A. Companywide Strategic Planning
1. Mission
Marketing Strategy
2. Goals and Objectives
3. Strategies /
Business Portfolio
Slide 1
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Ex: Mission Statement (Business Definition)
1. Company Mission
 Serves as a guide for what the organization wants to accomplish:
►
Slide 2
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Company Product-Oriented
Market-Oriented
Revlon
We sell lifestyle and self-expression;
what’s our business? who is our customer? what do customers value?
We make cosmetics
 A good mission statement should be:
►
market-oriented rather than product-oriented -- see next slide 
►
realistic and specific
p
(neither
(
too broad,, nor too narrow))
►
fit the environment, based on company competencies
►
motivating for employees
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success and status; memories, hopes, and dreams
eBay
We hold online auctions
We provide a global marketplace where
practically anyone can trade practically anything.
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Slide 4
2. Goals and Objectives
3. Strategies: (i) Business Portfolio
The best business portfolio is the one that best fits the company’s
 Through
Th
h goals
l and
d objectives,
bj ti
success off a strategy
t t
is
i measured.
d
strengths and weaknesses to the opportunities in the environment.
 Goal vs. objective: objective is quantifiable and time specific.
The company must:
 analyze its current business portfolio or Strategic Business Units (SBU)
SBU’ss should receive more
more, less
less, or no investment
 decide which SBU
 decide which SBU’s to drop
 develop growth strategies -- adding new products / SBUs
MKTG 201 Serdar Sayman
Slide 5
Industry Attractiveness
►
Strength of SBU in the industry / market
 Health
H l h off a portfolio?
f li ?
High
h
 Health of an SBU?
STARS
QUESTION MARKS
• Profit potential
• May need heavy investment
to grow or keep up
• Requires cash to hold
or increase market share
• Build into Stars or phase out
CASH COWS
Low
Boston Consulting Group (BCG), GE/McKinsey are popular models
M
Market Growth Rate
Boston Consulting Group Approach
Industry attractivveness
Analyzing the Business Portfolio
►
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?
DOGS
• Established, successful SBU’s
• Produces cash
• Low profit potential
a balanced mix of SBUs that fund future, high-share, high-profit SBUs
High
Relative Market Share
Low
Strength of SBU in the industry
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Slide 8
A “Healthy” Portfolio?
example cont – SBU size added
Firm A – BCG Chart
Firm A
120%
120%
VAZA
50%
SAND
VAZY
VAZZ
VAZA
50%
VAZC
VAZB
SACK
SAND
VAZX
VAZD
VAZY
VAZZ
VAZC
VAZB
SANA
SACK
SANY
VAZD
VAZX
SANA
SANO
SANY
SANO
SASI
SASI
- 20%
- 20%
High
Relative Market share
Low
High
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A “Sick” Portfolio?
Relative Market share
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Low
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Critiques of the Portfolio Approach
Firm B – BCG Chart
120%
 BCG: too simplistic
More complex approaches exist: difficult, costly, time consuming
50%
 focus is on the current businesses, less useful for future
SOAX
SOLO
SODP
SONG
 may be risky to take immediate decisions / actions
SOAR
SOAP
- 20%
High
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Relative Market share
Low
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Slide 12
3. Strategies: (ii) Growth
B. Marketing Strategy
Companywide Planning & Mission
Product / Market Expansion Grid
Existing
Products
Existing
Markets
New
Markets
1. Market Penetration
2. Market Development
Customer
Analysis
New
Products
Target Market
Strategy
4. Diversification
Slide 13
SWOT Analysis of the Company’s Situation
Company
Analysis
Channel
Analysis
Opportunity
Identification
3. Product Development
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P iti
Positive
Competitor
Analysis
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Marketing Mix
Marketing
Objectives
Implementation &
Evaluation
Slide 14
Target Market Strategy - STP Approach
 Market Segmentation: dividing into distinct groups
N
Negative
i
Internal
Strengths
Weaknesses
External
Opportunities
Threats
of buyers (segments) with different needs
 Market Targeting: evaluating and selecting which
segments to target
 P
iti i
l i product(s)
d ( ) at a di
i i and
d
Positioning:
placing
distinctive
desirable place in the minds of target buyers’
compared to competing products
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Slide 16
The Marketing Mix (4 Ps)
Other Ways…
 Product: what a company offers to a target market.
Customer Competitor Company
Channel
Analysis
Analysis Analysis
F
Features,
benefits,
b fi quality,
li design,
d i packaging,
k i name ...
Figure 2.6
Figure 2.4
ANALYSIS
 Place: (Distribution) Company activities that make the product available to the buyers.
Opportunity
Identification
Channels (wholesalers, distributors, retailers), logistics.
PLANNING
 Price: Amount of money that consumers have to pay to obtain the product.
List prices,
prices discounts,
discounts actual prices...
prices
Target Market Developing Marketing
Strategy Marketing Mix Objectives
 Promotion: (Communication) Activities to persuade target market to buy the product.
Advertising, sales promotion, personal selling, public relations, direct marketing.
Implementation &
Evaluation
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Example:
g Market
Target
 Fashion conscious young people
g Mix
Marketing
 comfortable fit, stylish, worn appearance
 higher priced than mainstream brands
 specialty stores, department stores, high end chains
Positioning
 ads often feature celebrities;
 special collaborations with notable media people
 comfortable and fashionable
(with a Mediterranean feel)
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IMPLEMENTATION
CONTROL
Slide 18