2 MARKETING STRATEGIC PLANNING

2. MARKETING STRATEGIC PLANNING
Strategic Planning —
The process of maintaining a strategic fit
between the organizations goal and
capabilities with its marketing opportunities.
COLLEGE OF BUSINESS ADMINISTRATION
CHUNG-ANG UNIVERSITY
PROF HYUNSUK SUH
2
The objectives of the current chapter are described.
Objectives
Understand company-wide strategic planning and its process
Learn how to design business portfolios and develop strategies for
company growth and downsizing

Describe the marketing process and the forces that influence it
0. Objectives
3
Why do companies
need strategic
planning?
What are the stages
of the strategic
planning process?
How can strategic
planning benefit a
company?
Strategic planning, why do we need that for?
1. Strategic Planning
4
What is “Marketing Strategic Planning”?

Marketing Strategic Planning

A managerial decision process that matches an organization’s resources and
capabilities to its market opportunities for long term growth and survival.
Solomon, 2009

The managerial process of creating and maintaining a fit between the
organization’s objectives and resources and the evolving market opportunities.

The goal is long-term profitability and growth.
Lamb, Hair, and McDaniel, 2009

The Process of developing and maintaining a strategic fit between the
organization’s goals and capabilities and its changing marketing opportunities.

It involves defining a clear company mission, setting supporting objectives,
designing a sound business portfolio, and coordinating functional strategies.
Kotler and Armstrong, 2010
1. Strategic Planning
5
Marketing Strategic Planning starts with self queries of the following.
Strategic Maketing Planning: Questions to Ask

A written document that acts as a guidebook of marketing activities for the
marketing manager.
1. Strategic Planning
What is the organization’s main activity?
How will it reach its goals?
What is Strategic Maketing Planning?
6

The Strategic Planning Process
The planning activities occur at the business unit, product, and market levels in the
following process.
Defining the
company
mission
Setting
company
objectives
and goals
Designing the
business
portfolio
Planning
marketing and
other functional
strategies
Corporate level
Business unit, product,
and market level
1
1
2
2
3
3
4
4
1. Strategic Planning
7

Definition of Mission Statement
The definitions for mission statement are described below.
2. Mission Statement
The mission statement is a formal document that describes the organization’s
overall purpose and what it hopes to achieve in terms of its customers,
products, and resources. (Solomon and Stuart)
The firm’s long-term vision based on a careful analysis of benefits sought by
present and political customers and analysis of existing and anticipated
environmental conditions. (Lamb, Hair, and McDaniel)
It is a guideline for the organization’s decision making for both short and long
run and provides direction to the strategic planning and marketing planning
process. (Hoffman, et al.)
A statement of the organization’s purpose – what it wants to accomplish in the
larger environment. (Kotler and Armstrong)
8
The Characteristics of Mission Statement
Some of the characteristics of the mission statement are described in the
following.
Market Oriented : Products outdated but basic market needs last forever
Realistic : Achievable statement
Specific : Out from generalities mark specific objectives and goals
Market Environment : e.g. Girl Scout
Distinctive Competency : Core competence
Motivating : Focus on the useful activities, not on profits and sales
Make employees work is important and feeling of contributing
something to someone
The mission statement is being defined as the organization’s purpose-what it wants to
accomplish in the larger environment.
2. Mission Statement
9

Defining Organization’s Mission
Top management’s first step in the strategic planning stage is to answer such
“soul searching” questions as:

What are the opportunities or needs that we exist to address?
(purpose of the organization)

What are we doing to address to these needs?
(business of the organization)

