Market Oriented Strategic Planning (Philip Kotler Summary)
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
- Distribution Channels (4 P’s of Marketing)
- Product Variants