Strategy involves the planning and the execution of the planning. Strategic planning is a process that plans for the long term. Strategic planning can take place at two levels: Corporate Level – strategic corporate planning Product level – strategic marketing; also known as business unit level; functional level refers to specialized stateless such as finance, research and development, etc. Marketing tends to happen at the functional level where strategies from corporate level are implemented. MR. 100 Marketing I – OPT (CLC) – unit 2.
Strategic Marketing Process – Strategic Corporate Planning Strategic Corporate Planning Steps are taken at the Corporate or top level to develop long-run approaches to corporate survival and growth. Define the corporate Mission -What it is we do, to whom do we do it to, how we do it, and why we do it. Set specific and measurable Goals & Objectives, or targets to be met by my organization. These objectives may include such things as: ; Survival Profit Sales Revenue Market share Social responsibility Shareholder value Customer value Employee welfare
Unit sales Setting Strategic Directions – Assessing the Organization Where are we now? Who are our customers? What do we do well? (Competencies) What do we do better than anybody else? (Competitive Advantage) ;Who are our Competitors? Where do we want to go? The Boston Consulting Group’s Growth Share Matrix – A graphical approach to resource allocation within a multi-segmented corporation. The growth-share matrix analyzes different divisions within a corporation and compares their growth rates and market shares with those of competitors.
Cash Cows are strategic business units (SW) that generate large amounts of cash, they have a large share of a slow-growth market and provide cash to invest in other areas. Stars have a high share of a high growth market but don’t always provide enough cash to support their own growth. They often turn into cash cows. Question Marks are often problem products that require a large infusion of cash Just to maintain their market share. Dogs are Subs that have a low share in a low growth market. They may generate enough cash to keep going but they will probably never come winners.
Generally accepted principle is to drop Subs in this quadrant. Market-product Analysis Nations Product-Market Grid is a model that has been used to determine business growth opportunities. Seize Organizational Opportunities Key opportunities exist in fields where the organization is better than competitors – so called Distinctive Competencies. The organization should attempt to seize opportunities in areas that not only is it better than competitors, but in areas where they will/can retain their advantage – so called Sustainable Competitive Advantages.