Transcript Understanding Marketing

it is more important to do what is
strategically right than what is
immediately profitable.
Philip Kotler
The learning objectives:
What is strategy?
what is strategic planning?
Marketing Planning process
2
1. Strategy
The logics by which the business unit hopes
to achieve its marketing objectives.
Discussion
What ‘s the difference between the strategies
and the tactics?
Market-Oriented Strategic Planning
Objectives
Resources
Skills
Opportunities
Market-Oriented Strategic Planning
Objectives
Resources
Profit
and
Growth
Skills
Opportunities
Corporate Headquarters Planning
Define the corporate mission
Establish strategic business units (SBUs)
Assign resources to SBUs
Plan new business, downsize older businesses
The McKinsey 7-S Framework
Structure
Strategy
Systems
Shared
values
Skills
Style
Staff
The Value-Delivery Process
(a) Traditional physical process sequence
Make the product
Design Procure Make
product
Sell the product
Price Sell Advertise/
promote Distribute Service
(b) Value creation & delivery sequence
Choose the Value Provide the Value Communicate the Value
Strategic marketing
Tactical marketing
2.Strategic planning
The process of developing and maintaining a
strategic fit between the organization’s goals and
capabilities and its changing marketing opportunities.
It involves defining a clear company mission,
setting supporting objectives,designing a sound
business portfolios and coordinating functional
strategies.
The Marketing Plan
Executive Summary & Table of Contents
Current Marketing Situation
Opportunity & Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls
The Strategic-Planning Gap
Desired
sales
Diversification growth
Strategicplanning
gap
Sales
Integrative growth
Intensive growth
Current
portfolio
0
5
Time (years)
10
Factors Influencing Company
Marketing Marketing
Strategy
Demographic/
economic
environment
intermediaries
Technical/
physical
environment
Product
Suppliers
Place
Target Price
customers
Promotion
Political/
legal
environment
Competitors
Publics
Social/
cultural
environment
Steps in strategic planning
(page 48)
Mission----objectives and goals business
portfolios-----planning,marketing and other
functional strategies
mission
The organization’s purpose---- what it wants
to accomplish in the larger environment.
Good Mission Statements:
Limited number of goals
Stress major policies & values
Define competitive scopes
Business portfolios
The collection of business and products that
make up the company.
Strategic business unit (SBU)
a unit of company that has a separate mission and
objectives and that can be planned independently
from other company businesses,it can be a
company division, a product line with a division, or
sometimes a single product or brand.
Three Intensive Growth Strategies: Ansoff’s
Product/Market Expansion Grid
Existing
products
Existing
markets
1. Market
penetration
New
markets
2. Market
development
New
products
3. Product
development
4. Diversification
Market Growth Rate
The Boston Consulting Group’s
Growth-Share Matrix
20%18%16%14%12%10%8%6%4%2%0
Stars
Question marks
4
3
5
?2
?
1
Dogs
Cash cow
8
6
10x
7
4x
2x 1.5x
1x
.5x .4x .3x .2x .1x
Relative Market Share
MARKET ATTRACTIVENESS
Low Medium High
Market Attractiveness: Competitive- Position
Portfolio Classification
Strong
BUSINESS STRENGTH
Medium
5.00
5.00
3.67
2.33
Weak
1.00
Joints
Aerospace
fittings
Hydraulic
pumps
3.67
Clutches
2.33
Flexible
diaphragms
Fuel
pumps
Relief
valve
1.00
Invest/grow
Selectivity/earnings
Harvest/divest
Opportunity Matrix
Attractiveness
Success Probability
High
Low
High
1
2
Low
3
4
Opportunities
1. Company develops a more
powerful lighting system
2. Company develops a device for
measuring the energy efficiency
of any lighting system
3. Company develops a device for
measuring illumination level
4. Company develops a software
program to teach lighting
fundamentals to TV studio
personnel
Threat Matrix
Probability of Occurrence
Seriousness
High
High
Low
Low
1
2
3
4
1.
2.
3.
4.
Threats
Competitor develops a
superior lighting system
Major prolonged economic
depression
Higher costs
Legislation to reduce number
of TV studio licenses
3.marketing process
1.analyzing marketing opportunities
2.selecting target markets
3.developing the marketing mix
4.Managing the marketing effort.
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
Market Segmentation
Dividing a market into distinct groups of buyers on the
basis of needs,characteristics, or behaviors who might
require separate products or marketing mixes.
Market segment
A group of consumers who respond in a similar
way to a given set of marketing effort.
Market targeting
The process of evaluating each market
segment’s attractiveness and selecting one
or more segment to enter.
Marketing positioning
Arranging for a product to occupy a
clear,distinctive, and desirable place relative to
competing products in the minds of target
consumers.
Marketing mix
4P’S----product,price,promotion,place
4C’s---customer solution.customer cost,
convenience, communication
Managing the marketing effort
Marketing analysis
Marketing planning
Implementation
control
Assignment
1.reading material:P63—P66, P70
2.Page 38,79