Strategic Marketing Planning (2)
Transcript of Strategic Marketing Planning (2)
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Strategic Marketing PlanningStrategic Marketing Planning
Prof. Rushen Chahal
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PLANNING
Analyze situation
Set goals
Select strategies
and tactics
IMPLEMENTATION
Organize
Staff
Direct
EVALUATION
Compare
performance
with goals
Feedback, so management can adapt future plans and their
implementation to the changing environment
The Management Process
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Strategic Marketing ManagementStrategic Marketing Management
y strategic management involves planning,implementation, and evaluation
y implies ongoing revision of the marketing program,based upon feedbackfeedback
y consistent with the firms missionmission statement andbased upon clear goals and objectives
yy strategiesstrategies suggest how firm will reach its goals
yy tacticstactics relate to how strategies will be
implementedyy policiespolicies guide how the firm does business
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Copyright 1998 by The McGraw-Hill Companies, Inc.
Strategic company planning
1. Define org. mission
2. Conduct situation analysis
3. Set org. objectives
4. Select appropriate strategies
Strategic marketing planning
1. Conduct situation anal.
2. Develop marketing obj.
3. Determine positioning anddifferential advantage
4. Select target markets,
measure market demand
5. Design strategicmarketing mix
Annual marketing planning
Prepare annual marketing plan
for each major product and
company division
PLANNING SEQUENCE
IMPLEMENTATION AND EVALUATION
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Strategic MarketingStrategic Marketing
PlanningPlanning
y strategic planning is based upon what ishappening in the firms environment
y matches resources with the opportunities,
changes, and characteristics of the marketplacey must be consistent with the firms mission
y objectives must be actionable and measurable
y formulation of objectives is often based upon
an analysis of strengths, weaknesses,opportunities, and threats ((SWOTSWOT))
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The Planning ProcessThe Planning Process
y involves carrying out a situational analysissituational analysis;often including a SWOT analysis
y setting realistic marketing objectivesmarketing objectives
y determining strategies for positioningpositioning and forgaining a differential advantagedifferential advantage on competitors
y selection of appropriate target markettarget marketsegmentssegments and an assessment of market demand
y identifying a strategic marketing mixmarketing mix that willappeal to the target segments
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Annual MarketingAnnual Marketing
PlanningPlanning
y short-term plan prepared for a firms major
functions
y summarizes strategies that will be used to achieve
specific objectives over the year
y points out other activities that must be
performed in implementation and evaluation
y
outlines who is responsible and what resourcesare to be made available
y represents a road map to guide marketing
activity over the coming year
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Contents of theContents of the
Annual PlanAnnual Plany executive summary
y situation analysis --
including resources
y objectives tailored to
organizational goals
y strategies relating to
segments andmarketing mix
y tactics --activities tocarry out strategies
y financial schedules --
projectionsy timetable to guide
implementation
y evaluation of
performance againstgoals
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Strategic Business UnitsStrategic Business Units
(SBU)(SBU)y To make planning more effective, a large,
diverse organization may divide itself intosmaller planning units called Strategic BusinessStrategic BusinessUnitsUnits
y The unit should:
Be a separately identifiable business
Have a distinct mission
Have separate competitors
Have a separate group of executives chargedwith profit responsibility
Have its own strategic plan3 -9
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The Boston ConsultingThe Boston Consulting
Group MatrixGroup Matrix
y Using this model, a strategic business unit (SBU) can beclassified according to two factors: its market sharerelative to competitors, and the growth rate of theindustry in which the SBU operates.
y The resulting 2 x 2 grid has 4 quadrants that representdistinct categories of SBUs or major products.
y Each category is assigned a name that reflects its marketshare, industry growth rate, cash needs, and appropriate
strategies.y A company should seek a balanced portfolio of SBUs with
a mix of stars, cash cows, and questions marks, buthopefully no dogs.
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Stars
Cash cows Dogs
Question marks
High Low
High
Low
COMPANYS MARKET SHARE
INDUSTRY
G
ROWTHR
ATE
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ProductProduct--MarketMarket
Growth MatrixGrowth Matrixy growth requires examination of both products and
markets;what needs changing?
y Should you stay and fight? Or should you forge an
alliance to meet the challenge? market penetration:market penetration: sell more of present
products/services to present markets
market development:market development: sell present products to new
markets or segments product development:product development: new products/services for
existing markets
diversificationdiversification: new products to new markets
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PRESENT PRODUCTS
PRESENT
MARKETS
NEW PRODUCTS
NEW
MARKETS
Market
penetration
Market
development
Product
development
Diversification
The product-market growth matrix depicts the optionsavailable in considering markets and products.
Product Market Growth Matrix