Strategic Planning
The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.
Steps in Strategic Planning
(Corporate level) 1) Defining the company mission 2) Setting company objectives and goals 3) Designing the business portfolio (Business unit, product, and market level) 4)Planning marketing and other functional strategies
Mission Statement
A statement of the organizations purpose - what it wants to accomplish in the larger environment
Mission Statement should include?
what is our business? Who are our customers? What do customers Value? What should our business be?
Well defined Mission statements
market- oriented, meaningful, specific, motivating, based on the firms strengths in the market place, focused on customers rather than on sales or profits
Business Portfolio
The collection of businesses and products that make up the company.
Strategic Business Unit
A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses (Can be a company division, a product line within a division, or sometimes a single product or brand).
Portfolio analysis
The process by which management evaluates the products and businesses making up the company.
Growth Share Matrix
A portfolio-planning method that evaluates a company's strategic business units in terms of their market growth rate and relative market share. SBU's are classified as cash cows, question marks, or dogs.
Stars
High- share of high growth market. Strategy: Build into cash cow via investment.
Cash Cow
High - share of low growth market. Strategy: maintain or harvest for cash to build STARS.
Question Marks
Low share of high growth market. Strategies: build into star via investments or reallocate funding and let slip into dog status.
Dog
Low share of low growth market. Strategy: maintain or divest.
Problems with Matrix approaches
difficult, time consuming, costly to implement. focus on classifying current business, but provide little advice for future planning.
Product/market expansion grid
A portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
Market Penetration
A strategy for company growth by increasing sales of current products to current market segments without changing the product any products.
Marketing Development
A strategy for company growth by identifying and developing new market segments for current company products.
Product Development
A strategy for company growth by offering modified or new products to current market segments.
Diversification
A strategy for growth through starting up or acquiring businesses outside the companies current products and markets.
Downsizing
Reducing the businesses portfolio by eliminating products of business units that are not profitable or that no longer fit the company's overall strategy.
Value Chain
The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products.
Value-delivery network
The network made up of the companies, and ultimately customers who "partner" with each other to improve the performance of the entire system.
Marketing Strategy
company hopes to create customer value and achieve profitable customer relationships
Market Segmentation
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing programs.
Market Targeting
involves evaluating each market segment's attractiveness and selecting one or more segments to enter.
Positioning
arranging fro a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Differentiation
Actually differentiating the market offering to create superior customer value.
Marketing Mix
The blending of four marketing elements-product, place, price, and promotion
Product
variety, features, brand name, quality, design packaging and services
Price
List price, discounts, allowances, payment period, credit terms
Promotion
advertising , personal selling, sales promotion, public relations
Place
channels, coverage, assortments, locations, inventory , transportation, logistics
SWOT analysis
An overall evaluation of the company's strengths, weaknesses, opportunities, and threats. That helps executives formulate strategy.
Marketing Implementation
The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives. Who, when, where, how
Marketing Control
The process of measuring and evaluation the results of marketing strategies and plans, and taking corrective action to ensure that objectives are achieved.
Operating control
evaluates performance against the annual place and takes corrective action
Strategic control
evaluates whether strategies match opportunities
Return on Marketing Investment
The net return from a marketing investment divided by the costs of the marketing investment.