Objectives

 Corporate and division strategic planing

 Business unit planning
 The marketing process
 Product level planning
 The marketing plan

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 Market-Oriented Strategic
Planning

Objectives Resources

Skills Opportunities

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 Market-Oriented Strategic
Planning

Objectives Resources

Profit
and
Growth
Skills Opportunities

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 Corporate Headquarters
Planning
 Define the corporate mission
 Establish strategic business units
(SBUs)
 Assign resources to SBUs
 Plan new business, downsize older
businesses

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 Strategic-Planning, Implementation,
and Control Process

Planning Implementation Control

Corporate Measuring
planning Organizing results
Division
planning Diagnosing
results
Business Implementing
planning
Taking
Product corrective
planning action

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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
Market Growth Rate

20%- Stars Question marks

?2
18%- 4
16%-
14%-
3 ? 1
12%- 5
10%-
8%- Cash cow Dogs
6%- 8
4%-
2%- 6 7
0
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x
©2000 Prentice Hall Relative Market Share
 Market Attractiveness: Competitive-
Position Portfolio Classification
BUSINESS STRENGTH
Strong Medium Weak
MARKET ATTRACTIVENESS

5.00 3.67 2.33 1.00

5.00 Joints
Low Medium High

Hydraulic Aerospace
pumps fittings
3.67
Clutches
Fuel
pumps
Flexible
2.33 diaphragms
Relief
valve
1.00
Invest/grow Selectivity/earnings Harvest/divest
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 The Strategic-Planning Gap

Desired
sales
Diversification growth
Strategic-
planning
Integrative growth gap
Sales

Intensive growth

Current
portfolio

0 5 10
©2000 Prentice Hall Time (years)
 Three Intensive Growth Strategies:
Ansoff’s Product/Market Expansion Grid
Existing New
products products

Existing 1. Market 3. Product

markets penetration development

New 2. Market
markets development 4. Diversification

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 Opportunity Matrix
Success Probability Opportunities
High Low
1. Company develops a more
powerful lighting system
Attractiveness

2. Company develops a
High 1 2 device for measuring the
energy efficiency of any
lighting system
3. Company develops a
device for measuring
illumination level
Low 3 4 4. Company develops a
software program to teach
lighting fundamentals to TV
studio personnel
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 Threat Matrix
Probability of Occurrence Threats
High Low 1. Competitor develops a
superior lighting system
Seriousness

2. Major prolonged
High 1 2 economic depression
3. Higher costs
4. Legislation to reduce
number of TV studio
licenses
Low 3 4
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 The McKinsey 7-S Framework
Structure

Strategy Systems

Shared
values

Skills Style

Staff
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 The Value-Delivery Process
(a) Traditional physical process sequence
Make the product Sell the product
Design Procure Make Price Sell Advertise/
product promote Distribute Service

(b) Value creation & delivery sequence

Choose the Value Provide the Value Communicate the Value

Strategic marketing Tactical marketing

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 The Marketing Plan
Executive Summary & Table of Contents
Current Marketing Situation
Opportunity & Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls
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 Factors Influencing Company
Marketing Marketing Strategy
intermediaries
Demographic/ Technical/
economic physical
environment environment
Product

Suppliers Place Target Price Publics

customers

Promotion
Political/ Social/
legal cultural
environment environment
Competitors

©2000 Prentice Hall

 Review

 Corporate and division strategic planing

 Business unit planning
 The marketing process
 Product level planning
 The marketing plan

©2000 Prentice Hall