Marketing strategy and planning draw together the range of operational marketing concerns. This chapter explores some of the models used in marketing strategy and analysis to understand competitive positions in marketplaces and reviews the stages in the strategic marketing planning process. Strategy formulation involves analysis and audit, choice, and action and implementation. It is essential to have a clear statement of the expenditure necessary to deliver the portfolio of marketing activities outlined in the plan. Costs included in such a budget are likely to include those associated with promotion, marketing research, sales force training and distribution channel development. Strengths, Weaknesses, Opportunities, and Threats (SWOT) is a useful general-purpose tool for assessing the capacity that an organization has, and might develop, for responding to its marketing environment. The chapter presents Boston Consulting Group (BCG) Matrix and Ansoff's Development Matrix. Both of these tools support portfolio analysis, or analysis of 'what the organization is doing'.