chapter2
DESCRIPTION
Marketing strategies and plans chapter 02TRANSCRIPT
MARKETING MANAGEMENTMARKETING MANAGEMENT
Chapter 2Chapter 2
Developing and Implementing
Marketing Strategies and
Plans(Chapter 2&3 in text book)
Chapter QuestionsChapter Questions
What is a strategic plan?What is SWOT analysis and what
are some of the environmental forces that shape marketing strategy?
What are some of the marketing strategies and competing forces that shape them?
Where does integrated marketing fit in?
2-2
The Strategic Planning ProcessThe Strategic Planning Process
2-3
Step 1: Defining The Company MissionStep 1: Defining The Company Mission• Mission: a statement of the organisation’s Mission: a statement of the organisation’s
purpose – what it wants to accomplish in purpose – what it wants to accomplish in the larger environment (the firm’s overall the larger environment (the firm’s overall justification for existing)justification for existing)
• Defining a business: What is our business? Defining a business: What is our business? Who are our customers? Who should our Who are our customers? Who should our customers be? What needs do we meet? customers be? What needs do we meet? How do we meet these needs?How do we meet these needs?
• Google: “To organize the world’s Google: “To organize the world’s information and make it universally information and make it universally accessible and useful”accessible and useful”
2-4
Step 2: AnalysisStep 2: Analysis
2-5
Strengths
Weaknesses
Opportunities
Threats
Environmental ForcesEnvironmental Forces
3-6
Demographic
EconomicPolitical-Legal
Socio-CulturalTechnological
Natural
The Five Competitive Forces that Shape The Five Competitive Forces that Shape Strategy (The Reading)Strategy (The Reading)
What are Porter’s competitive forces?◦The power of suppliers◦The power of buyers◦The threat of substitutes◦Rivalry among existing competitors◦Barriers to entry
What do these forces impact and how?
What are the implications for strategy?
2-7
Stars
Cash Cows
Question Marks
Dogs
Mar
ket
Gro
wth
Rat
e
Relative Market ShareHigh Low
Hig
hL
ow
?? ?? ?
Portfolio Assessment Tool: BCG Portfolio Assessment Tool: BCG matrixmatrix
Step 3: Goal FormulationStep 3: Goal Formulation
To be effective, goals must be:◦Ordered in terms of priority (hierarchical)◦Stated quantitatively◦Realistic◦Consistent
Increase our market share by 10% compared to Competitors over the next five years
Increase our profits by 5% every year during the next five years
2-9
Step 4: Strategy Formulation: Porter’s Step 4: Strategy Formulation: Porter’s Generic StrategiesGeneric Strategies
2-10
Overall cost leadership
Differentiation
Focus
Growth Strategies: Ansoff’s Growth Growth Strategies: Ansoff’s Growth Vector MatrixVector Matrix
Market penetration
Market development
Diversification
Product / Service development
Pre
sen
tN
ewPresent New
MA
RK
ET
PRODUCTS / SERVICES
Week 3: ing 12Slide 2-40
Developing an Integrated Marketing Mix: Tactical Planning
Step 6: Program Formulation and Step 6: Program Formulation and ImplementationImplementation
Break every program into its component activities
Identify associated costsEstimated involved timeSet up responsibilities
2-13
Step 7: Tracking PerformanceStep 7: Tracking Performance
Set performance objectives◦ Market share,
Profitability, Return on net worth, Customer satisfaction
Select method (s) for evaluation◦ Financial analysis,
Market research
2-14
The Marketing PlanThe Marketing Plan
A written statement of a marketing strategy and the time-related details for carrying out the strategy◦Executive summary◦Introduction and situation analysis
(SWOT, Portfolio assessment)◦Defining objectives◦Strategic options and selected strategy◦Tactical elements: the marketing mix◦Budget and timing◦Control procedures
15
For Next WeekFor Next Week
Reading 3 (Blue Ocean Strategy)
2-16