Topic 2 - Strategic Planning in Marketing

let’s review

let’s review

let’s review ✦Define “marketing” and explain how it creates utility.

let’s review ✦Define “marketing” and explain how it creates utility. ✦What are the 4 eras in marketing?

let’s review ✦Define “marketing” and explain how it creates utility. ✦What are the 4 eras in marketing? ✦What is marketing myopia?

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

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?

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? ✦What the are functions of marketing?

Strategic planning in marketing

What is planning?

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.

What is market Planning?

What is market Planning?

✦Implementing planning

activities devoted to achieving marketing objectives ✦An important trend in marketing planning centers on relationship marketing ✦Good relationships with customers can arm a firm with vital strategic weapons

Strategic vs tactical

Strategic vs tactical ✦process  of  determining  an  

organiza1on’s  primary   objec1ves  and  adop1ng   courses  of  ac1on  that  will   achieve  these  objec1ves ✦Strategic  planning  focuses   more  on  the  long-­‐term

Strategic vs tactical

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   implemented  

Strategic vs tactical

planning at different org levels

STEPS in the marketing planning process

STEPS in the marketing planning process

1.Define the mission 2.Determine objectives 3.Assess resources 4.Evaluate environmental risks and opportunities 5.Formulate a marketing strategy 6.Implement the strategy through marketing plans 7.Gather feedback to monitor and adapt strategies when necessary

STEPS in the marketing planning process

✦purpose, differentiation ✦may change through time

1. Defining the Mission

1. Defining the Mission

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

1. Defining the Mission

SAMPLE Mission statements

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.

SAMPLE Mission statements

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.

SAMPLE Mission statements

? y h w d n a e g a u g n a l

avo id t he myo pia

2. determine objectives

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

2. determine objectives

SAMPLE objectives

SAMPLE objectives ✦To generate at least 12% percent profit for 2012 ✦Attain at least 40% market share by 2012 ✦Open up 5 new Disneyland Themeparks within 3 years

SAMPLE objectives

3. Assessing resources and 4.

Evaluate environmental risks and opportunities

3. Assessing resources and 4.

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

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

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— product, distribution, and price

5. 6. and 7. Formulating,

implementing and monitoring a marketing strategy The strategy must be monitored to ensure that objectives are being met

5. 6. and 7. Formulating,

implementing and monitoring a marketing strategy

Tools and Techniques for Successful Strategies

porters Five Forces

first mover vs. second mover 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.

first mover vs. second mover 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.

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 marketplace.

first mover vs. second mover

SWot Analysis

Marketing strategy

Marketing strategy An effective marketing strategy does several things ✦It reaches the right buyers at the right time ✦It persuades them to buy the product ✦It develops a strong relationship with them over time Basic Elements of Marketing Strategy ✦Target Market ✦Marketing Mix Variables

target market

target market ✦ 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

target market Exercise: How are the different in terms of target market SM vs. Rustans Toyota vs. BMW Robinsons Supermarket vs. Ministop

target market

MARKETinG mix

MARKETinG mix

✦Marketing decisions can be divided into several variables or strategies which form the total package, called the marketing mix

MARKETinG mix

✦Marketing decisions can be divided into several variables or strategies which form the total package, called the marketing mix ✦consists of a blend of four variables to fit the needs and preferences of a specific target market

MARKETinG mix

✦Marketing decisions can be divided into several variables or strategies which form the total package, called the marketing mix ✦consists of a blend of four variables to fit the needs and preferences of a specific target market ✦4Ps

MARKETinG mix

✦Marketing decisions can be divided into several variables or strategies which form the total package, called the marketing mix ✦consists of a blend of four variables to fit the needs and preferences of a specific target market ✦4Ps

MARKETinG mix

✦Marketing decisions can be divided into several variables or strategies which form the total package, called the marketing mix ✦consists of a blend of four variables to fit the needs and preferences of a specific target market ✦4Ps

MARKETinG mix

✦Marketing decisions can be divided into several variables or strategies which form the total package, called the marketing mix ✦consists of a blend of four variables to fit the needs and preferences of a specific target market ✦4Ps

MARKETinG mix

Product

Product

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

Place/Distribution

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

Place/Distribution ✦ Ensure that consumers find their products in the proper quantities at the right times and places. ✦ Involves modes of transportation, warehousing, inventory control, order processing, and selection of marketing channels.

Place/Distribution ✦ Ensure that consumers find their products in the proper quantities at the right times and places. ✦ Involves modes of transportation, warehousing, inventory control, order processing, and selection of marketing channels. ✦ Technology has opened up new channels of distribution in many industries

Place/Distribution ✦ Ensure that consumers find their products in the proper quantities at the right times and places. ✦ Involves modes of transportation, warehousing, inventory control, order processing, and selection of marketing channels. ✦ Technology has opened up new channels of distribution in many industries

Place/Distribution ✦ Ensure that consumers find their products in the proper quantities at the right times and places. ✦ Involves modes of transportation, warehousing, inventory control, order processing, and selection of marketing channels. ✦ Technology has opened up new channels of distribution in many industries

Place/Distribution

Promotion

Promotion

✦Promo1on  strategy  refers  to  the  communica1on  link  

between  sellers  and  buyers ✦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

Promotion

Differentiation Price ✦deals with the methods of setting profitable and justifiable prices ✦It is one of the most difficult areas in marketing decision making ✦Pricing is often closely regulated ✦Pricing is subject to considerable public scrutiny ✦One factor that influences a marketer’s pricing strategy is competition

MARKEting Environment

MARKEting Environment ✦ Marketers do not make decisions about target markets and marketing mix in a vacuum

MARKEting Environment ✦ Marketers do not make decisions about target markets and marketing mix in a vacuum ✦ Take into account environmental factorsCompetitive, political-legal, economic, technological, and social- cultural factors

MARKEting Environment

Business portfolio anaylsis

Business portfolio anaylsis ✦ An evaluation of a company’s products and divisions to determine the strongest and weakest.

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.

Business portfolio anaylsis

BCG Matrix

BCG Matrix ✦Developed by Boston Consulting Group.

BCG Matrix ✦Developed by Boston Consulting Group. ✦A market share/market growth matrix that plots market share against market growth potential

BCG Matrix ✦Developed by Boston Consulting Group. ✦A market share/market growth matrix that plots market share against market growth potential

May the Force be with You