Transcript What trends impact the marketing plan for Netflix?

Market Planning
Business Planning: Compose the Big Picture
 Business Planning:
Ongoing process of making decisions that guide the firm
both in the short term and for the long haul
 Identifies/builds on firm’s strengths
 Helps managers make informed decisions
 Develops objectives before action is taken
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Figure 2.1 Three
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Levels of Business Planning
Strategic Planning
 Managerial decision process that matches firm’s resources and
capabilities to its market opportunities for long-term growth
and survival
 Top management defines firm’s purpose and objectives
 Example: increase firm’s total revenues by 20% over next five years
 Strategic Business Units (SBUs)
 Self-contained divisions
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SWOT - Starbucks
 Growth Strategy for the US
 Strength – profitable and cash-rich
 Threat – New potentially damaging competition (Wal-mart &
Kicks)
 Strategy indicated
 Reinforce positioning
 Introduce flanker brand to compete with Wal-mart on the lower end
(Seattle Coffee Company)
SWOT - Starbucks
 Growth Strategy for France
 Strength – high quality, global management expertise
 Strength – cash-rich and profitable
 Opportunity – No concept like Starbucks exists in France
 Threat – “sock juice” – damaging pre-existing attitudes
 US-France political tensions
 Strategy
 Target a more receptive segment – the young French
 Sell the American Starbucks experience (coffee, ambience, music, healthful (no-
smoking), internet, a cool place to hang out)
 Objective
 Attitudes in the target segment
Functional (Tactical) Planning
 Accomplished by various functional areas of firm, such as
marketing
 Typically includes:
 A broad 5-year plan to support strategic plan
 A detailed annual plan
 Example: marketing plan objective: to gain a 40% share of a particular
market with three new products during coming year
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Operational Planning
 First-line managers focus on day-to-day execution of
functional plans
 Such planning includes detailed annual, semiannual, or
quarterly plans
 Example: an objective may be set in terms of units of a product
a particular salesperson needs to sell per month (sales quota)
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All Business Planning Is an Integrated
Activity
 Strategic, functional, and operational plans must work
together to benefit the whole firm
 Marketers must fully understand how they fit with the
organization’s direction and resources
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Strategic Planning: Frame the Picture
 Very large multiproduct firms may have divisions called
strategic business units (SBUs)
 SBUs operate like separate businesses with their own mission,
business objectives, resources, managers, and competitors
 Strategic planning is done at both the corporate and SBU
levels
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Strategic Business Units (SBUs)
Large firms like the
Walt Disney
Company usually
operate several SBUs.
Disney SBUs include
theme parks, movie
studios, TV
networks, and cruise
line
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Strategic Planning Step 1: Define the
Mission
 Answer three key questions:
 What business are we in?
 What customers should we serve?
 How do we develop firm’s capabilities and focus its efforts?
 Mission statement:
 A formal document that describes the firm’s overall purpose and
what it hopes to achieve in terms of its customers,
products, and resources
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Step 1: Define the Mission
 Examples of mission statements
 MADD: “to stop drunk driving, support the victims of this
violent crime, and prevent underage drinking”
 National Book Swap: “to become the nation’s largest book club
and in the process bring a lifetime of reading material to every
American”
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Coca Cola’s Mission Statement
 “Everything we do is inspired by our enduring mission:
 To Refresh the World… in body, mind, and spirit.
 To Inspire Moments of Optimism… through our brands and
our actions.
 To Create Value and Make a Difference… everywhere we
engage.”
http://www.missionstatements.com/fortune_500_mission_st
atements.html
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Step 2: Evaluate the Internal and External
Environments
 Situational analysis (business review)
 An assessment of a firm’s internal and external environments
 Internal environment: Controllable elements inside of an
organization
 External environment:Uncontrollable elements outside of an
organization that may affect its performance either
positively or negatively
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Internal Environment
 Controllable elements inside a firm that influence how well
the firm operates include:
 People (human capital), physical facilities, financial stability,
corporate reputation, quality products, strong brands,
technologies, etc.
