Marketing lecture 1
Strategic planning is the process of developing and maintaining a strategic fit between the
organizations goals and capabilities and its changing marketing opportunities.
Marketing provides a guiding philosophy. It provides inputs to strategic planners by helping to
identify attractive market opportunities and by assessing the firm’s potential to take advantage of
them. Marketing designs strategies for reaching unit objectives (s.b.u.)
Strategic planning and marketing planning and process
Introduction strategic planning: the process of developing and maintaining a strategic fit between
the organizations goals and capabilities and its changing marketing opportunities.
Role of marketing: structured process of researching and analyzing marketing situations, developing
and documenting marketing objectives, strategies and programmes, and implementing and
evaluating and controlling activities to achieve the objectives.
Marketing process (outcome = marketing plan): how to achieve the set marketing objectives.
Many tools for strategic planning, we focus on bcg and confrontation matrix.
Bcg growth share matrix
An analysis of a company’s portfolio of different products or sbu’s (strategic business units).
Sbu is a group of different products or brands owned by an organization and having different income-
generating and growth capacities. Business portfolio: the group of different products or brands
owned by an organization and having different income generating and growth capabilities.
Portfolio analysis
Evaluate the businesses making up a company:
1.indentify the key businesses
2.assess the attractiveness of each sbu
3.decide which sbus should receive more or less of the firm’s resources.
The bcg growth share matrix enables a form to evaluate sbus on two important dimensions:
-the attractiveness of the sbus market or industry (market growth rate)
-the relative strength of the sbus position in that market or industry (market share versus the market
leader)
Relative market share formula= your market share : market leader market share ) x 100
Maximum = 1
, Star: need heavy investment to finance their rapid growth.
Question mark: require cash to hold their share or become stars.
Cash cow: established and successful units generating cash that the company uses to pay bills and
support sbu’s that need investment.
Dog: units that may generate enough cash to maintain themselves, but do not promise to be large
sources of cash.
4 strategies for the bcg growth share matrix:
-invest more in a sbu to build its share
-invest just enough to hold a sbu’s share at the current level
-harvest a sbu, milking its short term cash flows regardless of the long term effect
-divest a sbu by selling it or phasing it out and using the resources elsewhere
Strategic planning is the process of developing and maintaining a strategic fit between the
organizations goals and capabilities and its changing marketing opportunities.
Marketing provides a guiding philosophy. It provides inputs to strategic planners by helping to
identify attractive market opportunities and by assessing the firm’s potential to take advantage of
them. Marketing designs strategies for reaching unit objectives (s.b.u.)
Strategic planning and marketing planning and process
Introduction strategic planning: the process of developing and maintaining a strategic fit between
the organizations goals and capabilities and its changing marketing opportunities.
Role of marketing: structured process of researching and analyzing marketing situations, developing
and documenting marketing objectives, strategies and programmes, and implementing and
evaluating and controlling activities to achieve the objectives.
Marketing process (outcome = marketing plan): how to achieve the set marketing objectives.
Many tools for strategic planning, we focus on bcg and confrontation matrix.
Bcg growth share matrix
An analysis of a company’s portfolio of different products or sbu’s (strategic business units).
Sbu is a group of different products or brands owned by an organization and having different income-
generating and growth capacities. Business portfolio: the group of different products or brands
owned by an organization and having different income generating and growth capabilities.
Portfolio analysis
Evaluate the businesses making up a company:
1.indentify the key businesses
2.assess the attractiveness of each sbu
3.decide which sbus should receive more or less of the firm’s resources.
The bcg growth share matrix enables a form to evaluate sbus on two important dimensions:
-the attractiveness of the sbus market or industry (market growth rate)
-the relative strength of the sbus position in that market or industry (market share versus the market
leader)
Relative market share formula= your market share : market leader market share ) x 100
Maximum = 1
, Star: need heavy investment to finance their rapid growth.
Question mark: require cash to hold their share or become stars.
Cash cow: established and successful units generating cash that the company uses to pay bills and
support sbu’s that need investment.
Dog: units that may generate enough cash to maintain themselves, but do not promise to be large
sources of cash.
4 strategies for the bcg growth share matrix:
-invest more in a sbu to build its share
-invest just enough to hold a sbu’s share at the current level
-harvest a sbu, milking its short term cash flows regardless of the long term effect
-divest a sbu by selling it or phasing it out and using the resources elsewhere
