Partnering to Build
Customer Relationships

MARKETING
OPPORTUNITIES
ORGANIZATIONAL
CAPABILITIES AND
GOALS

Strategic Planning
 “The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.”
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Steps in the
Strategic Planning Process
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A mission statement asks..
 What is our business?
 Who is the customer?
 What do consumers value?
 What should our business be?
A mission statement should be:
 An “invisible hand”
 Neither too narrow nor too broad
 Fitting of market environment
 Based on distinctive competencies
 Motivating
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“We help you organize the world’s information and make it universally accessible and useful.”

“We create fantasies— a place where dreams come true and
America still works the way it’s supposed to”

Strategic Planning
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Business portfolio:
“the collection of businesses and products that make up the company.”

Strategic Planning
 Designing the business portfolio is a key step in the strategic planning process.
 The best portfolio is the one that best fits the company’s strengths and weaknesses to opportunities in the environment.
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The Business Portfolio
Business portfolio planning involves two steps:
1.
Analyzing the current business portfolio
2.
Shaping the future portfolio by developing strategies
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Strategic Planning
Step 1:
Analyze the current business portfolio
Step 2:
Shape the future business portfolio
Identify strategic business units (SBUs)
Assess each SBU:
 The BCG growthshare matrix classifies SBUs into one of four categories using:
 Market growth rate

The SBU’s relative market share within the market.
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SBUs
A strategic business unit (SBU) is a unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses.
Portfolio analysis calls for management to assess the attractiveness of its various SBUs and decide how much support each deserves.
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$
HIGH
Relative Market Share
LOW

Growth-Share Matrix
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Analyzing Current SBU’s:
GE’s Strategic Business-Planning Grid
High
Medium
Low
Strong
Business Strength
Average
A
B
Weak
C
D
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 Build
 Increase market share
 Works well for question marks
 Hold
 Preserve market share
 Good for cash cow
 Harvest
 Increases shortterm cash flow
 Good for weak cash cows, question marks and dogs
 Divest
 Sell or liquidate
 Good for dogs and question marks
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Strategic Planning
Step 1:
Analyze the current business portfolio
Step 2:
Shape the future business portfolio
Determine the future role of each SBU and choose the appropriate resource allocation strategy:
 Build
 Hold
 Harvest
 Divest
SBUs change positions over time
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Strategic
Planning

Product / Market
Expansion Grid
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The Marketing Process
Analyzing marketing opportunities
Selecting target markets
Developing the marketing mix
Managing the marketing effort
The strategic planning and business portfolio analysis processes help to identify and evaluate marketing opportunities.
The purpose of the marketing process is to help the firm plan how to capitalize on these opportunities.
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The Marketing Process
Analyzing marketing opportunities
Selecting target markets
Developing the marketing mix
Managing the marketing effort
The segmentation process divides the total market into market segments.
Target marketing chooses which segment(s) are pursued.
Market positioning for the product is then determined.
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Marketing Strategy
Strategy
1.
2.
3.
Market
Segmentation
Target marketing
Market
Positioning
 Customers grouped by:
 Geographic
 Demographic
 Psychographic
 Behavioral
 Market segment is a groups of consumers who respond in similar ways to marketing efforts.
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Marketing Strategy
Strategy
1.
2.
3.
Market
Segmentation
Target marketing
Market
Positioning
 Evaluation of each segment’s attractiveness
 Selection of segments with greatest long-term profitability
 A company can choose one or several segments to target
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Marketing Strategy
Strategy
1.
2.
3.
Market
Segmentation
Target marketing
Market
Positioning
 The place the product occupies in the consumer’s mind
 Products are positioned relative to competing products
 Marketers look for clear, distinctive and desirable place in positioning
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The Marketing Process
Analyzing marketing opportunities
Selecting target markets
Developing the marketing mix
Managing the marketing effort
Competitor analysis guides competitive marketing strategy development.
Strategy leads to tactics via the marketing mix:
 The “Four Ps” – product, price, place, promotion
(seller viewpoint)
 The “Four Cs” – customer solution, cost, convenience, and communication
(customer viewpoint)
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Marketing Mix
The marketing mix includes controllable and tactical marketing tools knows as the
4P’s
The 4P’s include
 Product
 Place
 Promotion
 Price
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The Marketing Mix
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The Marketing Process
Analyzing marketing opportunities
Selecting target markets
Developing the marketing mix
Managing the marketing effort
Marketing analysis
 Provides information helpful in planning, implementation, and control
Marketing planning
 Strategies and tactics
Marketing implementation
 Turns plans into action
Marketing control
 Operating control
 Strategic control
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Managing the
Marketing Effort
Marketing Functions
•
•
•
•
Analysis
Planning
Implementation
Control
 Finding opportunities
 Avoiding threats
 Understanding strengths
 Analyzing weaknesses
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Strengths S
Opportunities O
POSITIVE
Weaknesses W
Threats T
NEGATIVE

Managing the
Marketing Effort
Marketing Functions
•
•
•
•
Analysis
Planning
Implementation
Control
 Marketing plans include:
 Executive summary
 Analysis of current situation
 Objectives
 Targets and positioning
 Marketing mix
 Budget
 Controls
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Managing the
Marketing Effort
Marketing Functions
•
•
•
•
Analysis
Planning
Implementation
Control
 Plans are turned into action with day-to-day activities
 Good implementation is a challenge
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Managing the
Marketing Effort
Marketing Functions
•
•
•
•
Analysis
Planning
Implementation
Control
 Evaluation of the results of marketing strategies
 Checks for differences between goals and performance
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Managing the
Marketing Effort
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The Marketing Process
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