Strategic Planning and

Marketing Process
 Strategic planning
The process of developing and
maintaining a strategic fit between the
organization’s goals and capabilities
and its changing marketing
opportunities.
Planning--what are we
going do and how are we
going to do it?
Why Plan?
• Address changing environment
and consumers
• Develop shared goals within
organization
• Address competitive threat
Planning is no
fun!
 Who likes to think
about the future?
 It is just an unnatural
act!
If you fail to plan,
you plan to fail.
Planning requires that
you:
What do
you see?  Anticipate the future
 Determine actions that
are needed to achieve
objectives
The Planning
Process
 Environmental Analysis

 Mission & Objective Setting

 Marketing Strategy Development

 Action Plans
Characteristics
of a Strategic
Plan
 Broad in Scope
 Long Range: 3 - 5 + Years
 Focus on Organizational Objectives
 Initiated and Managed by Top Management
 Becomes Basis for Tactical Planning &
Operations
 Strategic Planning
 Conducted by Board,
CEO, Division VPs
 Sets Objectives

 Fundamental Strategies
 Tactical Planning
 Middle Management - Sales Mgr.,
Mkt. Research Director, Advertising
Director
 Quarterly & Semi-Annual Plans
 Departmental Policies and Procedures
 Budget Allocations
 Operational Planning
 District Sales Managers,
Staff Marketing
Supervisors
 Daily and Weekly Plans
 Departmental Rules &
Procedures
It is more important to do
what is strategically right
than what is immediately
profitable.

--Phillip Kotler
 SWOT Analysis
Strengths

Weaknesses

Opportunities

Threats
Steps in Strategic
Planning
 Business unit,
Corporate Level product,
and market
level

Defining Setting Planning,

Designing marketing,
the Company
the Business
Company Objectives and other
Portfolio
Mission and Goals functional
Strategies
Strategic Planning involves
developing an overall
company strategy for long-
run survival and growth.
This process involves:
 Defining a Mission: Statement of an organization’s
purpose; should be market oriented.
 Setting Company Objectives: Supporting goals and
objectives to guide the entire company.
 Designing a Business Portfolio: Collection of businesses
and products that make up the company.
 Planning Functional Strategies: Detailed planning for
each department designed to accomplish strategic
objectives.
Defining the Company’s
Business and Mission
A Mission Statement is a Statement of the
Organization’s Purpose.

Market
Market Oriented
Oriented
Characteristics
of a Good
Realistic
Realistic Mission
Statement:
Specific

Fit
Fit Market
Market Environment
Environment

Distinctive
DistinctiveCompetencies
Competencies

Motivating
Motivating
 Setting Company
Objectives and Goals
 M i s s i o n
S t a t e m e n t

M a r k e Mt i n a g r k e Mt i n a g r k e
O b j e c Ot i v b e j e # c Ot 1 i v b e j e # c

M a r kM e a t i r n kM g e a t i r n kM g e a t i r n kM g e a t i r
S t r a St e t gr a y St e t gr a y St e t gr a y St e t gr a
 Designing the
Business Portfolio
Business Portfolio:
The collection of business and products that make up the company
Portfolio Analysis:
A tool by which management evaluates the various business making
up the company
Strategic Business Unit (SBU):
A unit of the company that has a separate mission and objectives and
that can be planned independently from other company business
 The best portfolio is the one that best fits the company’s strengths and weaknesses to the
opportunities in the environment.

 The company must:

 Analyze its current business portfolio or Strategic Business Units (SBU’s)
 Decide which SBU’s should receive more, less, or no investment
 Develop growth strategies for adding new products or businesses to the portfolio
The Boston Consulting
Group’s Growth-Share
Matrix
 20%- Stars Question marks
Market growth rate

4
?2 ?
18%-
16%- 3 1
14%-
12%- 5 ?

?
10%-
8%- Cash cow Dogs
6%- 8
4%-
2%- 6 7
0
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x
Relative market share
 Marketing Process
Product/Market
Expansion Grid
 Current New
products products

Market- Product-
Current penetration development
markets strategy strategy

New Market- (Diversification

markets development
strategy strategy)
 Product/ Market Expansion
Grid
Market Penetration:
Making more sales to current customers without changing its products.

 How? Add new stores in current market areas, improve

advertising, adjust prices, service or store design.
Market Development:

develop new markets for its current

products.
 How? Identify new demographic or
geographic markets.
Product Development:
Offering modified or new products to current
markets.
 How? New styles, flavors, colors, or modified
products.
Diversification:

New products for new markets.

 How? Start up or buy new businesses.
 Strategic Planning,
Implementation, and
Control Process
Planning Implementation Control
Corporate Measuring
planning Organizing results
Division
planning Diagnosing
results
Business Implementing
planning
Taking
Product corrective
planning action
Marketing Strategy
Planning Process
 Customers
Needs and other
Segmenting
Dimensions

Company
Mission, Objectives,
& Resources

Competitors
Current &
Prospective
 Customers
Needs and other
Segmenting
Dimensions
S.
W
Company .
Mission, Objectives, O.
& Resources T.

Competitors
Current &
Prospective

External Market Environment

 Customers
Needs and other
Segmenting
Dimensions Targeting &
Segmentation
S.
Company W.
Mission, Objectives,
O.
& Resources
T. Positioning &
Differentiation
Competitors
Current &
Prospective

External Market Environment

Narrowing down to focused strategy with quantitative
and qualitative screening criteria

Customers
Needs and other
Segmenting
Dimensions
Targeting &
Segmentation
S.
Company W.
Mission, Objectives, O.
& Resources T. Positioning &
Differentiation
Competitors
Current &
Prospective

External Market Environment