● The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities
Roles of Marketing in Strategic Planning
● Provides a guiding philosophy
● Provides inputs to strategic planners
Partnering with Other Company Departments
Value Chain: Series of Internal departments that carry out value Creating activities. Firm’s success depends on how well departments coordinate their activities! ● IMPORTANT
Marketers should ensure all the departments and customer focused and develop a smooth functioning value chain.
● The most important contribution the marketing department can make is to be….. “Exceptionally clever in getting everyone else in the organization to practice marketing” Leonard L. Berry
Partnering with others in the Marketing system
Companies should access:
● Their internal value chains
● As well as the value chains of their suppliers, distributors, and their customers which is called:
● Internal chain, Value delivery network
Steps in Strategic Planning
1. Defining company mission.
2. Setting company objective and goals.
3. Designing the business portfolio.
4. Planning marketing and other functional strategies.
● Statement of the organization's purpose
● What it wants to accomplish in the larger environment We also discuss several other topics like Identify the four major ocean basins.
● Market oriented and defined in terms of satisfying basic customer needs ● Emphasized the company strengths.
● Focuses on customers and the customer experience the company seeks to create. ● The mission should be converted to supporting objectives at each level of management. Business Portfolio
● Collection of businesses and products that makeup the company.
Steps in business portfolio planning:
● Analyze the firm’s current business portfolio
● Develop growth strategies and downsizing to shape the future portfolio.
● Identifying the strategic business units (SBUs)
● Assessing SBU attractiveness
● The purpose is to direct resources toward more profitable businesses while phasing out or dropping weaker ones.
● Reduces the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy If you want to learn more check out What technique is invasive?
Reasons for downsizing:
Product/ Market Expansion Grid
Existing Markets Existing products New Products
Diversification (Most Expensive)
● Marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
● Marketing mix: Integration of product, place, price, and promotion
Activities for best marketing strategy and mix involve:
● Marketing analysis, planning, implementation, and control (4 steps)
2 Key questions
1. Which customers will we serve?
Segmentation and targeting If you want to learn more check out What principle requires that expenses be recorded at the same time as the revenue it helped generate?
2. How will we create value for them?
Differentiation and positioning
Market Segmentation and Market targeting
● Market segmentation Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing problems.
● Market segment Group of consumers who respond in a similar way to a given set of marketing efforts.
● Market targeting Evaluating each market segment’s attractiveness
● Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumer. If you want to learn more check out What is the difference between the north atlantic slave trade and african slavery?
● Differentiation: Differentiating the market offering to create superior customer value ● The entire marketing program should support the chosen positioning strategy. SWOT Analysis: Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T)
Internal Positive Negative
Strengths Internal capabilities that may help a company reach its objectives
Weaknesses Internal limitations that may interfere with a company’s ability to achieve its objectives
Opportunities External factors that the company may be able to exploit to its advantage.
Threats Current and emerging external factors that may challenge the company’s performance.
We also discuss several other topics like What are the three main kinds of neurons that carry information?
If you want to learn more check out How does the hydrophobic effect work?
Contents of a Marketing Plan
● Turning marketing strategies and plans into marketing actions to accomplish strategic