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CHAPTER

DEVELOPING MARKETING STRATEGIES AND A MARKETING PLAN

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L E A R N I N G O B J E C T I V E S

Define a marketing strategy.

Describe the elements of a marketing plan.

Analyze a marketing situation using SWOT analysis.

Describe how a firm chooses which consumer group(s) to pursue with its marketing efforts.

Outline the implementation of the marketing mix as a means to increase customer value.

Summarize portfolio analysis and its use to evaluate marketing performance.

Describe how firms grow their business.

Developing Marketing Strategies and a Marketing Plan

LO1

LO2

LO3

LO4

LO5

LO6

LO7

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Sustainable Competitive Advantage

Customer value

Customer excellence

Operational excellence

Product excellence

Locational excellence

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CHECK YOURSELF

1. List the four macro strategies that can help a firm develop a sustainable competitive advantage.

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The Marketing Plan

PlanningPhase

ImplementationPhase

ControlPhase

Step 1: Businessmission & objectives

Step 2: Situation analysisSWOT

Step 5: Evaluate performanceusing marketing metrics

Step 3: Identify opportunities

Segmentation Targeting Positioning

Step 4: Implement marketing mix

Product Price Place Promotion

Marketingstrategy

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Three Phases of a Strategic Plan

Planning Implementing Controlling

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Step 1: Define the Business Mission

MADD mission statement:MADD strives to stop drunk driving, support the victims of this violent crime and prevent underage drinking.

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Environment Evaluation

Positive Negative

Nike Internal

External

adidas Internal

External

Step 2: Conduct a Situation Analysis

StrengthsStrong brandStrong celebrity endorsersInnovative products

StrengthsStrong brandPortfolio of brandsStrong global presence

WeaknessOverreliance on footwear

WeaknessManagement of numerous brands

OpportunityEmerging countriesOther fashion segments

OpportunityEmerging countries

ThreatsCheaper importsImitation productsRetail becoming price competitive

ThreatsCheaper importsImitation productsRecessionary forces

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Step 3: Identifying and Evaluating Opportunities Using STP

Segmentation

Targeting

Positioning

Courtesy The Hertz Corporation

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Step 4: Implement Marketing Mix and Allocate Resources

Product Value Creation

Price Value Capture

Place Value Delivery

Promotion Value

Communication

Courtesy Bel Brands USA

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Product and Value Creation

Successful products and services are those that customers perceive as valuable enough to buy.

Courtesy Amazon.com

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Price and Value Capture

Price must allow for customers to perceive good value for the product they receive.

Purestock/SuperStock

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Place and Value Delivery

The product must be readily accessible

Why is this retailer growing?

Courtesy Sephora USA, Inc..

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Promotion and Value Communication

Television Radio Magazines Sales force New Media©Lars A Niki

McGraw-Hill Companies, Inc./Gary He, photographer

The McGraw-Hill Companies, Inc./John Flournoy, photographer

Courtesy Pizza Hut.

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Stars

Cash Cows

Question Marks

Dogs

Step 5: Evaluate Performance and Make Adjustments (BCG Matrix)

P&G Website

HIGH Relative market share LOW

HIGH

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LOW

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CHECK YOURSELF

1. What are the five steps in creating a marketing plan?

2. What tool helps a marketer conduct a situation analysis?

3. What is STP?

4. What do the four quadrants of the portfolio analysis represent?

5. What are the two dimensions/ scales of BCG Matrix?

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Ansoff’s Growth Strategies

Current New

PRODUCTS AND SERVICESC

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Market Penetration

Diversification

Product Development

Market Development

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1. What are the four growth strategies of Ansoff’s Matrix?

2. What type of strategy is growing the business from existing customers?

3. Which strategy is the riskiest?

CHECK YOURSELF