Chapter Two Strategic Planning PDF

Chapter Two Strategic Planning  Topic Outline 2.1 Steps in Strategic Planning 2.1.1 BCG Growth-Share Matrix 2.1.2 Product/Market Expansion Grid  Definition of Strategic Planning Strategic planning is the process of developing and maintaining a strategic fit betwee...

Chapter Two Strategic Planning  Topic Outline 2.1 Steps in Strategic Planning 2.1.1 BCG Growth-Share Matrix 2.1.2 Product/Market Expansion Grid  Definition of Strategic Planning Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities Copyright ©2014 by Pearson Education  Steps in Strategic Planning Copyright ©2014 by Pearson Education  1. Defining The Company Mission The mission statement is the organization’s purpose, what it wants to accomplish in the larger environment Satisfying basic customer needs Product oriented Market oriented Championing all beauty fearlessly and building inclusive environments for our employees, Copyright ©2014 by Pearson Education consumers, and communities.  2. Setting Company Objectives and Goals Business Marketing objectives objectives Build Increase profitable market share customer Create local relationships partnerships Invest in Increase research promotion (R&D) Improve profits Copyright ©2014 by Pearson Education  3. Designing the Business Portfolio The business portfolio is the collection of businesses and products that make up the company Portfolio analysis is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company Copyright ©2014 by Pearson Education  1. WHAT ISSBUs? Meaning: Astrategic business unit (SBU) is relatively independent unit of a large company. In a diversified company, each business unit is an SBU. Adivision of a company may also be treated as Strategic Business Units. (Kotler et al, 2018) Purpose: Develop separate strategies and assign appropriate funding. Eg: Coca cola company diversified their product line which include non-cola soft drinks, bottle water, fruit juices, coffee and tea. Boston Consulting Group (BCG)  3. ASSIGNINGRESOURCESTO EACHSBUs (BCGMATRIX) Y High Business Growth Rate (cash usage) Star Question mark Cash cow Dog Low X High Low Relative Market Share (cash generate) Characteristics Question mark Star Cash cow Dog Market share Low High High Low Growth rate High High Low Low Competitive Weak Strong Weak Weak Relating with Introduction Growth Maturity Decline Product Life cycle Retention Determine the Getting to product- Expand reach, scale Goal Sustaining best outcome market fit and stay competitive market share. Evolving value Thinking Adapting rapidly Supporting more proposition while strategically abou new insights from users while focusing on pivoting, Focus customers and the optimizing to customer resurrecting market. accelerate growth. satisfaction and current offering, delight. or phasing out. Invest/improve or Divest Decision Consolidate/Expand Harvest divest I Mac i phone and i pad I pod Apple TV Examples product  Analyzing the Current Business Portfolio Identify key businesses (strategic business units, or SBUs) that make up the company Assess the attractiveness of its various SBUs Decide how much support each SBU deserves Copyright ©2014 by Pearson Education  Problems with Matrix Approaches Difficulty in defining SBUs and measuring market share and growth Time consuming Expensive Focus on current businesses, not future planning Copyright ©2014 by Pearson Education  Product/Market Expansion Grid A tool for identifying company growth Market penetration Market development opportunities Product Diversification development Copyright ©2014 by Pearson Education Product/Market Expansion Grid  Developing Strategies for Growth and Downsizing Market penetration growth by increasing sales to current market segments without changing the product Market development growth by identifying and developing new market segments for current products Copyright ©2014 by Pearson Education  Developing Strategies for Growth and Downsizing Product development is a growth strategy that offers new or modified products to existing market segments Diversification is a growth strategy through starting up or acquiring businesses outside the company’s current products and markets Copyright ©2014 by Pearson Education  4. Planning Marketing and other functional strategy Copyright ©2014 by Pearson Education  Marketing Strategy and the Marketing Mix Market segmentation is the division of a market into distinct groups of buyers who have different needs, characteristics, or behavior and who might require separate products or marketing mixes Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts Copyright ©2014 by Pearson Education  Marketing Strategy and the Marketing Mix Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer Whole marketing plan supports the positioning strategy Copyright ©2014 by Pearson Education  Marketing Strategy and the Marketing Mix Developing an Integrated Marketing Mix Marketing mix is the set of controllable tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market Copyright ©2014 by Pearson Education  Marketing Strategy and the Marketing Mix Developing an Integrated Marketing Mix Copyright ©2014 by Pearson Education  Managing the Marketing Effort Copyright ©2014 by Pearson Education  Managing the Marketing Effort Marketing Analysis – SWOT Analysis Copyright ©2014 by Pearson Education  Managing the Marketing Effort Market Planning—Parts of a Marketing Plan Executive Marketing Threats and summary situation opportunities Objective Marketing Action and issues strategy programs Budgets Controls Copyright ©2014 by Pearson Education  Marketing Implementation Managing the Marketing Effort Implementing Turns marketing plans into marketing actions to accomplish strategic marketing objectives Addresses who, where, when, how Copyright ©2014 by Pearson Education  Managing the Marketing Effort Marketing Control Controlling evaluating of results taking of corrective action to achieve objectives Operating control Strategic control Copyright ©2014 by Pearson Education