1、Strategic PlanningChapter 2 Lecture SlidesSolomon,Stuart,Carson,&SmithYour name hereCourse title/numberDateChapter Learning ObjectivesWhen you have completed your study of this chapter,you should be able to:Explain the strategic planning processTell how firms gain a competitive advantage and describ
2、e the factors that influence marketing objectivesDescribe the steps in the marketing planning processExplain the factors involved in the implementation and control of the marketing planIntroduction to the Topic“Organizations rarely plan to fail,but they often fail to plan”-famous quote,origin unknow
3、n.The above quotation speaks to the importance of strategic planning and the potential consequences of doing a poor job at it.Planning helps organizations:To cope with rapidly changing factors within their environment.Control its destiny through the setting of objectives and taking actions to achiev
4、e them.To ensure coordination of all decision making within it by providing a common visionTypes of Planning Strategic planning:a managerial decision process that matches an organizations resources and capabilities to its market opportunities for long term growth and survival Tactical planning:a dec
5、ision process that concentrates on developing detailed plans for strategies and tactics for the short term that support an organizations long-term strategic plan.Figure 2.1Types of Planning(continued)Operational planning:a decision process that concentrates on developing detailed plans for day-to-da
6、y activities that carry out an organizations tactical plans.Cross-functional planning:an approach to tactical planning in which managers work together in developing tactical plans for each functional area in the firm,so that each plan considers objectives of the other areas.Figure 2.1Strategic Plann
7、ing:First Stage Mission statement:a formal statement in an organizations strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers,products,and resources.A mission statement should:provide direction to all stakeholders as to why th
8、e organization exists.be framed in terms that are neither too narrow or too broad relate to a higher purpose other than just providing a return to shareholders(?)match objectives to capabilities.be revisited and updated as the organization changesStrategic Planning:Second Stage SWOT analysis:an anal
9、ysis of an organizations strengths and weaknesses and the opportunities and threats in its external environment.Internal environment:the controllable elements inside an organizations,including its people,its facilities,and how it does things that influence the operations of the organization.External
10、 environment:the uncontrollable elements outside of the organization that may affect its performance either positively or negatively.StrengthInternal factorsPositiveWeaknessInternal factorsNegativeOpportunityExternal factorsPositiveThreatExternal factorsNegativeStrategic Planning:Third Stage Objecti
11、ves:specific accomplishments or outcomes that an organization hopes to achieve by a specific time.Objectives are developed from the mission statementCan be expressed in terms of:Performance measures such as sales revenue,profitability(ROI),market share Product terms such as innovation,industry leade
12、rship,quality Customer terms such as satisfaction Social responsibility To be effective,an objective needs to pass the SMART test.SpecificMeasurableAttainableRealisticTime-boundedThe Business Portfolio Strategic business units(SBU):individual units within the firm that operate like separate business
13、es,with each having its own mission,business objectives,resources,managers,and competitors.Figure 2.3(enlarged on next slide)Business portfolio:the group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities.Portfolio analys
14、is:a management tool for evaluating a firms business mix and assessing the potential of an organizations strategic business units.The Business Portfolio(Figure 2.3)The BCG Growth-Market Share Matrix Question marks:business units with low market shares in high growth industries.Also known as problem
15、children,these business units can be relatively new to the market and grow to become stars or dogs,depending on their success in achieving market share.Question marks need cash to fuel their growth.Stars:business units with dominant market share in high growth industries.These business units generat
16、e large revenues,but still need lots of cash to fuel their growth and maintain share.They become cash cows when the market eventually slows down.Figure 2.4The BCG Growth-Market Share Matrix Cash cows:business units with high market shares in low growth industries.These business units generate the ca
17、sh needed to fund new product development and feed the question marks and stars.Cash cows are profitable because they have been around long enough for the company to recover its development costs.Dogs:business units with low market share in low growth industries.These business units are those questi
18、on marks that did not achieve significant market share before the market slowed down.They are targets for divestiture as they just cost money to maintain.Figure 2.4The Product-Market Growth Matrix Market penetration:growth strategies designed to increase sales of existing products to current custome
19、rs,non-users,and users of competitive brands in served markets.Also known as the“work harder”strategy.Market development:growth strategies that introduce existing products to new markets.This can include exporting,or finding new uses for existing products.The baking soda people are very good at this
20、 strategy.Figure 2.5The Product-Market Growth Matrix Product development:growth strategies that focus on selling new products in served markets.This strategy is in keeping with the marketing concept because it can be as simple as asking existing customers what else they would like to buy from the co
21、mpany.Diversification:growth strategies that emphasize both new products and new markets.Large companies such as General Electric have the resources to do this.Smaller companies may take their focus away from their core business,which can prove to be fatal.Figure 2.5The Marketing Planning Process Co
22、mpetitive advantage:the ability of a firm to outperform the competition,providing the customers with a benefit the competition cannot.Distinctive competency:a capability of a firm that is superior to that of its direct competitors.Differential benefits:properties of products that set them apart from
23、 competitors products by providing unique customer benefits.Control and Evaluate the PlanImplement the PlanMarketing Planning ProcessAnalyze the marketing environmentSet marketing objectivesDevelop marketing strategiesPrepare a marketing planOrganize for implementationEstablish the control processFi
24、gure 2.6Developing Marketing Strategies Marketing objectives will be based on the organizations distinctive competencies and resources and can be expressed in terms of sales revenues or profits,product terms,or in markets served.Selecting the target market(s)to be served is a process that matches wh
25、at the company has to offer to those groups who are most likely to respond favourably.The marketing mix follows from this selection.Selecting a Target Market(s)Setting Marketing ObjectivesSales objectivesProduct-oriented objectivesMarket objectivesMarketing Mix ProgramsProduct strategiesPricing stra
26、tegiesCommunication strategiesDistribution strategiesPreparing a Marketing Plan Marketing plan:a document that describes the marketing environment,outlines the marketing objectives ad strategy,and identifies who will be responsible for carrying out each part of the marketing strategy.Situation analy
27、sis:the first part of a marketing plan,which provides a thorough description of the firms current situation including its internal and external environments;also called a business review.May also include the SWOT analysis discussed previously.Implementation and Control Implementation:the stage of th
28、e strategic management process in which strategies are put into action on a day-to-day basis.Marketing budget:a statements of the total amount to be spent on marketing and the allocation of money for each activity under the marketers control.Trend analysis:an analysis of past industry or company sal
29、es data to determine patterns of change that may continue into the future.Marketing audit:a comprehensive review of a firms marketing function.See Table 2.1 for a detailed listing of elements in a marketing audit.Famous Last WordsStrategic planning is important for helping organizations to cope with rapidly changing factors within their environment.Effective marketing strategies rarely happen by accident,they are the result of planning.I am planning on being spontaneous now.
