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This document discusses strategic planning and marketing planning. It explains that strategic planning involves adapting a firm to take advantage of opportunities in its changing environment, while annual and long-range plans focus on current businesses. The strategic planning process includes defining the company mission, setting objectives, and designing the business portfolio. The business portfolio is analyzed and classified using methods like the BCG growth-share matrix to determine investment strategies for each business unit. Marketing planning then develops more detailed plans to support the strategic plan and target specific opportunities.

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Mina Badr
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72 views6 pages

2 Markting PDF

This document discusses strategic planning and marketing planning. It explains that strategic planning involves adapting a firm to take advantage of opportunities in its changing environment, while annual and long-range plans focus on current businesses. The strategic planning process includes defining the company mission, setting objectives, and designing the business portfolio. The business portfolio is analyzed and classified using methods like the BCG growth-share matrix to determine investment strategies for each business unit. Marketing planning then develops more detailed plans to support the strategic plan and target specific opportunities.

Uploaded by

Mina Badr
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 6

“The process of developing and maintaining a strategic fit between the

organization’s goals and capabilities and its changing marketing opportunities.”

 Strategic plans sets the stage for the rest of planning in the firm

 Companies usually prepare annual plans, long-range plans, and strategic plans.

 The annual and long-range plans deal with: 1st the company’s current businesses
2nd and how to keep them going.

 In contrast, the strategic plan involves adapting the firm to take advantage of
opportunities in its constantly changing environment.

 At the corporate level,


 The company starts the strategic planning process by defining its overall purpose
and mission.
 This mission is then turned into detailed supporting objectives that guide the entire
company.
 Next, headquarters decides what portfolio of businesses and products is best for
the company and how much support to give each one.
 In turn, each business and product develops detailed marketing and other
departmental plans that support the company-wide plan.
 Thus, marketing planning occurs at the business-unit, product, and market levels.
It supports company strategic planning with more detailed plans for specific
marketing opportunities.

1 Chapter 2
1st defining the company mission

An organization exists to accomplish something, and this purpose should be


clearly stated.
Forging a sound mission begins with the following questions: What is our
business? Who is the customer? What do consumers value? What should our
business be?
These simple-sounding questions are among the most difficult the company will
ever have to answer.
Mission statement
 A statement of the organization’s purposes—what it wants to accomplish in the
larger environment.
 It acts as an “invisible hand” that guides people in the organization.
 Characteristics of Mission statement:
 1. Mission statement should be market oriented statement.
 Some companies define their mission statement myopically by focusing only
product or technology terms But mission statements should be market -oriented
and defined in terms of satisfying basic customer needs.
 Because Products and technologies eventually become outdated, but basic
market needs may last forever
 Market-oriented mission statement defines the business in terms of satisfying
basic customer needs.
 Ex google product oriented misiion statement
 Google narket
 2. Missions should be realistic, meaningful
 3.specific,
 4. Fit the market environment, based on the company’s
distinctive competencies, and motivating.
 5. and not be stated as making sales or profits

2 Chapter 2
2nd Setting Company Objectives and Goals

• The company’s mission needs to be turned into detailed supporting objectives


for each level of management.

• Marketing strategies and programs must be developed to support these


marketing objectives.

Business Marketing
objectives objectives
•Build profitable •Increase
customer market share
relationships •Create local
•Invest in partnerships
research •Increase
•Improve profits promotion

3rd Designing the Business Portfolio


 The business portfolio is the collection of businesses and
products that make up the company.
 Business portfolio planning involves two steps:

the company
shape the
must analyze
future portfolio
its current
by developing
business
strategies for
portfolio and
growth and
determine the
downsizing
investment

3 Chapter 2
 Portfolio analysis the process by which management
evaluates the products and businesses that make up the
company.
 The best portfolio is the one that best fits the company’s strengths
and weaknesses to opportunities in the environment.

 Management’s first step is to identify the key businesses that make


up the company, called strategic business units (SBUs).

 A strategic business unit (SBU) is a unit of the company that has a


separate mission and objectives and that can be planned
independently from other company businesses.

Company
division

Product line
within a
division
SBU
Single product
or brand

 The company next assesses the attractiveness of its various SBUs


and decides how much support each deserves.

 the most standard portfolio analysis methods evaluate SBUs on


two important dimensions: attractiveness of the SBU’s market or
industry and the strength of the SBU’s position in that market or
industry.

 The best-known portfolio-planning method was developed by the


Boston Consulting Group, a leading management consulting firm.

4 Chapter 2
The Boston Consulting Group Approach (BCG) approach:
a company classifies all its SBUs according to the growth-share
matrix
A portfolio-planning method that evaluates a company’s SBUs in terms of its
market growth rate and relative market share .
 On the vertical axis, market growth rate provides a measure of market
attractiveness.
 On the horizontal axis, relative market share serves as a measure of
company strength in the market.

5 Chapter 2
1. Stars. Stars are high-growth, high-share businesses or products. They often
need heavy investments to finance their rapid growth. Eventually their growth
will slow down, and they will turn into cash cows.

2. Cash Cows. Cash cows are low-growth, high-share businesses or products.


These established and successful SBUs need less investment to hold their market
share. Thus, they produce a lot of the cash that the company uses to pay its bills
and support other SBUs that need investment.

3. Question Marks. Question marks are low-share business units in high-growth


markets. They require a lot of cash to hold their share, let alone increase it.
Management has to think hard about which question marks it should try to build
into stars and which should be phased out.

4. Dogs. Dogs are low-growth, low-share businesses and products. They may
generate enough cash to maintain themselves but do not promise to be large
sources of cash.
 The 10 circles in the growth-share matrix represent the company’s 10
current SBUs. The
 Company has two stars, two cash cows, three question marks, and three
dogs.
 Once it has classified its SBUs, the company must determine what role each
will play in the future.
 It can pursue one of four strategies for each SBU. It can invest more in the
business:
1- Building Strategy: It can invest more in the business unit to build its
share.
2- Holding Strategy: It can invest just enough to hold the SBU’s share at
the current level.
3- Harvesting Strategy: It can harvest the SBU, milking its short-term cash
flow regardless of the long-term effect.
4- Divestment Strategy: It can divest the SBU by selling it or phasing it out
and using the resources elsewhere.

6 Chapter 2

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