Transcript MarketingChap2PPoint

2
Planning, Implementing, and Controlling Marketing
Strategies
Objectives
 To understand the strategic planning process
 To understand how a company’s resources and
strengths affect the planning process
 To understand the role of a “mission statement”
 To understand the process of creating a “marketing
plan”
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Understanding the Strategic
Planning Process
 Strategic Planning
 The process of establishing:
1. organizational mission statement
2. formulating goals
3. creating corporate strategy
4. plan marketing objectives
5. Plan marketing strategy
6. Create a marketing plan
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Marketing Strategy and Marketing
Plan
 Marketing Strategy
 A plan of action for identifying and analyzing a target
market and developing a marketing mix to meet the
needs of that market
 Marketing Plan
 A written document that specifies
the activities to be performed to
implement and control an
organization’s marketing activities
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Assessing Organizational
Resources and Opportunities
 Core Competencies
 Things a firm does extremely well (strengths), which
sometimes give it an advantage over its competition
 Reputation, goodwill, and brand names
 EX: Chili’s - food, menu’s etc.
 Understanding core competencies helps build goals and
objectives! 
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Assessing Organizational
Resources and Opportunities
(cont’d)
 Market Opportunity
 A combination of circumstances and timing that permits
an organization to reach a target market
 Core competencies are matched to opportunities (Internet &
Real Estate Firms)
 Strategic windows—
temporary periods of optimal
fit between the key requirements
of a market and the particular
capabilities of a firm
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Assessing Organizational
Resources and Opportunities
 Competitive Advantage
 The result of a company’s matching
a core competency (superior skill
or resources) to opportunities
in the marketplace
 Manufacturing skills
 Technical skills
 Marketing skills
 Ex: Ebay! On line shopping to consumers and then took advantage
of selling to businesses!  SMART!
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SWOT Analysis
 An assessment of the organization’s strengths,
weaknesses, opportunities, and threats




Strengths—competitive advantages or core competencies
Weaknesses—limitations on competitive capability
Opportunities—favorable conditions in the environment
Threats—conditions or barriers to reaching objectives
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Establishing an Organizational
Mission and Goals
 Mission Statement
 A long-term view, or vision, of what the organization wants to
become
 Mission statement answers two questions:
 1. Who are our customers?
 2. What is our core
competency?
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Nike Mission Statement
Mission Statement
Our mission at Nike is to be a company that surpasses all others
in the athletic industry. We will maintain our position by
providing quality footwear, apparel and equipment to
institutions and individual consumers of all ages and lifestyles.
We pledge to make our products easy available worldwide
through the use of retail outlets, mail order and our company
web site. Nike’s management believes that our success lies in the
hands of our teammates, customers, shareholders and the
communities in which we operate. We vow to keep this in mind
with the execution of every decision within our company.
.
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Establishing an Organizational
Mission and Goals (cont’d)
BEGIN AGAIN
 Marketing Objective
 A statement of what is to be accomplished through marketing
activities to match strengths to opportunities, or to
provide for the conversion of weaknesses to strengths
 Should be stated in clear, simple terms
 Should be accurately measurable
 Should specify a time frame for accomplishment
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Nike’s Marketing
Objectives….
Long-Term Corporate Objectives

The following are Nike Inc.'s 5-Year long-term corporate objectives:

Continue our improvement in stockholders' return on equity to achieve a 20.0% return in 2004.
This would be an increase of almost 6.5% from 1999.

Increase earnings per share to $2.70 per diluted share by 2004 in an overall effort to bolster the
long-term resilience of our stock's value. This would surpass our 1997 record high.

Short-Term Corporate Objectives

The following are Nike Inc.'s short-term corporate objectives for fiscal year 2000:

Increase net income to $550 million by the end of fiscal year 2000 in order to reach our long-term
goals of improved return on equity and higher EPS. This 22% increase from 1999 is realistic in light
of combined 1st & 2nd Quarter income already 32% higher compared to the same time last year.

Recover the market price of our stock from its 52-week low of $26.50 per share on February 8,
2000, to a value that approximates its 52-week average of $50 per share.
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Corporate Strategy
 A strategy that determines the way a company will use
resources to reach the organization’s goals.
 Determines the scope of the business
 Discussed what to do with resources
 Identifies its competitive advantages
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Marketing Strategy
 Target Market Selection
 Defining/understanding the target market by
 focusing on profitable customer groups
 recognizing changes occurring in the market.
 Creating the Marketing Mix
 Analyze customer needs, preferences, and behavior
 Have the skills and resources required for product design,
pricing, distribution, and promotion
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Creating the Marketing Plan
 Marketing Planning




The process of assessing opportunities and resources
determining objectives
defining strategies
establishing guidelines for implementation and control of
the marketing
program
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Creating the Marketing Plan
(cont’d)
 Benefits of Planning
 Provides the basis for internal communication among
employees
 Defines the assignment of responsibilities
 Helps in monitoring and evaluating the performance of
the marketing strategy
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Implementing Marketing
Strategies
 Marketing Implementation
 The process of putting marketing strategies into action
 Intended Strategy
 The strategy that the company decides on during the
planning phase
 Realized Strategy
 The strategy that actually takes place
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Total Quality Management
 Total Quality Management (TQM)
 A philosophy that uniform commitment to quality in all
areas of the organization will promote a culture that
meets customers’ perceptions of quality
 Benchmarking
 Comparing the quality of the firm’s goods, services, or
processes with that of the best-performing competitors
 Empowerment
 Giving customer-contact employees authority and
responsibility to make marketing decisions on their own
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Organizing Marketing Activities
(cont’d)
 Centralized Organization
 A structure in which top management delegates little
authority to levels below it
 Decentralized Organization
 A structure in which decision-making authority is
delegated as far down the chain of command as possible
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