 These elements represent key strengths and weaknesses
of the firm
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External Environment
 Elements outside the firm that may affect it either positively or
negatively:
 Economic, competitive, technological, legal/political/ethical, and
sociocultural trends
 Trends manifest as opportunities or threats
 Firm cannot directly control external factors but can respond to
them via planning
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Trends Present Opportunities
Recent sociocultural trends influencing food marketing stem from consumer desires for
low fat,
low carb, and organic foods
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SWOT Analysis
 An analysis of an organization’s strengths (S) and weaknesses
(W) and the opportunities (O) and threats (T) in the
external environment
 SWOT enables the firm to develop strategies that maximize
strengths and capitalize upon opportunities
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Step 3: Set Organizational or SBU Objectives
 Organizational/SBU Objectives:
 What the firm hopes to accomplish with long-range business plan
 Need to be specific, time-bound and measurable
 May relate to sales, profitability, product development, market
share, productivity, ROI, customer satisfaction, or
social responsibility
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Are these good objectives?
 Increase sales by 15%
 Achieve recall by December 2010
 20% of my consumers should know about my brand
 Within 6 months of the launch of the product,
consumers should be brand loyal
 60% of the consumers should like my brand within six
months of launch
Figure 2-2
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SBUs and the Strategic Plan
Step 4: Establish the Business Portfolio
 Business portfolio:
 The group of different products or brands owned by a firm and
having different income-generating and growth capabilities
 Portfolio analysis:
 Assessing the potential of a firm’s SBUs
 Helps make decisions regarding which SBUs should receive
more or less of
the firm’s resources
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Figure 2-3 Boston
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Consulting Group (BCG) Matrix
Step 5: Develop Growth Strategies
 Product-market growth matrix:
 Characterizes different growth strategies according to type of
market (new vs. existing) and type of product (new vs.
existing).
 Matrix yields four potential strategies:
 Market penetration
 Product development
 Market development
 Diversification
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Figure 2-4
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Product-Market Growth Matrix
Marketing Planning: Step 1
 Perform a situation analysis
 Builds on SWOT; identifies
how environmental trends
affect the marketing plan
What trends impact the marketing
plan for Netflix?
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Marketing Planning: Step 2
 Set marketing objectives
 Specific to the firm’s brands and other
marketing mix-related elements
 States what the marketing function must
accomplish if firm is to achieve its overall
business objectives
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Marketing Planning: Step 3
 Develop marketing strategies to achieve marketing objectives
 Select target market(s) where the firm’s offerings are best
suited
 Develop marketing mix strategies:
 Marketing mix strategies: how marketing will accomplish its objectives in
the firm’s target market by using product, price, promotion, and place
(distribution)
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Marketing Mix Strategies
 Product strategies:
 Include product design, packaging, branding, support services,
and product variations and features
 Pricing strategies:
 Include setting prices for final consumers, wholesalers, and
retailers based on costs, demand, or competitors’ prices
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Marketing Mix Strategies
 Promotion strategies:
 Advertising, sales promotion, public relations, direct marketing,
personal selling
 Distribution (place) strategies:
 How, when, and where the product is available to targeted
customers
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Step 4: Implement and Control
the Marketing Plan
 Control:
 Measuring actual performance, comparing performance to the
objectives, making adjustments
 Marketing metrics:
 Return on marketing investment (ROMI)
 Action plans:
 Support plans that guide implementation and control of
marketing strategies
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Metrics Moment
 ROMI is the revenue or profit margin
generated by investment in a specific
marketing program divided by the cost of
that program (expenditure) at a given risk
level, as determined by management
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Creating and Working with a Marketing Plan
 Written marketing plans encourage concrete objectives and
strategies
 Operational plans focus on the day-to-day execution of the
marketing plan
 A firm’s corporate culture determines much of its internal
environment—the values, norms, and beliefs that influence
everyone in the firm
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Corporate Culture
The way employees dress reflects
their organization’s corporate
culture.
Think about the way people dress
at a firm that is familiar to you.
What does the typical attire at that
firm “say” about the culture of the
organization?
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