corporate and division strategic planning

marketing plan -- the central instrument for directing and coordinating the marketing effort. The marketing plan operates at two levels: strategic and tactical

strategic marketing plan -- lays out the target markets in the value proposition that will be offered, based on analysis of the best market opportunities

tactical marketing plan -- specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service



All corporate headquarters undertake four planning activities:

1. defining the corporate mission
2. establishing strategic business units
3. assigning resources to each SBU
4. assessing growth opportunities

To define its mission, a company should address Peter Drucker's classic questions:

• What is our business?
• Who is the customer?
• What is of value to the customer
• what will our business be?
• What should our business be?

Mission statements -- provides employees with a shared sense of purpose, direction, an opportunity. The statement guides geographically dispersed employees to work independently and yet collectively toward realizing the organization's goals



Mission statement have three major characteristics:

1. focus on a limited number of goals
2. stress the company's major policies and values
3. define the major competitive spheres within which the company will operate

Industry -- the range of industries in which a company will operate

products and applications -- the range of products and applications company will supply

competence -- the range of technological and other core competencies that a company will master of leverage

market segment -- the type of market or customers of the company will serve

vertical -- the number of channel levels from all material to final product and distribution in which a company will participate

geographical -- the range of regions, countries, or country groups in which a company will operate



Three dimensions to the business:

1. customer groups
2. customer needs
3. technology

Strategic business units (SBUs) have three characteristics:

1. it is a single business or collection of related businesses that can be planned separately from the rest of the company
2. it has its own set of competitors
3. it has a manager who is responsible for strategic planning and profit performance who controls most of the factors affecting profit
   
   

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