chapter 15 the marketing process and marketing strategy

Chapter 15The marketing process and

marketing strategy

Learning objectives

1 Understand the importance of strategic marketing and prepare a basic outline for a marketing plan

2 Develop an appropriate business mission statement

3 Describe the criteria for stating good marketing objectives

Learning objectives (cont.)

4 Explain the components of an internal and external environmental scan

5 Discuss target market strategies

6 Describe the elements of the marketing mix

7 Explain why implementation, evaluation and control of the marketing plan are necessary

Learning objectives (cont.)

8 Discuss the importance of global marketing

9 Describe the external environment facing global marketers

10 List the basic elements involved in developing a global marketing mix

11 Consider how the Internet is affecting global marketing

Organisational overview of strategy

Corporate strategy

Strategic business unit

Functional strategy

Marketing orientations

• Production orientation

• Sales orientation

• Marketing orientation

• Relationship marketing orientation

Learning objective 1

Define the term marketingUnderstand the importance

of strategic marketing and

prepare a basic outline for a

marketing plan

Planning

The process of anticipating future events and determining strategies to achieve organisational objectives in the future.

1

Strategic planning

The managerial process of creating and maintaining a fit between the organisation’s objectives and resources and evolving market opportunities.

1

Strategic plan

• Defining the company mission.

• Setting company objectives and goals.

• Designing the business portfolio.

• Planning the marketing and other functional activities.

1

Marketing strategy issues1

• What is the organisation’s main marketing activity at a particular time?

• How will it reach its goals?

• What are the appropriate target markets?

• What are the most appropriate objectives for each of the target markets?

• What is the appropriate marketing mix in each market?

Learning objective 2

Describe four marketing management philosophies.

Develop an appropriate

business mission

statement

Mission statement

The firm’s long-term vision basedon a careful analysis of benefits sought by present and potentialcustomers and analysis of existingand anticipated environmental conditions.

2

Learning objective 3

Describe four marketing management philosophies.

Describe the criteria for

stating good marketing

objectives

Marketing objective

A statement of what is to

be accomplished through

marketing activities.

3

Learning objective 4

Explain the components of

an internal and external

environmental scan

SWOT

Strengths

Weaknesses

Opportunities

Threats

Internal

External

4

Learning objective 5

Discuss target market strategies

Marketing mix

A unique blend of product,distribution, promotion and pricing strategy designed toproduce mutually satisfying exchanges with a target market.

5

Learning objective 6

Describe the elements

of the marketing mix

The four Ps6

• Product

• Price

• Place

• Promotion

Learning objective 7

Explain why implementation,

evaluation and control of the

marketing plan are necessary

Reasons why marketing plans fail

7

• Planning done in isolation• Trade-off problems between

short- and long-term objectives• Resistance to change

Importance of control

Conduct marketing audit

Marketing audit

A thorough, systematic

periodic evaluation of the

goals, strategies, structure

and performance of the

marketing organisation.

7

Discuss the importance of global marketing

Learning objective 8

Global vision

Recognising and reacting to international marketing opportunities, being aware of threats from foreign competitors in all markets, and effectively using international distribution networks.

8

Describe the external

environment facing

global marketers

Learning objective 9

The external environment9

• Culture

• Economic and technological development

• Political structure

• Demographic makeup

• Natural resources

Culture

The common set of

values shared by its

citizens that determine

what is socially

acceptable.

9

Culture (cont.)

• Language

• Religion

• Superstitions

• Etiquette

• Customs

• Traditions

• Notion of time

9

Lessons about the notion of time

9

1 Know appropriate arrival time.

2 Understand the line between work time and social time.

3 Study the rules of the waiting game.

4 Learn to reinterpret ‘doing nothing’.

5 Ask about accepted sequences.

6 Are people on clock time or event time?

Economic and technological development

Type of society Description

Traditional

Pre-industrial

Takeoff

Industrialising

Agricultural, little upward mobility

Social and economic change

New industries

Spread of technology

Fully industrial Exporter, technology as driver of new innovation

9

Legal considerations9

• Tariff• Quota• Boycott• Exchange control• Market grouping• Trade agreement

Legal structures which encourage or limit trade

Legal considerations (cont.)

Tariff

Quota

Boycott

Exchange control

Market grouping

Trade agreement

A tax levied on goods entering a country.Limit on the amount of a product that can enter a country.Exclusion of products from a country.Foreign exchange must be sold to a control agency.

A common trade alliance.

An agreement to stimulate international trade.

9

Trade agreements: Uruguay Round

9

• Reduces tariffs by one-third world-wide

• Patent/copyright protection

• Services under international rules

• Reduction of farm subsidies

World Trade Organization (WTO)

9

• The World Trade Organization replaces the old General Agreement on Tariffs and trade (GATT).

• All WTO members must fully comply with all the agreements under the Uruguay Round.

• China has joined the WTO.

Demographic makeup

Marketing considerations

• Population density

• Urban or rural

• Personal income

• Rise of global middle class

• Supply of professionals

9

Natural resources

Differences in natural resources create:

• international dependencies

• shifts of wealth

• inflation and recession

• export opportunities if resources are abundant

• stimulus for military intervention.

9

List the basic elements

involved in developing

a global marketing mix

Learning objective 10

Pricing

• Must consider transportation and insurance costs, taxes and tariffs.

• Determine what customers will spend.

• Ensure that foreign buyers will pay them.

• May need to simplify a product to lower price.

10

Dumping

The sale of an exported

product at a price lower than

that charged for the same or

a like product in the

exporter’s ‘home’ market.

10

Countertrade

A form of trade in which

all or part of the payment

for goods or services is in

the form of other goods or

services.

10

Distribution challenges

• Japanese distribution system is the most complicated in the world.

• Retail institutions may differ from company’s domestic market.

• Distribution channels and physical infrastructure may be inadequate.

10

Consider how the

Internet is affecting

global marketing

Learning objective 11

Going global11

• More than 50% of Australians own computers.

• Australia is among the leading countries with access to the net for the population.

• Internet purchases are still a small percentage of overall retail sales.

• US customers are more likely to buy online.

• Complexity of tariffs, freight.