CHAPTER 2:

STRATEGIC PLANNING
LEARNING OBJECTIVE 1
Explain company-wide strategic planning and its four steps.
 Company-Wide Strategic Planning: Defining Marketing’s Role
 Strategic Planning
 Steps in Strategic Planning
 Defining a Market-Oriented Mission
 Setting Company Objectives and Goals

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COMPANY-WIDE STRATEGIC PLANNING
Strategic planning is the process of developing and maintaining a
strategic fit between the organization’s goals and capabilities, and its
changing marketing opportunities.

Steps of strategic planning

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 COMPANY-WIDE STRATEGIC PLANNING

Defining a Market-Oriented
Mission
• The mission statement is the
organization’s purpose;
what it wants to accomplish
in the larger environment.

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COMPANY-WIDE STRATEGIC PLANNING
Setting Company Objectives and Goals

Business objectives Marketing

objectives
• Build profitable • Increase market
customer share
relationships • Create local
• Invest in research partnerships
• Improve profits • Increase
promotion

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LEARNING OBJECTIVE 2

Discuss how to design business portfolios and

develop growth strategies.
 Designing the Business Portfolio
 Analyzing the Current Business Portfolio
 Growth-share matrix
 Strategies for Growth and Downsizing
 Product/market expansion grid

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DESIGNING THE BUSINESS PORTFOLIO
The business portfolio is the collection of businesses and products that
make up the company.
Portfolio analysis is a major activity in strategic planning whereby
management evaluates the products and businesses that make up the
company.

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DESIGNING THE BUSINESS PORTFOLIO

Strategic business units can be a

a) Company division
b) Product line within a division
c) Single product or brand

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DESIGNING THE BUSINESS PORTFOLIO
Analyzing the current business portfolio

Identify strategic business

units (SBUs)

Assess the attractiveness of

its various SBUs

Decide how much support

each SBU deserves

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DESIGNING THE BUSINESS PORTFOLIO
Analyzing the current business portfolio
Growth-share matrix is a portfolio-planning method that
evaluates a company’s SBUs in terms of market growth
rate and relative market share.

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THE GROWTH SHARE MATRIX
A.K.A. BCG MATRIX
Analyzing the current business portfolio

The Boston
Consulting
Group
Approach

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DESIGNING THE BUSINESS PORTFOLIO
Problems with Matrix Approaches
1. Difficulty in defining SBUs and measuring market share and growth
2. Time consuming
3. Expensive
4. Focus on current businesses, not future planning

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DESIGNING THE BUSINESS PORTFOLIO
Developing Strategies for Growth and Downsizing
Product/market expansion grid looks at new products, existing
products, new markets, and existing markets for company growth
opportunities.

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DESIGNING THE BUSINESS PORTFOLIO
Developing Strategies for Growth and Downsizing

Existing New
products products

Existing
markets

New
markets

FIGURE 2.3 The Product/Market Expansion Grid

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DESIGNING THE BUSINESS PORTFOLIO
Developing Strategies for Growth and Downsizing
Downsizing is when a company must prune, harvest, or divest
businesses that are unprofitable or that no longer fit the
strategy.

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LEARNING OBJECTIVE 3
Explain marketing’s role in strategic planning and how
marketing works with its partners to create and deliver
customer value.
Planning Marketing: Partnering to Build Customer
Relationships
 Partnering with Other Company Departments
 Partnering with Others in the Marketing System

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PLANNING MARKETING: PARTNERING TO
BUILD CUSTOMER RELATIONSHIPS
Partnering with Other Company Departments
Value chain is a 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

Value delivery network is made up of the company, suppliers,
distributors, and ultimately customers who partner with each other to
improve performance of the entire system.

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MARKETING STRATEGY AND THE
MARKETING MIX

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LEARNING OBJECTIVE 4
Describe the elements of a customer value-driven marketing strategy
and mix and the forces that influence it.
• Marketing Strategy and the Marketing Mix
• Customer Value-Driven Marketing Strategy
• Developing an Integrated Marketing Mix

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MARKETING STRATEGY AND THE
MARKETING MIX
Customer Value-Driven Marketing Strategy
Marketing strategy is the marketing logic by which the company hopes
to create customer value and achieve profitable customer
relationships.

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MARKETING STRATEGY AND THE
MARKETING MIX
Customer Value-Driven
Marketing Strategy
Market segmentation is the
division of a market into distinct
groups of buyers who have
different needs, characteristics, or
behaviors and who might require
separate products or marketing
mixes.

Market segment is a group of

consumers who respond in a similar
way to a given set of marketing
efforts.

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MARKETING STRATEGY AND THE
MARKETING MIX
Customer Value-Driven
Marketing Strategy
Market targeting is the process
of evaluating each market
segment’s attractiveness and
selecting one or more segments
to enter.

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MARKETING STRATEGY
AND THE MARKETING MIX
Customer Value-Driven Marketing Strategy
Market positioning is the arranging for a
product to occupy a clear, distinctive, and
desirable place relative to competing
products in the minds of target consumers.
Differentiation begins the positioning
process.

Example: The 100-year-old Del Monte brand

positions itself as “Bursting with Life: Made in
America. Picked and packed at the peak of
ripeness. Same essential ingredients as fresh.”

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MARKETING
STRATEGY AND THE
MARKETING MIX
Developing an
Integrated Marketing
Mix
Marketing mix (the 4P’s) is
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.

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LEARNING OBJECTIVE 5
List the marketing management functions, including the elements of a
marketing plan, and discuss the importance of measuring and
managing marketing return on investment.
-Analysis (SWOT)
-Planning
-Implementation
-Department Organization
-Control
-ROI

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MANAGING THE MARKETING EFFORT
Marketing Analysis

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Executive summary

Marketing situation
MARKET
Threats and opportunities
PLANNING –
Objectives and issues COMPONENTS
Marketing strategy OF A
Action programs MARKETING
Budgets PLAN
Controls

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 MANAGING THE MARKETING EFFORT
Marketing Analysis – SWOT Analysis

Internal

External

Positive Negative

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MARKETING DEPARTMENT ORGANIZATION

Functional

Geographic

Product management

Market

Customer management

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MARKETING CONTROL

01 02 03
Measure Evaluating Taking
results results corrective
action

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MEASURING AND MANAGING
RETURN ON MARKETING INVESTMENT
Return on Marketing Investment (Marketing ROI)
Net return from a marketing investment divided by the costs of the
marketing investment
Measurement of the profits generated by investments in marketing
activities

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