Transcript Chapter21

CHAPTER TWENTY-ONE
Developing Innovative
Marketing Plans
For use only with
Perreault/Cannon/McCarthy
or Perreault/McCarthy texts.
© 2008 McGraw-Hill
Companies, Inc.
McGraw-Hill/Irwin
www.mhhe.com/fourps
When we finish this lecture you should
1. Know the content of and differences among
2.
3.
4.
strategies, marketing plans, and a marketing
program.
Understand all of the elements of the marketing
strategy planning process and the strategy
decisions for the four Ps.
Understand why product classes and typical
mixes should be considered when developing a
marketing plan.
Understand ways the marketing strategy and
plan are likely to need to change at different
stages of the product life cycle.
When we finish this lecture you should
5.
6.
7.
Understand the basic forecasting approaches
and why they are used to evaluate the
profitability of potential strategies.
Know what is involved in preparing a marketing
plan, including estimates of costs and revenues
and specification of other time-related details
Understand ways firms can become involved in
international marketing.
The
Development
Marketing Plansand
(Exhibit
21-1)
Strategy
Planning,ofImplementation,
Control
(Exhibit 21-1)
Putting Together Innovative
Marketing Plans
Blending the
marketing mix
Forecasting the
target market
potential & sales
Writing marketing
plans
Marketing Planning Process Is More Than
Assembling the Four Ps
…We’ve become a
model for how to do
business on the
Internet. Everything
from being integrated
with suppliers to ecommerce to customer
support …creating
efficiencies that result
in business to
business at its best.
Online.
Developing Different Marketing Mixes
© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
S.W.O.T. Analysis
S.W.O.T. Analysis
Checking your knowledge
Which of the following would a S.W.O.T. analysis classify
as an “opportunity” for Microsoft:
A. Microsoft has a great deal of cash available for
marketing strategies.
B. Microsoft develops new patented technology that makes
its software run faster.
C. European trade regulators consider rulings that would
require Microsoft to develop a new version of Windows
for its market.
D. Emerging markets in Asia and Africa show increased
demand for computers and software.
E. The company hires an expert in online advertising.
Marketing Mix Flows from Target Market
Dimensions (Exhibit 21-3)
Marketing Manager Must Blend the Four Ps
Product Life Cycle Guides Planning (Exhibit 21-4)
Forecasting Target Market Potential and Sales
We can tell you who
your next customer
is – right down to
the partially
hydrogenated
canola oil on his
poly/cotton
undershirt.
Two Approaches to Forecasting (Exhibit 21-5)
Extending Past Trends Can Miss Turning Points
So, Predicting Future Behavior Takes Judgment!
Forecasting Company Product Sales by Extending
Past Behavior
A Bread Producer Example of the Factor Method
Past share:
1/10% of total
retail food
sales in target
markets – a
factor of .001
x
Previous year’s
total food sales
in Denver, CO:
$4,700,116,000
=
Bread
producer’s
estimated
sales:
$4,700,116
The Factor Method Can Use Several Factors!
Producers of Business Products Can Use Several
Factors Too (Exhibit 21-7)
Other Trend Extension Methods
Time Series
Leading Series
Indices
Predicting Future Behavior Calls for More
Judgment and Some Opinions
Jury of
Executive
Opinion
Estimates from
Sales People
Key
Methods
Surveys,
Panels,
Market Tests
Checking your knowledge
Viktor Potrenko conducted research for his dance studio,
VP Dance. There is only one other dance studio
currently in town and his research indicated that the
market potential was $400,000 for the coming year.
From this information we know that:
A. His dance studio should have a marketing plan that
forecasts $400,000 in sales.
B. His dance studio’s sales will be less than $400,000 in
the coming year.
C. Potrenko has yet to develop his marketing strategy.
D. If his studio gets a 40 percent market share, then the
other studio will have sales of $600,000 in the coming
year.
E. None of the above are true.
Analysis of Costs and Sales Can Guide Planning
(Exhibit 21-8)
Marketing
Mix
Price
Selling
Cost
Advertising Total
Cost
Units
Sales
Revenue
Total
Cost
Total
Profit
More “What If?” Questions
(Exhibit 21-9)
Marketing
Mix
Price
Selling
Cost
Advertising Total
Cost
Units
Sales
Revenue
Total
Cost
Total
Profit
The Marketing Plan Brings All the Details Together
Marketing
Environment
Name of
ProductMarket
Product
Customer
Analysis
Competitor
Analysis
Company
Analysis
Place
Types
of
Key
Parts
Demand-Oriented
of a
Marketing
PricingPlan
Marketing
Information
Needs
Promotion
Price
Special
Implementation
Forecasts and
Timing
Control
Companies Plan and Implement Whole Marketing
Programs
Target
Market
+
Marketing
Mix
=
Marketing
Strategy
+
TimeRelated
Details
=
Marketing
Plan
+
Other
Marketing
Plans
=
A Firm’s
Marketing
Program
Planning for Involvement in International Marketing
Lower Levels of
Involvement
• Exporting
• Licensing
• Contract
manufacturing
• Management
contracting
Planning for Involvement in International Marketing
Lower Levels of
Involvement
• Exporting
• Licensing
• Contract
manufacturing
• Management
contracting
Higher Levels
of Involvement
• Joint
venturing
• Wholly owned
subsidiaries
• Multinational
corporations
Checking your knowledge
Maria Petrino is the marketing manager at Imported
Toys, a small online retailer. She has developed a
marketing mix for one of the retailer’s prime target
groups – grandparents. She has finished laying out the
details of who in the firm does what during the next year
to attract the grandparents. Maria apparently has
created:
A. Only a marketing strategy.
B. A marketing plan.
C. A marketing program.
D. Both a marketing strategy and the associated marketing
plan.
E. All of the above are correct.
Interactive Exercise: International Marketing
© 2008 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
You now
1. Know the content of and differences among
2.
3.
4.
strategies, marketing plans, and a marketing
program.
Understand all of the elements of the marketing
strategy planning process and the strategy
decisions for the four Ps.
Understand why product classes and typical
mixes should be considered when developing a
marketing plan.
Understand ways the marketing strategy and
plan are likely to need to change at different
stages of the product life cycle.
You now
5.
6.
7.
Understand the basic forecasting approaches
and why they are used to evaluate the
profitability of potential strategies.
Know what is involved in preparing a marketing
plan, including estimates of costs and revenues
and specification of other time-related details
Understand ways firms can become involved in
international marketing.
Key Terms
• S.W.O.T. analysis
• Market potential
• Sales forecast
• Trend extension
• Factor method
• Factor
• Time series
• Leading series
• Indices
• Jury of executive
opinion
•
•
•
•
•
•
•
•
Spreadsheet
analysis
Exporting
Licensing
Contract
manufacturing
Management
contracting
Joint venturing
Wholly-owned
subsidiary
Multinational
corporations