1. MARKETING STRATEGY
AND PLANNING
UNIT - III

2. CORPORATE STRATEGIC PLANNING:
All co-operate head quarters undertake 4 planning
activities:
I.
II.
III.
IV.
Defining the corporate mission
Establishing strategic business units [SBU’S]
Assigning resources to each SBU
Planning new business & down sizing older
business

3. I. Defining the corporate mission:
1.
2.
3.
•
•
•
•
•
•
Mission statements are at their best when they are
guided by a vision and almost impossible dream.
Good mission statements have 3 major
characteristics:
Should focus on a limited number of goods.
Stress the major policies & values that the company
wants to honor.
They define major competitive scopes within which
the company will operate
Industry scope
Product & applications scope
Market segment scope
Competence scope
Vertical scope
Geographical scope

4. II. Establishing strategic business units [ SBU’S]:
Establish customer satisfying not good producing
process. A business can be defined in terms of 3
dimensions:
1. Customer groups
2. Customer needs
3. Technology
A SBU has 3 features:
•
•
•
It is a single business or collection of related business
that can be planned separately from the rest of the
company.
It has its own set of competitors
It has a manager who is responsible for strategic
planning & profit performance.

5. III. Assigning resources to each SBU:
We call this model as business portfolio evaluation
models.
 BCG Model [ Boston consultancy group model]
 GE Model [ General electric model ]
 Growth – share matrix
BCG Model:
*****
high
STARS
{ Invest more on
stars} [ positive]
Market growth
rate
low
CASH COWS
{ Exist longer period
of time }
high
?????
QUESTION
MARKS
{Doubtful
products }
DOGS
{ Minimize the dogs }
[ negative ]
Relative market share
low

6. The companies next task is to determine what objective,
strategy & budget to assign to each SBU. Four strategies
can be pursued.
1.
2.
3.
4.
BUILD [ Cash cows]
HOLD [ Stars]
HARVEST [ Question marks]
DIVEST [ Dogs]
IV. Planning new business & down sizing older
business:
Planning new business:
• Intensive growth opportunities [ To identify the
opportunities to achieve future growth]
• Integrative growth opportunities
• Diversification growth opportunities [ To identify
opportunities, attractive business that are unrelated
to companies current business]

7. Down sizing older business:
To reduce cost business should also carefully prune,
harvest or divest tired old businesses in order to release
needed resources.
Marketing strategy:
Current product
Current
Markets
New
Markets
MARKET
PENETRATION
STRATEGY
MARKET
DEVELOPMENT
STRATEGY
New products
PRODUCT
DEVELOPMENT
STRATEGY
DIVERSIFICATION
STRATEGY
Add new
Features
To the
Product
Nature
Of the
product

8. 7’s Model – [ Mc. Kinsey’s]
STRUCTURE
STRATEGY
SYSTEMS
SHARED
VALUES
SKILLS
STYLE
STAFF

9. BUSINESS STRATEGIC PLANNING { PROCESS }
External
environment
Goal
formulation
Business
mission
Strategy
formulation
SWOT analysis
Implementation
Internal
environment
Feed back &
control
Program
formulation

10. GOAL FORMULATION:
Probability, sales, growth, risk containment,
innovation, reputation, market share improvement are
the objectives.
• Objectives must be arranged Hierarchically.
• Objectives must be stated Quantitatively.
• Goals should be realistic.
• The companies objectives must be consistent.
Objectives can be:
 Short term profit v/s long term profit.
 Deep penetration of existing market v/s developing
new markets.
 Profit goal v/s non – profit goal.
 High growth v/s low risk.

11. STRATEGY FORMULATION:
Every business must tailor a strategy for achieving its
goals consisting of a marketing strategy, compatible
technology strategy & sourcing strategy.
MICHAEL E. PORTER’S GENERIC MARKETING
STRATEGY: [ Father of generic management]
Over all cost
Relationship
Focus
Differentiation
•Style leader
•Quality leader
•Service
Differentiation
Focus
Cost focus

12. STRATEGIC ALLIANCES:
 Product or service alliance
 Promotional alliance
 Logistic alliance
 Pricing collaboration
PROGRAM FORMULATION { ABC – Activity based
costing }
IMPLEMENTATION:
Mc. Kinsey’s 7’s frame work
• Strategy, systems, structure are hardware of success.
• Style, skills, staff & shared values are software of
success
FEEDBACK & CONTROL – Efficiency & effectiveness

13. THE MARKETING PROCESS:
1. The value delivery sequence.
2. Segmentation, Targeting, Positioning [ STP strategy].
3. Zero customer feedback time.
4. Zero product improvement time.
5. Zero purchasing time [ JIT – Just – in – time]
6. Zero set up time.
7. Zero defects.

14. Steps in the marketing planning process:
1. Analyzing market opportunities.
2. Developing market strategies.
3. Planning the marketing programs.
4. Managing the marketing effort.
5.
•
•
•
Marketing control.
Annual plan control
Profitability control
Strategic control

15. CONTENTS OF MARKETING PLAN:
1. Executive summary & table of the contents.
2. Current marketing situation.
3. Opportunities & issue analysis.
4. Objectives.
5. Marketing strategy.
6. Action programs [planning]
7. Projected profit & loss statements.
8. Controls [marketing]