BCG Growth-Market Share Matrix

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BCG Matrix
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Strategic Planning at the SBU Level

• Evaluating the Environment SWOT Analysis
• Setting Business Objectives
• Creating a Competitive Advantage
• Developing Growth Strategies

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SWOT Analysis

• Internal Environment
• Strengths
• Weaknesses
• External Environment
• Opportunities
• Threats

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Setting Business Objectives

• SBU objectives must support the overall
  objectives of the firm
• Customer Satisfaction
• Profitability
• Market Standing
• Return on Investment
• Revenue and Sales

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Creating Competitive Advantage

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

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Developing Growth Strategies
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Tactical Planning The Marketing Management
Process

• Setting Marketing Objectives
• Sales objectives
• Product-oriented objectives
• Market objectives

• Analyzing the Marketing Environment

Selecting a Target Market(s)

• Marketing Mix Programs
• Product strategies
• Pricing strategies
• Communication strategies
• Distribution strategies