CHAPTER DEVELOPING MARKETING STRATEGIES AND A MARKETING PLAN

CHAPTER DEVELOPING MARKETING STRATEGIES AND A MARKETING PLAN Mc. Graw-Hill/Irwin 02 Copyright © 2012 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Developing Marketing Strategies and a Marketing Plan LEARNING OBJECTIVES LO 1 Define a marketing strategy. LO 2 Describe the elements of a marketing plan. LO 3 Analyze a marketing situation using SWOT analyses. LO 4 Describe how a firm chooses which consumer group(s) to pursue with its marketing efforts. LO 5 Outline the implementation of the marketing mix as a means to increase customer value. LO 6 Summarize portfolio analysis and its use to evaluate marketing performance. LO 7 Describe how firms grow their business. 2 -2

A Marketing Strategy identifies: A firm’s target market A marketing mix (4 P’s) Plans to build a competitive advantage

Sustainable Competitive Advantage 2 -4

Customer Excellence Retaining loyal customers Customer service 2 -5

Operational Excellence Efficient operations Excellent supply chain management Roger Tully/Stone/Getty Images 2 -6

Product Excellence Courtesy Bridgestone Americas, Inc 2 -7

Locational Excellence Many say “The three most important things in retailing are location, location. ” 2 -8

Check Yourself 1. 2. What are the various components of a marketing strategy? List the four macro strategies that can help a firm develop a sustainable competitive advantage. 2 -9

A marketing plan is A written document Analysis of current marketing situation Opportunities and threats for the firm Marketing objectives 4 Ps Action programs Projected income

Planning Getty Images/Digital Vision Comstock Images/Almay Ryan Mc. Vay/Getty Images Three Phases of a Strategic Plan Implementing Controlling 2 -11

The Marketing Plan 2 -12

Step One: Defining the Mission and/or Vision MADD mission statement: MADD strives to stop drunk driving, support the victims of this violent crime and prevent underage drinking. 2 -13

Step Two: Conduct a Situation Analysis Using SWOT 2 -14

Step Three: Identifying and Evaluating Opportunities Using STP Segmentation Targeting Positioning Courtesy The Hertz Corporation 2 -15

Hertz: Market Segmentation 2 -16

Hertz: Target Marketing 2 -17

Positioning Disposal freshener Fridge freshener Tooth cleaner Stain remover Baking Cleaner Volcano maker

Step Four: Implement Marketing Mix and Allocate Resources Product Value Creation Price Value Capture Place Value Delivery Promotion Value Communication Courtesy Bel Brands USA 2 -19

Product and Value Creation Successful products and services are those that customers perceive as valuable enough to buy. Courtesy Amazoncom 2 -20

Price and Value Capture Price must allow for customers to perceive good value for the product they receive. 2 -21

Place and Value Delivery The product must be readily accessible Why is this retailer growing? 2 -22

Promotion and Value Communication ©Lars A Niki Mc. Graw-Hill Companies, Inc/ Gary He, photographer Television Radio Magazines Sales force New Media The Mc. Graw-Hill Companies, Inc/ Jill Braaten, photographer The Mc. Graw-Hill Companies, Inc/ John Flournoy, photographer 2 -23

Portfolio Analysis Management evaluates products in portfolio • Allocates resources to products expected to be profitable Performed at the strategic business unit (SBU) or product line level of firm • Can operate independently of other divisions

Step Five: Evaluate Performance and Make Adjustments P&G Website 2 -25

Check Yourself 1. 2. 3. What are the five steps in creating a marketing plan? What tool helps a marketer conduct a situation analysis? What is STP? 2 -26

Growth Strategies 2 -27

Market Penetration Use the existing marketing mix Focuses on the existing customers In what way is a sale a Market penetration strategy? Ryan Mc. Vay/Getty Images 2 -28

Market Development Strategy What can a company do to continue to grow in a difficult retail environment? Frederic J Brown/AFP/Getty Images 2 -29

Product Development New product or service Current target market Used with permission by MTV 2010 MTV Networks All Rights Reserved MTV, all related titles, characters and logos are trademarks owned by MTV Networks, a division of Viacom International Inc. 2 -30

Diversification New product or service New market segment Photo by Joe Scarnici/Wire. Image/Getty Images 2 -31

Check Yourself 1. 2. 3. What are the four growth strategies? What type of strategy is growing the business from existing customers? Which strategy is the riskiest? 2 -32