Nature of Strategic Planning
Process of anticipating future events and determining strategies.
Definition:
Definition:
involves designing activities relating to marketing objectives and the changing marketing environment (e.g. product lines, prices, communication).
Marketing Plan:
Developing and Implementing a Marketing Plan
Strategic Planning:
Presentation Objectives
Understand the importance of strategic marketing.  Know the outline for a marketing plan.
Define an appropriate business mission statement.
Describe criteria for
good marketing objectives.
Explain components of a situation analysis.
Long-Run
Profitability & Growth
Resources
Objectives
Evolving Market Opportunities
+
=
+
Identify strategic alternates and describe tools to select them.
Clearly stated activities to work toward common goals
Aware of threats and opportunities
Basis for comparison of actual and expected performance
Why create a marketing plan?
Target Market Strategy
Marketing Strategy
Situation Analysis
Marketing Plan Objectives
Things the company does well
Things the company
does not do well
Conditions in the external environment that favor strengths.
a Strategic Window
Differential or Competitive Advantage
A set of unique features of a company & its products that are perceived by the target market as significant and superior to the competition
Two basic sources
A Sustainable Competitive Advantage cannot be copied by
the competition
Example
Select one or more target markets
…involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.
Conditions in the
external environment
that do not
relate to
existing strengths
or favor areas of current weakness
a Strategic Window
DISCOVERING
SELECTING
3)
4)
Control
Define
2)
Limited period when the “fit” between key requirements of a market and competencies of the firm are optimum.
Business Mission Statement
S
Business Mission Statement
W
O
T
Realistic
Timely
Measurable
with Organizational Objectives
Consistent
Focuses on the market(s) rather than the good or service
Superior Skills
Example
“To be the world's premier consumer products company focused on convenient foods and beverages.  We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate.  And in everything we do, we strive for honesty, fairness and integrity.”
PepsiCo's
Mission Statement
PepsiCo's 
Mission Statement
Examples?
Frito-Lay is in the snack-food business
Examples?  Amazon?
Marketing myopia:
Focus is on specific goods/service
Strategic Business Units may also have a mission statement
S B U
Characteristics
1. A distinct mission and specific target market

2. Control over their resources

3. Their own competitors

4. Plans independent of other businesses
Evaluation
Marketing Plan Elements
Business Mission Statement
1)
Definition:
The Marketing Mix
Implementation
No clear foundation:
Focus is too broad
Our objective is to increase market share by 40% and to obtain customer satisfaction ratings of at least 90% in 2005
Measurable
Timely
Consistent
Realistic
market share and
customer satisfaction ratings
2005
in
40%
90%
>
I
2005
in
40%
90%
>
I
Analyze market based on attractiveness of market segments
Identify the market segments that are of interest to the firm
Common Mistakes
Competitor
Competitor
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Strategic Opportunity Matrix
Present Product
New Product
Present Market
New Market
Market Penetration
Product Development
Market Development
Diversification
Increase market share among existing customers
Attract new customers to existing products
Create new products for present markets
Introduce new products into new markets
Common Tools
Common Goals
Market Share
Profitability
BCG Portfolio Matrix
High
Low
Low
High
Market Growth
Question Marks
Stars
Cash Cows
Market Share
GE
Market Attractiveness Matrix
GE 
Market Attractiveness Matrix
Business Unit Strength
Market Attractiveness
High
Medium
Low
Dogs
High
Medium
Low
Superior
Resources
Harvest
or Divest
Four Basic Strategies for Resource Allocation
Four Basic Strategies for Resource Allocation
Hold
Harvest
Divest
Preserve market share if SBU is a successful Cash Cow.  Use cash flow for other SBUs.
Increase
short-term
cash return.  Appropriate for all SBUs except Stars.
Get rid of SBUs with low shares in
low-growth markets.
Build
Provide financial resources if SBU (Question Marks) has potenial to be a star
Invest 
or Grow
Invest 
or Grow
Invest 
or Grow
Earn Selectively
Earn Selectively
Earn Selectively
Harvest
or Divest
Harvest
or Divest
Harvest
or Divest