Strategic Market Planning and Marketing Management

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Strategic Market Planning and Marketing Management

• Professor Charles D. Schewe

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Strategic Planning Process

• Strategic Planning is the process of developing
  and maintaining a strategic fit between the
  organizations goals and capabilities and its
  changing marketing opportunities.

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The Strategic Planning Process

• Involves Developing an Overall Company Strategy
  for Long-Run Survival and Growth
• Includes
• Defining a Mission
• Setting Company Objectives
• Designing a Business Portfolio
• Planning Functional Strategies

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Strategic Planning Process

• This process involves
• Defining the Company Mission Statement of an
  organizations purpose - what it wants to
  accomplish in the larger environment.

• Setting Company Objectives and Goals
• Supporting objectives for each level of
• management.

• Designing the 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.

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Strategic-Planning, Implementation, and Control
Process
Planning
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Market-Oriented Strategic Planning
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Market-Oriented Strategic Planning
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Marketings Role in Strategic Planning
Provides a Guiding Philosophy
Provides Inputs to Strategic Planners
Designs Strategies for Reaching Units Objectives
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The Corporate Mission
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The Corporate Mission

• Business Definition
• What Business Are We In?
• What Business Should We Be In?
• Distinctive Competencies
• Competitive Advantage

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Mission Statements
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Good Mission Statements
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Corporate Culture

• Organizations Value System

• Explicit and Implicit

• Motivation for Behavior

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Setting Strategic Objectives

• Organizational Objectives

• Marketing Objectives

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External Analysis The Environments

• Looking Outside the Strategic Window

• The Environments

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The Marketing Environment
Demographic
Company
Economic
Cultural
Company
Suppliers
Publics
Customers
Competitors
Natural
Political
Intermediaries
Technological
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Portfolio Analysis

• Strategic Business Units SBUs
• Assess Attractiveness of Each SBU

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Boston Consulting Group Analysis

• Relative Market Share
• Industry Growth

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The Boston Consulting Groups Growth-Share Matrix
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Boston Consulting Group Analysis

• Relative Market Share
• Industry Growth
• Strategies for Portfolio Management

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BCG Portfolio Strategies

• Grow
• Maintain
• Harvest
• Divest

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Boston Consulting Group Analysis

• Relative Market Share
• Industry Growth
• Strategies for Portfolio Management
• Problems with BCG Approach

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Problems With Matrix Approaches
Can be Difficult, Time-Consuming, Costly to
Implement
Difficult to Define SBUs Measure Market Share/
Growth
Focus on Current Businesses, But Not future
Planning
Can Lead to Unwise Expansion or Diversification

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General Electrics Business Screen

• Business Strength
• Industry Attractiveness

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Market Attractiveness Competitive- Position
Portfolio Classification
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General Electrics Business Screen

• Business Strength
• Industry Attractiveness
• Stoplight Strategies

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Strategy Determination

• Leverage Strengths on Opportunities

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Opportunity Matrix
Success Probability
Opportunities
High
Low

• 1. Company develops a more powerful lighting
  system
• 2. Company develops a device for measuring the
  energy efficiency of any lighting system
• 3. Company develops a device for measuring
  illumination level
• 4. Company develops a software program to teach
  lighting fundamentals to TV studio personnel

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2
High
Attractiveness
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3
Low
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Strategy Determination

• Leverage Strengths on Opportunities
• Assess Vulnerabilities and Constraints
• Avoid Weaknesses

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Threat Matrix
Threats
Probability of Occurrence
High
Low

• 1. Competitor develops a superior lighting system
• 2. Major prolonged economic depression
• 3. Higher costs
• 4. Legislation to reduce number of TV studio
  licenses

1
2
High
Seriousness
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3
Low
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The McKinsey 7-S Framework
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Factors Influencing Company
Marketing
Strategy
Target customers
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Strategic Options

• The Product/Market Expansion Grid

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Three Intensive Growth Strategies Ansoffs
Product/Market Expansion Grid
4. Diversification
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Product/ Market Expansion Grid

• Market Penetration making more sales to current
  customers without changing products. How? Cut
  prices, increase advertising, get products into
  more stores.

• Market Development identifying and developing
  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,
  sizes,
• colors, or other modified products.

• Diversification start up or buy new businesses
  outside
• of its current products and markets.

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Other Strategies

• The Product/Market Expansion Grid

• Backward Integration

• Forward Integration

• Horizontal Integration

• Synergistic Diversification

• Conglomerate Diversification

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The Value-Delivery Process
(a) Traditional physical process sequence
(b) Value creation delivery sequence
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The Marketing Plan
Executive Summary Table of Contents
Current Marketing Situation
Opportunity Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls
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Four Marketing Management Functions
Marketing Analysis of Companys Situation
Control
Implementation Carry Out the Plans
Planning Develop Strategic Plans Develop Marke
ting Plans

Measure Results
Evaluate Results
Take Corrective Action
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Strategic-Planning, Implementation, and Control
Process
Planning
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Marketing Implementation
Marketing Strategy
Organizational Structure
Decision and Reward
Human Resources
Marketing Performance
Climate and Culture
Action Programs
Implementation
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Marketing Control
Set Marketing Goals
Measure Performance
Evaluate Performance
Take Corrective Action
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Marketing Audits
Marketing Environment
Marketing Strategy
Marketing Mix
Areas of Assessment in Marketing Audits
Marketing Organization

Marketing Systems
Marketing Productivity Profitability
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Review

• Corporate and division strategic planing
• Business unit planning
• The marketing process
• Product level planning
• The marketing plan