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Objectives

Corporate and division strategic planingCorporate and division strategic planing Business unit planningBusiness unit planning The marketing processThe marketing process Product level planningProduct level planning The marketing planThe marketing plan

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Market-Oriented Strategic Planning

Objectives

Skills

Resources

Opportunities

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Market-Oriented Strategic Planning

Objectives

Skills

Resources

Opportunities

Profitand

Growth

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Corporate Headquarters Planning

Define the corporate missionDefine the corporate mission Establish strategic business units Establish strategic business units

(SBUs)(SBUs) Assign resources to SBUsAssign resources to SBUs Plan new business, downsize older Plan new business, downsize older

businessesbusinesses

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Strategic-Planning, Implementation, and Control Process

Measuringresults

Diagnosingresults

Takingcorrective

action

ImplementationImplementationPlanningPlanning

Corporateplanning

Divisionplanning

Businessplanning

Productplanning

Organizing

Implementing

ControlControl

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Good Mission Statements:

Limited number of goals

Stress major policies & values

Define competitive scopes

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The Boston Consulting Group’s Growth-Share Matrix

20%-20%-18%-18%-16%-16%-14%-14%-12%-12%-10%-10%- 8%-8%- 6%-6%- 4%-4%- 2%-2%- 00M

arke

t Gro

wth

Rat

e

3 ?Question marks

? ??21

Cash cow

6

Dogs

87

10x 4x 2x 1.5x 1x 10x 4x 2x 1.5x 1x Relative Market Share

.5x .4x .3x .2x .1x .5x .4x .3x .2x .1x

Stars

5

4

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Market Attractiveness: Competitive- Position Portfolio Classification

MA

RK

ET A

TTR

AC

TIVE

NES

SM

AR

KET

ATT

RA

CTI

VEN

ESS

5.005.00

3.673.67

2.332.33

1.001.00

Low

Low

Med

ium

Med

ium

Hig

hH

igh

Reliefvalve

Flexiblediaphragms

Fuelpumps

Aerospacefittings

Clutches

Hydraulicpumps

Joints

StrongStrong MediumMedium WeakWeakBUSINESS STRENGTHBUSINESS STRENGTH

1.001.002.332.333.673.675.005.00

Invest/growInvest/grow Selectivity/earningsSelectivity/earnings Harvest/divestHarvest/divest

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Sale

sSa

les

10105500Time (yearsTime (years)

The Strategic-Planning Gap

Desiredsales

Integrative growth

Intensive growth

Currentportfolio

Strategic-Strategic-planningplanning

gapgap

DiversificationDiversification growthgrowth

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Three Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid

4. Diversification2. Marketdevelopment

Newmarkets

1. Marketpenetration

Existingmarkets

Existingproducts

3. Productdevelopment

Newproducts

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1

4

2

3

HighHigh

LowLow

HighHigh LowLow

Attr

activ

enes

sA

ttrac

tiven

ess

Success ProbabilitySuccess Probability OpportunitiesOpportunities

Opportunity Matrix

1.1. Company develops a more Company develops a more powerful lighting systempowerful lighting system

2.2. Company develops a Company develops a device for measuring the device for measuring the energy efficiency of any energy efficiency of any lighting systemlighting system

3.3. Company develops a Company develops a device for measuring device for measuring illumination levelillumination level

4.4. Company develops a Company develops a software program to teach software program to teach lighting fundamentals to TV lighting fundamentals to TV studio personnelstudio personnel

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Threat Matrix

1.1. Competitor develops a Competitor develops a superior lighting systemsuperior lighting system

2.2. Major prolonged Major prolonged economic depressioneconomic depression

3.3. Higher costsHigher costs4.4. Legislation to reduce Legislation to reduce

number of TV studio number of TV studio licenseslicenses

1

4

2

3

HighHigh

LowLow

HighHigh LowLow

Serio

usne

ssSe

rious

ness

Probability of OccurrenceProbability of Occurrence ThreatsThreats

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The McKinsey 7-S Framework

Skills

Sharedvalues

Staff

Style

Strategy

Structure

Systems

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Sell the product

The Value-Delivery Process

Make the productProcureDesign

product Make Price Sell Advertise/promote Distribute Service

Choose the Value Provide the Value Communicate the Value

(a) Traditional physical process sequence

(b) Value creation & delivery sequence

Strategic marketing Tactical marketing

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The Marketing Plan

Executive Summary & Table of ContentsCurrent Marketing Situation

Opportunity & Issue AnalysisObjectives

Marketing StrategyAction Programs

Projected Profit-and-lossControls

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Competitors

Marketingintermediaries

PublicsSuppliers

Factors Influencing Company Marketing Strategy

Marketi

ng

informati

on

syste

m

Marketingplanningsystem

Marketing

organization

system Marke

ting

orga

nizati

on an

d

imple

mentat

ion

Product

Promotion

Place PriceTargetcustomers

Demographic/Demographic/economiceconomic

environmentenvironment

Social/Social/culturalcultural

environmentenvironment

Technical/Technical/physicalphysical

environmentenvironment

Political/Political/legallegal

environmentenvironment

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Review

Corporate and division strategic planingCorporate and division strategic planing Business unit planningBusiness unit planning The marketing processThe marketing process Product level planningProduct level planning The marketing planThe marketing plan