MARKETING MANAGEMENT STRATEGY 1 CHAPTER TWO Marketing Management

MARKETING MANAGEMENT: STRATEGY 1 CHAPTER TWO

Marketing Management �The process of: 1. planning, 2. executing, and 3. controlling marketing activities to attain the marketing goals and objectives effectively and efficiently. �Change is constant and therefore the process is a continuous process.

What is a marketing strategy? �A plan identifying what marketing goals and objectives will be pursued and how they will be achieved in the time available.

Planning: A Framework for the Future Envisioning the Future Establishing goals and objectives Designing strategies to be implemented in the future

Level of management planning 5

Top Management: Mission Statement A mission statement is: � A broad statement of the company’s purpose � Explains the purpose of the organization � Provides direction for the entire company Walt Disney’s Mission “The Walt Disney Company is committed to balance environmental stewardship with our corporate goals throughout the world” http: //corporate. disney. go. com/environmentality/mission_history. html

Homework Question � Page 52, question 6 � The examination of mission statements

Strategic business units (SBU) �Operates as a “company within a company” �A SBU is organized around some common element such as…. Industry Technology SBU Customer need Target Market

Boston consulting groups growth-share matrix �Commonly referred to as the BCG Matrix �Develop to evaluate SBU’s performance based industry growth (vertical axis) versus relative market share (horizontal axis) �Assists management to determine resource allocation �Four categories: Stars, Cash cows, Dogs, Question Marks (see exhibit 2 -3, page 34)

GROWTH RATE (Cash Use) Boston consulting groups growth-share matrix HIGH LOW MARKET SHARE (Cash Generation) HIGH LOW STAR QUESTION MARK CASH COW DOG

Marketing Strategies at the SBU LEVEL � 1. Marketing managers focus on two key aspects of SBU strategies: Establish a competitive advantage 2. Superior to or favourably different from competitors Examples include: price leadership, differentiation strategy Plan growth strategies (Visit Exhibit 2 -5, page 37)

Planning business-unit growth strategies The Market/Product Matrix (Exhibit 2 -5) Markets Products Existing New Market Penetration New Market Development Product Diversification Development 12

What’s Happening? � http: //www. theglobeandmail. com/report-on- business/industrynews/marketing/adhocracy/toyota-matrix-campaign -shows-peril-of-pulling-pranks/article 2168041/ �http: //www. youtube. com/watch? v=e. H 3 GH 7 Pn_e. A �http: //www. youtube. com/watch? v=V 3 Wt. XZGiav 0& feature=related

The six stages of the Strategic marketing Process Planning stages 1. Identifying and evaluating opportunities 2. Analyzing market segments and selecting target markets 3. Planning a market position and developing a marketing mix strategy 4. Preparing a formal marketing plan 5. Executing the plan 6. Controlling efforts and evaluating the results

Stage One: Identifying and Evaluating Opportunities Situation Analysis: two major components: 1. Environmental scanning & monitoring External forces and trends are identified as opportunities and threats Forces include: sociocultural, demographic, economic, etc. 2. Internal analysis Internal strengths and weakness are identified Key topics include: organization, customers, suppliers 15

Stage One: Identifying and Evaluating Opportunities Bringing the internal and external analysis together: S. W. O. T Internal Micro-environment External Macro-environment Strengths Weaknesses (build on) (deal with) Opportunities Threats (take advantage) (avoid) 16

Stage Two: Analyzing Market Segments & Selecting Target Markets � Consumer Market (B 2 C) vs. Organizational Markets (B 2 B) (Visit exhibit 2 -8, page 42) � Market segment Portion of a larger market (i. e. French Canadians) � Market segmentation Dividing the mass market into smaller groups with similar characteristics that are likely to become the target market � Target market The specific group(s) the organization directs its marketing mix towards

Stage Three: Market Positioning and Marketing Mix strategy �Market position: How consumers perceive a brand relative to its competition �Developing marketing mix (4 P’s): Product Price Place (distribution) Promotion Recall from Chapter 1?

Homework Question � Page 52, question 11 � “How is Dr. Pepper positioned relative to Coke and Pepsi? ”

Stage 4: Preparing a Formal Marketing Plan The yearly marketing plan is a written report that includes: Marketing objectives (S. M. A. R. T) Marketing strategies Marketing mix Responsibility allocation Implementation timeline

Stage 5: Executing the marketing plan Putting the plan into action! Management best practices: �Ensure resources are properly allocated �Clearly understand communicate goals and expectations �Create reasonable expectations and deadlines

Stage 6: Controlling efforts and evaluation results Marketing Audits: Ensure that planned activities are executed properly � Benchmark: establish performance standards � Supervision: investigate to ensure tasks have been completed “checking up” � Adjustments: evaluate to determine if goals have been achieved Yes? Continue with the plan No? Make adjustments and monitor

Ethics and Responsibility �Worldwide consumerism and environmentalism movements exert pressure for greater responsibility �Notion of “caring capitalism” tied to the marketing concept. Seeking ways to make a profit by serving the best long-run interests of customers and communities.