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Marketing Strategic Planning (chapter 2) Marketing Planning: The Basics for Strategy and Tactics Planning: Process of anticipating future events and conditions and of determining the best way to achieve organizational goals Marketing planning: Implementing planning activities devoted to achieving marketing objectives Strategic Planning versus Tactical Planning Strategic planning: Process of determining an organizations primary objectives and adopting courses action that will achieve those objectives Tactical planning: Process that guides the implementation of activities specified in the strategic plan. Strategic Planning versus Tactical Planning Top management Greater proportions of their time engaged in planning Usually focus their planning activities on long-range strategic issues Middle level managers Focus on operational planning; creating and implementing tactical plans Supervisors Developing the specific programs to meet goals in their areas of responsibility Steps in the Marketing Planning Process Defining the Mission of the Organization Mission: the essential purpose that differentiates one company from others The mission statement specifies the organizations overall goals and operational scope and provides general guidelines for future management actions Determine Organizational Objectives An organization lays out its basic objectives, or goals, in its mission statement These objectives in turn guide development of supporting marketing objectives and plans Well-developed objectives should state specific, quantitative intentions along with deadlines for achieving them Assessing Organizational Resources and Evaluating Environmental Risks and Opportunities This step involves a back-and-forth assessment of strengths, risks, and available opportunities. Formulating, Implementing, and Monitoring a Marketing Strategy Marketing strategy: a firms overall program for selecting and satisfying a target market A marketing strategy is aimed at satisfying consumers in the selected target market through a careful balance of the elements of the marketing mix each of which represents a subset of the overall marketing strategy Successful Strategies: Tools and Techniques All planning strategies have the goal of creating a sustainable competitive advantage for a firm. An advantage where other companies cannot provide the same offering or value. Porters Five Forces Model First Mover and Second Mover Strategies First mover strategy: Theory advocating that the company that is first to offer a product in a marketplace will be the long-term market winner. Second mover strategy: Theory that advocates observing closely the innovations of first movers and then introducing new products that improve on the original offering to gain advantage in the marketplace. SWOT is an acronym for strengths, weaknesses, opportunities, and threats A SWOT analysis is a method of studying organizational resources and capabilities to assess the firms strengths and weaknesses and scanning its environment to identify opportunities and threats SWOT Analysis The Strategic Window A limited period with an optimal fit between the key requirements of a market and the particular competencies of a firm HR Block recognizes the strategic window of their business. Elements of a Marketing Strategy Blending the four strategy elements of marketing decision-making to satisfy chosen target markets Product Price Distribution Promotion Target Market Group of people toward whom the firm decides to direct its marketing efforts Marketing Mix Variables Product Strategy What goods or services to offer Customer service Package design Brand names Trademarks Warranties Product Life Cycle Positioning New-product development Marketing Mix Variables Distribution Strategy Planning that ensures that consumers find their products in the proper quantities at the right times and places. Modes of transportation Warehousing Inventory control Order processing Marketing channels Marketing Mix Variables Promotional Strategy Blending together the various elements of promotion to communicate most effectively with the target market Informing, persuading, and influencing a consumers purchase decision. IMC Marketing Mix Variables Pricing Strategy Deals with the methods of setting profitable and justifiable prices The Marketing Environment Competitive Political Legal Economic Technological Social Cultural Methods for Marketing Planning Business Portfolio Analysis Strategic Business Units (SBUs) are key business units within diversified firms A division, product line, or single product may define an SBU Firms redesign their SBUs as market conditions dictate The BCG Matrix Market Share/

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