IME 2

1
IME 2

• Strategic Planning Making Choices in a Wired
  World

2
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

3
Strategic Planning Guiding the Business

• __________________ 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

4
Strategic Planning at the Corporate Level

• Defining the ___________ Mission
• Establish Corporate Objectives
• Allocate _________ to the SBUs

5
Defining the Organizations Mission

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

6
Avoiding Marketing Myopia

• Describes firms with shortsighted visions and
  missions
• Example What business is _________in?

7
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

8
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

9
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

10
BCG Matrix

• Method focuses on potential for existing products
  to generate cash that the firm can then use to
  invest in new products
• New products are chosen for their potential to
  become future cash generators
• Two dimensions
• Market growth rate
• Relative market share

11
Strategic Planning at the SBU Level

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

12
SWOT Analysis

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

13
Setting Business Objectives

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

14
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 ________ competency into a differential
  benefit
• Differential benefits set products apart from
  competitors products by providing something
  unique that customers want

15
Developing Growth Strategies

• Product-Market Growth Matrix illustrates
  different growth strategies
• Two dimensions
• opportunities for growth in existing or new
  markets
• allocating resources into existing products or
  new products
• Four strategies result

16
Tactical Planning The Marketing Management
Process

• Analyzing the Marketing Environment
• Setting Marketing Objectives
• Developing Marketing Strategies
• Preparing the Marketing Plan

17
Developing Marketing Strategies

• Selecting a Target Market
• Developing Marketing Mix Programs
• Product Strategies
• Pricing Strategies
• Promotion Strategies
• Distribution Strategies

18
Operational Planning Executing the Marketing
Plan

• Implementing the Marketing Plan
• The Marketing Budget
• Organizing the Marketing Function
• Controlling the Marketing Plan
• Trend Analysis
• Marketing Research