You are on page 1of 24

CHAPTER 2

Group B
Central role of strategic
planning
A strategy is a theory about how to gain competitive advantages.
A good strategy is a strategy that actually generates such
advantages.

Assesing,choosing,designing,delivering,communicating and
sustaining customer value is essential for successful marketing

Strategic planning should focus on


1. Managing companys business as an investment portfolio
2. Assesing each businessess strength
3. Establishing strategy
Levels of a marketing plan

strateg Target marketing decisions


Value proposition

ic
Analysis of marketing
opportunities

Tactica


Product features
Promotion
Merchandising

l

Pricing
Sales channels
Service
Corporate and Division strategic
Planning

Defining corporate mission

Establishing SBU

Assigning Resources to Each


SBU

Assesing Growth opportunities


Defining Corporate mission
To define mission answer
Make
What is our business cars
Who is the customer
What should our business beGive
Speci
banki
What should our customer beng fic Make
Hair
servic
e
Missio oils

ne
Provid
These mission touris
can be changed m
based
by a company servic
from time to es
time
Why Mission?
Shared sense of purpose,Direction and
Opportunity
Good Mission statements
Focus
Stress on major policies and values
Define major competitivr spheres within which
company will operate
Take a long term view
Short,memorable and meaningful as possible
Establishing Strategic business Units

Market definition defines business as


customer satisfying process
Target market definition focuses on
viability of a product in a market
Strategic market definition includes
potentiality in future as well
Assigning Resources to Each
SBU
Allocate corporate resources
GE/Mckinseys matrix
Classifies SBU to the extent of competitive advantage and
its attractiveness to the industry
Bcg growth share matrix
uses relative market share and annual rate of market
growth as a criteria to make investment decisions
Shareholder value analysis
Assess the potential of a business based on growth
opportunities from global expansion,repositioning or
retargeting and strategic outsourcing
Assessing Growth
opportunities
Planning new Business
Downsizing
Termination older businesses
Filling the strategic planning
gap
Intensive growth
Integrative growth
Diversification growth
Downsizing and divesting older businesses
Marketing innovation
Strategic Business unit (SBU):

The SBU is a separate subsystem in the company


which acts as an independent company. Due to
some draw backness of previous system it can be
difficult to understand which business activities are
contributing the most value to the organization and
which should be evaluated. When an organization
adopt the SBU approach they enable the unit the
ability to make decision based on resources and
efficiencies and it allow to perform and develop
goods and services that meet the needs of the
target audience. For the first time SBU concept has
been applied by the U.S company General Electric.
Strategic Business Unit level Planning:-

The SBU level planning consists the


following steps :-`

Business Mission

Internal External
SWOT Analysis
Environment Environment

Goal Formulation

Strategy Formulation

Programme
Formulation and
Implementation

Feedback and
Control
The Business Mission
Each Business Unit needs to define
its specific mission within the
broader company mission.
SWOT Analysis
A successful business activity is built
on the companys core
competencies.
Market Firms
S W
O Applying
competencies to
Overcoming
weakness by using
take opportunities opportunities

T Applying
competencies to
Limiting own
weakness and
defend dangers defending dangers
Goal Formulation :-
Goal are objectives that are specific with
respect to magnitude and time. Goals are set
to define what is important to achieve. When
conducting management by objectives there
are four relevant criteria :-
Objectives must be arranged hierarchically,
from the most to the least important.
Objectives should be quantitative whenever
possible
Goals should be realistic.
Objectives must be consistent.
Strategy Formulation :-
A Strategy is a framework for action, it channels all programmes
and activities according to the defined goals. A well developed
strategy works as both a guide and an aid for the distribution of
resources, identification of needs, changes in the organization
etc.

Porters Generic strategies for comparing your company with


your most important competitors :-
Cost leadership- being Cheaper then
Differentiation being different from..
Concentration/focusbeing narrower/more specialized than.

The dynamic nature of the company environment requires


strategies to be reviewed continuously to see whether they
remain appropriate for achieving specific goals.
Programme formulation and
implementation :-
Even a great marketing strategy can be
obstruct by poor implementation. Strategies
only work if they are implemented
appropriately. Practicable programmes must
be therefore formulated. For instance if the
unit has decided to attain technological
leadership for the development of specific
products then it must strengthen its R&D
department, production, and processing
units in the company.
Programme formulation and
implementation :-
Even a great marketing strategy can be
obstruct by poor implementation. Strategies
only work if they are implemented
appropriately. Practicable programmes must
be therefore formulated. For instance if the
unit has decided to attain technological
leadership for the development of specific
products then it must strengthen its R&D
department, production, and processing
units in the company.
Feedback and Control
This final aspect emphasis the
need for constant evaluation of the
companys strategic fit with the
market and further environment
dynamics.
Marketing Plan
Contents Of A Marketing
Plan
Small Sized Organization

Description of the product or service, including


special features
Marketing budget including advertising and
promotional plan
Description of the business location
Pricing Strategy
Market Segmentation
Contents Of A Marketing Plan
Medium and Large Sized Organization

Executive summary and table of contents


Situation analysis
Marketing strategy
Financial projections
Implementation controls
Marketing Plan Criteria
Simple
Specific
Realistic
Complete