STRATEGIC PLANNING PROCESS IN MARKETING

STRATEGIC PLANNING PROCESS IN MARKETING

STRATEGIC MARKET PLANNING - DEFINITION

STRATEGIC MARKET PLANNING IS THE PROCESS OF COMMUNICATING AND SHARING DATA BETWEEN DIFFERENT DEPARTMENTS OF AN ORGANISATION TO COLLECTIVELY FORMULATE FUTURE STRATEGIES AND IMPLEMENT THEM WITH MAXIMUM EFFICIENCY

CORPORATE AND DIVISIONAL STRATEGIC PLANNING

FIVE BASIC ACTIVITIES OF ORGANISATIONS

SETTING CORPORATE MISSION

FORMING STRATEGIC BUSINESS UNITS

ALLOCATING RESOURCES TO EACH STRATEGIC BUSINESS UNITS

PLANNING NEW BUSINESS ACTIVITIES

DOWNSIZING EXISTING BUSINESS

MISSION & VISION STATEMENTFUTURE

TODAY

MSSION VISION

VALUES

CORE VALUESDESIRED VALUESAPPROVED VALUESVALUE BY CHANCE

ESTABLISHMENT 0F STRATEGIC BUSINESS UNITS

RESOURCE ALLOCATION TO

STRATEGIC BUSINESS UNITS

BCG MATRIX

STARS

QUESTION MARKS

CASH COWS

DOGS

MAR

KET

GRO

WTH

RA

TE

RELATIVE MARKET SHARE

GE MATRIX

HARVESTINVEST

EARNING

INDUSTRY ATTRACTIVENESS

BUSI

NESS

STR

ENGT

H

Intensive GrowthAnsoff Matrix (Igor Ansoff)

Existing Product

New Product

Existing Markets

Market Penetration

Product Development

New Markets Market Development

Diversification

Integrative Growth Forward integration

Backward integration

Horizontal integration

Diversification Concentric Diversification

Horizontal Diversification

Conglomerate Diversification

Reasons for failure

Focus in related areas

Industry – group evaluation

Before diversifying decision makers need to answer following questions

1. What are the competitive strength of the company?

2. What strategic resources are essential to be successful in the new market?

3. Can we attain those crucial strategic resources ?

4. Will diversification divide the strategic resources that are to be essentially kept together?

5. Will the company stand out as a winner or will it become just another player in the market?

6. What can the company learn from diversification and is it preparation to learn this?

Downsizing Order Business

Gradually removing old & sick business that are not adding any value to the company

Lay Offs