2

Developing Marketing
Strategies and Plans
Corporate and Division Strategic
Planning
Corporate planning activates:

1.Defining Corporate mission

2.Establishing Strategic Business Units
3.Assigning resources to SBU
4.Assessing growth opportunities
Strategic Planning

The managerial process of

creating and maintaining a
fit between the
organization’s objectives
and resources and evolving
market opportunities.

3
The Strategic Planning, Implementation,
and Control Processes
Business Unit Strategic
Planning
 Characteristics of SBUs
• It is a single business or collection of related
businesses
• It has its own set of competitors
• It has a leader responsible for strategic
planning and profitability
The Business Unit Strategic Planning Process
 Defining the Business Mission

 Answers the question,

“What business are we in
and where are we going?”

 Focuses on the market(s)

rather than the good or service

 Strategic Business Units may

also have a mission statement
8
Good Mission Statements
Focus
Focus on
on limited
limited number
number of
of goals
goals

Stress
Stress major
major policies
policies and
and values
values

Define
Define major
major competitive
competitive spheres
spheres

Take
Take aa long-term
long-term view
view

Short,
Short, memorable,
memorable, meaningful
meaningful
AMA’s Mission Statement

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 PepsiCo’s Mission Statement
“PepsiCo’s overall mission is to increase the value of our
shareholders’ investment. We do this through sales
growth, cost controls and wise investment of resources.
We believe our commercial success depends upon
offering quality and value to our consumers and
customers; providing products that are safe, wholesome,
economically efficient and environmentally sound; and
providing a fair return to our investors while adhering to
the highest standards of integrity.”

http:\\www.pepsico.com

11
 Infosys Technologies Limited

“To achieve our objectives in an environment

of fairness, honesty, and courtesy towards
our clients, employees, vendors, and society
at large.”
 Biocon

“To be an integrated biotechnology enterprise

of global distinction.”
 eBay

“We help people trade anything on earth.

We will continue to enhance the online
trading experiences of all—collectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.”
 Product Orientation vs. Market Orientation

Company Product Market

Xerox We make copying We improve office
equipment productivity
Columbia We make movies We entertain
Pictures people
Encyclopedia We sell encyclopedias We distribute
Britannica information
Carrier We make air conditioners We provide climate
and furnaces control inside
homes
SWOT Analysis

Identifying
internal strengths (S)
and weaknesses (W)
and also examining
external opportunities (O)
and threats (T)

16
 SWOT Analysis
S Things
Thingsthe
thecompany
companydoes
doeswell.
well.

Internal

W Things
Thingsthe
thecompany
companydoes
doesnot
notdo
dowell.
well.

O Conditions
Conditionsin
favor
inthe
theexternal
favorstrengths.
strengths.
externalenvironment
environmentthat
that

External
T
Conditions
Conditionsininthe
theexternal
externalenvironment
environmentthat
that
do
donot
notrelate
relateto
toexisting
existingstrengths
strengthsor
orfavor
favor
areas
areasof
ofcurrent
currentweakness.
weakness.
©South-Western College Publishing
 SWOT Analysis

Strengths  Production Costs

Strengths
and
and  Marketing Skills
Weaknesses
Weaknesses
INTERNAL
INTERNAL  Employee Capabilities
 Financial Resources
 Available Technology
 Company/Brand Image
 SWOT Analysis

Social
Opportunities
Opportunities
And
And Demographic
Threats
Threats
EXTERNAL Economic
EXTERNAL
Technological

Political/Legal

Competitive
 Goal Formulation

The objectives can be;

Profitability, sales growth, marketing
share improvement, risk containment,
innovation, reputation etc.
Goal Formulation Criteria

1. They must be arranged Hierarchically,

from the most to the least important
2. Objectives should be stated
quantatively whenever possible
3. Goals should be realistic
4. Objectives must be consistent
 Strategic Formulation

1. Overall Cost Leadership

2. Differentiation
3. Focus
 Program Formulation

ABC (Activity-Based Cost) accounting

should be applied to each marketing
program.
 Implementation
Feedback and Control