Chapter 6

UNIT 6: COMPANY – WIDE STRATEGIC PLANNING
OBJECTIVES
Øunderstand and use concepts related to planning a marketing strategy in
English and Vietnamese
Øunderstand and use tools to evaluate business operations, as well as the
stages in developing, implementing and evaluating marketing activities
Øuse these concepts in comprehensive reading and presenting relevant
content in both English and Vietnamese
CONTENTS
• Strategic planning
• Design business portfolio
• Marketing planning
• Competitive marketing strategies
Discuss
1. What is the difference between strategy and tactics?
2. What are some examples of strategy and tactics in real life?

1. WHERE ARE WE NOW? 2. WHERE DO WE WANT TO BE?
Environmental & Internal Analysis: Strategic Marketing Decisions,

Market Information & Intelligence Choices & Mistakes
4. DID WE GET THERE? 3. HOW WILL WE GET THERE?
Strategy Implementation, Control Marketing Strategies

& Metrics
STRATEGIC PLANNING - ROLEX
Watches
Unique and timeless
Sentiment of achievement and
belonging to an exclusive club
Value Product- watches
New-to-the-world
A reward of success proposition wise products (waterproof –
Wealthy, exciting, attractive, 1926)
active exclusive network of
Premium price limited number of
NO discount or sales
Pricing Place fine jewelry stores
Upmarket publications
(Financial Times, Vogue),
Promotion Customer Facebook, Twitter,
sponsorship (golf, yachting), relationship Youtube
testimomials
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
I. Strategic Planning
The process of developing and maintaining a strategic fit between the
organization’s goals and capabilities and its changing marketing
opportunities
STRATEGIC PLANNING: MC DONALDS
Marketing & other
Company
Company mission Business portfolio functional
objectives & goals
strategies
q Acquire franchisors
q Make food fast q Extra Value Meal q Decorate stores
available q Burger q Add new menu
Be customers’ favorite
q Provide very low q Fried chicken items
place and way to eat
competitive price q Beverage q Improve food quality
and drink
q Expand the business q Dessert q Train employees
worldwide q Happy Meal q Enhance marketing
effectiveness
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
PORTER’S GENERIC STRATEGIES
low cost producer unique in the industry

economies of scale Value proposition for customer
proprietary technology
access to raw materials
seeks cost advantage in seeks differentiation in

its target segment its target segment
YOUR TURN
Choose a market.
Categorize competing companies within that market
into 3 different groups, based on their competitive
advantages.
II. DESIGNING STRATEGIC PLANNING
Ø Business portfolio
The collection of businesses and products that:
• make up the company
• best fits the company’s strengths and
weaknesses to opportunities in the
environment
Ø SBUs: Strategic business units
• a unit of the company that has a separate mission
and objectives that can be planned separately
from other company businesses
• An SBU can be a company division, a product line
within a division, or sometimes a single product or
brand
GROWTH-SHARE MATRIX
A portfolio planning
method that evaluates a
company’s SBUs in
terms of its market
growth rate and
relative market share
Clive: My fast-food division is the only one that is making any real profits – over $500m last year.
It’s clearly obvious that we need to reinvest in THIS business. Let’s expand and grow the profits. As
usual, we’re facing significant challenges from new competitors, so we really need the
investment.
Kristi: That’s fine, but you’ve got limited growth potential. OK, we’re not making much money
now, but this market is too big to not pursue it properly. So, we need the $250m to help catch up
to the leaders, as they’ve got a big start. That way we can generate potential huge future profits.
Therese: Kristi, you’re too far behind the market leaders. I don’t see the sense in throwing money
into something where we will probably end up in a weak position anyway. Whereas our branding
marketing consulting business is growing really well.
We’re consulting throughout the world and are considered to be one of the market leaders with
our innovative practices. Sure, we’ve got lots of infrastructure costs, but this is going to be a
future goldmine. We’ll make more than the fast-food chain in five years’ time.
Jamie: We’re in a tough market that’s pretty flat at the moment. I know we only make a few
million dollars a year, which is small time for the rest of you. But it’s a big market, and we could
use the investment to somehow improve our position.”
Discussion Questions
1.How would you classify each of AHI’s business portfolios using the BCG matrix?
2.How would you allocate the $250m investment across the SBUs?
YOUR TURN
Conduct a BCG analysis of APPLE VS.

Samsung
ANSOFF’S PRODUCT/MARKET EXPANSION MATRIX
- involve
- Offer extensive R & D
introductory prices - expand product
- analyze and
- Increase their range
plan their promotion &
strategies for distribution efforts
growth
- market new or
existing products
in new or
existing markets.
enters a new
Offer roughly the
market with a new
same products to a
product
new demographic
YOUR TURN
Choose a market.
Discuss different ways that a company can increase sales within
it.
III. MARKETING PLANNING
YOUR TURN
1. Choose a company.
2. Suppose that there is a change in the external environment or the

market to the company (eg. a COVID-19 pandemic or else)
3. Propose a contingency plan with changes that can help the company
deal with the situation.
YOUR TURN
1. Choose an industry.
2. Identify the market leaders, market challengers, market followers

and market nichers in this industry.

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UNIT 6: COMPANY – WIDE STRATEGIC PLANNING

2. What are some examples of strategy and tactics in real life?

Environmental & Internal Analysis: Strategic Marketing Decisions,

4. DID WE GET THERE? 3. HOW WILL WE GET THERE?

Strategy Implementation, Control Marketing Strategies

low cost producer unique in the industry

seeks cost advantage in seeks differentiation in

Conduct a BCG analysis of APPLE VS.

2. Suppose that there is a change in the external environment or the

2. Identify the market leaders, market challengers, market followers

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