Principles of Marketing

Today’s Topics

Strategic Planning and Marketing Process

 Strategic planning
 The process of developing and maintaining a strategic fit
between the organization’s goals and capabilities and its
changing marketing opportunities.
 Planning--what are we going do
and how are we going to do it?
 Why Plan?

 Address changing environment and

consumers
 Develop shared goals within organization
 Address competitive threat
Planning is no fun!

 Who likes to think about the

future?
 It is just an unnatural act!
If you fail to plan,
you plan to fail.
 Planning requires that you:

What do
you see?  Anticipate the future
 Determine actions that are needed
to achieve objectives
 The Planning Process
 Environmental Analysis
 Mission & Objective Setting
 Marketing Strategy Development
 Action Plans
 Characteristics of a Strategic Plan

 Broad in Scope
 Long Range: 3 - 5 + Years
 Focus on Organizational Objectives
 Initiated and Managed by Top Management
 Becomes Basis for Tactical Planning & Operations
 Strategic Planning

 Conducted by Board, CEO,

Division VPs
 Sets Objectives
 Fundamental Strategies
 Tactical Planning

 Middle Management - Sales Mgr.,

Mkt. Research Director, Advertising
Director
 Quarterly & Semi-Annual Plans
 Departmental Policies and
Procedures
 Budget Allocations
 Operational Planning

 District Sales Managers, Staff

Marketing Supervisors
 Daily and Weekly Plans
 Departmental Rules & Procedures
 It is more important to do what is strategically right than
what is immediately profitable.

--Phillip Kotler
 SWOT Analysis

 Strengths
 Weaknesses
 Opportunities
 Threats
Steps in Strategic Planning
 Business unit,
product,
Corporate Level and market
level

Defining Setting Planning,

Designing marketing,
the Company
the Business
Company Objectives and other
Portfolio
Mission and Goals functional
Strategies
Strategic Planning involves developing an overall company strategy
for long-run survival and growth.
This process involves:
– Defining a Mission: Statement of an organization’s purpose;
should be market oriented.
– Setting Company Objectives: Supporting goals and objectives to
guide the entire company.
– Designing a Business Portfolio: Collection of businesses and
products that make up the company.
– Planning Functional Strategies: Detailed planning for each
department designed to accomplish strategic objectives.
Defining the Company’s Business and Mission
A Mission Statement is a Statement of the
Organization’s Purpose.

Market Oriented
Characteristics
of a Good
Realistic
Mission
Statement:
Specific

Fit Market Environment

Distinctive Competencies

Motivating
Setting Company Objectives and Goals
 Mission
Statement

Marketing Marketing Marketing

Objective # 1 Objective # 2 Objective # 3

Marketing Marketing Marketing Marketing Marketing

Strategy Strategy Strategy Strategy Strategy
Designing the Business Portfolio
Business Portfolio: The collection of business and products that make
up the company
Portfolio Analysis: A tool by which management evaluates the various
business making up the company
Strategic Business Unit (SBU): A unit of the company that has a
separate mission and objectives and that can be planned
independently from other company business
 The best portfolio is the one that best fits the company’s
strengths and weaknesses to the opportunities in the environment.
 The company must:
 analyze its current business portfolio or Strategic Business
Units (SBU’s)
 decide which SBU’s should receive more, less, or no investment
 develop growth strategies for adding new products or businesses
to the portfolio
The Boston Consulting Group’s Growth-
Share Matrix
 20%-
Market growth rate

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
Relative market share
 Summary

Strategic Planning and Marketing Process

 Business unit,
Corporate Level product,
and market
level

Defining Setting Planning,

Designing marketing,
the Company
the Business
Company Objectives and other
Portfolio
Mission and Goals functional
Strategies
 20%-
Market growth rate

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
Relative market share