Market Oriented Strategic Planning (Philip Kotler Summary)

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Market oriented strategic planning is the managerial process of developing & maintaining a viable fit between an organization objectives/ skills/ resources and its changing market opportunities.

Aim:  Shape/ Reshape companies business & products so that they yield targeted profits and growths.

Strategic Planning has Action Areas :

– Managing companies business as an investment portfolio.

– Assessing each business activity by considering market’s growth rate & companies position & fit in that market.

– Developing a strategy (game plan) to achieve long run objectives.

Strategic Planning takes into account that large organizations consist of four organizational levels.

–          Corporate level.

–          Divisional level.

–          Business unit level.

–          Product level.

  • Corporate HQ creates strategic plan to guide the whole enterprise to a profitable future.
  • Each division creates a divisional plan covering the allocation of funds to each business unit within division.
  • Each business unit develop a business unit strategic plan to carry that business to a profitable future.
  • Each product level develops a marketing plan to achieve its objective. In its product marketing.
  • Marketing plan made up of
    • Strategic Marketing Plan.
    • Tactical Marketing Plan.

Strategic Marketing Plan develops / outlines.

–          Broad marketing objective.

–          Strategy based on analysis of current market situation and opportunities (based on STP).

Tactical Marketing Plan outlines specific marketing plan. It may include

–          Advertising

–          Merchandising

–          Pricing

–          Distribution Channels  (4 P’s of Marketing)

–          Product Variants

Read More – Arthur D Little Model for Nature of High Performing Business

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