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Marketing Basics - Kotler Philip

Strategic planning

Many firms operate without formal plans. In new firms, managers are so busy that they simply don't have time to plan. In mature firms, many managers say that so far they have done well without formal planning, and therefore, it cannot be of significant significance. They do not want to spend time preparing a plan in writing. According to them, the market situation is changing too rapidly for the plan to be of any use, and in the end it will simply gather dust on the shelf. It is for these and a number of other reasons that many firms do not use formal planning at home.

But formal planning bodes many benefits. Melville Branch lists these benefits in the following order. 1. Planning encourages managers to constantly think ahead, 2. It leads to better coordination of the efforts undertaken by the firm. Z. It leads to the establishment of performance indicators for subsequent monitoring. 4. It forces the company to more clearly define its tasks and political attitudes. 5. It makes the company more prepared for sudden changes. 6. It more clearly demonstrates the interconnectedness of the duties of all officials1.

Since strategic planning serves as a springboard for any other planning within the company, we will consider it in the first place. We define strategic planning as follows:

Strategic planning is the management process of creating and maintaining strategic alignment between the goals of the company, its potential opportunities and chances in the field of marketing. It is based on a clearly formulated program statement of the company, a statement of supporting goals and objectives, a healthy business portfolio and growth strategy.

The stages of strategic planning are presented in Fig. 84, and their description is given below.

Stages of Strategic Planning

Fig. 84. Stages of strategic planning