What principles or beliefs guide our work?
(values of organization)
The ideal mission statement is not too broad, too narrow, or too shortsighted.
2. Mission Statement
10
Examples of Mission Statement
The mission statement of different companies are described below.
2. Mission Statement
소녀와 젊은 여성이 책임 있는 세계시민으로서 자신의
잠재력을 최대한 개발하도록 하는데 있다 .
Girl Scouting builds girls of courage, confidence
and character, who make the world a better place!
Example
Southwest Airlines Mission Statement
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Examples of Mission Statement
More mission statements are described below.
2. Mission Statement
McDonald's vision is to be the world's best quick service restaurant
experience. Being the best means providing outstanding quality,

service, cleanliness, and value, so that we make every customer in
every restaurant smile
Example
"We will prepare and sell quick service food to fulfill our guest's
needs more accurately, quickly, courteously, and in a cleaner
environment than our competitors. We will conduct all our business
affairs ethically, and with the best employees in the mid-south. We
will continue to grow profitably and responsibly, and provide career
advancement opportunities for every willing member of our
organization."
12
Examples of Mission Statement
More mission statements are described below.
2. Mission Statement
Our Roadmap starts with our mission, which is enduring. It
declares our purpose as a company and serves as the standard
against which we weigh our actions and decisions.
To refresh the world
To inspire moments of optimism and happiness
To create value and make a difference.
Example
Our mission is to be the world's premier consumer products
company focused on convenient foods and beverages. We seek
to produce financial rewards to investors as we provide
opportunities for growth and enrichment to our employees, our
business partners and the communities in which we operate.
And in everything we do, we strive for honesty, fairness and
integrity.
13
Mission Statements?

Most mission statements today contain market-oriented business themes.
2. Mission Statement
We create fantasies – a place where America still works the
way it’s supposed to.
We deliver solutions to customer’s information technology
problems.
We help people experience the emotions of competition,
winning, and crushing competitors.
Space, the final frontier. These are the voyages of the starship
Enterprise. Its five-year mission: To explore strange new
worlds. To seek out new life and new civilizations. To boldly
go where no man has gone before.
To provide relief to victims of disasters and help people
prevent, prepare for, and respond to emergencies.
Example
14
In order for the corporate mission to be accomplished and make our customers
understood our corporate identity, both internal and external CIs be properly set.
The Composition of CIs
Internal CI
External CI

Mind Identity (Disciplines)

Behavior Identity

Visual Identity (symbol,
logo)

Verbal Identity

2. Mission Statement
15
Slogan for Coke
2. Mission Statement
2
1886
Drink Coca-Cola
마시자 , 코카콜라
1904
Delicious And Refreshing
맛 좋고 상쾌한
1917
Three Million A Day
하루에 300 만 잔
1922
Thirst Know No Season
갈증에는 계절이 없어요
1925
Six Million A Day
하루에 600 만 잔
1927
Around the corner from everywhere
지구 곳곳 어디서나
1929
The pause that refreshes
상쾌한 이 순간
1932
Ice Cold Sunshine
얼음같이 차가운 햇살
1938

The Best Friend Thirst Ever Had
갈증의 가장 친한 친구
1939
Coca-Cola goes Along
코카콜라가 함께 가요
1942
The Only Thing Like Coca-Cola is Coca-Cola
Itself
코카콜라 같은 것은 오직 코카콜라 밖에 없어요
1948
Where There's Coke There's Hospitality
코카콜라가 있는 곳엔 따뜻함이 있어요
1949
Coca-Cola Along the High Way to Anywhere
코카콜라 어디서나 찾을 수 있어요
1952
What You Want is Coke
당신이 진정으로 원하는 것은 코카콜라
1956
Coca-Cola Makes Good Thing Taste Better
코카콜라

함께한 다른 것들의 맛까지 훌륭하게
해줘요
1959
Be Really Refreshed
진짜 상쾌해지세요
1963
Things Go Better with Coke
코카콜라와 함께라면 문제 없어요

