Strategic Planning

• Strategic planning is the managerial decision process that matches the organization’s resources and capabilities to its market opportunities for long-term growth

• Firms may become multi-product companies with self-contained divisions– Strategic Business Units (SBUs)

– Example: The Walt Disney Company

Management Levels

Strategic Planning at the Corporate Level

• Defining the Organization’s Mission

• Establish Corporate Objectives

• Allocate Resources to the SBUs

Defining the Organization’s Mission

• A mission may begin with these questions:– What business are we in?– What customers should we serve?– How should we develop the firm’s capabilities

and focus its efforts?

The Business Portfolio

• For firms with different SBUs, planning also includes allocating resources among the businesses

• Each SBU is a separate profit center within the larger corporation

• Each SBU is responsible for its own costs, revenues, and profits

BCG Matrix

Evaluating the Environment: SWOT Analysis

Strengths/Weaknesses - internal issues requiring management decisions

Opportunities/Threats – external environmental events

Competitive Advantage

Turn a distinctive competency into a differential benefit

• Differential benefits set products apart from competitors’ products by providing something unique that customers want

Identify what a firm does really well• Distinctive competency - a firm’s capability that is

superior to that of its competitors

Product-Market Growth Matrix

The Marketing Management Process

Marketing Planning

Analyzing the Marketing EnvironmentSetting Marketing ObjectivesDeveloping Marketing Strategies

Developing Marketing Strategies

Selecting a Target MarketDeveloping Marketing Mix Programs

– Product Strategies– Pricing Strategies– Promotion Strategies– Distribution Strategies

Executing the Marketing Plan

Implementing the Marketing PlanThe Marketing BudgetOrganizing the Marketing Function

Controlling the Marketing PlanTrend AnalysisMarketing Research