pmk chapter 02 strategy

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Company and Marketing

StrategyChapter 2


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Objectives

Understand companywide strategic planning andits four steps.

Learn how to design business portfolios anddevelop strategies for growth and downsizing.

Understand marketings role in strategic planningand how marketers partner with others.

Be able to describe the marketing process andthe forces that influence it.

Understand the marketing managementfunctions, including the elements of themarketing plan.


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Kotler

It is more important to do what isstrategically right than what isimmediately profitable

Dwight D. Eisenhower

Plans are nothing

Planning is everything


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Lewis CarrollAlices Adventures in

Wonderland

Would you tell me, please, which way I ought to gofrom here? asked Alice.

That depends a good deal on where you want to get,said the Cat.

I dont much care where, said Alice.

Then it doesnt matter which way you go, said the Cat.


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What is Planning?

Plan your career

What do you do?

What do you start with?How do you plan?


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Figure 52

O T

S W

Strategic Planning- the Process of Developing andMaintaining a Strategic Fit Between

the Organizations Goals and Capabilities

and Its Changing Marketing Opportunities.


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Figu re 2-1:

Steps in theStrategic Planning Process


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Mission statements should . . .

serve as a guide for what theorganization wants to accomplish.

be market-oriented rather than

product-oriented.

be neither too narrow, nor too broad.

fit with the market environment.

be motivating.

Strategic Planning


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To dedicate our business to the pursuit of social andenvironmental change.

To creatively balance the financial and human needs of our stakeholders:employees, customers, franchisees, suppliers and shareholders.

To courageously ensure that our business is ecologically sustainable:

meeting the needs of the present without compromising the future.

To meaningfully contribute to local, national and international communitiesin which we trade, by adopting a code of conduct which ensures care,honesty, fairness and respect.

To passionately campaign for the protection of the environment, human andcivil rights, and against animal testing within the cosmetics and toiletriesindustry.

To tirelessly work to narrow the gap between principle and practice, whilstmaking fun, passion and care part of our daily lives


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Company Product

Definition

Market

Definition

Amazon.com We sell books, videos, CDs,

toys, consumer electronics,and other products

We make Internet buying

experience fast, easy, andenjoyablewe are the placewhere you can find and discoveranything you want to buy online

Xerox We make copying

equipment

We help improve office

productivity

Standard Oil We sell gasoline We supply energy

Columbia Pictures We make movies We market entertainment

Wal-Mart We run discount stores We deliver low prices every dayand give ordinary folks thechance to buy the same thingsas rich people

Nokia ? ?


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SMART Objectives

earn an annual rate of return on investment

over the next year of 15% after tax

produce net profits of $ 2 000 000 in 20XX

produce a cash flow of $ 4 000 000 in 20XX

increase total sales revenue by certain % in 20XX

achieve market share of 5% for brand A at market B in year C

increase awareness of product or brand A at market Bfrom 20% to 40% over the planning period

expand the number of dealers by 10%...

Increase customers knowledge of a product features

make consumer attitudes more favorable


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Designing the Business PortfolioThe business portfolio is the collection ofbusinesses and products that make up thecompany.

Ex. USKO, P&G, Mercur Group (Auto, Agro)

A variety of tools can be used:

SWOT analysis, Competitor analysis

BCG (Boston Consulting Group) MatrixStrategic-Planning Gap Model

Product/ Market Expansion Grid

Ansoffs Growth Matrix


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Figu re 2-3:

Product / MarketExpansion Grid


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Product/ Market Expansion GridMarket Penetration: making more sales to current customers without

changing its products.

How? Add new stores in current market areas, improve advertising,prices, service or store design.

Market Development: develop new markets for its current products.

How? Identify new demographic or geographic markets.

Product Development: offering modified or new products to currentmarkets.

How? New styles, flavors, colors, or modified products.

Diversification: new products for new markets.

How? Start up or buy new businesses.

Apply the product/ market expansion grid to:

1.Meloman store

2.Foodmaster

3.Elite Story ()


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Figu re 2-4:

The Marketing Process

Key Elements

Analyzingmarketingopportunities

Selecting targetmarkets

Developing themarketing mix

Managing the

marketing effort

Demographic/economic

nvironment

Technological/ physical

environment

Political/

legal

environment

Social/

cultural

environment


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SPECIALIZED BICYCLE COMPONENTSVideo + Assignment (0.5 points)

Complete the first two steps in theMarketing Process for Specialized.

1. Analyzing marketing opportunities

INTERNAL analys is (resou rces, competences, sk i l ls, po licies, etc.): Strengthens

Weaknesses

EXTERNAL analysis (econom ic, legal, cu stom ers, cu lture,distr ib ut ion , sup pl iers, com peti t ion, etc.):

Oppor tuni t ies

Threats

2. Selecting target markets (list and briefly describe 2-3 markets)

3. Developing the marketing mix

4. Managing the marketing effort


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The strategic planning

and business portfolio

analysis processes

help to identify andevaluate marketing

opportunities.

The purpose of the

marketing process isto help the firm plan

how to capitalize on

these opportunities.

Key Elements

Analyzing marketingopportuni t ies

Select ing target

markets

Developing themarket ing m ix

Managing the

market ing effort


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Select ing target

markets


Managing the

market ing effort

Key ElementsThe segmentation

process divides the

total market into

market segments.

Target marketing

chooses which

segment(s) are

pursued.

Market po si t ioning

for the product is

then determined.


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Competitor analysisguides competitivemarketing strategydevelopment.

Strategy leads to tacticsvia the marketing mix: The Four Ps product,

price, place, promotion(seller viewpoint)

The Four Cs customer solution, cost,convenience, andcommunication(customer viewpoint)


Select ing target

markets


Managing the

market ing effort

Key Elements


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Figu re 2-5:

The Marketing Mix


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Marketing analysis Provides information

helpful in planning,implementation, and

control

Marketing planning Strategies and tactics

Marketing

implementation Turns plans into action

Marketing control Operating control

Strategic control


Select ing target

markets


Managing the

market ing effort

Key Elements


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Figu re 2-6:

Managing theMarketing Effort

pmk chapter 02 strategy

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