Topic 2 - Strategic Planning in Marketing

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let’s review

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let’s review

✦

Define “marketing” and explain how it creates utility.

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let’s review

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Define “marketing” and explain how it creates utility.

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What are the 4 eras in marketing?

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let’s review

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Define “marketing” and explain how it creates utility.

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What are the 4 eras in marketing?

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What is marketing myopia?

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Identify the five major categories of nontraditional

marketing

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let’s review

✦

Define “marketing” and explain how it creates utility.

✦

What are the 4 eras in marketing?

✦

What is marketing myopia?

✦

Identify the five major categories of nontraditional

marketing

✦

How does relationship marketing give companies a

competitive edge?

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let’s review

✦

Define “marketing” and explain how it creates utility.

✦

What are the 4 eras in marketing?

✦

What is marketing myopia?

✦

Identify the five major categories of nontraditional

marketing

✦

How does relationship marketing give companies a

competitive edge?

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Strategic planning in

marketing

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What is planning?

✦

Process of anticipating

future events and conditions

and of determining the best

way to achieve organizational

objectives.

✦

Continuous process that

creates a blueprint for

everyone in the organization.

✦

Important for large and

small companies.

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What is market

Planning?

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What is market

Planning?

✦

Implementing planning

activities devoted to

achieving marketing

objectives

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An important trend in

marketing planning centers

on relationship marketing

✦

Good relationships with

customers can arm a firm

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Strategic vs tactical

✦

process of determining an organiza1on’s primary

objec1ves and adop1ng courses of ac1on that will achieve these objec1ves

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Strategic planning focuses more on the long-‐term

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Strategic vs tactical

✦

guides the

implementa1on of

ac1vi1es speciﬁed in the strategic plan

✦

It addresses shorter-‐term ac1ons, focusing on

ac1vi1es that need to be completed so that larger strategies can be

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planning at different

org levels

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STEPS in the marketing

planning process

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STEPS in the marketing

planning process

1.Define the mission

2.Determine objectives 3.Assess resources

4.Evaluate environmental risks and opportunities

5.

F

ormulate a marketing strategy 6.Implement the strategy through

marketing plans

7.Gather feedback to monitor and adapt strategies when necessary

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STEPS in the marketing

planning process

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1. Defining

the Mission

✦

purpose, differentiation

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1. Defining

the Mission

The mission statement specifies the organization’s overall goals and operational scope and provides general guidelines for future

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1. Defining

the Mission

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SAMPLE

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SAMPLE

Mission statements

Our mission is to be one of the world's leading

producers and providers of entertainment and

information. Using our portfolio of brands to

diﬀerentiate our content, services and consumer

products, we seek to develop the most creative,

innovative and profitable entertainment experiences

and related products in the world.

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SAMPLE

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SAMPLE

Mission statements

We bring people together through an aﬀordable, reliable

mode of travel—a fun-filled experience that's delivered

with a true heart and soul for service.

We enhance the quality of life of the communities we serve

and are an active partner in the nation's progress.

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SAMPLE

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langua

ge and

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avoid th

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2. determine

objectives

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2. determine

objectives

The basic objectives in a firm’s mission statement guide the development of supporting marketing goals and

plans

Objectives should state specific

intentions and specify a time period for specific achievements

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2. determine

objectives

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SAMPLE objectives

✦

To generate at least 12% percent profit for

2012

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Attain at least 40% market share by 2012

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Open up 5 new Disneyland Themeparks

within 3 years

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3. Assessing resources and 4.

Evaluate environmental risks and

opportunities

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3. Assessing resources and 4.

Evaluate environmental risks and

opportunities

This consists of an assessment of an organization’s strengths, weaknesses, and available opportunities

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3. Assessing resources and 4.

Evaluate environmental risks and

opportunities

This consists of an assessment of an organization’s strengths, weaknesses, and available opportunities

Organizational resources also need to be considered in areas such as production, marketing, finance, technology, and employees

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5. 6. and 7. Formulating,

implementing and monitoring a

marketing strategy

A marketing strategy is an overall,

company-wide program for selecting

a target market and satisfying

customers in that market through the

elements in the marketing mix—

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5. 6. and 7. Formulating,

implementing and monitoring a

marketing strategy

The strategy must be monitored to

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5. 6. and 7. Formulating,

implementing and monitoring a

marketing strategy

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Tools and Techniques

for Successful

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First mover strategy

- Theory advocating that the

company that is first to oﬀer a product in a

marketplace will be the long-term market winner.

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First mover strategy

- Theory advocating that the

company that is first to oﬀer a product in a

marketplace will be the long-term market winner.

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first mover vs. second mover

Second mover strategy

-

Theory that advocates

observing closely the

innovations of first movers

and then improving on them

to gain advantage in the

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Marketing

strategy

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Marketing

strategy

An eﬀective marketing strategy does several things

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It reaches the right buyers at the right time

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It persuades them to buy the product

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It develops a strong relationship with them over time

Basic Elements of Marketing Strategy

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Target Market

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target

market

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✦ Group of consumers toward whom the firm decides to direct its

marketing eﬀorts, and ultimately its goods and services

✦ Need to pay attention to growing market segments.

target

market

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target

market

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target

market

Exercise: How are the diﬀerent in terms of target market

SM vs. Rustans Toyota vs. BMW

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target

market

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MARKETinG

mix

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MARKETinG

mix

✦

Marketing decisions can be divided into several variables or strategies which

form the total package, called the marketing mix

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MARKETinG

mix

✦

consists of a blend of four variables to fit the needs and preferences of a

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MARKETinG

mix

✦

specific target market

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MARKETinG

mix

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MARKETinG

mix

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MARKETinG

mix

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MARKETinG

mix

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Not just the good or the service Involves decisions:

about what goods or services to offer consumers

concerning customer service, package design, brand names, trademarks, patents, warranties, the life cycle of a product, product positioning, and new-product development

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✦ Ensure that consumers find their products in the proper quantities at the right times and places.

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✦ Involves modes of transportation,

warehousing, inventory control, order processing, and selection of marketing channels.

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✦ Technology has opened up new channels of distribution in many industries

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Promotion

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Promo1on strategy refers to the communica1on link between sellers and buyers

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In developing a promo1on strategy, marketers blend the various elements of promo1on to communicate most

eﬀec1vely with their target markets

✦

Integrated marke1ng communica1on coordinates all promo1onal ac1vi1es so that the consumer receives a uniﬁed and consistent message

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Differentiation

Price

✦

deals with the methods of setting profitable and justifiable prices

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It is one of the most diﬃcult areas in marketing decision making

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Pricing is often closely regulated

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Pricing is subject to considerable public scrutiny

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One factor that influences a marketer’s pricing strategy is competition

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MARKEting Environment

✦Marketers do not make decisions about target

markets and marketing mix in a vacuum

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MARKEting Environment

✦Marketers do not make decisions about target

markets and marketing mix in a vacuum

✦Take into account environmental factors-

Competitive, political-legal, economic,

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Business portfolio

anaylsis

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Business portfolio

anaylsis

✦ An evaluation of a company’s

products and divisions to

determine the strongest

and weakest.

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Business portfolio

anaylsis

✦ An evaluation of a company’s

products and divisions to

determine the strongest

and weakest.

✦ Strategic business units (or

category) Key business units

within diversified firms -

Each has its own managers,

resources, objectives, and

competitors.

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Business portfolio

anaylsis

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BCG Matrix

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BCG Matrix

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Developed by Boston Consulting Group.

✦

A market share/market growth matrix that plots market

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BCG Matrix

✦

Developed by Boston Consulting Group.

✦

A market share/market growth matrix that plots market

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