Chapter 2 Strategic Planning and the Strategic Marketing Process

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Chapter 2Strategic Planning and the Strategic
Marketing Process
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I. What is Strategic Planning?

• The process of developing and maintaining a
  viable fit between the organizations objectives
  and resources and its changing environment.
• It involves developing a
• clear mission
• supporting objectives
• supporting strategies

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II. Three Organizational Levels

• Corporate Level
• Business Unit Level
• Strategic Business Units
• Functional Level

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III. Components of the Strategic Plan

• Organizational Mission defines the core purpose
  of the organization why it exists.
• Organizational Objectives statements of what
  the organization wishes to accomplish in the
  on-going, long-run operation of the firm.
• Profits sales market share customer
  satisfaction
• Organizational Strategies major directions the
  organization will take in pursuing its
  objectives.
• Business Portfolio Analysis

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WHERE AN A IN A CORRESPONDENCE COURSE IN ICE
CREAM MAKING CAN LEAD!
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Business Portfolio Analysis

• A technique which uses market growth rate and
  relative market share to identify what
  combination of SBUs will best achieve
  organizational objectives.
• Market growth rate annual sales growth rate of
  the SBUs industry.
• Relative market share the sales of the SBU
  divided by the sales of the largest firm in the
  industry.

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SETTING STRATEGIC DIRECTIONS WHERE DO WE WANT TO
GO?
LO4

• Business Portfolio Analysis (BCG)

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Business Portfolio Analysis (cont.)

• Cash Cows SBUs that have a high relative
  market share in a low sales growth market.
• Stars SBUs that have a high relative market
  share in a high sales growth market.
• Question marks SBUs that have a low relative
  market share in a high sales growth market.
• Dogs SBUs that have a low relative market
  share in a low sales growth market.

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Kodak Consumer-Related ProductsWhat SBU type in
the BCG growth-share matrix?
LO4
Kodak digital photo printer
Kodak digital camera
Kodak digital picture frame
Kodak film
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IV. Strategic Marketing Process

• Process whereby an organization allocates it
  marketing mix resources to reach its target
  markets.
• Planning
• Implementation
• Evaluation

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Planning Phase Situation Analysis

• This is a complete analysis of the firms
  situation which assesses internal strengths and
  weaknesses and external threats and opportunities
  (SWOT)
• Internal analysis (controllable factors) assess
  the firm itself to identify strengths and
  weaknesses
• External analysis (uncontrollabe factors)
  assess the firms external environment to
  identify opportunities and threats
• Identify ways to build on a strength, correct a
  weakness, exploit an opportunity, or avoid a
  threat.

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FIGURE 2-6 Ben Jerrys a SWOT analysis to get
it growing again
Slide 2-34
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Planning Phase Marketing Objectives

• Specific levels of performance desired for a
  product or product line to be achieved by a given
  date.
• Stated in terms of market share, sales, profit
• Should be measureable, attainable, specific, and
  consistent with organizational objectives

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Planning Phase Target Market

• One or more specific groups of potential
  consumers toward which an organization directs
  its marketing program.
• Why focus on the needs of a subgroup of a market
  rather than the entire market?

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Planning Phase Product Positioning

• The process where marketers try to create a
  product image or identity in the minds of their
  target market relative to competitive products.

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Planning Phase Marketing Mix Program

• Product good, service, or idea to satisfy the
  consumers needs.
• Price what is exchanged for the product.
• Promotion means of communication between the
  seller and buyer.
• Place means of getting the product to the
  consumer
• Marketing mix decisions are based on the needs of
  the target market and the positioning strategy.

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Elements of the marketing mix that comprise a
cohesive marketing program
Slide 2-40
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Implementation Phase

• Process of putting the marketing plan into
  action.
• Involves great attention to detail

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Evaluation

• Involves measuring the results of the actions
  from the implementation phase and comparing them
  with goals set in the planning phase.
• sales analysis
• marketshare analysis
• expense to sales analysis