2000 Prentice Hall

Objectives
Corporate and division strategic planing
Business unit planning
The marketing process
Product level planning
The marketing plan
2000 Prentice Hall
Market-Oriented Strategic
Planning
Objectives
Skills
Resources
Opportunities
2000 Prentice Hall
Market-Oriented Strategic
Planning
Objectives
Skills
Resources
Opportunities
Profit
and
Growth
2000 Prentice Hall
Corporate Headquarters
Planning
Define the corporate mission
Establish strategic business units
(SBUs)
Assign resources to SBUs
Plan new business, downsize older
businesses
2000 Prentice Hall
Strategic-Planning, Implementation,
and Control Process
Measuring
results



Diagnosing
results



Taking
corrective
action
Implementation Planning
Corporate
planning


Division
planning


Business
planning


Product
planning

Organizing





Implementing
Control
2000 Prentice Hall
Good Mission Statements:
Limited number of goals
Stress major policies & values
Define competitive scopes
2000 Prentice Hall
The Boston Consulting Groups
Growth-Share Matrix
20%-
18%-
16%-
14%-
12%-
10%-
8%-
6%-
4%-
2%-
0
M
a
r
k
e
t

G
r
o
w
t
h

R
a
t
e

3
?
Question marks
?
2
1
Cash cow
6
Dogs
8
7
10x 4x 2x 1.5x 1x
Relative Market Share
.5x .4x .3x .2x .1x
Stars
5
4
2000 Prentice Hall
Market Attractiveness: Competitive-
Position Portfolio Classification
M
A
R
K
E
T

A
T
T
R
A
C
T
I
V
E
N
E
S
S

5.00
3.67
2.33
1.00
L
o
w

M
e
d
i
u
m

H
i
g
h

Relief
valve
Flexible
diaphragms
Fuel
pumps
Aerospace
fittings
Clutches
Hydraulic
pumps
Joints
Strong Medium Weak
BUSINESS STRENGTH
1.00
2.33 3.67
5.00
Invest/grow Selectivity/earnings Harvest/divest
2000 Prentice Hall
S
a
l
e
s

10 5 0
Time (years)
The Strategic-Planning Gap
Desired
sales
Integrative growth
Intensive growth
Current
portfolio
Strategic-
planning
gap
Diversification growth
2000 Prentice Hall
Three Intensive Growth Strategies:
Ansoffs Product/Market Expansion Grid
4. Diversification
2. Market
development
New
markets
1. Market
penetration
Existing
markets
Existing
products
3. Product
development
New
products
2000 Prentice Hall
1
4
2
3
High
Low
High
Low
A
t
t
r
a
c
t
i
v
e
n
e
s
s

Success Probability Opportunities
Opportunity Matrix
1. Company develops a more
powerful lighting system
2. Company develops a
device for measuring the
energy efficiency of any
lighting system
3. Company develops a
device for measuring
illumination level
4. Company develops a
software program to teach
lighting fundamentals to TV
studio personnel
2000 Prentice Hall
Threat Matrix
1. Competitor develops a
superior lighting system
2. Major prolonged
economic depression
3. Higher costs
4. Legislation to reduce
number of TV studio
licenses
1
4
2
3
High
Low
High
Low
S
e
r
i
o
u
s
n
e
s
s

Probability of Occurrence
Threats
2000 Prentice Hall
The McKinsey 7-S Framework
Skills
Shared
values
Staff
Style
Strategy
Structure
Systems
2000 Prentice Hall
Sell the product
The Value-Delivery Process
Make the product
Procure
Design
product
Make Price Sell
Advertise/
promote
Distribute Service
Choose the Value Provide the Value Communicate the Value
(a) Traditional physical process sequence
(b) Value creation & delivery sequence
Strategic marketing
Tactical marketing
2000 Prentice Hall
The Marketing Plan
Executive Summary & Table of Contents
Current Marketing Situation
Opportunity & Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls
2000 Prentice Hall
Competitors
Marketing
intermediaries
Publics
Suppliers
Factors Influencing Company
Marketing Strategy
Product
Promotion
Place Price Target
customers
Demographic/
economic
environment
Social/
cultural
environment
Technical/
physical
environment
Political/
legal
environment
2000 Prentice Hall
Review
Corporate and division strategic planing
Business unit planning
The marketing process
Product level planning
The marketing plan