Marketing Strategy
Module 1 (e)
Strategic Planning
• Strategic planning is defined
as:
▪ “The process of developing and
maintaining a strategic fit
between the organization’s
goals and capabilities and its
changing marketing
opportunities.”
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Strategic Planning
• Planning activities occur at the
business unit, product, and
market levels, and include:
▪ Defining the purpose and mission
▪ Setting objectives and goals
▪ Designing the business portfolio
▪ Developing detailed marketing and
departmental plans
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Strategic Planning
• Mission statements should . . .
▪ serve as a guide for what the
organization wants to accomplish.
▪ be “market-oriented” rather than
“product-oriented”.
▪ be neither too narrow, nor too
broad.
▪ fit with the market environment.
▪ be motivating. 2- 3
Strategic Planning
• Mission statements guide the
development of objectives
and goals.
▪ Objectives are developed at
each level in the organization
hierarchy.
▪ Strategies are developed to
accomplish these objectives.
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Strategic Planning
• Business portfolio:
“the collection of businesses
and products that make up
the company.”
• Designing the business
portfolio
is a key element of the
strategic planning process.
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Strategic Planning
• Identify strategic
business units (SBUs)
Portfolio • Assess each SBU:
Design ▪ The BCG
• Step 1: growth-share
Analyze the matrix classifies
current business SBUs into one of
four categories
portfolio using the:
• Step 2: ❖ Market growth rate
❖ SBU’s relative
Shape the future market share within
business portfolio the market.
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Strategic Planning
BCG Growth-Share Matrix
High
Market Stars Question
Growt Marks
h
Low Cash
Market
Dogs
Cows
Growt
h
High Low
Relative Relative
Market Market
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Strategic Planning
• Determine the future
Portfolio role of each SBU and
Design choose the
• Step 1: appropriate resource
Analyze the allocation strategy:
▪ Build
current business ▪ Hold
portfolio ▪ Harvest
▪ Divest
• Step 2:
• SBUs change
Shape the future positions over time
business portfolio
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Strategic Planning
• Matrix approaches to formal
planning share many problems:
▪ Difficult, time-consuming, and
costly to implement.
▪ Focus only on current businesses.
▪ Too strongly emphasize market
share growth or growth via
diversification.
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Strategic Planning
• Designing the business portfolio
also involves:
▪ Developing strategies for growth
by identifying, evaluating, and
selecting promising new market
opportunities.
❖ Product/market expansion grid
▪ Developing strategies for
downsizing the business portfolio.
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Strategic Planning
Product/Market Expansion Grid
Existing New
Products Products
Existin Market Product
g Penetration Development
Market
s
New Market
Diversification
Market Development
s
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Planning Marketing
• Marketing plays a key role in the
strategic planning process.
• Marketers must practice CRM
and Partner Relationship
Management.
▪ Partnering with other
departments in the company as
well as other firms in the
marketing system helps to build
a superior value delivery-network. 2- 12
The Marketing Process
Key Elements • The strategic planning
and business portfolio
analysis processes
• Analyzing marketing help to identify and
opportunities evaluate marketing
• Selecting target opportunities.
markets • The purpose of the
• Developing the marketing process is
marketing mix to help the firm plan
how to capitalize on
• Managing the these opportunities.
marketing effort
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The Marketing Process
Key Elements • The segmentation
process divides the
total market into
• Analyzing marketing market segments.
opportunities • Target marketing
• Selecting target determines which
markets segment(s) are
• Developing the pursued.
marketing mix • The market positioning
for the product is
• Managing the
then determined.
marketing effort
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The Marketing Process
Key Elements • Competitor analysis guides
competitive marketing
strategy development.
• Analyzing marketing • Strategy leads to tactics by
opportunities way of the marketing mix:
• Selecting target ▪ The “Four Ps” – product,
price, place, promotion
markets (seller viewpoint)
• Developing the ▪ The “Four Cs” – customer
marketing mix solution, cost,
convenience, and
• Managing the communication (customer
marketing effort viewpoint)
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The Marketing Process
Key Elements • Marketing analysis
▪ Provides information
helpful in planning,
• Analyzing marketing implementation, and
control
opportunities
• Marketing planning
• Selecting target ▪ Strategies and tactics
markets
• Marketing implementation
• Developing the ▪ Turns plans into action
marketing mix • Marketing control
• Managing the ▪ Operating control
marketing effort ▪ Strategic control
❖ Marketing audit
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