1969
It's the Real Thing
상쾌한 그 맛 , 코카콜라
1971
I'd Like to Buy the World a Coke
온 세상에 코카콜라를 사주고 싶어요
1976
Coke Adds Life
즐거움을 더해주는 코카콜라
1979
Have a Coke And A Smile
코카콜라와 함께 웃어요
1982
Coke Is It!
코카콜라 , 그것 뿐 !
1986
Coca-Cola Red, White & You
코카콜라 빨간색 , 하얀색 , 그리고 당신
1990
Can't Beat the Real Thing
무엇도 이 맛을 대신할 순 없어요
1993
Always Coca-Cola
언제나 코카콜라
2000
Enjoy Coca-Cola
코카콜라 즐겨요
2003
Stop Thinking. Feel It.!
16

The objective is a statement of what is to be accomplished through marketing
activities. Setting company objectives and goals to actualize the mission statement
has the following guidelines.
The Characteristics of the Organization’s Objectives are …
3. Setting Company Objectives and Goals

Specific : Clearly Defined Outcomes

Measurable : Quantitative Terms

Achievable : Realistic

Compare to Benchmark

Time-bound : To Be Reached Within
Specific Time Frame
“Our objective is to
increase sales of Purina
brand cat food by 15
percent over 2014 sales of
$300 million.”
17
The following examples provide a scent of how objectives be made of.
Poorly vs. Well Stated Objectives
3. Setting Company Objectives and Goals
Example
Well Stated Objectives
Well Stated Objectives
?
18

The company must analyze the current business portfolio to decide which business
should receive more or less, or no investment.
Business Portfolio:
BCG-Growth/Share Matrix
1. Question marks :
Low-share business units in high-growth markets
It can be either a “Star” or “Dog”
Requires a lot of cash to hold their share
2. Stars :
High-growth, high-share businesses or products
Need heavy investment to finance rapid growth
Eventually the growth will slow down and turn into
Cash cows
3. Cash cows :
Low-growth, high-share businesses or products
Produce lot of cash to support other biz units
Need less investment to hold the market share
4. Dogs:
Low-growth, low-share businesses and products
May generate enough cash to maintain themselves
< 전통적 BCG* 매트릭스 >
MARKET SHARE
MARKET GROWTH
HighLow
Low
High
Cash Cow
Star
Question Mark
Dog

?
Reference: BCG-Boston Consulting Group
4. Designing Business Portfolio
19
The BCG model suggests different strategies according to the different life cycles of
the product.
Product Life Cycle and BCG Matrix
Introduction
Growth
Maturity
Decline
?
Q
U
E
S
T
I
O
N
M
A
R
K
S
T
A
R
CASH COW
D

O
G
Strategy 1:
제품의 수명주기의 변화에 따라서
Question mark Star Cash Cow 로
변화되도록 관리 하는 것이 바람 직 함

Strategy 2 :
건전한 제품 군들을 유지하기 위해서는
Question mark, Star, and Cash Cow 등
모든 제품 군들을 균형 있게 포함해야 함
Strategy
ANY DRAWBACKS?
TIME
SALES
4. Designing Business Portfolio
20
The GE/McKinsey model has been developed to compensate the limitations of BCG
model.
Examples of GE/McKinsey Matrix
산업 매력도 구성요인 가중치 평가점수 가중 평가점수
시장의 크기 (market size)
0.5 5 2.5
수익률 (profitability)
0.2 2 0.4
경쟁 정도 (level of competition)
0.3 3 0.9
합계
1.0 3.8
산업 경쟁력의 구성 요인 가중치 평가점수 가중 평가점수

점유율 (market share)
0.5 3 1.5
관리능력 (management)
0.1 3 0.3
기술수준 (skills)
0.4 4 0.6
합계
1.0 3.4
산업의 매력도를 평가하는 데 사용되는 변수들 :
시장규모 , 산업성장률 , 산업 평균 수익률 , 경쟁의 정도 , 전반적인 수급 상황 등
산업의 경쟁력을 평가하는 데 사용되는 변수들 :
시장 점유율 , 관리능력 , 기술수준 , 제품의 품질 , 상표 이미지 , 생산능력 , 원가구조 , 유통망 등
4. Designing Business Portfolio
Example
21
Introduction
Growth
Maturity
Decline
?
Q
U
E
S
T
I
O
N
M
A

