Ch. 2 Principles of Marketing StrategyI.Company-Wide Strategic Planninga.Strategic Planning:The process of developing and maintaininga strategic fit between the organization’s goals and capabilities,and its changing marketing opportunities.i.Sets the stage for the rest of planning in the firm.ii.Annual and long-range plans deal with the company’scurrent businesses and how to keep It goingiii.Strategic planning involves adapting the firm to takeadvantage of opportunities in a constantly changingenvironmentiv.At the corporate level, strategic planning begins bydefining its overall purpose and mission, then it is turnedinto detailed supporting objectives that guide thecompany,v.HQ then decides what portfolio of businesses and productsis best for the company.vi.b. Defining a Market-Oriented Mission:i.Forging a sound mission begins with “What us ourbusiness?”; “Who is the customer?”; “What should ourbusiness be?”ii.Mission Statement:A statement of the organization’spurpose—what it wants to accomplish in the largerenvironment.1.Mission statements should be market oriented anddefined in terms of satisfying basic customer needs.2.Mission statements should not be stated as makingmore sales or profits3.Should be focused on customers
c.Setting Company Objectives and Goals:i.The company needs to turn its broad mission statementinto detailed supporting objectives for each level ofmanagement. Each manager should have objectives andbe responsible for reaching themII.Designing the Business Portfolioa.Business Portfolio:The collection of businesses and productsthat make up the company.i.The best one if that the one that fits the company’sstrengths and weaknesses to opportunities in theenvironment.ii.Business portfolio planning takes two steps; 1. Thecompany must analyze its current business portfolio anddetermine which businesses should receive more, less, orno investment; 2. It must shape the future portfolio bydeveloping strategies for growth and downsizing.b. Analyzing the Current Business Portfolio:i.Portfolio Analysis:The process by which managementevaluates the products and businesses that make up thecompanyii.Management’s first step is to identify the key businessesthat make up the company, calledstrategic business units(SBUs), then asses the attractiveness of the various SBUsand decide how much support each gets.1.An SBU can be a company division, product linewithin a division, or a single product or brand.iii.Most standard portfolio analysis methods evaluate SBUs on2 dimensions: the attractiveness of the SBU’s market andthe strength of the SBU’s position in that market.iv.The best-known portfolio-planning method was developedby Boston Consulting Groupc. The Boston Consulting Group Approach:i.