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Part 1: Designing Customer-Part 1: Designing Customer-Oriented Marketing StrategiesOriented Marketing Strategies

1. Marketing: Creating Satisfaction through Customer Relationships

2. Strategic Planning and the Marketing Process

3. The Marketing Environment, Ethics, and Social Responsibility

4. E-Commerce: Marketing in the Digital Age

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Chapter 2Chapter 2

Strategic Planning Strategic Planning and the Marketing and the Marketing

ProcessProcess

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Chapter ObjectivesChapter Objectives

1. Distinguish between strategic planning and tactical planning.

2. Explain how marketing plans differ at various levels in an organization.

3. Identify the steps in the marketing planning process.4. Describe successful planning tools and techniques,

including Porter’s Five Forces model, first and second mover strategies, SWOT analysis, and the strategic window.

5. Identify the basic elements of a marketing strategy.6. Describe the environmental characteristics that

influence strategy decisions.7. Describe the methods for marketing planning, including

business portfolio analysis and the BCG matrix.

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Marketing Planning: The Basics for Marketing Planning: The Basics for Strategy and TacticsStrategy and Tactics

Planning: Process of anticipating future events and conditions and of determining the best way to achieve organizational goals

Marketing planning: Implementing planning activities devoted to achieving marketing objectives

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Strategic Planning versus Tactical PlanningStrategic Planning versus Tactical Planning

Strategic planning: Process of determining an organization’s primary objectives and adopting courses action that will achieve those objectives

Tactical planning: Process that guides the implementation of activities specified in the strategic plan.

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Strategic Planning versus Tactical PlanningStrategic Planning versus Tactical Planning Top management

Greater proportions of their time engaged in planning

Usually focus their planning activities on long-range strategic issues

Middle level managers Focus on operational planning; creating

and implementing tactical plansSupervisors

Developing the specific programs to meet goals in their areas of responsibility

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Steps in the Marketing Planning ProcessSteps in the Marketing Planning Process

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Defining the Mission of the OrganizationDefining the Mission of the OrganizationMissionMission: the essential purpose that

differentiates one company from othersThe mission statement specifies the

organization’s overall goals and operational scope and provides general guidelines for future management actions

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Determine Organizational ObjectivesDetermine Organizational ObjectivesAn organization lays out its basic objectives,

or goals, in its mission statementThese objectives in turn guide development

of supporting marketing objectives and plansWell-developed objectives should state

specific, quantitative intentions along with deadlines for achieving them

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Assessing Organizational Resources and Assessing Organizational Resources and Evaluating Environmental Risks and Evaluating Environmental Risks and OpportunitiesOpportunitiesThis step involves a back-and-forth

assessment of strengths, risks, and available opportunities.

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Formulating, Implementing, and Formulating, Implementing, and Monitoring a Marketing StrategyMonitoring a Marketing StrategyMarketing strategy: a firm’s overall

program for selecting and satisfying a target market

A marketing strategy is aimed at satisfying consumers in the selected target market through a careful balance of the elements of the marketing mix – each of which represents a subset of the overall marketing strategy

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Successful Strategies: Tools and Successful Strategies: Tools and TechniquesTechniques

All planning strategies have the goal of creating a sustainable competitive advantage for a firm.

An advantage where other companies cannot provide the same offering or value.

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Porter’s Porter’s Five Forces Five Forces ModelModel

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First Mover and Second Mover StrategiesFirst Mover and Second Mover StrategiesFirst mover strategy: Theory advocating

that the company that is first to offer a product in a marketplace will be the long-term market winner.

Second mover strategy: Theory that advocates observing closely the innovations of first movers and then introducing new products that improve on the original offering to gain advantage in the marketplace.

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SWOTSWOT is an acronym for strengths, weaknesses, opportunities, and threats

A SWOT analysisSWOT analysis is a method of studying organizational resources and capabilities to assess the firm’s strengths and weaknesses and scanning its environment to identify opportunities and threats

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SWOT SWOT AnalysisAnalysis

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The Strategic WindowThe Strategic WindowA limited period with an optimal fit between

the key requirements of a market and the particular competencies of a firm

HR BlockHR Block recognizes the strategic window of their business.

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Elements of a Marketing StrategyElements of a Marketing Strategy

Blending the four strategy elements of marketing decision-making to satisfy chosen target marketsProductPriceDistributionPromotion

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Target MarketTarget MarketGroup of

people toward whom the firm decides to direct its marketing efforts

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Marketing Mix VariablesMarketing Mix VariablesProduct StrategyProduct Strategy

What goods or services to offerCustomer servicePackage designBrand namesTrademarksWarrantiesProduct Life Cycle PositioningNew-product development

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Marketing Mix Variables Marketing Mix Variables Distribution StrategyDistribution Strategy

Planning that ensures that consumers find their products in the proper quantities at the right times and places.Modes of transportationWarehousingInventory controlOrder processingMarketing channels

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Marketing Mix Variables Marketing Mix Variables Promotional StrategyPromotional Strategy

Blending together the various elements of promotion to communicate most effectively with the target market

Informing, persuading, and influencing a consumer’s purchase decision.

IMC

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Marketing Mix Variables Marketing Mix Variables Pricing StrategyPricing StrategyDeals with the methods of setting profitable

and justifiable prices

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The Marketing EnvironmentThe Marketing EnvironmentCompetitivePolitical – LegalEconomicTechnologicalSocial – Cultural

Rule of three

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Methods for Marketing PlanningMethods for Marketing Planning

Business Portfolio AnalysisBusiness Portfolio AnalysisStrategic Business UnitsStrategic Business Units (SBUs) are key

business units within diversified firmsA division, product line, or single product

may define an SBUFirms redesign their SBUs as market

conditions dictate

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The BCG MatrixThe BCG MatrixMarket Share/ Market Growth MatrixMarket Share/ Market Growth Matrix: a

marketing planning tool that classifies a firm’s SBU’s or products according to industry growth rates and market shares relative to competing productsStarsCash CowsDogsQuestion Marks

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Figure 2.10Figure 2.10BCG Market Share/Market Growth Matrix