1、Marketing: Real People, Real DecisionsStrategic PlanningChapter 2 Lecture SlidesSolomon, Stuart, Carson, & SmithYour name hereCourse title/numberDateMarketing: Real People, Real Decisions2-2Chapter Learning ObjectivesWhen you have completed your study of this chapter, you should be able to:Expla

2、in the strategic planning processTell how firms gain a competitive advantage and describe the factors that influence marketing objectivesDescribe the steps in the marketing planning processExplain the factors involved in the implementation and control of the marketing planMarketing: Real People, Rea

3、l Decisions2-3Introduction to the Topic“Organizations rarely plan to fail, but they often fail to plan”-famous quote, origin unknown.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

4、rapidly changing factors within their environment. Control its destiny through the setting of objectives and taking actions to achieve them. To ensure coordination of all decision making within it by providing a common visionMarketing: Real People, Real Decisions2-4Types of Planning Strategic planni

5、ng: a managerial decision process that matches an organizations resources and capabilities to its market opportunities for long term growth and survival Tactical planning: a decision process that concentrates on developing detailed plans for strategies and tactics for the short term that support an

6、organizations long-term strategic plan.Figure 2.1Marketing: Real People, Real Decisions2-5Types of Planning (continued) Operational planning: a decision process that concentrates on developing detailed plans for day-to-day activities that carry out an organizations tactical plans. Cross-functional p

7、lanning: 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 2.1Marketing: Real People, Real Decisions2-6Strategic Planning: First Stage Mission statement:

8、 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 the organization exists. be fram

9、ed 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 changesMarketing: Real People, Real Decisions2-7Strategic Planning: Second Stage SWOT a

10、nalysis: an analysis 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

11、organization. External environment: the uncontrollable elements outside of the organization that may affect its performance either positively or negatively.StrengthInternal factorsPositiveWeaknessInternal factorsNegativeOpportunityExternal factorsPositiveThreatExternal factorsNegativeMarketing: Real

12、 People, Real Decisions2-8Strategic Planning: Third Stage Objectives: 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, profitabili

13、ty (ROI), market share Product terms such as innovation, industry leadership, quality Customer terms such as satisfaction Social responsibility To be effective, an objective needs to pass the SMART test.SpecificMeasurableAttainableRealisticTime-boundedMarketing: Real People, Real Decisions2-9The Bus

14、iness Portfolio Strategic business units (SBU): individual units within the firm that operate like separate businesses, 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

15、or brands owned by an organization and characterized by different income-generating and growth capabilities. Portfolio analysis: a management tool for evaluating a firms business mix and assessing the potential of an organizations strategic business units.Marketing: Real People, Real Decisions2-10Th

16、e Business Portfolio (Figure 2.3)Marketing: Real People, Real Decisions2-11The BCG Growth-Market Share Matrix Question marks: business units with low market shares in high growth industries. Also known as problem children, these business units can be relatively new to the market and grow to become s

17、tars 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 generate large revenues, but still need lots of cash to fuel their growth and maintain sha

18、re. They become cash cows when the market eventually slows down.Figure 2.4Marketing: Real People, Real Decisions2-12The BCG Growth-Market Share Matrix Cash cows: business units with high market shares in low growth industries. These business units generate the cash needed to fund new product develop

19、ment 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 question marks that did not achieve sign

20、ificant market share before the market slowed down. They are targets for divestiture as they just cost money to maintain.Figure 2.4Marketing: Real People, Real Decisions2-13The Product-Market Growth Matrix Market penetration: growth strategies designed to increase sales of existing products to curre

21、nt customers, 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

22、very good at this strategy.Figure 2.5Marketing: Real People, Real Decisions2-14The 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 ex

23、isting customers what else they would like to buy from the company. 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 c

24、an prove to be fatal.Figure 2.5Marketing: Real People, Real Decisions2-15The Marketing Planning Process Competitive 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 su

25、perior to that of its direct competitors. Differential benefits: properties of products that set them apart from competitors products by providing unique customer benefits.Control and Evaluate the PlanImplement the PlanMarketing Planning ProcessAnalyze the marketing environmentSet marketing objectiv

26、esDevelop marketing strategiesPrepare a marketing planOrganize for implementationEstablish the control processFigure 2.6Marketing: Real People, Real Decisions2-16Developing Marketing Strategies Marketing objectives will be based on the organizations distinctive competencies and resources and can be

27、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 what the company has to offer to those groups who are most likely to respond favourably.The marketing mix follows from this selection.Selecting

28、a Target Market(s)Setting Marketing ObjectivesSales objectivesProduct-oriented objectivesMarket objectivesMarketing Mix ProgramsProduct strategiesPricing strategiesCommunication strategiesDistribution strategiesMarketing: Real People, Real Decisions2-17Preparing a Marketing Plan Marketing plan: a do

29、cument 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 analysis: 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