Chapter 2 Strategic Market Planning Take the Big Picture Real People Business Planning An ongoing process of making decision that guides the firm both in the short term and long term o Identifies builds on firm s strengths o Help managers make informed decisions o Develop objectives before action is taken Business plan A plan that includes the decisions that guide the entire organization Marketing plan A document that describe the marketing environment outline the marketing objectives and strategy and identifies who will be responsible for carrying out each part of the marketing strategy Business ethics Basic values that guide a firm s behavior Code of ethics Written standards of behavior to which everyone in the organization must subscribe Level of Business Planning Strategic Planning Functional Marketing Planning In Operational Planning Planning done by top level corporate management 1 Define the mission 2 Evaluate the internal and external 3 Set organizational or SBU environment objectives Marketing Dept Planning done by top fuctional level management such as the firm s chief marketing officer CMO 1 Perform a situation analysis 2 Set marketing objectives 3 Develop marketing strategies 4 Implement marketing strategies 5 Monitor and control marketing 4 Establish the business portfolio 5 Develop growth strategies strategies Planning done by supervisory managers 1 Develop action plans to implement the marketing plan 2 Use marketing metrics to monitor how the plan is working Strategic planning A managerial decision process that matches an organization s resources and capabilities to its market opportunities for long term growth and survival o Top management defines firm s purpose and objectives o Strategic Business Units SBUs are common in large firms Individual units within the firm that operate like separate businesses with each having Strategic Business Units SBUs its own mission business objectives resources managers and competitors Company within a company 1 Define the mission What business are we in What customers should we serve Demographic How do we develop firm s capabilities and focus its efforts o Mission statement the organization and what it intends to achieve in terms of its customers products and resources A formal statement in an organization s strategic plan that describes the overall purpose of 2 Evaluate the internal and external environment Situation Analysis An assessment of a firm s internal and external environments o Internal Environment how it does things that influence the operations of the organization The controllable elements inside an organization including its people its facilities and 1 Chapter 2 Strategic Market Planning Take the Big Picture Real People The uncontrollable elements outside an organization that may affect its performance An analysis of an organization s strengths and weaknesses and the opportunities and threats in its o External Environment either positively or negatively SWOT Analysis external environment 3 Set organizational or SBU objectives 4 Establish the business portfolio The group of different products or brands owned by an organization and characterized by different Business Portfolio income generating and growth capabilities Portfolio analysis organization s strategic business units BCG growth market share matrix assesses the potential of successful products to generate cash that a firm can then use to invest in new products A management tool for evaluating a firm s business mix and assessing the potential of an A portfolio analysis model developed by the Boston Consulting Group that 5 Develop growth strategies Market penetration strategies nonusers and users of competitive brands in served markets Growth strategies designed to increase sales of existing products to current customers Relative Market Share High Stars SBUs whose products have a dominant market share in high growth markets Cash cows SBUs with a dominant market share in a low growth potential market Low Question marks SBUs with a dominant market share in a low growth potential market Dogs SBUs with a small share of a slow growth market They are businesses that offer specialized products in limited markets that are not likely to grow quickly Product Emphasis Existing Products Market Penetration Strategy Seek to increase sales of existing products to existing markets New Products Product development strategy Create growth by selling new products in existing markets s Market development strategy Introduce existing products to new markets Diversification strategy Emphasize both new products and new markets to achieve growth h g H i w o L e t a R h t w o r G t e k r a M s t e k r a M g n i t s x E i t e k r a M w e N i s s a h p m E t e k r a M 2 Chapter 2 Strategic Market Planning Take the Big Picture Real People Functional marketing Planning Accomplished by various functional areas of firm such as marketing A decision process that concentrates on developing detailed plans for strategies and tactics for the short term supporting an organization s long term strategic plan 1 Perform a situation analysis Managers build on the company s SWOT analysis they search out information about the environment that specifically affects the marketing plan 2 Set marketing objectives Marketing objectives are more specific to the firm s brands sizes product features and other marketing mix related elements Think of the connection between business objectives and marketing objectives this way Business objectives guide the entire firm s operations while marketing objectives state what the marketing function must accomplish if the firm is ultimately to achieve these overall business objectives 3 Develop marketing strategies Product strategies decisions such as as product design packaging branding support services variations and what product features will provide unique benefits targeted customers want Pricing strategy based on costs demand or prices of competing products Promotional strategy used to develop the product s message and the mix of advertising sales promotion public relations and publicity direct marketing and personal selling that will deliver the message Distribution strategies outline how when and where the firm will make the product available to targeted customers retailers wholesales 4 Implement marketing strategies Control A process that entails measuring actual performance comparing this performance to the established marketing objectives and then making adjustments