STRATEGIC PLANNING

AND MARKETING
PLANNING
GROUP 1
 Strategic Planning
 is an organizational management
activity that is used to set priorities,
focus energy and resources,
strengthen operations.
 Process of developing and maintaining
a strategic fit between organization's
goal and capabilities and its changing
marketing opportunities.
 it starts when corporate
level forms the
company's mission
statement.
Mission Statement

 stipulates what the firm

values and its reason of
existence.
 The company/ firm's mission
statement is converted into
quantifiable set of objectives
for the different management
levels to achieve.
 Business Portfolio
 it is the collection of business
and products that make up the
company follow.
 A good business portfolio
includes the current business
collection and what products
offered by company is phased
out or will have assistance in
terms of investment.
Benefits of Strategic Planning

It allows organizations to be proactive

rather than reactive
It sets up a sense of direction
increases operational efficiency
longevity of the business
Process of Strategic Planning
1. Drafting the company's mission

 every company is formed for a

purpose. It describes the company's
reason of being or what the
company wants to achieve.
2. Setting company's objectives
 consist of detailed supporting
statements or objectives intended for
a different management level to
achieve.
3. Designing the company's business
portfolio
 products and businesses is
equivalent to portfolio. It is assisted
by company's mission statement
and goals.
Strategic Business Unit( SBU)

 Businesses that has distinct

mission, responsible manager and
competitors.

 It is independent of other business

units. (Hutt and Spech, 2013).
 2 ways which firm may assess
business portfolio

1. Analysis of the current portfolio of

the company
 company assesses its products and
decides which among businesses
must be given more or less
investment or no investment at all.
These businesses is classified as
Strategic Business Unit( SBU).
 4 strategies of SBU
1. BUILD ITS SHARE

More investment is needed to

achieve this.

2. HOLD ITS SHARE

Companies invest enough money to

hold their share in the current level
3. HARVEST

Milking its short term cash flow

regardless of its long term effects.

4. DIVEST

Company may sell SBU or phase out

the product and use the resources
elsewhere.
 Growth Share Matrix
 also known
as Boston
Consulting
Group
(BCG)
Matrix.

 categorizes
all its SBU.
2. Development of company's growth
strategy

 determine which SBUs will be given

support.

 company can evaluate its current

products and portfolio with the
growth share matrix.
Market Growth Rate
 provides measure of markets
attractiveness.
Characteristic
 Star
high growth business or product
that needs heavy investment to
finance its growth
 needs less investment to maintain
their market share. This
classification produce a lot of cash
which support other units.
 Question Marks
• SBUs with low market share in high
growth market.
 Dogs
• have low share and low growth
status.
4. Coordinating activities to different
functional areas

 coordinate marketing
resources and activities to
different departments to
achieve the set goals of the
company.
MARKETING
PLANNING
 Marketing Planning
 Is a process of developing marketing
plan incorporating overall marketing
objectives, strategies, and programs
of actions design to achieve these
objectives
Marketing Plan
 is a comprehensive document
or blueprint that outlines the
advertising and marketing
efforts for the coming year.
Marketing Objectives

 are goals set by a business

when promoting its products or
services to potential consumers
that should be achieved within a
given time frame.
 SMART Approach

 When setting objectives, it is very

important to ensure that they are
specific, measurable, achievable,
realistic and time-specific - or
SMART for short.
Marketing Planning Process

 a systematic approach to the

achievement of marketing goals.
Steps in the process include situation
analysis; setting of objectives; strategy
formulation; development of action
programs; implementation; and
control, review and evaluation.
Marketing Planning Process

1. MISSION - Identify and understand

company's mission statement and
objectives.
2. SITUATION ANALYSIS - Evaluate
internal and external factors that
affect your business and market.
Identify SWOT and PEST analysis.
3. MARKETING PLAN - Prioritize and
map out which ones you are going
to pursue.
4. DEVELOPING MARKETING MIX
DECISIONS - Focus on the 4Ps of
marketing.
5. IMPLEMENTATION AND
CONTROL - Time to put your plan
into action. Identify how and when
you will launch your plan.
 Difference between Strategic
and Marketing Planning
Strategic planning decides what it
wants to do with every business unit. It
involves deciding on marketing
strategies that will help to achieve its
overall strategic objectives while
marketing planning includes executive
summa, marketing situation and other
marketing activities.
MARKTING
ENVIRONMENT
Macro Environment & Micro
Environment
Marketing Environment
Is the combination of external and
internal factors and forces which
affect the company’s ability to
establish a relationship and serve its
customers.
It is consist of internal and external
environment.
Internal Environment
This refers to the company-specific
and includes owners, workers,
machines, materials etc.
It includes all the forces and factors
inside the organization which affects
its marketing operations.
External Environment
It refers to the forces and factors
which are external to the
business and on which the
marketer has little or no control.
It has two types:
Macro Environment
Micro Environment
Micro Environment
It is a micro-component of the
external environment
Known as task environment
It comprises of external forces and
factors that are directly related to the
business.
Elements of Micro Environment
 SUPPLIERS
Include all parties which provide
resources needed by the organization.

 MARKET INTERMEDIARIES
Include parties involved in distributing
the product or service of the
organization.
CUSTOMERS
Comprise of the target group of the
organization.
COMPETITORS
Players in the same market who
targets similar customers.
ORGANIZATION
One of the most important aspects of
micro environment is the self-analysis
of the organization itself.
 MACRO ENVIRONMENT
It is known as the broad environment.
It refers to the forces and factors which affects
the industry as a whole.
It is divided into 6 parts:
Demographic environment
Technological Environment
Economic environment
Politico-legal environment
Physical environment
Socio-cultural environment
 DEMOGRAPHIC
ENVIRONMENT

It is characterized as the factual

investigation and segregation of the
population according to their size,
density, location, age, gender, race,
and occupation.
ECONOMIC ENVIRONMENT
It is the factors that influence the
customer’s purchasing power and
spending pattern.
It includes the GDP, interest rates,
inflation, income distribution,
government funding and other major
economic variables.
PHYSICAL ENVIRONMENT
It includes the natural environment
in which business operates.
It includes the climatic conditions,
environmental change, accessibility
to water and raw materials, natural
disasters and pollution etc.
 TECHNOLOGICAL
ENVIRONMENT

Constitute innovation, research and

development in technology,
technological alternatives, innovation
inducements also technological
barriers to smooth operations.
 POLITICO-LEGAL
ENVIRONMENT
It includes laws and government
policies prevailing in the country.
It includes the groups and
agencies which influence or limit
the working of the industry or
business.
 SOCIO- CULTURAL
ENVIRONMENT
It is made up of the lifestyle,
value, culture, prejudice and
beliefs of the people.