Mc GrawHill Companies Inc Mc GrawHillIrwin DEVELOPING MARKETING

© Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

DEVELOPING MARKETING STRATEGIES AND A MARKETING PLAN LEARNING OBJECTIVES How does a firm set up a marketing plan? How are SWOT analyses used to analyze the marketing situation? How does a firm choose what group(s) of people to pursue with its marketing efforts? How does the implementation of the marketing mix increase customer value? How can firms grow their businesses? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -2

Dunkin’ Donuts versus Starbucks Dunkin’ Donuts Commercial © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -3

Sustainable Competitive Advantage © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -4

Customer Excellence Retaining loyal customers Customer service Virgin Atlantic Website © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -5

Operational Excellence Efficient operations © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Excellent supply chain management. 2 -6

Product Excellence © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -7

Locational Excellence How does Rachael Ray as a spokesperson tie into locational excellence? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 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. © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -9

The Marketing Plan © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -10

Three Phases of a Strategic Planning Implementing © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Controlling 2 -11

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. © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -12

MADD Promotion © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -13

Step Two: Conduct a Situation Analysis Using SWOT © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -14

Step Three: Identifying and Evaluating Opportunities Using STP Segmentation Targeting Positioning © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -15

Disney: Segmentation, Targeting, Positioning Magic Kingdom Pleasure Island Epcot Families w/younger kids Singles and Couples Adults, families w/older kids © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -16

Power of the Internet Building Brand evangelists online Real Beauty campaign Dove evolution viral video Dove “Real Beauty” Commercial © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -17

Step Four: Implement Marketing Mix and Allocate Resources Product Value Creation Price Value Capture Place Promotion Value Communication Value Delivery © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -18

Price and Value Capture Competitor-based pricing Cost-based pricing Value-based pricing © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -19

Place and Value Delivery © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin The product must be readily accessible Why is this retailer growing? 2 -20

Promotion and Value Communication Television Radio Magazines Sales force New Media © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -21

Step Five: Evaluate Performance and Make Adjustments P&G Website © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -22

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? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -23

Growth Strategies © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -24

Market Penetration Existing marketing mix Existing customers In what way is a sale a Market penetration strategy? Cartier Website © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -25

Market Development Strategy What can a company do to continue to grow in a difficult retail environment? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -26

Product Development Disney Fairy Tale Weddings New product or service Current target market © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -27

Diversification Fed. Ex acquires Kinko’s New product or service New market segment © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -28

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? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -29

Scenario Planning © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -30

Check Yourself 1. 2. Identify the steps of the scenario planning process How is scenario planning used in a firm? © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -31

Glossary Customer excellence is achieved when a firm develops value-based strategies for retaining loyal customers and provides outstanding customer service. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -32

Glossary A diversification strategy introduces a new product or service to a market segment that currently is not served. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -33

Glossary Locational excellence occurs by having a good physical location and Internet presence. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -34

Glossary A market development strategy employs the existing marketing offering to reach new market segments, whether domestic or international. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -35

Glossary A market penetration strategy employs the existing marketing mix and focuses the firm’s efforts on existing customers. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -36

Glossary A marketing plan is a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four P’s, action programs, and projected or proforma income (and other financial) statements. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -37

Glossary A mission statement is a broad description of a firm’s objectives and the scope of activities it plans to undertake. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -38

Glossary Operational excellence is achieved through efficient operations and excellent supply chain and human resource management. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -39

Glossary A product development strategy offers a new product or service to a firm’s current target market. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -40

Glossary Product excellence occurs by having products with high perceived value and effective branding and positioning. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -41

Glossary Scenario planning integrates information obtained as part of the situation and opportunity analysis steps of the marketing plan to better understand the potential performance outcomes associated with different marketing mix applications. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -42

Glossary A situation analysis uses a SWOT analysis that assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -43

Glossary STP stands for segmentation, targeting, and positioning, and is used to identify and evaluate opportunities for increasing sales and profits. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -44

Glossary A sustainable competitive advantage is an advantage over the competition that is not easily copied, and thus can be maintained over a long period of time. Return to slide © Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin 2 -45