Strategic Planning Need
Many companies operate without formal plans. However, formal planning can provide many benefits:
It encourages management to think ahead systematically.
It forces managers to clarify objectives and policies.
It leads to better coordination of company efforts.
It provides clearer performance standards for control.
It is useful for a fast-changing environment since sound planning helps the company anticipate and respond quickly to environmental changes and sudden developments.
There are three different types of plans that companies might use:
Annual plans (deal with the company’s current businesses and determine how to keep them going).
Long-range plans (also deal with company’s current businesses and determine how to keep them prosperous).
Strategic plans involve adapting the firm to take advantage of opportunities in its constantly changing environment.
The Framework – Elements
Strategic market planning is not the same as the annual marketing planning exercise. Strategic market planning refers to all aspects of an organization’s strategy in the marketplace, while marketing planning refers to developing a market plan that deals primarily with implementation aspects of the marketing strategy as it relates to the target market and the marketing mix variables.