Transcript Marketing strategy

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STARTING A BUSINESS BY GETTING AN “A”
IN AN ICE CREAM-MAKING COURSE!
Ben & Jerry’s
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Marketing Planning: The Basis for Strategy and
Tactics
• Planning - Anticipating future events and
conditions and determining the best way to
achieve organizational objectives
– Continuous process that includes:
• Identifying objectives
• Determining the actions through which a firm can attain
those objectives
– Creates a blueprint for everyone in the
organization
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Slide 2-3
FIGURE 2-1 The board of directors oversees the
three levels of strategy in organizations: corporate,
business unit, and functional
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Strategic Planning Versus Tactical
Planning
Strategic Planning
• Determining an
organization’s primary
objectives
• Adopting courses of
action that will achieve
these objectives
Tactical Planning
• Guides the
implementation of
activities specified in
the strategic plan
• Addresses shorter-term
actions
• Provides long-term
direction for its
decision makers
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Table 2.1 - Planning at Different
Managerial Levels
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Slide 2-6
Prof. Roy Philip Systems Management
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Steps in the Marketing Planning
Process
• Defining the organization’s mission and
objectives
– Mission - Essential purpose that differentiates one
company from another
• Sephora: “The beauty authority”
• IBM: “Welcome to the decade of smart”
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Steps in the Marketing Planning
Process
• Determine Organizational Objectives - Guide
the development of marketing objectives and
plans
– For example:
• Generate a 15 percent profit over the next 24 months
• Add 25 new outlets within the next year
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Assessing Organizational Resources and Evaluating
Environmental Risks and Opportunities
▮Resources include: ▮Strengths help planners:
•
•
•
•
•
Production
Marketing
Finance
Technology
Employees
• Set objectives
• Develop plans
• Take advantage of
marketing opportunities
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Formulating, Implementing, and
Monitoring a Marketing Strategy
• Marketing strategy - Selecting and satisfying
target consumers through the marketing mix
elements
• The final steps of the planning process:
– Marketers put the marketing strategy into action
– Marketers monitor performance to ensure that
objectives are achieved
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Successful Strategies: Tools and
Techniques
• Porter’s Five Forces model
–
–
–
–
–
The potential of new entrants
The bargaining power of buyers
The bargaining power of suppliers
The threat of substitute products
Rivalry among competitors
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Figure 2.2 - Porter’s Five Forces
Model
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First Mover and Second Mover Strategies
• First mover strategy - The company first to
offer a product in a marketplace will be the
long-term market winner
• Second mover strategy - Observing the
innovations of first movers and then improving
on them to gain advantage in the marketplace
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SWOT Analysis
• Helps planners compare internal organizational
strengths and weaknesses with external
opportunities and threats
– Provides managers with a critical view of the
organization’s internal and external environments
– Helps them evaluate the firm’s fulfillment of its
basic mission
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Figure 2.3 - SWOT Analysis
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Slide 2-16
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Figure 2.2
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Slide 2-17
FIGURE 2-7 Ben & Jerry’s SWOT analysis that
serves as the basis for management actions
regarding growth
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The Strategic Window
• Limited periods when key requirements of a
market and a firm’s particular competencies best
fit together
• Requires a thorough analysis of:
– Current and projected external environmental
conditions
– Current and projected internal company capabilities
– How, whether, and when the firm can reconcile
environmental conditions and company capabilities
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Elements of a Marketing Strategy
• The target market
• Marketing mix variables
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The Target Market
• The group of people toward whom the firm
directs its marketing efforts and merchandise
– Example: Boeing markets most of their products
to business buyers such as Delta Airlines
• Diversity plays a critical role
– Example: Growing Hispanic population in United
States
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The Target Market
• Targeting consumers in specific global
markets represents a challenge and an
opportunity
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Marketing Mix Variables
• Marketing mix - Blending four strategy
elements to fit the needs and preferences of a
specific target market
– Product
– Distribution
– Promotion
– Pricing
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Figure 2.4 - Element of a Marketing
Strategy and Its Environmental
Framework
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Product Strategy
• Deciding what goods or services the firm
should offer to a group of consumers
– Customer service
– Package design
– Brand names, trademarks, patents, and warranties
– Lifecycle of a product
– Product positioning
– New-product development
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Distribution Strategy
• Consumers find their products in the proper
quantities at the right times and places
• Involves modes of transportation,
warehousing, inventory control, order
processing, and selection of marketing
channels
• Technology has opened new channels of
distribution in many industries
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Promotion Strategy
• Communication link between sellers and
buyers
• Firms may communicate messages:
– Directly through salespeople
– Indirectly through advertisements and promotions
• Many companies use integrated marketing
communications (IMC)
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Pricing Strategy
• Deals with methods of setting profitable and
justifiable prices
• Subject to regulation and public scrutiny
• A good pricing strategy:
– Creates value for customers
– Builds and strengthens customer relationships with
a firm and its products
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Methods for Marketing Planning
• Business portfolio analysis
– An evaluation of a company’s products and
divisions to determine the strongest and weakest
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Strategic Business Units
• Key business units within diversified firms
– Each strategic business unit (SBU):
• Has its own managers, resources, objectives, and
competitors
• Pursues its own distinct mission and develops its own
plans independently
• Help focus the attention of company managers
• Companies may have to redefine their SBUs
as market conditions dictate
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The BCG Matrix
• Developed by the Boston Consulting Group
• A market share/market growth matrix that
plots market share against market growth
potential
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Figure 2.5 - BCG Market Share/Market
Growth Matrix
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Slide 2-32
LO 2-4
SETTING STRATEGIC DIRECTIONS
WHERE DO WE WANT TO GO?
Business Portfolio Analysis (BCG Matrix):
Quantifies performance
High
Market Growth Rate

Stars
Question Marks
Cash Cows
Dogs
Boston Consulting
Group
Low
High
Low
Relative Market Share
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Slide 2-33
LO 2-4
Apple Consumer-Related Products
What SBU type in the BCG growth-share matrix?
Desktop/Laptop PCs
MP3 Players
Apple.com
Smartphones
Tablets
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Slide 2-34
FIGURE 2-4 BCG business portfolio analysis for
Apples consumer SBUs
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Slide 2-35
LO 2-4
SETTING STRATEGIC DIRECTIONS
WHERE DO WE WANT TO GO?

Diversification Analysis
• Market Penetration
• Market Development
• Product Development
Ben & Jerry’s
Bonnaroo Buzz Ad
• Diversification
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Slide 2-36
FIGURE 2-5 Four alternative market-product
strategies for Ben & Jerry’s to expand sales
revenues using diversification analysis
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