Companywide Strategic Planning: Defining Marketing's Role
Strategic Planning
The process of developing and maintaining a strategic fit between the organization's goal, and
capabilities and its changing marketing opportunities.
Mission Statement
A statement of the organization's purpose - what it wants to accomplish in the larger
environment.
It should not be product or technology oriented, rather it should be market oriented and
defined in terms of satisfying basic customer needs.
Mission statement should be meaningful and specific yet motivating.
Mission statement should make the workers feel that their work is significant and that it
contributes to people's lives.
Setting Company Objectives and Goals
Smart Goal Setting
Designing the Business Portfolio
Business Portfolio: The collection of businesses and products that make up the company.
1. Analyzing the current business portfolio.
2. Developing strategies for growth and downsizing.
Analyzing the current business portfolio
Portfolio analysis: The process by which management evaluates the products and businesses
that make up the company.
Strategic Business Unit (SBU)
Growth-Share Matrix or BCG Matrix
Chapter 2; Copyright: Mohammed Sohel Islam
Developing Strategies for Growth and Downsizing
Product/Market Expansion Grid: A portfolio tool or device for identifying company growth
opportunities through market penetration, market development, product development and
diversification.
Market Penetration
A strategy for company growth by increasing sales of current products to current market
segments without changing the product.
Growth through marketing mix improvements.
Market Development
A strategy for company growth by identifying and developing new market segments for current
company products.
New geographical market.
Product Development
A strategy for company growth by offering modified or new products to current market
segments.
Diversification
A strategy for company growth through starting up or acquiring businesses outside the
company's current products and markets.
Downsizing: Reducing the business portfolio by eliminating products of business units that are
not profitable or that no longer fit the company's overall strategy.
Reasons for Downsizing
Market environment might change, making some products or markets less profitable.
The firm may have grown too fast or entered areas where it lacks experience.
Company introduces new products without superior customer value.
Some products or business units simply age and die.
Planning Marketing: Partnering to Build Customer Relationships
Value Chain
The series of departments that carry out value-creating activities to design, produce, market,
deliver and support a firm's products.
Partnering with others in the marketing system.
Chapter 2; Copyright: Mohammed Sohel Islam
The network made up of the company, supplier, distributors and ultimately customers who
partner with each other to improve the performance of the entire system.
Value Delivery Network
Marketing Strategy and Marketing Mix
The marketing logic by which the business unit hopes to create customer value and achieve
profitable customer relationships.
Customer-Driven Marketing Strategy
Developing an Integrated Marketing Mix
Customer-Driven Marketing Strategy
Each company must divide up the total market (market segmentation), choose the best
segment (market targeting) and design strategies (differentiation, positioning) for profitably
serving chosen segments.
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
programs.
Market Segment: A group of consumers who respond in a similar way to a given set of
marketing efforts.
Market Targeting: The process of evaluating each market segment's attractiveness and
selecting one or more segments to enter.
Positioning: Arranging for a product to occupy a clear, distinctive and desirable place relative to
competing products in the minds of target consumers.
Differentiation: Actually differentiating the market offering to create superior customer value.
Developing an Integrated Marketing Mix
Marketing Mix
The set of controllable tactical marketing tools - product, price, place and promotion- that the
firm blends to produce the response it wants in the target market.
SWOT
Marketing Plan
Chapter 2; Copyright: Mohammed Sohel Islam
