marketing strategy
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Strategic Planning: Strategic Planning: Developing and Implementing Developing and Implementing a Marketing Plana Marketing Plan
Strategic Planning: Strategic Planning: Developing and Implementing Developing and Implementing a Marketing Plana Marketing Plan
ObjectivesObjectives
1. Understand the importance of strategic marketing. Know the outline for a marketing plan.
2. Define an appropriate business mission statement.
3. Describe criteria for good marketing objectives.
4. Explain components of a situation analysis.
5. Identify strategic alternates and describe tools to select them.
The Nature of Strategic PlanningThe Nature of Strategic PlanningThe Nature of Strategic PlanningThe Nature of Strategic Planning
RESOURCES &
OBJECTIVES
EVOLVING MARKET
OPPORUNITIES
LONG RUN LONG RUN PROFITABILITY PROFITABILITY AND GROWTHAND GROWTH
Marketing
Plan
What is a Marketing Plan?What is a Marketing Plan?What is a Marketing Plan?What is a Marketing Plan?
Marketing planning involves designing activities relating to marketing objectives and the changing marketing environment. For example: product lines, prices, communication
Why?
Planning: Process of anticipating future events and
determining strategies
Basis for comparison of actual and expected performance
Clearly stated activities to work toward common goals
Aware of threats and opportunities
Marketing Plan ElementsMarketing Plan ElementsMarketing Plan ElementsMarketing Plan Elements
Marketing Strategy
Product
Promotion
Distribution
Price
Marketing Mix
Objectives
Business Mission Statement
Situation or SWOT Analysis
Target Market Strategy
ImplementationEvaluation
Control
Define the Business MissionDefine the Business MissionDefine the Business MissionDefine the Business Mission
Answers the question: What business are we in and where are we going?
Example: PepsiCo’s Business Mission
Focuses on the market(s) rather than the good or service Marketing myopia if focus is on specific goods/service
Examples? Frito-Lay is in the snack-food business No clear foundation if focus is too broad
Examples? Amazon?
Strategic Business Units may also have a mission statement – characteristics of a SBU
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PepsiCo’s Mission StatementPepsiCo’s Mission StatementPepsiCo’s Mission StatementPepsiCo’s Mission Statement
“To be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.”
http:\\www.pepsico.com
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Strategic Business UnitsStrategic Business UnitsStrategic Business UnitsStrategic Business Units
1. A distinct mission and specific target market
2. Control over their resources
3. Their own competitors
4. Plans independent of other businesses
Characteristics
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Marketing Plan ObjectivesMarketing Plan ObjectivesMarketing Plan ObjectivesMarketing Plan Objectives
Realistic
Marketing Objectives Must Be:
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“Our objective is to increase market
share by 40% and to obtain customer
satisfaction ratings of at least 90% in
2005.”
Measurable
For a Defined Period of Time
Consistent with Organizational Objectives
Situation AnalysisSituation AnalysisSituation AnalysisSituation Analysis
SS
WW
OO
TT
Things the company does well.Things the company does well.
Things the company does not do well.Things the company does not do well.
Conditions in the external environment that favor strengths.Conditions in the external environment that favor strengths.
Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.
Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.
Internal
External
Opportunities: Strategic WindowsOpportunities: Strategic WindowsOpportunities: Strategic WindowsOpportunities: Strategic Windows
Limited period when the “fit” between key requirements of a market and competencies of the firm are optimum
Discovering Strategic Alternatives (Windows)Discovering Strategic Alternatives (Windows)Discovering Strategic Alternatives (Windows)Discovering Strategic Alternatives (Windows)
MarketPenetration
MarketPenetration Increase market share among existing customers
MarketDevelopment
MarketDevelopment Attract new customers to existing products
Product Development
Product Development Create new products for present markets
DiversificationDiversification Introduce new products into new markets
Selecting a Strategic AlternativeSelecting a Strategic AlternativeSelecting a Strategic AlternativeSelecting a Strategic Alternative
Common Tools Common Goals
BCG Portfolio Matrix
Market Share
Profitability
GE Market Attractiveness Matrix
Differential AdvantageDifferential AdvantageDifferential AdvantageDifferential Advantage
Unique aspects of an organization that cause target market to patronize firm
A Sustainable Competitive Advantage cannot be copied by the competition.
Back to The Marketing Process
Differential or Competitive AdvantageDifferential or Competitive AdvantageDifferential or Competitive AdvantageDifferential or Competitive Advantage
A set of unique features of a company & its products that are perceived by the target market as significant and superior to the competition Two basic sources are:
Superior skillsSuperior resources
A Sustainable Competitive Advantage cannot be copied by the competition.
Back to The Marketing Process
Marketing StrategyMarketing Strategy
…involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.
Marketing StrategyMarketing Strategy
• Target Market Strategy– Identify the market segments that are of interest to the firm–Analyze market based on attractiveness of market segments–Select one or more target markets
•The Marketing Mix–Product Strategies–Distribution (Place) Strategies –Promotion Strategies –Pricing Strategies