Strategic Planning
• The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.

Defining the company mission
Corporate level
Setting company objectives and goals
Designing the business portfolio
Business unit, product, and market level
Planning marketing and other functional strategies

Mission Statement
• A statement of the organization’s purpose— what it wants to accomplish in the larger environment.
• It should be market oriented and defined in terms of satisfying basic customer needs.

• Its mission is not simply to sell ice cream.
• Its mission is to “make people happy around the world by selling the highest quality, most creative ice cream experience with passion,
excellence, and innovation.”

• Its mission is not simply to hold online auctions and trading.
• It aims “to provide a global trading platform where practically anyone can trade practically anything”—with eBay, “shop victoriously!”
• It wants to be a unique Web community in which people can safely shop around, have fun, and get to know each other, for example, by chatting at eBay café.

• Should be meaningful and specific yet motivating
• Should emphasize the company’s strengths in the marketplace
• Should not be stated as making more sales or profits

Company
Amazon.com
L’Oreal
Adidas
Tesco
Product-Oriented
Definition
We sell books, videos, CDs, toys, consumer electronics, hardware, housewares, and other product online.
We make cosmetics.
We sell athletic shoes and apparel.
We run discount stores.
Market-Oriented
Definition
We make the internet buying experience fast, easy, and enjoyable—we’re the place where you can find and discover anything you want to buy online .
We sell lifestyle and selfexpression; success and status, memories, hopes, and dreams.
We strive to be the global leader in the sporting goods industry with sports brands built on a passion for sports and sporting lifestyle.
We deliver low prices everyday and give ordinary folks the chance to buy the same things as rich people.

• Turn company’s mission into detailed supporting objectives for each level of management.

Business portfolio
• The collection of businesses and products that make up the company
• The best business portfolio is the one that best fits the company’s strengths and weaknesses to opportunities in the environment.

1. Analyzing the current business portfolio
Portfolio analysis
• The process by which management evaluates the products and businesses that make up the company
Growth-share matrix
• A portfolio-planning method that evaluates a company’s strategic business units in terms of its market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs.

2. Developing strategies for growth and downsizing
Existing products
Market penetration
Existing market
New market
Market development
New products
Product development
Diversification

• Market penetration: a marketing strategy that tries to increase market share among existing customers
• Market development: a marketing strategy that entails attracting new customers to existing products
• Product development: a marketing strategy that entails the creation of new products for current customers
• Diversification: a strategy of increasing sales by introducing new products into new markets

Present Market
New Market
Present Product
Market penetration:
McDonald’s sells more
Happy Meals with
Disney movie promotions
Market development:
McDonald’s opens restaurants in China
New Product
Product development:
McDonald’s introduces premium salads and
McWater
Diversification:
McDonald’s introduces line of children’s clothing

Value chain
• The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.

Marketers help deliver value to customers:
• Learn what customers need
• Stock the stores’ shelves with the desired products at the unbeatable low prices
• Prepare advertising and merchandising programs
• assist shopper with customer service

Marketers need help from other departments to effectively deliver value to customers:
• Purchasing: skill in developing the needed suppliers and buying from them at low cost
• IT: provide fast and accurate info. About products are selling in each store
• Operations: provide effective low-cost merchandising handling

Value delivery network
• The network made up of the company, suppliers, distributors, and ultimately, customer who partner with each other to improve the performance of the entire system

• Knows the importance of building close relationships with its suppliers
• Puts “achieve supplier satisfaction” as a part of its mission statement

What Toyota Do with Suppliers:
• Learns about their businesses
• Conducts joint improvement activities
• Helps train supplier employees
• Gives daily performance feedback
• Actively seeks out supplier concerns
• Recognizes top performers with annual performance award

Those approaches to suppliers help Toyota:
• Increase the degree of trust, open, honest communication between them
• Improve its own quality
• Reduce costs of production
• Develop new product quickly

Marketing strategy
• The marketing logic by which the business unit hopes to create customer value and achieve profitable customer relationships
• It involves 2 key questions:
– Which customers will we serve ( segmentation and targeting )?
– How will we create value for them ( differentiation and positioning )?

