Strategic planning

Strategic planning

1. The process of developing and maintaining a strategic fit between the organization's goals and capabilities an its changing marketing opportunities.

   • It relies on definig a clear company mission, setting supporting company objetives

2. It involves defining a clear company mision setting supporting objetives, desiging a sound business portfolio, and coordinating functional strategies.

3. "If you fail to plan, you are planning to fail."

4. Occurs at the business unit, product, and market levels.

5. Company´s business and mission.

   • At first, it has a clear mission, but as the organization grows, it may become unclear.
   • mission statement
     • A statement of the organization's purpose - what it wants to accomplish inthe larger enviroment.
     • Traditionally companies have defined their businesses in product terms or in technological terms. But missions should be market oriented, products and technologies eventually become outdated, but basic market needs may last forever
     • - Managment should avoid making its mission too narrow or to broad. Mission should be realistic and specific. - We are commited to serving the quality of life of cultures and communities. - Such generic statemnt sound good but provide little real guiadance or inspiration. - Missions shoud fit the marlet enviroment. - Mission statement should be motivating.
   • objectives and goals
     • The company's mission needs o be turned into detailed supporting objetives for each leave of managment.
     • The goal is like the pre-phase of the objective
     • The objetive should be as specific as possible.

6. Designing the business portfolio

   • Business porfolio: The collection of businesses and productshat make up the company.
   • The company must: (1) analyze its current business portfolio, and decide which businesses should receive more or less invesment. (2) Develop growth strategies for adding new businesses to the portfolio.
   • Portfolio analysis: a tool by which managment identifies and evaluates the various businesses making up the company
     • The company will want to put strong resouces into its more porfitable businesses and phase down or drop its weaker ones
   • first sep is to ientify the key businesses making up the company, these can be called the strategic business units (SBU). The next step in business portfolio analysis calls for managment to assess the attractiveness of its various SBUs and decide how much support it deserves.
     • SBU: a unit of the company that has a separat mission and objetives ad that can be planned independently from other company businesses.
       • A company classifies all its SBUs according to the growth-share matrix
         • Growth-share matrix: a portfolio-planning method that evaluates a company's strategic bisiness units in termes of their market growth rate and relative market share. SBUs are classified as stars, cash cows, questions marks, or dogs.
           • On the vertical axis, a measure of market attrativeness. On the horizontal axis, a measure of company strenght in the market.
           • Stars: high-growth, high-share businesses. Cash cows: low-growth, high-share businesses. Question marks: low-share, high-growth markets. Dogs: low-growth, low-share businesses.
   • Developing growth strategies in the age of connectedness
     • Marketing must identify, evaluate, and select market opportunities and lay down strategies to capturing them. One useful device fot that is the product/market expnsion grid.
       • Product/market expansion grid: a potfolio tool for identifying company growth opportunities through msket penetration, market development, or diversification.
         • Market penetration: a strategy for company growth by increasing sales of current products to curent markt segments without changing the product.
         • market development: a strategy for company growth by idenifying and devloping new market segments for current company products
         • Product development: a trategy for company growth by offering moified or new prducts to curentmarket segments.
         • Diversification: a trategy for company growth through sartng up or acquiring businsses outside the company's current products and markets

7. Marketing strategy and the marketing mix

   • Marketing strategy: the marketing logic by which the cmpany hopes to create customer value and achieve profitable customer relationships
   • The company decides which customrs it will serve and how. It identifies the total market and then divided it in segments, select the mos promising ones, and focuses on them.
   • Companies uses the four Ps (product, price, place, and promotion) to find the est marketing mix.
   • Customer-driven marketing strategy
     • Companies cant profitable serve all consumers, so they divide the market, and t desing strategies for profitable serving chosen segments. This process involves:
       • Market segmentation: dividing a market into distinct groups f buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs.
       • Market targeting: the process of evaluating each market segment's attractienes and selecting one or more segments to enter.
       • Market positioning: arranging for a product to occupy a clear, distinctive, and desirable lace relative to competing products in the minds of target customers