R
K
S
T
A
R
CASH COW
D
O
G
TIME
SALES
Increasing
High
Slow
Downward
Negative
Increasing
Stabilized
Eroding
Starting
Increasing
Stabilized
Market
Exit
SALES
PROFIT
COMPETI-
TION
The relationship between product life cycle and its sales, profit, and competition is

described below .
I
I
G
G
M
M
D
D
Product Life Cycle and Sales, Profit,
Competition
4. Designing Business Portfolio
22
Consider the following example.
Product/Market Expansion Grid (Ansoff’s Strategic Opportunity Matrix)
Market
Penetration
Market
Penetration
Product
Development
Product
Development
Market
Development
Market
Development
Diversification
Diversification
New Markets

Existing Markets
Existing Products
New Products
1. Market Penetration:
Making more sales to current customers without changing its products
2. Market Development :
Identifying and developing new markets for its current products
3. Product Development:
Offering modified or new products to current markets
4. Diversification :
Start up or buy businesses outside of current products and markets
4. Designing Business Portfolio
23
Product/Market Expansion Grid (Ansoff’s Strategic Opportunity Matrix)
McDonalds Opens
Restaurants in
African Cities for the
First Time
McDonalds Opens
Restaurants in
African Cities for the
First Time
McDonald’s Sells More
Happy Meals with Disney
Movie Promotions
McDonald’s Sells More
Happy Meals with Disney
Movie Promotions
McDonald’s Introduces
Salad Shakers and

McWater
McDonald’s Introduces
Salad Shakers and
McWater
New Markets
Existing Markets
Existing Products
New Products
McDonald’s Introduces
Line of Children’s Clothing
McDonald’s Introduces
Line of Children’s Clothing
Consider the following example.
4. Designing Business Portfolio
Exercise
24
< 오퍼링 분석 매트릭스 >
시장 내에서 오퍼링의 위치를 정하고 성장시키는 방법에 대한 식견을 제공
ABILITY TO DELIVER
MARKET DEMAND
HighLow
Low
High
•
시장 수요가 낮으며 자사의
능력도 부족
•
투자를 중단하고 더 매력적
인 오퍼링에 초점을 맞추는
것이 좋음

•
시장의 수요는 높은데 자사
의 능력이 부족
•
자사의 오퍼링 / 기능을 개발
해야 함
•
가장 매력적인 오퍼링으로
수요도 높고 자사의 능력도
좋음
•
지속적으로 시장 점유율을
신장시키는 전략이 필요
•
다음 세 가지 중 하나의 전략을
채택할 수 있음 .
① 투자를 중단
② 가능한 많은 이윤을 남겨
그것을 유망한 사업에 투자
③ 고객을 설득해서 매트릭스
상에서 이들의 위치를 높임 .
Analyzing Marketing Opportunities
The business portfolio analysis help to identify and evaluate marketing opportunities.
4. Designing Business Portfolio
Example
25
PRODUCT
Quality
Design
Features

Brand name
Service
Warranties
Returns
PROMOTION
Advertising
Personal selling
Sales promotion
Public relations
PRICE
List price
Discounts
Payment period
Credit terms
PLACE
Channels
Locations
Inventory
Transportation
Logistics
Target
Customers
Intended
Positioning
The marketing process can be divided into controllable and uncontrollable factors.
Controllable Factors
Uncontrollable Factors
Technological-
Natural
Environment

Technological-
Natural
Environment
Social-
Cultural
Environment
Social-
Cultural
Environment
Political-
Legal
Environment
Political-
Legal
Environment
Demographic-
economic
Environment
Demographic-
economic
Environment
5. Marketing Process