Strategic Market Planning (3.1, 3.2) Flashcards
Business Planning
Ongoing process of making decisions that guide the form in the short and long term at 3 levels
The three levels of Business Planning (SFO)
Strategic, Functional, Operational
Strategic Planning (Big picture )
Managerial process that matches the organization’s resources
Strategic Business Units (SBUs)
Individual units within the firm represent different areas of business, each different enough to have their own objectives.
Functional Planning (Market Planning)
various functional areas of the firm (marketing, finance, HR), setting out details about how to achieve the strategic objectives
Operational Planning
Supervisory management (Eg. sales managers, brand managers, market research managers) creating detailed annual semi-annual and quarterly plans as well as day to day activities to carry out an organizations functional plans)
Step 1 of strategic planning
Define the Mission statement
Mission Statement
A formal statement describing the organization’s overall purpose and what it hopes to achieve. M
Step 2 of strategic planning
Situation Analysis
Situation Analysis
Environmental analysis internal and external
Internal environment
Controllable elements within a firm
External environment
Elements outside the firm not in their control
External PEST + C
Political, Economical, Socio-Cultural, Technological, and competitive
SWOT Analysis
Strengths, Weaknesses, Opportunities, Threats
Step 3 of strategic planning
Set long-term Organisational SBU Objectives. It can be related to sales, profit, market share, sustainability, etc
SMART Objectives
Specific, Measurable, Attainable, Relevant, Time Bound
Step 4 of strategic planning
Establishing the Business Portfolio
Business portfolio
The group of different products or brands in a firm.
BCG Matrix
Helps make decisions about how to allocate funds across the firms different businesses.
Stars
DOMINANT market share in HIGH-growth markets.
Requires money to keep up with production and promotion demands
Cash Cows
DOMINANT market share in a LOW-growth market.
They are good to have, but not too many. (used to fund other endevours )
Question marks
WEAK market share in a HIGH-growth market.
Potential to be stars. Needs new segmentation or positioning strategy.
Dogs
Nobody wants
Can be a very specialised product or one at the end of its life cycle.
Step 5 of strategic planning
Defining growth strategies
Product Market Growth Matrix
Lays out options for how to achieve growth
Market Penetration Strategy
SAME product SAME market. (Eg Nike opening new stores)
(LEAST RISKY)
Market Development Strategy
SAME product NEW Market
Product Development Strategy
NEW product SAME Market (Eg Zara home)
Diversification Strategy
NEW product NEW Market
Step 1 of Marketing Strategy
Situation Analysis
Situation Analysis
SWOT and PESTC specific to the marketing environment (4ps)
Step 2 of Marketing Strategy
Set Marketing Objectives
Set Marketing Objectives examples.
- to launch 2 new chocolate bars in the UK market by February 2024
to increase sales of existing line of chocolates by 15 % by June 202
Step 3 of Marketing Strategy
Developing Marketing Strategies
Developing Marketing Strategies
Identifying the target market based on 4ps
Product Strategy
Features, Variations, Packaging, Design, Branding
Pricing Strategy
Price set for customers, retailers, wholealers
Promotion Strategy
How you communicate the products’ benefits to consumers (value proposition)
Distribution Strategy
How and when the product/service will be made availableto targeted customers
Step 4 of Marketing Strategy
Implementation & Control of the Marketing Plan
