of MARKETING foundations Marketing Strategy and the Marketing

of MARKETING foundations Marketing Strategy and the Marketing Plan Chapter 5

Marketing Strategy and the Marketing Plan Chapter 5 Objectives 1. Explain the importance of strategic orientation for marketing. 2. Show the connection between organization strategy and marketing strategy. 3. Show the connection between marketing strategy and marketing plan. 4. Show that a marketing plan should be based on a good analysis of the character of the external environment. 5. Discuss in detail the steps in the marketing planning process. 6. Explain the connection between the marketing plan and the marketing mix 7. Describe how the elements of the marketing mix can be combined to produce synergistic effects. 5 -1

Marketing Strategy and the Marketing Plan Figure 5. 1 5 An Overview of the Strategy and Marketing Planning Process Develop corporate strategy. 5 -2 Chapter Develop marketing strategy. Develop marketing plan.

Marketing Strategy and the Marketing Plan Chapter 5 Corporate Strategy • The overall purpose and direction of the organization that is established in the light of the challenges and opportunities found in the environment, as well as available organizational resources. 5 -3

Marketing Strategy and the Marketing Plan Figure 5. 2 Chapter 5 Stages in Formulating a Strategy for the Company as a Whole Analyze market and environmental opportunities and threats. Analyze business strengths and weaknesses. Generate objectives and strategy. Evaluate objectives and strategy. Plan implementation and control programs. Develop marketing strategy and strategies for other functions of the business. 5 -4

Marketing Strategy and the Marketing Plan Table 5. 1 Chapter 5 Example of an Organizational Mission Statement The Gillette Company is a globally focused consumer products marketer that seeks competitive advantage in quality, valueadded personal care and personal use products. We are committed to building shareholder value through sustained profitable growth. Our Vision The Gillette Company’s Vision is to build Total Brand Value by innovating to deliver consumer value and customer leadership faster, better, and more completely than our competition. This Vision is supported by two fundamental principles that provide the foundation for all of our activities: Organizational Excellence and Core Values. Source: Used with permission from the Gillette Web site, “Our Vision”, page (http: //www/gillette. com/company/our vision. asp). Downloaded November 8, 2002. 5 -5

Marketing Strategy and the Marketing Plan Chapter 5 Marketing Strategy • A strategy that focuses on developing a unique long-run competitive position in the market by assessing consumer needs and the firm’s potential for gaining competitive advantage. 5 -6

Marketing Strategy and the Marketing Plan Chapter 5 The Strategic Marketing Planning Process 1. 2. 3. 4. 5. 5 -7 Input from Corporate Strategies Situation Analysis Marketing Objectives and Strategies Marketing Plan Implementation and Control

Marketing Strategy and the Marketing Plan Chapter 5 Situation Analysis • Considering the internal circumstances of the organization or product, the external environment, competitive activity, and characteristics of the customer that may be relevant to the marketing plan. 5 -8

Marketing Strategy and the Marketing Plan Chapter 5 Marketing Objectives and Strategy • Flow from the situation analysis. They are a statement of what the organization intends to accomplish with its marketing program and the general approach it will take. 5 -9

Marketing Strategy and the Marketing Plan Chapter 5 Marketing Plan • A specific detailed statement of how the marketing mix will be used to realize the marketing strategy. 5 -10

Marketing Strategy and the Marketing Plan Chapter 5 Implementation and Control • Consist of putting the marketing plan into action as well as doing ongoing monitoring and gathering feedback on how ell the plan is accomplishing the stated marketing program. 5 -11

Marketing Strategy and the Marketing Plan Chapter 5 Product Portfolio • The complete collection of products or services that a company produces. 5 -12

Marketing Strategy and the Marketing Plan 5 BCG Growth - Share Matrix Source: The Boston Consulting Group. Reprinted with permission Figure 5. 4 5 -13 Chapter

Marketing Strategy and the Marketing Plan Figure 5. 5 General Electric’s Business Screen 5 -14 Chapter 5

Marketing Strategy and the Marketing Plan Chapter 5 SWOT Analysis • The combined summary of the internal analysis and the environmental analysis. Stands for: Strengths, Weaknesses, Opportunities, and Threats. 5 -15

Marketing Strategy and the Marketing Plan Chapter 5 Positioning Analysis • Identifying brands in each segment and how they differ from each other. 5 -16

Marketing Strategy and the Marketing Plan Chapter 5 Customer Analysis 1. Who are our actual and potential customers? 2. Why do they buy our product? 3. Why do non customers not buy our products? 4. Where do our customers buy our products? 5. How do they buy it? 6. When do they buy it? 7. What do they do with our product? 5 -17

Marketing Strategy and the Marketing Plan Figure 5. 6 5 -18 Positioning Map for Business Desktop Microcomputer Segment Chapter 5

Marketing Strategy and the Marketing Plan Chapter 5 Developing a Competitive Strategy 1. 2. 3. 4. 5. 5 -19 Who are our competitors? What is their strategy? Should we compete? If so, in what markets? How?

Marketing Strategy and the Marketing Plan Chapter 5 Figure 5. 7 Product-Market Growth Matrix PRODUCT Present New Present Penetration Product development New Market development Diversification MARKET 5 -20

Marketing Strategy and the Marketing Plan Table 5. 2 5 -21 a Chapter Marketing Planning Model Based on Environmental Antecedents (1 of 3) 5

Marketing Strategy and the Marketing Plan Table 5. 2 5 -21 b Chapter Marketing Planning Model Based on Environmental Antecedents (2 of 3) 5

Marketing Strategy and the Marketing Plan Table 5. 2 5 -21 c Chapter Marketing Planning Model Based on Environmental Antecedents (3 of 3) 5

Marketing Strategy and the Marketing Plan Chapter 5 Figure 5. 8 The Strategic Marketing Planning Process 5 -22

Marketing Strategy and the Marketing Plan Chapter 5 Marketing Mix • The blending of the four elements of marketing to satisfy chosen consumer segments. 5 -23

Marketing Strategy and the Marketing Plan Figure 6. 9 Chapter 5 The Marketing Mix Elements Products Consumers Marketing research Communication 5 -24 Pricing Buyer needs in a market segment Distribution Service/ convenience

Marketing Strategy and the Marketing Plan Chapter 5 Product Management • Decisions about what kind of product is needed, its uses, package design, branding, trademarks, warranties, guarantees, product life cycles, and new product development. 5 -25

Marketing Strategy and the Marketing Plan Chapter 5 Pricing • The methods of setting competitive, profitable, and justified prices. 5 -26

Marketing Strategy and the Marketing Plan Chapter 5 Distribution • The selection and management of marketing channels and the physical distribution of goods. 5 -27

Marketing Strategy and the Marketing Plan Chapter 5 Marketing Channels • The steps or handling organizations that a good or service goes through from producer to final consumer. 5 -28

Marketing Strategy and the Marketing Plan Chapter 5 Communication • Personal selling, advertising, sales, promotion, and publicity. 5 -29

Marketing Strategy and the Marketing Plan Figure 5. 10 Chapter The Role of the Marketing Manager Components of the Marketing Environment 1. The social environment and behaviour of consumers 2. The economic environment 3. The competitive environment 4. The legal environment 5. The technological environment External Factors 5 -30 Strategies, Objectives, and Resources of the Organization Marketing Manager Marketing Plan A unique blend of marketing elements related to one another and the forces bearing on the organization 5 Marketing Mix Elements 1. Product of service decisions 2. Pricing decisions 3. Distribution decisions 4. Communication decisions Internal Factors

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