chapter 2copyright ©2008 by south-western, a division of thomson learning. all rights reserved 1...

Chapter 2 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1

Learning Outcomes – Chapter 2

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

2. Develop an appropriate business mission statement

3. Describe the criteria for stating good marketing objectives

4. Explain the components of a situation analysis

5. Identify sources of competitive advantage

6. Identify strategic alternatives

7. Discuss target market strategies

8. Describe the elements of the marketing mix

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

10. Identify several techniques that help make strategic planning effective


LO1

Strategic Planning

The managerial process of creating and maintaining

a fit between the organization’s objectives and

resources and evolving market opportunities.

The goals are long-term profitability and growth.

StrategicPlanning

StrategicPlanning

Strategic Marketing Management

What is the organization’s main activity?

How will it reach its goals?

THE ANSWER IS A MARKETING PLAN.


LO1

Strategic Planning

A written document that acts as a guidebook of

marketing activities for the marketing manager.Marketing PlanMarketing Plan

Provides a basis for comparison of actual and expected performance

Provides clearly stated activities to work toward common goals

Serves as a reference for the success of future activities

Provides an examination of the marketing environment

Allows entry into the marketplace with awareness

Why Write a Marketing Plan? Because it:

LO1


LO1

Marketing Plan

Elements

Marketing Strategy

Product Distribution

Price

Marketing Mix

Business Mission Statement

Objectives

Situation or SWOT Analysis

Target Market Strategy

ImplementationEvaluation

Control

Promotion


LO2

Defining the Business Mission Answers the question,

“What business are we in?”

Focuses on the market(s) rather than the good or service

Strategic Business Units (SBUs) may also have a mission statement

AMA’s Mission Statement


Marketing ObjectiveLO3

A statement of what is to be accomplished

through marketing activities. Objectives should beMarketing Objective

1. Realistic 2. Measurable3. Time specific4. Consistent with and indicate the organization’s priorities

“Our objective is to achieve 10 percent dollar market share in the cat food market within 12 months of product introduction.”


REVIEW LEARNING OUTCOMELO3

Criteria for Good Marketing ObjectivesRealistic, measurable, and time-specific objectives Realistic, measurable, and time-specific objectives consistent with the firm’s objectives: They help in five ways:consistent with the firm’s objectives: They help in five ways:

1. Communicate marketing management philosophy

2. Provide management direction

3. Motivate employees

4. Force executives to think clearly

5. Allow for better evaluation of results


LO4

SWOT Analysis

Identifying internal strengths (S) - Things the company does well.

Internal weaknesses (W) - Things the company does not do well

Examining external opportunities (O) Conditions in the external environment

that favor strengths.

External threats (T) Conditions in the external environment that do not

relate to existing strengths or favor areas of current weakness.

SWOT AnalysisSWOT Analysis

LO4


Competitive AdvantageLO5

CompetitiveAdvantage

CompetitiveAdvantage

The set of unique features of a

company and its products that

are perceived by the target

market as significant and

superior to the competition.

From doing a SWOT analysis one should be able to determine:


Competitive AdvantageLO5

Niche StrategiesNiche Strategies

CostCost

Product/Service Differentiation

Product/Service Differentiation

Types of Types of Competitive Competitive AdvantageAdvantage

Types of Types of Competitive Competitive AdvantageAdvantage

The key to a competitive advantage is to be able to sustain the advantage over a long period of time – A Sustainable Competitive Advantage


Sources of Sustainable Competitive Advantage

LO5

PatentsPatents

CopyrightsCopyrights

LocationsLocations

EquipmentEquipment

TechnologyTechnology

Customer ServiceCustomer Service

PromotionPromotion

Skills and AssetsSkills and Assets

of anof anOrganizationOrganization

Skills and AssetsSkills and Assets

of anof anOrganizationOrganization


Strategic AlternativesLO6

MarketPenetration

MarketDevelopment

Product Development

Diversification

Increase market share among existing customers

Attract new customers to existing products

Introduce new products into new markets

Create new products for present markets


Diversific

ation Stra

tegy – new

product, new

mark

et


Portfolio MatrixLO6

Stars

Cash Cows

ProblemChildren

Dogs


Marketing Strategy

LO7

The activities of selecting and describing one or more target

markets and developing and maintaining a market mix that will

produce mutually satisfying exchanges with target markets.

MarketingStrategy

MarketingStrategy

Marketing Strategy is:

1. The target market or customer you select to serve.

2. The Marketing Mix you develop to serve the selected target markets.


Target Market Strategy

LO7

1. Segment the market based on groups with similar characteristics2. Analyze the market based on attractiveness of market segments3. Select one or more target markets

First Managers:

Then Managers Decide either to:1. Appeal to the entire market with one marketing mix

2. Concentrate on one marketing segment

3. Appeal to multiple markets with multiple marketing mixes


The Marketing Mix

LO8

A unique blend of product, distribution,

promotion, and pricing strategies designed to

produce mutually satisfying exchanges with a

target market.

Marketing MixMarketing Mix


Marketing Mix: The “Four Ps”

LO8

Price

Promotion

Place

Product



LO8

The starting point of the “4 Ps”

Includes Physical unit Package Warranty Service Brand Image Value

Product

Products can be… Tangible goods Ideas Services



LO8

Product availability where and when customers want them

All activities from raw materials to finished products

Ensure products arrive in usable condition at designated places when needed

Place



LO8

Promotion

Online

http://www.paramount.comhttp://www.warnerbros.comhttp://www.universalstudios.com

Role is to bring about exchanges with target markets by: Informing Educating Persuading Reminding

Includes integration of: Personal selling Advertising Sales promotion Public relations



LO8

Price Price is what a buyer

must give up to obtain a product.

The most flexible of the “4 Ps”-- quickest to change

Competitive weapon

Price x Units Sold = Total Revenue



Elements of the Marketing Mix

Targeted Market Segment



Implementation, Evaluation, and Control

Product PlacePromotionPrice

Product PlacePromotionPrice

Met objectives?

Met objectives?

Implementation Evaluation

Audits• comprehensive• systematic• independent• periodic

Audits• comprehensive• systematic• independent• periodic



0

Techniques for Effective Strategic Planning

Effective Strategic Planning

Effective Strategic Planning

Continualattention

Continualattention CreativityCreativity Management

commitment

Managementcommitment


NOW

Go to www.mktg4me.com

At this website, study and review the flash cards.

Take the practice the quiz

Explore other aspects of this site for chapter 2

Take the chapter 2 quiz in the allocated time!!!!

chapter 2copyright ©2008 by south-western, a division of thomson learning. all rights reserved 1...

Documents

marketing environment

marketing manager

division of thomson

learning outcomes chapter

organizations objectives

strategic alternatives

firms objectives

lo1 slide