Ch. 2: Company and Marketing Planning Strategy: Partnering to Build Customer Relationships Marketing Planning
Company-‐wide strategic planning
Strategic Planning: the process of developing and maintaining a strategic fit between the organisation’s goals and capabilities and its changing marketing opportunities.
Steps in strategic planning
Defining a market oriented mission statement Mission Statement: A statement of the organisation’s purpose-‐ what it wants to accomplish in the larger environment.
• What is our business?
• Who is the customer?
• What do consumers value?
• What should our business be?
i.e. Facebook
Product oriented mission statements: we are an online social network.
Market oriented mission statement: we give people the power to share and make the world more open and connected.
Characteristics of a strong mission statement
• Market oriented and based on satisfying customer needs.
• Meaningful and specific, yet motivating.
• Is NOT be stated in sales or profits.
• Emphasises company’s strengths in the marketplace.
Setting company objectives and goals
The marketing organisation needs to turn its mission into detailed supporting objectives for each level of management.
Designing the business portfolio
Business portfolio: the collection of businesses and products that make up that company.
• The best business portfolio is the one that best fits the company’s strengths and weaknesses to opportunities.
• Planning consists of two steps; Analysing the current portfolio, and shape the future portfolio.
Analysing the current business portfolio
Stars: high-‐growth, high-‐share. Often need heavy investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows.
Cash cows: low-‐growth, high-‐share. Established and successful, thus lest investment needed.
Produces a lot of cash that the company uses to pay bills and to support other products that need investment.
Question marks: low-‐share, high-‐growth.
Require a lot of cash to hold their share.
Management needs to decide which to try and build into stars and which to phase out.
Dogs: low-‐growth, low-‐share. Generate enough cash to maintain
themselves but do not promise large sources of cash.
DeOining the company
mission
Setting company objectives and
goals
Designing the businees portfolio
Planning marketing and other functional
strategies
