1Strategic Marketing Planning

The Road Ahead

2The Value of Planning

z Bad Managers focus on yesterdays problems

z Good Managers focus on todays problems

z Excellent Managers focus on tomorrow's problems

(Johnson et al, 1994)

3Approaches to Planning

REACTIVE PROACTIVE

ASSUMPTION Environmental Forces Uncontrollable

Environmental Forces Partially Uncontrollable

ACTIONS Adjustment Anticipation and Influence

(Bovee et al, 1995)

4Strategic Planning Definition

The process of developing and maintaining a strategic fit between the organizations goals and

capabilities and its changing marketing opportunities. It involves defining a clear

company mission, setting supporting objectives, designing a sound business portfolio, and

coordinating functional strategies

(Kotler and Armstrong, 2001)

5Steps in Strategic Planning

Defining the Company Mission

Setting Company Goals and Objectives

Designing the Business portfolio

Marketing Plans, Manufacturing Plans etc.

CORPORATE LEVEL

BUSINESS LEVEL

6Defining the Company Mission

A statement of the organizations purpose- what it wants to accomplish in the larger environment

(op. cit.)

z Market Oriented not Product Orientedz Realistic and Specificz Based on Distinctive Competenciesz Motivating

7Market- Oriented Business Definitions

Product Oriented Market Oriented

Revlon We make Cosmetics We sell hope

Disney We run Theme Parks We create fantasies

O.M. Scott We sell grass seed and fertilizer

We deliver green gardens

IBM We sell computers and software

We provide IT solutions

Amazon.com We sell CDs, books, DVDs etc.

We make Internet buying fast and easy

8Setting Company Goals and Objectives

z GoalsOverall aims

z ObjectivesQuantification (if possible) or more precise

statement of the goal

(Johnson and Scholes, 1993)

9Designing the Business Portfolio- BCG Matrix

Star ?

Cash Cow DogHighMarket

Growth RateLow

High Low

Relative Market Share

10

Designing the Business Portfolio- GE Matrix

Business Strength

Strong Average Weak

A A B

A B C

B C C

HighIndustry

Attractiveness Medium

Low

A: Invest and Grow B: Maintain Investment C: Harvest or Divest

11

Market Opportunity Identification

Existing products New products

Market Penetration

Product Development

Market Development

Diversification

Existing markets

New markets

Product-Market Expansion Grid

12

The Marketing Process

1. Analyzing Market Opportunities

2. Selecting Target Markets

3. Developing the Marketing Mix

4. Managing the Marketing Effort

13

Basic Concepts

Market Segmentation

Market Targeting

Market Positioning

14

Market Segmentation

Dividing a market into distinct groups of buyers on the basis of

needs, characteristics, or behavior who might require separate products

or marketing mixes

(Kotler and Armstrong, 2001)

15

Market Targeting

The process of evaluating each market segments attractiveness and selecting

one or more segments to enter

(op. cit.)

16

Market Positioning

Arranging for a product to occupy a clear, distinctive, and desirable

place relative to competing products in the minds of target consumers

(op. cit.)

17

Marketing Mix

Sellers View Point 4Ps Buyers View Point- 4Cs

z Productz Pricez Placez Promotion

z Customer Solutionz Customer Costz Conveniencez Communication

18

Developing the Marketing Mix

Target Customers

Product PriceList, Discounts, Payment Period, Credit Terms

Variety, Quality, Design, Features, Brand Name, Packaging, Services

Intended PositioningPromotion

Advertising, Personal Selling, Sales Promotion, Public Relations

PlaceChannels, Coverage, Locations, Inventory, Transportation

19

Managing the Marketing Effort

z Marketing Analysis

z Marketing Planning

z Marketing Implementation

z Marketing Control