Fortigate

Strategic Marketing
and Planning

Strategic Marketing
Management
w The mark of an excellent company is how it
responds to a continuously changing environment
w Benefits of planning
n
n
n
n
n

Strategic Planning

Planning hierarchy

w Strategic planning is the managerial process of
developing and maintaining a viable fit between the
organisation’s objectives and resources, andits
changing market opportunities
w The a im of strategic planning is to shape and
reshape the company’s businesses and products to
produce satisfactory profits and growth

The Strategy Hierarchy

Corporate
Level

Strategic
Business
Unit Level

Corporate Strategy
• Mission and vision
• Objectives
• Business portfolio strategy
• Resource development
• Corporate values

SBUStrategy

Functional
Level of
Marketing Strategy
SBU
Marketing
objectives
Product markets
strategies

SBU Strategy
• Business definition
• Objectives
• Product market portfolio
• Competitive strategy
• Resource allocation and management

R&D Strategy
Technology
Product
development

Production
and operation
strategy

Finance and
administration
Strategy

managementbecomes proactive
facilitates integration
communicates management intent
ensures activities are goal-oriented
monitor progress towards goals

SBU
Strategy

Three levels:
w Corporate strategic plan
w Strategic Business Unit plan
w Marketing plan

Corporate Strategic Plans

Corporate strategic planning concerns the
organisation as a whole and ultimately deals
with the allocation offunds across SBUs and
returns generated on those funds

Human resources
Strategy

1

Steps in Strategic Planning
Corporate Level

Defining the
Company Mission

w 4 planning activities
Defining Company
Objectives and Goals

n
n

Designing the
Business Portfolio

n

n

Business Level

define mission
identify SBUs
analyse and evaluate the current portfolio of
businessesidentify new business arenas to enter

Planning, Marketing and
Other Functional Strategies

Strategic Business Units
w The mission statement provides direction for the
company
n
n
n

What business are we in?
Who do we serve?
What benefits do we provide?

w Elaborating on the mission
w The mission statement acts as an invisible hand to
guide geographically remote operationsSBUs
w The General Electric (GE) approach
w Definition of SBUs can be at any level of the
company
w At the corporate level, decisions are made
concerning which SBUs to build, maintain,
harvest, and divest

w Companies too often describe their business in
terms of a product they make
w Levitt argues that a business must be viewed as a
customer-satisfying process, not a goods-producingprocess
w SBU business domain (Abell)
w Purpose is to assign strategic planning
responsibilities to these units

Planning tools
GE Business Screen
w If either market attractiveness or business strength
is weak, the company will not produce outstanding
results
w SBUs have a life cycle
w May be used to forecast SBU position
w Corporate decisions
(Build;Hold;Harvest;Divest)

2

The GEPlanning Grid

Strategic Planning Gap

Industry Attractiveness

Business Strength

Strong

Average

Weak

C

High

The output of portfolio analysis of SBUs is
the identification of any gaps between future
desired sales and projected sales. If a gap
exists, corporate management must plan to
either develop or acquire new businesses to
fill the gap

A

Medium

B

DLow

Corporate, Business and
Marketing Strategy Model

Closing the strategic gap
w Major classes of growth opportunities
n
n
n

Intensive growth
Integrative growth
Diversification growth

• Business portfolio
• Capital investments and
resource allocation
• Corporate culture
• Corporate structure

Markets
Products and services
Profit- yielding strategies
Brand management...