Product Development and Marketing Strategy-2

Strategic Management Tools:

• Four Tools Used in Strategic Planning for Marketing & Sales • by Leigh Richards, Demand Media • Strategic planning involves considering potential internal and   external impacts on the organization and then mapping out   an approach to deal with these impacts. From a marketing   standpoint, strategists consider customer needs, competitive   factors and organizational advantages. There are a number   of tools they can use as they develop and implement ways to   ensure that the strategies and tactics developed are   appropriate and plans can be effectively put into action.

• SWOT Analysis • The SWOT analysis is a tool used in strategic planning to   identify and, ultimately, prioritize the organization's   strengths, weaknesses, opportunities and threats. In fact,   SWOT is an acronym that stands for these elements. The   process involves a brainstorming session where participants   create a list for each of these areas based on previously   gathered data and information. Once the lists are created, a   ranking process is used to prioritize the items so that the   top items in each category can be used to provide a basis for   the development of objectives, strategies and tactics.

• Porter's Five Forces Model • Michael Porter developed his Five Forces Model and   introduced it to the world in 1980 in his first book,   "Competitive Strategy." The model provides a basis for   companies engaged in strategic planning to consider   the critical forces that are impacting it. These forces   include existing competition between suppliers, the   threat of new entrants to the market, the bargaining   power of buyers, the power of suppliers and the   threat of competitive products or services.

• Mind Maps • Mind maps are visual tools used in strategic planning to   show how various items relate to each other. A mind map   is a diagram that presents words, ideas or images linked to   an initial central theme or idea. Mind maps are a form of   brainstorming and was popularized by psychologist Tony   Buzan in 1976, according to the University of Surrey. The   process starts with an initial question or problem that is   written in the center of a large piece of paper or on a   whiteboard. Additional ideas or concepts are then tied to   and branched out from the central idea.

• Balanced Scorecard • The Balanced Scorecard is a method used to monitor the   implementation and effectiveness of strategic plans.   According to the Balanced Scorecard Institute, it has   been popularized by Robert S. Kaplan and David P.   Norton, who wrote about it in their book "The Balanced   Scorecard" in 1996. It is a way for organizations to track   progress on strategic planning goals across various   categories that are balanced against each other to   ensure appropriate focus across all areas.