Chapter 2: Strategic Planning and the Marketing Process
Objectives and Summary
Strategic planning sets the stage for the rest of the planning in the firm. Marketing contributes to strategic planning, and the overall plan defines marketing's role in the company. Although formal planning offers a variety of benefits to companies, not all companies use it or use it well. Many discussions of strategic planning focus on large corporations. However, small business also can benefit greatly from sound strategic planning.
1. The strategic planning process and the four steps of strategic planning.
Strategic planning is defined as the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.
The four steps in the strategic planning process include:
2. Comparing and contrasting the BCG and GE portfolio matrix models and their limitations.
The Boston Consulting Group (BCG) consists of Stars (high-growth, high-share), Cows (low-growth, high-share), Questions Marks (low-share, high-growth), and Dogs (low-share, low-growth). A company's strategy can be to build, hold, harvest, or divest. The General Electric (GE) Planning Grid consists of two dimensions - one representing industry attractiveness and one representing business strength. Dimensions are an index rather than a single measure. BCG may rely too much on market-share growth while the GE Grid may rely too much on formal planning.
3. The marketing management process and the forces that influence it.
The marketing management process involves helping each business unit of the company reach its strategic objectives, in relation to creating value for target consumers while fulfilling company goals. Factors influencing the process are target consumers (central), marketing mix decisions, planning, implementation, analysis and control procedures, and micro- and macroenvironmental forces.
4. The sections of the marketing plan, their strategic function and what each section contains.
Marketing plans should have eight sections. The executive summary provides a brief overview of key points. Current marketing situation presents relevant background. Threats and opportunities identifies factors affecting the product. Objectives and issues defines share, profit, and sales goals. Marketing strategy presents the broad approach. Action programs specify how to proceed. Budgets give P/L estimates. Controls measure plan progress.
5. The marketing implementation process and how companies implement, organize, and control their marketing efforts.
Marketing implementation turns strategies and plans into marketing actions that address who, where, when and how. It fits with the company culture and it requires an action program, an organization structure, decision and reward systems, and human resources planning. Controls must provide objective feedback measures for all these areas.
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