Transcript P.P.
chapter 20 MARKETING STRATEGY: HOW IT ALL FITS TOGETHER Prepared by Angela Zigras, Seneca College Deborah Baker, Texas Christian University Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 1 You Wil l Learn To ... 1. Undertake the strategic market planning that leads to the formal, written marketing plan 2. Develop the marketing objectives that will guide the marketing plan 3. Undertake a thorough situation analysis 4. Select strategic alternatives that match the market situation Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 2 You Wil l Learn To ... 5. Build a marketing strategy based on customer value 6. Develop a coordinated marketing mix 7. Implement, evaluate, and control the marketing plan 8. Apply several techniques that help make strategic planning effective Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 3 StrategicM ark et P l a n n in g Creating and maintaining a fit Strategic Market between the organization’s objectives and resources and Planning evolving market opportunities The central business scheme for Corporate utilizing the company’s financial, production, R&D, personnel and Strategy marketing resources. A capability, superior to that of Competitive your competitors, that can be utilized as a central part of the Advantage company’s strategic plan. Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 4 Form a l M ark etin g P l a n Serves as a road map, guides the organization towards the future Identifies the roles of individuals Identifies resources that will be needed Stimulates thinking Pinpoints company’s strengths and weaknesses Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 5 Form a l M ark etin g P l a n Helps company better understand its competitors Creates awareness of problems, opportunities and threats. Set priorities Coordinates all marketing activities Establishes dates and deadlines. Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 6 Mark etin g P l a n n in g Process Mission Statement Objectives SWOT Target Market Strategy Product Promotion Place Price Implementation & Evaluation Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 7 Defin e the Busin essM issio n Missio n State m e n t A clear and concise statement that explains the organization's reason for existing. Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 8 Criteria for We l l -Stated Mark etin g Objectives Suitable Marketing objectives support company’s mission Measurable Objectives are specific to a marketing plan period Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 9 Criteria for We l l -Stated Mark etin g Objectives Feasible Marketing Objectives must be feasible Acceptable People within the organization must “buy in” to the plan Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 10 Criteria for We l l -Stated Mark etin g Objectives Understandable Objectives should be clearly stated Motivating Objectives should be challenging Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 11 SWOT A n a l ysis Ide n tifyin g S W O T Things the company does well. Internal External Chapter 20 Things the company does not do well. Conditions in the external environment that favour strengths. Conditions in the external environment that do not relate to existing strengths or favour areas of current ©South-Western College Publishing weakness. Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 12 E l e m e n ts of a SWOT A n a l ysis External Internal •Customer analysis •Performance analysis •Competitor analysis . •Determinants of strategic options •Market Analysis •Environmental analysis Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 13 SWOT A n a l ysis Exa m in es Brand Competitor A competitor that is very much like you in terms of products offered for sale, price, promotion, dis tribution and the market. Perspective of the consumers What customers think of its reputation, product quality and service. Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 14 Strategic Opportu n ities Identity Opportunities Strategic Window Identify Strengths Require Quick Response Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 15 Strategic Desig n RESPOND Market Penetration Market Development Chapter 20 Product Development Diversification Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 16 Portfo l io M atrix Strategic Management Business Units •Desired Growth •Growth Potential •Acceptable Risk •Risk •Profit •ROI Objective Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 17 Portfo l ioM atrix C l assificatio n s Star A business unit that is a fast-growing market leader. Cash Cow A business unit that usually generates more cash than it needs to maintain its market share. Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 18 Portfo l ioM atrix C l assificatio n s Problem Child A business unit that shows rapid growth but poor profit margin. Dog A business unit that has low growth potential in a small market share. Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 19 Portfo l ioM atrix Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 20 Portfo l io Strategies BUILD Does the SBU have the potential to be a star? HOLD Can you maintain and preserve market share? Four Portfolio Strategies Chapter 20 HARVEST . Increase the short-term return without impacting long-run prospects. DIVEST Is it appropriate to dump SBU’s with low-growth potential? Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 21 Mark et Attractive n ess/Co m pa n y Stre n gthM atrix Insert exhibit 20.8 Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 22 Sustain ab l e Adva n tage Superior Skills Unique aspect that causes target consumer to patronize that firm rather than competitors Superior Resources Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 23 Mark etin g Strategy Starts with TargetM ark et! Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 24 Create Va l ue for the Custo m er What does VALUE mean to the target market? + Custo m er Be n efits Custo m er Costs ================ CUSTOMER VALUE ---------------------------- Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 25 How does theM ark etin gM a n ager Im p l e m e n t theM ark etin g P l a n ? Takes complete responsibility of seeing that each strategy is initiated and undertaken as planned. Tracks all activities, tactics and strategies, and compares “what is” with “what should be”. Tracks and adjusts to environmental conditions. Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 26 Im p l e m e n tatio n Intended Strategy The formal marketing strategy as found in the marketing plan. Realized Strategy The marketing strategy put into play in the marketplace Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 27 Eva l uatio n Gauges the extent of market plan achievements Evaluation Compares budgeted figures to actual Corrective action bring the plan back in line with plan Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 28 Eva l uatio n a n d Co n tro l Achieved through Marketing Audit Comprehensive - covers all major issues Systematic - is orderly sequenced Independent - is objective and has top management support Periodic - is carried out on a regular schedule Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 29 Effective Strategic P l a n n in g Creativity n goin g Process O Top Management Commitment Chapter 20 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 20 - 30