marketing envi. ppt
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Marketing Envi. PptTRANSCRIPT
The Marketing Environment
Strategic Marketing Planning
What is strategic marketing planning?
Definitions
Mission statement
objectives/goals
strategy
tactics
Copyright © 1998 by The McGraw-Hill Companies, Inc.
Strategic company planning1. Define org. mission2. Conduct situation analysis
3. Set org. objectives4. Select appropriate strategies
Strategic marketing planning1. Conduct situation anal.2. Develop marketing obj.3. Determine positioning and differential advantage
4. Select target markets, measure market demand5. Design strategic marketing mix
Annual marketing planningPrepare annual marketing planfor each major product andcompany division
PLANNING SEQUENCE
IMPLEMENTATION AND EVALUATION
Strategic Marketing Planning
5 step process:
1) Situation analysis
2) Develop marketing objectives
3) Determine positioning and differential advantages
4) Select target markets and market demand
5) Design the marketing mix
Situational analysis
Examine: – external environment
– non-marketing resources (internal)
– the present marketing mix
The Marketing Environment
Environmental scanning is:
Gathering information regarding a company’s external environment
Analyzing it Forecasting the trends
The Marketing Environment
There are two levels of external forces:
Macro influences
Micro influences
The External Microenvironment
Six forces affect the organization’s marketing system:
Demography Economic conditions Competition Social and cultural Technology Political and legal factors
COMPANY’SMARKETINGPROGRAM
Demo-graphics
Economicconditions
Politicaland legal
forces
Social and cultural
forces
Competition
Technology
The Marketing Program
Demographic factors
Refers to the changing nature of the population
What are some current demographic trends?
What are the implications of these changes?
Changing Demographics
Different age groups buy different products or services. – Under age 25: Grow by 4.8%.– 25-34 years old: Decline by 5%.– 35-44 years old: Increase by 4.5%.– 45-64 years old: Grow by 2.5 million, or
39.5%.– Over age 65: Grow by 20%.
What are the implications?
Changing Ethnic Mix
Chinese growing to be second largest language group in Canada
Have unique buying habits and needs
Make an “ethnic” market segment
Economic Change
1) The stage of the Business Cycle:– Prosperity, recession and recovery
2) Inflation rate
3) Interest rates
4) Unemployment rate
Competitive Change
Competition takes place at three levels:
1) Direct at the brand or store level
2) Substitute products/services
3) All products and services competing for the same consumer dollar
Social and Cultural Change
Our lifestyles and values are changing!What are some changes you think are
occurring?
Attitudes toward physical activity, exercise, and diet
Emphasis on service quality and value Environmental awareness Demand for convenience
Technological Change
Can create new forms of competition and communications: ATM’s, CD-ROM, cellular, Internet
creates new industries to be supplied impacts how people spend their time technology is accepted by consumers,
expected by them, transparent to them, and often “disposable”
Political and Legal Change
Six categories:1) General fiscal/monetary policies2) Policies set by government agencies3) Social legislation4) Government relationships with industry5) Legislation related to marketing6) Provision of information
The external macro-environment
External to the firm, but important because of its close relationship
Your firm
Market
Suppliers
Intermediaries
COMPANY’SMARKETINGPROGRAM
SuppliersMarketinginter-mediaries
Marketinginter-mediaries
Themarket
The Company’s Marketing Program
COMPANY’SNONMARKETING
RESOURCES
Financialresources
Researchand
development
Com
pany
imag
eLocation
Pro
duct
ion
faci
litie
s
Hum
an
resources
The Internal Market
Internal marketing ensures:– employees are ‘on side’ with the goals of the
organization – they have direct impact on product and service
quality, dependability, and overall productivity– they are “internal market” which impact every
department within the firm– a satisfied internal market will be better able to
satisfy the external (customer) market
A firm’s complete marketing environment
SWOT
After an environmental scan, a SWOT will help analyze your results
Objectives are based on information from the SWOT
Planning Stages
1) Planning
2) Implementation
3)Performance-Evaluation stage
PLANNINGAnalyze situationSet goalsSelect strategies and tactics
IMPLEMENTATIONOrganizeStaffDirect
EVALUATIONCompare performance with goals
Feedback, so management can adapt future plans and theirimplementation to the changing environment
The Planning Management Process
Models to assist in Planning
1) The Boston Consulting Group Matrix: Using this model, a business unit can
be classified according to two factors—market share relative to competitors and industry growth
A company should have a balance of SBUs with a mix of stars, cash cows, and ???
Stars
Cash cows Dogs
Question marks
High Low
High
Low
COMPANY’S MARKET SHAREIN
DU
ST
RY
GR
OW
TH
RA
TE
Models to assist in Planning
2) Product Market Growth Matrix Growth requires examination of products and
markets to determine what needs changing Options:
– Market penetration: – Market development: – Product development: – Diversification:
PRESENT PRODUCTS
PRESENTMARKETS
NEW PRODUCTS
NEWMARKETS
Marketpenetration
Marketdevelopment
Productdevelopment
Diversification
The product-market growth matrix depicts the options available in considering markets and
products.
Product Market Growth Matrix
For next class
Read Chapter 3
First group presentation