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Companywide 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 Strategic Planning
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Company and Marketing Strategy
Partnering to Build Customer Relationships
LECTURE-3
• Companywide Strategic Planning: Defining Marketing’s Role
• Planning Marketing: Partnering to Build Customer Relationships
• Marketing Strategy and the Marketing Mix
Topic Outline
Companywide 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
Strategic Planning
Companywide Strategic Planning
Steps in Strategic Planning
Companywide Strategic Planning
• The mission statement is the organization’s purpose, what it wants to accomplish in the larger environment
• Market-oriented mission statement defines the business in terms of satisfying basic customer needs
Defining a Market-Oriented Mission
We help you organize the world’s information and make it
universally accessible and useful.
Good Mission Statements
• Focus on a limited number of goals• Stress major policies and values• Define major competitive spheres• Take a long-term view• Short, memorable, meaningful
Rubbermaid Commercial Products, Inc.
“Our vision is to be the Global Market ShareLeader in each of the markets we serve. We
will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, cost-
effective and environmentally responsible products. We will add value to these products
by providing legendary customer service through our Uncompromising Commitment
to Customer Satisfaction.”
Motorola
“The purpose of Motorola is to honorablyserve the needs of the community by providingproducts and services of superior quality at a fair price to our customers; to do this so as toearn an adequate profit which is required forthe total enterprise to grow; and by doing so, provide the opportunity for our employees and
shareholders to achieve their personal objectives.”
eBay
“We help people trade anything on earth.We will continue to enhance the onlinetrading experiences of all—collectors, dealers, small businesses, unique itemseekers, bargain hunters, opportunity
sellers, and browsers.”
Companywide Strategic Planning
Business objectives
•Build profitable customer relationships•Invest in research•Improve profits
Marketing objectives
•Increase market share•Create local partnerships•Increase promotion
Setting Company Objectives and Goals
Companywide Strategic Planning
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
Designing the Business Portfolio
Companywide Strategic Planning
Strategic business units can be• Company division• Product line within a division• Single product or brand
Analyzing the Current Business Portfolio
Companywide Strategic Planning
Assess the attractiveness of its various SBUs
Decide how much support each SBU deserves
Analyzing the Current Business Portfolio
Companywide Strategic Planning
Stars are high growth, high businesses or products, they often need heavy investment to finance their rapid growth.
Cash cows are low-growth, high share businesses or products, they need less investment to hold their market share.
BCG Matrix
Companywide Strategic Planning
Question marks are low-share business units in high growth markets, they need lot of cash to hold their share.
Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but don't promise to be large sources of cash.
BCG Matrix
Companywide Strategic Planning
• Difficulty in defining SBUs and measuring market share and growth
• Time consuming• Expensive• Focus on current businesses, not future
planning
Problems with Matrix Approaches
Companywide Strategic PlanningDeveloping Strategies for Growth and Downsizing
Product/Market Expansion Grid
Market penetratio
n
Market developm
ent
Product developm
entDiversifica
tion
a tool for identifying company growth
opportunities
Ansoff’s Product-Market Expansion Grid
Companywide Strategic Planning
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
Developing Strategies for Growth and Downsizing
Companywide Strategic Planning
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
Developing Strategies for Growth and Downsizing
Companywide Strategic Planning
Downsizing prune, harvest or divest businesses that are unprofitable or that no longer fit the strategy
Developing Strategies for Growth and Downsizing
What is the Value Chain?
The value chain is a tool for identifying ways to create more customer value because every firm is a synthesis of
primary and support activities performed to design, produce, market, deliver, and
support its product.
Value Chain Analysis
The way in which primary and support activities are combined in providing goods and services and increasing profit margins.
SupportActivities
Primary Activities
Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value
SupportActivities
Primary Activities
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Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value
SupportActivities
Primary Activities
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Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value
SupportActivities
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Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value
SupportActivities
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Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value
SupportActivities
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Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value
SupportActivities
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Procurement
Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value
SupportActivities
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Procurement
Technological Development
Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value
SupportActivities
Primary Activities
Technological Development
Procurement
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Human Resource Management
Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value
SupportActivities
Primary Activities
Technological Development
Human Resource Management
Firm Infrastructure
Procurement
Inbo
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boun
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Mar
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Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value
SupportActivities
Primary Activities
Technological Development
Human Resource Management
Firm Infrastructure
Procurement
Inbo
und
Logi
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s
Ope
ratio
ns
Out
boun
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gist
ics
Mar
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Sal
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Serv
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MARGIN
MARGIN
Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value
Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value
Bibliography Principles of Marketing by Philip Kotler & Gary Armstrong Fifteenth Edition, Published by Prentice Hall
Marketing Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc.
Principles and Practices of Marketing by Jobber, D. 4th edition, McGraw Hill International.
Principles of Advertising & IMC by Tom Duncan 2nd
Edition, Published by McGraw-Hill Irwin.
The End
"The secret of getting started is breaking your complex,
overwhelming tasks into small manageable tasks, and then
starting on the first one.“Mark Twain