marketing 1 dr. mohammed a. nasseef bus 232 marketing strategy and planning
TRANSCRIPT
Marketing
1
Dr. Mohammed A. Nasseef
BUS 232
Marketing Strategy
and Planning
Marketing Strategy
Defines the way in which the marketing
mix is used to satisfy the needs of the
target market and achieve
organizational goals
McShane/Von Glinow OB 5e© 2010 The McGraw-Hill Companies, Inc. All rights
reserved2
Product/Market Opportunity Matrix
Market PenetrationIncreasing sales of current products to current market segments without changing the product.
Product DevelopmentOffering modified or new products to current market segments.
Market DevelopmentIdentifying and developing new market segments for current products.
DiversificationStarting up or acquiring businesses outside the company’s current products and markets.
Existing Products New Products
New Markets
Existing Markets
Strategies for company growth
Market PenetrationStarbucks is adding 23 stores per week.
Product DevelopmentStarbucks recently added hot breakfast sandwiches to its menu.
Market DevelopmentStarbucks might consider new demographic markets (for example: senior citizens or different ethnic groups).
DiversificationStarbucks tested new restaurant concepts in San Francisco to enter a new related market.
Existing Products New Products
New Market
s
Existing Markets
Examples of Starbucks’ growth
Product/Market Opportunity Matrix
Tool for assessment
5
To assess the value of product and product
opportunity companies use the SWOT tool
What is SWOT?
It is a planning tool used to identify
Strengths, Weaknesses, Opportunities
and Threats involved in a business. It is
used as part of Strategic Planning
Process to assess the potential value
and fit of new opportunities.
SWOT
Internal factors
• Strengths (S) • Weaknesses (W)
External factors
• Opportunities (O) • Threats (T)
Strengths
Opportunities
Weaknesses
Threats
Internal Environment
Analysis of Internal Environment leads to identification of:
a) Strengths: Positive aspects which are within the control of the organization.
b) Weaknesses: Constraining factors that obstruct the organization ability to achieve its desired goals.
Strengths & Weaknesses
Contributing Factors: People Programmers Properties Processes
External Environment
Analysis of External Environment leads to identification of:
a) Opportunities: Attractive factors that help an institution to develop & improve
b) Threats: Factors beyond the control of an institution that potentially damage the present existence and future development
Opportunities & Threats
Contributing Factors: Technological Economic Legal/Regulatory Social Demographic Political
Dell recognized that its strength was selling directly to consumers and keeping its costs lower than those of other hardware vendors. As for weaknesses, the company acknowledged that it lacked solid dealer relationships. Identifying opportunities was an easier task. Dell looked at the marketplace and saw that customers increasingly valued convenience and one-stop shopping and that they knew what they wanted to purchase. Dell also saw the Internet as a powerful marketing tool. On the threats side, Dell realized that competitors like IBM and Compaq Computer Corp. had stronger brand names, which put Dell in a weaker position with dealers. Dell put together a business strategy that included mass customization and just-in-time manufacturing (letting customers design their own computers and custom-building systems). Dell also stuck with its direct sales plan and offered sales on the Internet.