Winning Markets through Marketoriented Strategic Planning
CHAPTER 2
Corporate and division strategic planning
 All corporate headquarter undertake four planning
activities:
1.
2.
3.
4.
Defining the corporate mission
Establishing strategic business units
Assigning resources to each SBU
Assessing growth opportunities
Corporate and division strategic planning Cont...
1- Corporate Mission:
A mission statement is a statement of “the purpose of a company
and organization”. The mission statement should guide the actions
of the organization, spell out its overall goal, provide a sense of
direction, and guide decision-making. It provides "the framework or
context within which the company's strategies are formulated.
2- Strategic Business Unit (SBU):
SBU is understood as a business unit within the overall corporate
identity which is distinguishable from other business because it
serves a defined external market where management can conduct
strategic planning in relation to products and markets.
3- Assigning Resources to Each SBU:
once it has defined SBU’s management must decide how to allocate
corporate resources to each.
Corporate and division strategic planning Cont...
4- Assessing Growth Opportunities:
Assessing growth opportunities includes planning new businesses,
downsizing, and terminating older businesses.
 Growth strategies / Market penetration strategies: Market
penetration occurs when a company enters/penetrates a market with
current products.
 Product development strategies: (existing markets, new
products): McDonalds is always within the fast-food industry, but
frequently markets new burgers.
 Market development strategies: (new markets, existing
products): Lucozade (energy drink) was first marketed for sick
children and then rebranded to target athletes.
 Diversification strategies: (new markets, new products). i.e.
Mitsubishi jumped in fast food industry with KFC in Japan.
The Marketing Plan
 Definition of Marketing Plan :
 Marketing plan is a written document that details the
necessary actions to achieve one or more marketing
objectives. It can be for a product or, a brand, or a product
line. Marketing plans cover between one and five years.
Functions of the Marketing Plan
The central point in planning for marketing decisions is the Marketing
Plan. The plan serves several functions including:
 Forcing marketing personnel to look internally in order to fully
understand the results of past marketing decisions.
 Forcing marketing personnel to look externally in order to fully
understand the market in which they operate.
 Setting future goals and providing direction for future marketing efforts
that everyone within the organization should understand and support.
 Serving as a key component in obtaining funding to pursue new
initiatives.
Contents of a Marketing Plan
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1- Situation analysis-customers/competitors
2- Market opportunity and Issues
3- Marketing strategies and objectives
4- Target markets and Positioning
5- Marketing Mix-4P’s/ Tactical Marketing
Program
6- Setting marketing budget
7- Review and implement
8- Evaluate and Control
9- Contingency Plan
1- Situation Analysis-Customers/Competitors
8
 The situational analysis is designed to take a snapshot of
where things stand at the time the plan is presented.
 Customers Analysis-Collection and evaluation of data
associated with customer needs and market trends through
customer satisfaction measurement and field testing.
 Competitors Analysis- Identify your major competitors-
compare your business with the competitors
(strength/weaknesses)
Situation analysis Model
Situation
analysis
Internal
analysis
Strengths
S
Weaknesses
W
External
analysis
Opportunities
O
Threats
T
1- Situation analysis cont…
 Internal Analysis
 Company culture
 Company image
 Key staff
 Position on the experience curve
 Market share
 Financial resources
1- Situation analysis cont…
 External Analysis
 Customer
 Competitors
 Market trends
 Suppliers
 Economic environment
 Political environment
 Technology
2- Market Opportunity and Issues
12
 Match your strength with the opportunity available
in the market.
 Analyze Critical Issues:
 Do PEST Analysis (Political– Economic- Social-
Technological Analysis)
OR
 Do STEEPLE Analysis (Social, Technological,
Economic, Environmental, Political, Legal, Ethical
Analysis)
3- Marketing strategy and objectives
13
This section consists of three major issues:
 Marketing Strategy
 Financial Objectives
 Marketing Objectives
 Marketing Strategy: Is a process that can allow an
organization to concentrate its limited resources on the greatest
opportunities to increase sales and achieve a sustainable
competitive advantage.
 A marketing strategy should be centered around the key concept
that customer satisfaction is the main goal.
3- Marketing Strategy and objectives cont…
 Determine Financial Objectives
For many organizations the ultimate goal of the marketing plan
is the effect it will have on the bottom line customers.
 Customer sales means that by volume and growth percentage
(To achieve a healthy and continuous growth in profit. )
 by segments Margins, Profitability and Ratios (expenses versus
profit), you can set financial objectives.
3- Marketing Strategy and objectives cont…
 Determine Marketing Objectives
The marketing objectives section will indicate targets to be
achieved across several marketing decision areas.
 Target market objectives
 market share ( for example: To attain a 15% increase in
market shares within the annual and achieve positive
growth in the sales of the PRODUCT )
 Total sale
 Segment sale
4- Target Markets and Positioning
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 Segment your market- divide your market into subgroups-
and target the segment that matched with your capabilities
(Resources)
 Positioning: Is the act of designing the company’s
offering and image to occupy a distinctive place in the
mind of the target market.
 Position your brand in the minds and eyes of consumers
better than your competitors.
5- Marketing Mix-4 P’s/ Tactical Marketing Programs
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 This is the heart of the marketing plan. It contains descriptions of
detailed tactics to be carried out to achieve the objectives and goals
established
 Product- features- design- finishing- packaging- labeling
 Price- check the price of substitute products-value based-cost based
 Place- make the availability of your product possible.
 Intensive distribution-exclusive distribution-selective distribution.
Direct marketing-indirect marketing
 Promotion- advertisement- sales person- position your brand
6- Setting the Marketing Budget
This section should lay out spending requirements necessary for
meeting the plan's objectives
 Outline spending requirements for each tactical marketing
decision
 Breakdown each category. e.g., types of advertising, types of
services offered, marketing research expense, etc.
 Show detailed spending timetable by:
 Month
 Year
 Show spending by:
 Product (if plan is for more than one)
 Segment/Geographic area
 Distribution Network/Channel
7- Review and Implementation
 Marketing implementation: is the process of turning
plans into action describing who does what, when, and
how. Effective implementation requires skills in allocating,
monitoring, organizing, and interacting at all levels of the
marketing effort.
 A brilliant strategic marketing plan counts for little if not
implemented properly.
 Strategy addresses the what, and why of marketing
activities, implementation addresses the who, where, when
and how.
8- Evaluate and control:
 Evaluate and control: check your plan with
regular interval of time, because markets have
altering (changing) behavior.
 Control the plan: spilt your annual plan in
quarters, and check your sales, market share and
growth at the end of each quarter, if it is the same
as it was planned then carry on but if not then
change strategies.
9- Contingency Plan
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 There should be a Plan B (alternative plan) in case
of any natural disasters or any social activity or
rapid technological boost or any other type of
unforeseen situation.
End of Chapter