Developing and Enacting

Strategic Marketing Plans

Chapter 3
 Chapter Objectives
To define strategic planning and consider its importance for
marketing
To describe the total quality approach to strategic planning and
show its relevance to marketing
To look at the different kinds of strategic plans and the
relationships between marketing and the other functional
areas in an organization
To describe thoroughly each of the steps in the strategic
planning process; defining organizational mission,
establishing strategic business units, setting marketing
objectives, performing situation analysis, developing
marketing strategy, implementing tactics, and monitoring
results
To show how a strategic plan may be devised and applied
Copyright Atomic Dog Publishing, 2002
Strategic Planning is Critical
 A strategic business plan describes the overall
direction an organization will pursue within its
environment and also guides the allocation of
resources. It provides the logic that integrates the
perspectives of functional departments and operating
units, and points them all in the same direction.
 A strategic marketing plan outlines the actions
necessary, who is responsible, when and where they
will be completed, and how they will be coordinated.
A marketing plan is carried out within the context of a
firm’s broader strategic business plan.

Copyright Atomic Dog Publishing, 2002

 A Total Quality Approach

This is a process- and out-put related

philosophy, striving to satisfy customers
effectively. It always:
 Seeks to satisfy customers
 Has a top management commitment

 Emphasizes continuous improvement

 Requires support from employees, suppliers, and

distribution intermediaries
Copyright Atomic Dog Publishing, 2002
 The Strategic Planning Process
3.
2.
Setting
Establishing
Marketing
SBUs
1. Objectives 4.
Defining Performing
Organizational Situation
Mission Analysis

5.
7. Developing
Monitoring 6. Marketing
Results Implementing Strategy
Tactical
Plans
Feedback

Copyright Atomic Dog Publishing, 2002

Step One in the
Strategic Planning Process
Defining the organizational mission
refers to a long-term commitment to a
type of business and a place in the
1.1.Defining
Define market. It “describes the scope of the firm
Organizational
Organizational and its dominant emphasis and values,”
Mission
Mission
based on a firm’s history, current
management preferences, resources,
and distinctive competence, and on
environmental factors.

Copyright Atomic Dog Publishing, 2002

 Step Two in the
Strategic Planning Process

Each of a firm’s Strategic Business

Units (SBU ) has six attributes:
• A specific target market
2.
Establishing • Its own senior marketing executive
SBUs
• Control over its resources
• Its own marketing strategy
• Clear-cut competition
• Distinct differential advantages
Copyright Atomic Dog Publishing, 2002
 Step Three in the
Strategic Planning Process
Marketing objectives establish the firm’s
goals for each SBU. Objectives are
3.
Setting
described in both quantitative terms
Marketing (dollar sales, percentage profit growth,
Objectives
and market share), and qualitative terms
(image, level of innovativeness, and
industry leadership role).
Without clearly identified objectives, firms
often fail.

Copyright Atomic Dog Publishing, 2002

 Step Four in the
Strategic Planning Process
The situation analysis is known as
SWOT Analysis

4.
• Internal factors include:
Performing • Strengths
Situation
Analysis • Weaknesses
• External factors include:
• Opportunities
• Threats
The SWOT analysis is a continuous
review of a firm’s market position.
Copyright Atomic Dog Publishing, 2002
 Step Five in the
Strategic Planning Process
A marketing strategy outlines the way in
which the marketing mix is used to attract
5. and satisfy the target market.
Developing
Marketing
Strategy
A separate strategy is necessary for each
SBU.
Four strategic planning approaches are:
• Product/Market Opportunity Matrix
• Boston Consulting Group Matrix
• General Electric Business Screen
• Porter Generic Strategy Model
Copyright Atomic Dog Publishing, 2002
 Product/Market Opportunity Matrix (1)
Market

Present New

Market Market
Present Penetration Development
Strategy Strategy
Product
Product
Development Diversification
New Strategy Strategy

Copyright Atomic Dog Publishing, 2002

 Product/Market Opportunity Matrix (2)
Market
Present New

Expand sales of present Seek greater sales of

Present products in current present products from
market by pricing, new markets or new
promotion, and uses
distribution strategies
Product
Develop new or Develop new
modified products products aimed
to appeal to at new markets
New present market

Copyright Atomic Dog Publishing, 2002

Boston Consulting Group Matrix (1)
Relative Market Share
H L

Intensify
Marketing
Intensify
Marketing
?
H Efforts to Efforts
Increase or Leave
Share Market
Industry
Growth
Rate Use Profits to Reduce Efforts
Aid Growing SBUs, or Divest
Maintain Position
L

Copyright Atomic Dog Publishing, 2002

 General Electric Business Screen
Industry Attractiveness
High Medium Low
Company Business Strengths

Invest/
Grow
High Strategy

Selectivity/
Earnings
Medium Strategy

Harvest/
Low Divest
Strategy

Copyright
Copyright Atomic
Atomic Dog
Dog Publishing,
Publishing, 2001
2002
 The Porter Generic Strategy Model
Competitive Advantage
Lower Cost Differentiation

Cost
Leadership Differentiation
Broad Target
Strategy Strategy

Competitive
Scope
Cost Differentiation
Narrow Target Focus Focus
Strategy Strategy

Copyright Atomic Dog Publishing, 2002

 Step Six in the
Strategic Planning Process

A tactical plan specifies the short-run

actions (tactics) that a firm undertakes
6.
Implementing in implementing a given marketing
Tactical Plans strategy. It has three basic elements:
• Specific Tasks
• Time Frame
• Resource Allocation

Copyright Atomic Dog Publishing, 2002

 Step Seven in the
Strategic Planning Process

Monitoring results compares the actual

performance of a firm, SBU, or product against the
7. planned performance for a specified period.
Monitoring
Results Successful companies often employ the following
strategies to assure success:
• Continuous monitoring of performance
• Regular use of proper strategy adjustments
• Maintenance of a customer-oriented focus
• Stressing positive written and oral communication
among employees and channel members.

Copyright Atomic Dog Publishing, 2002