MGT 301 Principles of Marketing Lecture7 Summary of

MGT 301 Principles of Marketing Lecture-7

Summary of Lecture-6

Strategic Planning and Marketing Process

Business unit, product, and market level Corporate Level Defining the Company Mission Setting Company Objectives and Goals Designing the Business Portfolio Planning, marketing, and other functional Strategies

Corporate Marketing Plan

Strategy Formulation u u u Mission Goals External analysis Internal analysis Strategic choice

Today’s Topics u u Portfolio Analysis Marketing Process

Portfolio Analysis: A tool by which management evaluates the various business making up the company

The Boston Consulting Group’s Growth-Share Matrix

Stars Question marks 4 5 ? 3 ? Market growth rate 20%18%16%14%12%10%8%6%4%2%0 ? 2 ? 1 Dogs Cash cow 8 6 10 x 4 x 7 2 x 1. 5 x 1 x . 5 x. 4 x. 3 x. 2 x. 1 x Relative market share

Product/Market Expansion Grid

Current products Current markets New markets Marketpenetration strategy Marketdevelopment strategy New products Productdevelopment strategy (Diversification strategy)

Product/ Market Expansion Grid u u Market Penetration: Making more sales to current customers without changing its products. u How? Add new stores in current market areas, improve advertising, adjust prices, service or store design.

Market Development: develop new markets for its current products. – How? Identify new demographic or geographic markets.

u u Product Development: Offering modified or new products to current markets. u How? New styles, flavors, colors, or modified products.

u u Diversification: New products for new markets. u How? Start up or buy new businesses.

Strategic Planning, Implementation, and Control Process

Planning Corporate planning Implementation Organizing Division planning Business planning Product planning Control Measuring results Diagnosing results Implementing Taking corrective action

Marketing Strategy Planning Process

Customers Needs and other Segmenting Dimensions Company Mission, Objectives, & Resources Competitors Current & Prospective

Customers Needs and other Segmenting Dimensions Company Mission, Objectives, & Resources S. W. O. T. Competitors Current & Prospective External Market Environment

Customers Needs and other Segmenting Dimensions Company Mission, Objectives, & Resources S. W. O. T. Targeting & Segmentation Competitors Current & Prospective External Market Environment Positioning & Differentiation

Narrowing down to focused strategy with quantitative and qualitative screening criteria Customers Needs and other Segmenting Dimensions Company Mission, Objectives, & Resources S. W. O. T. Targeting & Segmentation Positioning & Differentiation Competitors Current & Prospective External Market Environment

Marketing Process u u Analyzing marketing opportunities Selecting target markets Developing the marketing Mix Managing the marketing effort

Enough for today. . .

Summary

Stars Question marks 4 5 ? 3 ? Market growth rate 20%18%16%14%12%10%8%6%4%2%0 ? 2 ? 1 Dogs Cash cow 8 6 10 x 4 x 7 2 x 1. 5 x 1 x . 5 x. 4 x. 3 x. 2 x. 1 x Relative market share

Product/Market Expansion Grid

Current products Current markets New markets Marketpenetration strategy Marketdevelopment strategy New products Productdevelopment strategy (Diversification strategy)

Marketing Process

Next…. u u Analyzing marketing opportunities Selecting target markets Developing the marketing Mix Managing the marketing effort

MGT 301 Principles of Marketing Lecture-7