Transcript Chapter 6: Developing Product and Brand Strategy

Chapter 5: Planning Direction,
Objectives, and Marketing
Support
The Marketing Plan Handbook
Fourth Edition
Marian Burk Wood
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Determining Marketing Plan
Direction

Goals and Objectives.



Goals = Long-term performance targets.
Objectives= Short-term performance targets.
The direction chosen must be consistent
with the organization’s priorities and
strengths.
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Options for Marketing Plan
Direction

Growth

Maintenance

Retrenchment
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Growth
Four broad strategies for growth:

Market penetration.

Market development.

Product development.

Diversification.
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Market Penetration


Selling more of the existing products to
customers in existing markets.
Appropriate when firm can build on
established customer relationships and
positive value perceptions.
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Market Development

Market development involves identifying
and reaching new segments or markets for
existing products.
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Product Development

Product development is a growth strategy
in which:


The company develops new products to sell to
customers in EXISTING markets or segments.
The company develops new products to sell to
customers in NEW markets or segments.
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Diversification
Diversification is a growth strategy of offering
new products in new markets to take
advantage of new opportunities:

Through internal product development or

By starting or buying a business.
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Pros and Cons of
Diversification
Advantage:
Disadvantages:


Helps avoid overreliance on a small
number of products
or markets.

Dilutes available
resources.
Opens the
organization to
competitive attacks
on multiple fronts.
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Growth Not Always Possible


Growth not always desirable or
possible.
Priorities may be to:

Maintain current share

Seek highest possible profits

Retrench
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Non-growth Strategies
Non-growth strategies include:

Filing for bankruptcy.

Withdrawing from certain markets.

Deleting products.

Limiting distribution.

Closing a division.
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Keys to Effective Objectives





Specific, time-defined, and measurable.
Realistic, but challenging.
Consistent with the mission and overall
goals.
Consistent with internal environmental
analysis.
Appropriate in light of opportunities and
threats.
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Three Types of Objectives in
Marketing Plans



Marketing objectives: Targets for managing
certain marketing relationships and
activities.
Financial objectives: Targets for managing
certain financial results.
Societal objectives: Targets for achieving
particular results in social responsibility.
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Marketing Objectives
Targets for managing certain marketing
relationships and activities:

Customer acquisition.

Customer retention.

Customer satisfaction.

Channel relationships.

Unit sales.

Market share.

Product development.

Order fulfillment.
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Financial Objectives



Should be consistent.
May give way to achieve a coveted
marketing objective.
Financial objectives generally include:

Sales volume and product targets

Profitability targets

Return on investment (ROI) targets

Break-even targets
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Answering to Stakeholders
Various stakeholders:

Customers.

Suppliers.

Employees.

Civic leaders.

Others.
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Fulfilling Societal Objectives


Polishes company and/or brand
image.
Key issues include:

“Greener” products.

Charitable donations.

Involvement in community projects.

Energy conservation.

Issue awareness.
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Cause-Related Marketing


Links the marketing of a brand, good or
service to a charitable cause.
Although charitable, there is an explicit
marketing connection.
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Planning Marketing Support
Two aspects of marketing support:


Customer Service, and
Internal Marketing: marketing to managers
and employees inside the company.
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Customer Service
At different points in the buying
process:



Before the sale.
At the moment or point of sale.
After the sale.
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Customer Service Objectives

Meet segment’s needs, expectations.

Attract, retain, satisfy customers.

Reinforce the brand positioning.

Allocate service resources appropriately.

Service recovery.
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Internal Marketing Support

Keep employees focused on customers.

Keep employees involved in marketing.

Keep employees informed about marketing.

Improve employee performance and
satisfaction.
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Shaping the Marketing Mix


Consider the firm’s key priorities.
All tactics and programs developed.

Must be consistent with and support the
mission, direction, goals and objectives
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The Strategy Pyramid
STRATEGY
TACTICS
PROGRAMS
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