Strategic Planning

Game plan for long-run survival and growth • Helps to maintain a strategic fit between its goals and capabilities and changing marketing opportunitie

Mission Statement

Statement of the organization’s purpose • Market oriented—defined in terms of satisfying basic customer needs • Emphasize the company’s strengths • Focus on customers and the customer experience

product‑oriented definition

describes a business based on what it makes — the actual product, technology, or features.

market‑oriented definition

describes a business based on the customer need it satisfies, not the product.

Strategic planning

Defining the company’s mission – Setting objectives and goals – Designing a business portfolio – Developing functional plan

Company mission statement

– Market-oriented, realistic, specific – Motivating, consistent with market environment

Steps in business portfolio planning

– Analyze the firm’s current business portfolio – Develop strategies to shape the future portfolio

Growth-Share Matrix

Evaluates a company’s SBUs in terms of market growth rate and relative market shar

Problems with Growth-Share Matri

– Difficult, time consuming, and costly – Difficult to define and measure – Provides little advice for future plannin

Downsizing

Products or business units that are unprofitable or no longer fit the company’s overall strategy

Reasons to abandon products or market

– Rapid growth of the company – Lack of experience in a market – Change in market environment – Decline of a particular produc

Activities for best marketing strategy and mix

– Marketing analysis – Planning, implementation, and control

Market segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing program

Differentiating

the market offering to create superior customer value

Positioning

the product to occupy a clear, distinctive, and desirable place relative to competing products

Market targeting

Evaluating each market segment’s attractiveness and selecting one or more segments to enter

Criticisms of the Four Ps

Omits or underemphasizes service products • Needs to include packaging as a product decision • Buyer’s perspective would emphasize the four A s: – Acceptability – Affordability – Accessibility – Awareness

SWOT Analysis

Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T

Executive summary

Brief summary of the main goals and recommendations

Current marketing situation

Gives the market description and the product, competition, and distribution review

Threats and opportunities analysis

Helps management to anticipate important positive or negative development

Objectives and issues

States and discusses marketing objectives and key issues

Marketing strategy

Outlines the broad marketing logic and the specifics of target markets, positioning, marketing expenditure levels, and strategies for each marketing mix elements

Action programs

Spells out how marketing strategies will be turned into specific action programs

Budgets

Details a supporting marketing budget that is a projected profit-and-loss statement

Controls

Outlines the controls that will be used to monitor progress, allow management to review implementation results, and spot products that are not meeting their goals

Market Implementation

Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives • Addresses the who, where, when, and how of the marketing activities

Marketing Department Organization

-Functional organization • Geographic organization • Product management organization • Market or customer management organization • Combination organization

Marketing Control

-Measuring and evaluating the results of marketing strategies and plans • Operating control ensures that the company achieves its sales, profits, and other goals. • Strategic control involves looking at whether the company’s basic strategies are well matched to its opportunities

Measuring and Managing Marketing Return on Investment (ROI)

Net return from a marketing investment divided by the costs of the marketing investment • Assessment measures – Standard marketing performance measures – Customer-centered measure

Sales

focuses on convincing customers to buy a product or service, often emphasizing short-term goals and transactions

Marketing

involves a strategic approach to understanding customer needs, creating value, and fostering long-term relationships that benefit both the business and the consumer.

Production Orientation:

Emphasizing operational efficiency and product availability to meet customer demand.

Product Orientation:

Focusing on product quality, innovation, and features under the assumption that customers prefer superior products

Selling Orientation

Utilizing aggressive promotional and sales techniques to push products, especially in saturated or competitive markets.

Societal Marketing Orientation

Integrating social and environmental concerns into marketing strategies to ensure long-term benefits for both the organization and society

Marketing Orientation

Adopting a customer-focused strategy by identifying and satisfying customer needs more effectively than competitors.