The Role of MKT in Planning
The Role of MKT in Planning
The Role of MKT in Planning
CHAPTER OBJECTIVES Explain companywide strategic planning Understand the concepts of stakeholders, processes, resources, and organization. Explain the four planning activities of corporate strategic planning Understand the process involved in defining a company mission and setting goals and objectives. Discuss how to design business portfolios and growth strategies Explain the steps involved in the business strategy planning process.
STRATE IC P!A""I"
Marke t# Oriente $ Stra te gic Planning is the process of developing and
maintaining a feasible fit between the organization s objectives, skills, and resources and its changing marketing opportunities.
HIERARCH3 O. STRATE 3
CORPORATE MISSIO"
1hat business are we in2 1hat businesses should we be in2 1hat do we do best2 1hat are the values3ethics of the firm2 1hat are the target markets of the firm2 Define business by need rather than product. o ,odging vs. hotel o 4uick service restaurants vs. fast food hamburgers.
MISSIO" STATEME"T
A Mi&&ion State % e n t provides employees of the organization with a shared sense of purpose, direction, and opportunity. Mi&&ion State % e n t & should . . . !erve as a guide for what the organization wants to accomplish. )e 5market' oriented6 rather than 5product' oriented6. )e neither too narrow, nor too broad. )e motivating. Mi&&ion State % e n t & -i$e the development of objectives and goals.
7A!# MART: 5"o offer all consumers in our territories all of their household
needs in a manner in which they continue think of us fondly6. MC1O"A!1S: 5"o offer the fast food customer food prepared in the same high #uality manner worldwide, tasty and reasonable priced, delivered in a consistent, low' key decor and friendly atmosphere6.
ESTAB!ISHI"
)* & business must be viewed as a customer' satisfying process, not a goods' producing process. ,* (ompanies should define their business in terms of customer needs, not products. 3* (ompanies have to identify those of its businesses that they must manage strategically *Example+ .oliday $nns, "railways and Delta !teamship Experience/.
CHARACTERISTICS O. A STRATE IC B2SI"ESS 2"IT 8SB29 (ompanies have to identify those of its businesses that they must manage strategically. "hese businesses are called &trate gic :-&ine&& -nit& . )* $t is a single business or collection of related businesses that can be planned for separately from the rest of the company. ,* $t has its own set of competitors. 3* $t has a manager who is responsible for strategic planning and profit performance and who controls most of the factors affecting profits. ASSI "I" RESO2RCES TO EACH SB2
)* &nalytical tools are needed for classifying businesses by profit potential, for decisions on whether to :-il$; %aint ai n; har+e&t , or $i+e&t individual !)Us. ,* 7ne well' known business portfolio evaluation models is the Bo&ton Con&-lting ro-p 8BC 9 growth3share matrix.
BC
RO7TH<SHARE MATRI6
BC
ro?th<Share Matri@
1hat objective, strategy and budget to assign to each !)U. 8our alternative objectives can be pursued for each !)U+ B-il$: $ncrease !)U s market share. Hol$: 9reserve !)U s market share. Har+e&t: $ncrease short' term cash flow. 1i+e&t: !ell or li#uidate.
1EVE!OPI"
Inten&i+e gro? t h oppor t -ni t i e& $dentify further opportunities to achieve growth
business. Marke t penet r a t i o n &trat e g( *$ncrease in existing market : with existing products/ Marke t $e+eloping &trat e g( *,ook new markets with current products/. Pro$-ct $e+elop% e n t &trat e g( *;row in existing market with modified or new products/
1EVE!OPI" RO7TH STRATE IES 1i+er&ification gro?th opport-ni ti e&: $dentify opportunities to add attractive businesses that are unrelated to the company s current businesses. Concentric $i+er&ifica tion &tra te g (: (ompany seeks new products that have technological and3or marketing synergy with existing product lines, even though the product may appeal to a new class of customers. 1EVE!OPI" RO7TH STRATE IES Hori0ontal $i+er&ification &trate g(: (ompany searches for new products that could appeal to its current customers though technologically unrelated to its current product line. *Ex. !elling perfume, "'shirts/ Conglo% er a t e $i+er&ification &trate g(: <ew business with no relationship to the current technology, products, or markets. *Ex+ selling retirement homes/. 1EVE!OPI" RO7TH STRATE IES Integr a ti + e gro?th opport-nitie& Back?ar $ integr a tion: & hotel company ac#uiring one of its suppliers. *Ex+ %arriott =estaurant Distribution !ystem/ .or?ar $ integr a tion: & hotel company ac#uiring tour wholesaler or travel agents. Hori0ontal integr a tion: & hotel company ac#uiring one or more competitors, provided the government does not bar the move. I"TE RATIO" RO7TH
B2SI"ESS STRATE 3 P!A""I" STEPS )* B-&ine&& %i&&ion Specific %i&&ion of each SB2 ,* S7OT Anal(&i& 3* Inter na l en+iron% e n t anal(&i& *strengths and weaknesses/ B2SI"ESS STRATE 3 P!A""I" 5* E@ternal en+iron% e n t anal(&i& *opportunities and threats/ >ey macro environmental forces !ignificant %icro environmental forces A* oal .or%-la tion (What do we achieve?) ;oals should arise from business analysis, not from wishful thinking. %easurable goals 9rofitability, sales growth, market share B* Strate g( .or%-la tion (How do we get there?) Every business must tailor a strategy for achieving its goals %ichael 9orter s three generic types of strategy+ 7verall cost leadership Differentiation 8ocus on narrow market segments !trategic &lliances+ partnership with domestic or multinational companies that complement or leverage their capabilities and resources to achieve leadership nationally or globally. C* Progra % for%-la tion* & company must develop hiring, training, advertising, and other programs to support its strategy. D* I%ple % e n t a t ion * & firm must communicate its strategy to its employees and it must have the resources to carry out its strategy. E* .ee$:ack an$ control are absolutely necessary to track results and monitor new developments in the environment.