Mkt Stg Plan

Market-Oriented Strategic Planning: 

Market-Oriented Strategic Planning INSTITUTE OF COMPUTERS & BUSINESS MANAGEMENT

Objectives: 

12/5/2011 3- 2 Objectives Corporate and division strategic planing Business unit planning The marketing process Product level planning The marketing plan

Market-Oriented Strategic Planning: 

12/5/2011 3- 3 Objectives Skills Resources Opportunities Market-Oriented Strategic Planning

Market-Oriented Strategic Planning: 

12/5/2011 3- 4 Objectives Skills Resources Opportunities Profit and Growth Market-Oriented Strategic Planning

Corporate Headquarters Planning: 

12/5/2011 3- 5 Corporate Headquarters Planning Define the corporate mission Establish strategic business units (SBUs) Assign resources to SBUs Plan new businesses, downsize older ones

Strategic Planning, Implementation, & Control Process: 

12/5/2011 3- 6 Measuring results Diagnosing results Taking corrective action Implementation Planning Corporate planning Division planning Business planning Product planning Organizing Implementing Control Strategic Planning, Implementation, & Control Process

Good Mission Statements: 

12/5/2011 3- 7 Limited number of goals Stress major policies & values Define competitive scopes Good Mission Statements

Boston Consulting Group’s Growth-Share Matrix: 

12/5/2011 3- 8 3 ? Question marks ? ? ? 2 1 Cash cow 6 Dogs 8 7 10x 4x 2x 1.5x 1x Relative Market Share .5x .4x .3x .2x .1x Stars 5 4 Boston Consulting Group’s Growth-Share Matrix 20%- 18%- 16%- 14%- 12%- 10%- 8%- 6%- 4%- 2%- 0 Market Growth Rate

Market Attractiveness: Competitive Position Portfolio Classification: 

12/5/2011 3- 9 Market Attractiveness: Competitive Position Portfolio Classification MARKET ATTRACTIVENESS 5.00 3.67 2.33 1.00 Low Medium High Relief valve Flexible diaphragms Fuel pumps Aerospace fittings Clutches Hydraulic pumps Joints Strong Medium Weak BUSINESS STRENGTH 1.00 2.33 3.67 5.00 Invest/grow Selectivity/earnings Harvest/divest

The Strategic-Planning Gap: 

12/5/2011 3- 10 Sales 10 5 0 Time (years ) Desired sales Integrative growth Intensive growth Current portfolio Strategic- planning gap Diversification growth The Strategic-Planning Gap

Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid: 

12/5/2011 3- 11 4. Diversification 2. Market development New markets 1. Market penetration Existing markets Existing products 3. Product development New products Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid

Opportunity Matrix: 

12/5/2011 3- 12 1 4 2 3 High Low High Low Attractiveness Success Probability Opportunities Opportunity Matrix 1. Company develops a more powerful lighting system 2. Company develops a device for measuring the energy efficiency of any lighting system 3. Company develops a device for measuring illumination level 4. Company develops a software program to teach lighting fundamentals to TV studio personnel

Threat Matrix: 

12/5/2011 3- 13 Threat Matrix 1. Competitor develops a superior lighting system 2. Major prolonged economic depression 3. Higher costs 4. Legislation to reduce number of TV studio licenses 1 4 2 3 High Low High Low Seriousness Probability of Occurrence Threats

The McKinsey 7-S Framework: 

12/5/2011 3- 14 Skills Shared values Staff Style Strategy Structure Systems The McKinsey 7-S Framework

The Value-Delivery Process: 

12/5/2011 3- 15 Sell the product Make the product Procure Design product Make Price Sell Advertise/ promote Distribute Service (a) Traditional physical process sequence (b) Value creation & delivery sequence Choose the Value Provide the Value Communicate the Value Strategic marketing Tactical marketing The Value-Delivery Process

The Marketing Plan: 

12/5/2011 3- 16 Executive Summary & Table of Contents Current Marketing Situation Opportunity & Issue Analysis Objectives Marketing Strategy Action Programs Projected Profit-and-loss Controls The Marketing Plan