At its core, marketing is all about creating customer value and profitable customer relationships
Then the company designs a marketing program-the 4Ps that delivers the intended value to target consumers

• Market: people or organizations with needs or wants and the ability and willingness to buy
• Market Segment: a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
Market Segmentation: the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
Purpose: to enable the marketer to tailor marketing mixes to meet the needs of one or more specific segments

Market
Segmentation
More precise definition of consumer needs and wants
More accurate marketing objectives
Improve resource allocation
Better marketing result

• Target Market: a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
Targeting broadly
Targeting narrowly
Undifferentiated
(mass) marketing
Differentiated
(segmented) marketing
Concentrated
(niche) marketing
Micro (local or individual) marketing

• Positioning: developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general
• Position: the place of product, brand, or group of products occupies in consumers’ minds relative to competing offerings
• Product differentiation: a positioning strategy that some firms use to distinguish their product from those of competitors

Brand
Tide
Cheer
Bold
Gain
Era
Dash
Oxide
Solo
Dreft
Ivory Snow
Ariel
Positioning
Tough, powerful cleaning
Tough cleaning and color protection
Detergent plus fabric softener
Sunshine scent and odor-removing formula
Stain treatment and stain removal
Value brand
Bleach-boosted formula, whitening
Detergent and fabric softener in liquid form
Outstanding cleaning for baby clothes, safe for tender skin
Fabric and skin safety on baby clothes and fine washables
Tough cleaner, aimed at Hispanic market

Positioning Bases
• Attribute: feature or benefit of product
– Kleenex® Anti-Viral* Tissue
– Kleenex® Anti-Viral* tissues' specially treated middle layer kills cold and flu viruses.
• Price & quality: price as the indication of value
•
•
• Use or application:
•
Kahlua liqueur used advertising to point out 228 ways to consume the product

Positioning Bases
• Product user: personality of type of user
– Imac positions itself as the best
PC for artworks
• Product class: product is positioned against others that provide the same class of benefits.

Positioning Bases
• Competitor: Avis rental car positioning as “no.2” compared to
Hertz and 7up with “the uncola”
• Emotion: focus on how product makes customers feel
– “Just Do It” campaign didn’t tell consumers what “it” was, but most got emotional message of achievement & courage

Marketing Mix
• A unique blend of product, place, promotion, and pricing strategies (often referred to as the four Ps ) designed to produce mutually satisfying exchanges with a target market
Product
Price
Place
Promotion
4Ps 4Cs
Customer Solution
Customer Cost
Convenience
Communication

Marketing Mix
• P roduct strategies: the product includes not only the physical unit but also its package, warranty, after-sale service, brand name, company image, value, and etc.
 Product can be…
 Tangible goods: computers
 Ideas: consultant offered
 Services: medical care
 Products should also offer customer value

Marketing Mix
• P lace strategies: are concerned with making product available when and where customers want them.
 It is a physical distribution which involves all the business activities concerned with storing and transporting raw materials or finished products
 The goal is to make sure products arrive in usable condition at designated places when needed

Marketing Mix
• P romotion strategies: includes advertising, public relations, sales promotion, and personal selling
 Promotion’s role in the marketing mix is to bring about mutually satisfying exchanges with target markets by informing, educating, persuading, and reminding them of the benefits of an organization or a product
 Good promotion strategy can dramatically increase sales, however, not all good strategies guarantee success

Marketing Mix
• P ricing strategies: price is what a buyer must give up to obtain a product
 It is often the most flexible of the 4 marketing mix elements—the quickest element to change
 Price is an important competitive weapon and is very important to the organization because price multiplied by the number of units sold equals to total revenue for the firm