1Strategic Marketing Planning
The Road Ahead
2The Value of Planning
z Bad Managers focus on yesterdays problems
z Good Managers focus on todays problems
z Excellent Managers focus on tomorrow's problems
(Johnson et al, 1994)
3Approaches to Planning
REACTIVE PROACTIVE
ASSUMPTION Environmental Forces Uncontrollable
Environmental Forces Partially Uncontrollable
ACTIONS Adjustment Anticipation and Influence
(Bovee et al, 1995)
4Strategic Planning Definition
The process of developing and maintaining a strategic fit between the organizations goals and
capabilities and its changing marketing opportunities. It involves defining a clear
company mission, setting supporting objectives, designing a sound business portfolio, and
coordinating functional strategies
(Kotler and Armstrong, 2001)
5Steps in Strategic Planning
Defining the Company Mission
Setting Company Goals and Objectives
Designing the Business portfolio
Marketing Plans, Manufacturing Plans etc.
CORPORATE LEVEL
BUSINESS LEVEL
6Defining the Company Mission
A statement of the organizations purpose- what it wants to accomplish in the larger environment
(op. cit.)
z Market Oriented not Product Orientedz Realistic and Specificz Based on Distinctive Competenciesz Motivating
7Market- Oriented Business Definitions
Product Oriented Market Oriented
Revlon We make Cosmetics We sell hope
Disney We run Theme Parks We create fantasies
O.M. Scott We sell grass seed and fertilizer
We deliver green gardens
IBM We sell computers and software
We provide IT solutions
Amazon.com We sell CDs, books, DVDs etc.
We make Internet buying fast and easy
8Setting Company Goals and Objectives
z GoalsOverall aims
z ObjectivesQuantification (if possible) or more precise
statement of the goal
(Johnson and Scholes, 1993)
9Designing the Business Portfolio- BCG Matrix
Star ?
Cash Cow DogHighMarket
Growth RateLow
High Low
Relative Market Share
10
Designing the Business Portfolio- GE Matrix
Business Strength
Strong Average Weak
A A B
A B C
B C C
HighIndustry
Attractiveness Medium
Low
A: Invest and Grow B: Maintain Investment C: Harvest or Divest
11
Market Opportunity Identification
Existing products New products
Market Penetration
Product Development
Market Development
Diversification
Existing markets
New markets
Product-Market Expansion Grid
12
The Marketing Process
1. Analyzing Market Opportunities
2. Selecting Target Markets
3. Developing the Marketing Mix
4. Managing the Marketing Effort
13
Basic Concepts
Market Segmentation
Market Targeting
Market Positioning
14
Market Segmentation
Dividing a market into distinct groups of buyers on the basis of
needs, characteristics, or behavior who might require separate products
or marketing mixes
(Kotler and Armstrong, 2001)
15
Market Targeting
The process of evaluating each market segments attractiveness and selecting
one or more segments to enter
(op. cit.)
16
Market Positioning
Arranging for a product to occupy a clear, distinctive, and desirable
place relative to competing products in the minds of target consumers
(op. cit.)
17
Marketing Mix
Sellers View Point 4Ps Buyers View Point- 4Cs
z Productz Pricez Placez Promotion
z Customer Solutionz Customer Costz Conveniencez Communication
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Developing the Marketing Mix
Target Customers
Product PriceList, Discounts, Payment Period, Credit Terms
Variety, Quality, Design, Features, Brand Name, Packaging, Services
Intended PositioningPromotion
Advertising, Personal Selling, Sales Promotion, Public Relations
PlaceChannels, Coverage, Locations, Inventory, Transportation
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Managing the Marketing Effort
z Marketing Analysis
z Marketing Planning
z Marketing Implementation
z Marketing Control