Chapter 2
1. Strategic Planning Process
Strategic planning is essential to help companies adapt to
changing environments and seize opportunities.
Four Key Steps:
1. Define the company mission.
2. Set company objectives and goals.
3. Design the business portfolio.
4. Plan marketing and other functional strategies.
2. Mission Statement
It’s the organizations purpose, what it wants to accomplish.
Should be market-oriented, focusing on fulfilling customer
needs rather than specific products.
Characteristics:
o Meaningful, motivating, and aligned with company strengths.
o Example: IKEA’s mission is “to create a better everyday life for
the many people.”
3. Business Portfolio
Its’ the collection of businesses and products that make up the
company.
Portfolio analysis involves evaluating a company’s various
businesses (SBUs) and deciding how much support each
deserves. (a company assess the attractivness of various SUBs
and decides how much support each deserves).
BCG Matrix:
o Stars: High-growth, high-share (requires investment).
o Cash Cows: Low-growth, high-share (generates funds).
o Question Marks: High-growth, low-share (risky investments).
o Dogs: Low-growth, low-share (may need to be divested).
4. Growth Strategies (Product/Market Expansion Grid)
Market Penetration: Increase sales of existing products in
current markets.
Market Development: Expand into new markets with existing
products.
Product Development: Offer new products to current markets.
Diversification: Introduce new products into new markets.
5. Customer Value Chain and Delivery Network
It’s a series of departments that carry pit value creating activites
to design, produce, market, deliver, and support a firm’s products.
Companies must collaborate across departments (value chain)
and with external partners (value delivery network) to deliver
customer value.
Value delivery network consists of the company, suppliers,
distributors, and ultimately customers who work together to
improve performace of the entire system
6. Marketing Strategy and Mix (4 Ps)
Strategy: Identifies the target market (segmentation and
targeting) and determines how to serve them best (differentiation
and positioning).
4 Ps (Marketing Mix):
o Product: Offering that satisfies customer needs.
o Price: Cost customers will pay.
o Place: Distribution channels to reach customers.
o Promotion: Activities to communicate value and encourage
purchases.
7. Market Segmentation, Targeting, and Positioning
Market segmentation: Dividing a market into distinct groups
with specific needs.
Market segment: a group of consumers who respond in a
similar way to a given set of marketing efforts.
Targeting: evaluating each market segment’s attractivness and
choosing which segment(s) to enter
Positioning: Creating a unique image of the product in the minds
of consumers.
8. Marketing Management Functions
Analysis: Conducting SWOT to assess strengths, weaknesses,
opportunities, and threats.
Planning: Developing strategies to achieve company goals.
Implementation: Executing the plans effectively.
Control: Measuring performance, evaluating results, and taking
corrective action.
9. Return on Marketing Investment (Marketing ROI)
Marketing ROI assesses the profitability of marketing
investments.
Includes traditional metrics (sales, market share) and customer-
focused metrics (customer lifetime value, satisfaction, retention).
Marketing dashboards display performance metrics to monitor
strategic progress.
