Transcript What is a marketing strategy?

MARKETING MANAGEMENT: STRATEGY
CHAPTER TWO
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Marketing Management
• The process of:
1. planning,
2. executing, and
3. controlling
marketing activities to attain the marketing goals
and objectives effectively and efficiently.
• Change is constant and therefore the process is
a continuous process.
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What is a marketing strategy?
• A plan identifying
what marketing
goals and
objectives will be
pursued and how
they will be
achieved in the
time available.
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Planning: A Framework for the Future
Envisioning the Future
Establishing goals and
objectives
Designing strategies to be
implemented in the future
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Top Management:
Mission Statement
A mission statement is:
• A broad statement of the company’s purpose
• Explains the purpose of the organization
• Provides direction for the entire company
Walt Disney’s Mission
“The Walt Disney Company is committed to balance
environmental stewardship with our corporate goals
throughout the world”
http://corporate.disney.go.com/environmentality/mission_history.html
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Top Management:
Mission statement
Three Guiding Principles:
1. Success depends on customer satisfaction
2. Consumer oriented perspective
3. Avoid short-sighted, narrow-minded thinking
Consumer
wants?
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Strategic business units (SBU)
• Operates as a “company within a company”
• A SBU is organized around some common
element such as….
Industry
Technology
SBU
Customer
need
Target
Market
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Boston consulting groups growth-share
matrix
• Commonly referred to as the BCG Matrix
• Develop to evaluate SBU’s performance based
industry growth (vertical axis) versus relative
market share (horizontal axis)
• Assists management to determine resource
allocation
• Four categories: Stars, Cash cows, Dogs,
Question Marks (see exhibit 2-3, page 34)
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GROWTH RATE
(Cash Use)
Boston consulting groups growth-share
matrix
HIGH
LOW
MARKET SHARE
(Cash Generation)
HIGH
LOW
STAR
QUESTION
MARK
CASH
COW
DOG
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Marketing Strategies at the SBU LEVEL
•
Marketing managers focus on two
key aspects of SBU strategies:
Establish a competitive
advantage
1.
–
–
2.
Superior to or favourably different
from competitors
Examples include: price leadership,
differentiation strategy
Plan growth strategies
–
(Visit Exhibit 2-5, page 37)
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Planning business-unit growth strategies
The Market/Product Matrix (Exhibit 2-5)
Markets
Products
Existing
Existing
New
Market
Penetration
New
Market
Development
Product
Diversification
Development
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The six stages of the Strategic marketing
Process
Planning stages
1. Identifying and evaluating opportunities
2. Analyzing market segments and selecting target markets
3. Planning a market position and developing a marketing
mix strategy
4. Preparing a formal marketing plan
5. Executing the plan
6. Controlling efforts and evaluating the results
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Stage One: Identifying and Evaluating
Opportunities
Situation Analysis: two major components:
1. Environmental scanning & monitoring
– External forces and trends are identified as
opportunities and threats
– Forces include: sociocultural, demographic,
economic, etc.
2. Internal analysis
– Internal strengths and weakness are identified
– Key topics include: customers, suppliers
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Stage One: Identifying and Evaluating
Opportunities
Bringing the internal and external analysis together:
S.W.O.T
Internal
Micro-environment
External
Macro-environment
Strengths
Weaknesses
(build on)
(deal with)
Opportunities
Threats
(take advantage)
(avoid)
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Stage Two:
Analyzing Market Segments &
Selecting Target Markets
• Consumer Market (B2C) vs. Organizational Markets
(B2B) (Visit exhibit 2-8, page 42)
• Market segment
– Portion of a larger market (i.e. French Canadians)
• Market segmentation
– Dividing the mass market into smaller groups with similar
characteristics that are likely to become the target market
• Target market
– The specific group(s) the organization directs its marketing mix
towards
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Stage Three: Market Positioning and
Marketing Mix strategy
• Market position:
– How consumers perceive a brand relative to its
competition
• Developing marketing mix (4P’s):
–
–
–
–
Product
Price
Place (distribution)
Promotion
Recall from
Chapter 1?
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Stage 4: preparing a Formal
Marketing Plan
The yearly marketing plan is a written report that
includes:
–
–
–
–
–
Marketing objectives (S.M.A.R.T)
Marketing strategies
Marketing mix
Responsibility allocation
Implementation timeline
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Stage 5: Executing the
marketing plan
Putting the plan into action!
Management best practices:
• Ensure resources are
properly allocated
• Clearly understand and
communicate goals and
expectations
• Create reasonable
expectations and deadlines
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Stage 6: controlling efforts and
evaluation results
Marketing Audits: Ensure that planned activities
are executed properly
• Benchmark: establish performance standards
• Supervision: investigate to ensure tasks have
been completed “checking up”
• Adjustments: evaluate to determine if goals
have been achieved
– Yes? Continue with the plan
– No? Make adjustments and monitor
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Ethics and Responsibility
• Worldwide consumerism and environmentalism
movements exert pressure for greater
responsibility
• Notion of “caring capitalism” tied to the
marketing concept.
– Seeking ways to make a profit by serving the best
long-run interests of customers and communities.
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Next Class,….
• Case Analysis in BSAD 231, please visit the
course website for all the material, and bring
them to class (case and case analysis
guidelines).
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