Transcript Chapter 2 - Trevecca Nazarene University

Chapter 2
STRATEGIC
PLANNING IN
CONTEMPORA
RY
MARKETING
© 2014 Cengage Learning. All Rights Reserved. May
not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
1a. What is Market Planning?
Copyright © 2013 by South
Western, a division of Cengage
Learning.
All rights
© 2014 Cengage
Learning.
All reserved.
Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 2 Strategic Planning in Contemporary Marketing
Marketing Planning: The Basis for Strategy
and Tactics
▮ Marketing planning - Implementing planning
activities devoted to achieving marketing
objectives
• Many planning activities take place over the
Internet with virtual conferences
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
1b. What is Planning?
Copyright © 2013 by South
Western, a division of Cengage
Learning.
All rights
© 2014 Cengage
Learning.
All reserved.
Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 2 Strategic Planning in Contemporary Marketing
Marketing Planning: The Basis for Strategy
and Tactics
▮ Planning - Anticipating future events and
conditions and determining the best way to
achieve organizational objectives
• Continuous process that includes:
• Identifying objectives
• Determining the actions through which a firm can attain
those objectives
• Creates a blueprint for everyone in the
organization
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
Marketing Planning: The Basis for Strategy
and Tactics
• An important trend in marketing planning
centers on relationship marketing
• A firm’s effort to develop long-term, cost-effective
links with individual customers and suppliers for
mutual benefit
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
2. Define Strategic planning and Tactical planning.
Copyright © 2013 by South
Western, a division of Cengage
Learning.
All rights
© 2014 Cengage
Learning.
All reserved.
Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 2 Strategic Planning in Contemporary Marketing
Strategic Planning Versus Tactical Planning
Strategic Planning
• Determining an
organization’s primary
objectives
• Adopting courses of
action that will achieve
these objectives
Tactical Planning
• Guides the
implementation of
activities specified in
the strategic plan
• Addresses shorter-term
actions
• Provides long-term
direction for its
decision makers
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
Table 2.1 - Planning at Different Managerial
Levels
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Chapter 2 Strategic Planning in Contemporary Marketing
3. What are the steps in the marketing process?
Copyright © 2013 by South
Western, a division of Cengage
Learning.
All rights
© 2014 Cengage
Learning.
All reserved.
Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 2 Strategic Planning in Contemporary Marketing
Steps in the Marketing Planning Process
▮ Defining the organization’s mission and
objectives
• Mission - Essential purpose that differentiates one
company from another
• Sephora: “The beauty authority”
• IBM: “Welcome to the decade of smart”
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Example: Mission Statement
Pfizer Inc.
Pfizer is a research-based, global pharmaceutical company.
We discover and develop innovative, value-added products that
improve the quality of life of people around the world and help
them enjoy longer, healthier, and more productive lives.
The company has three business segments: health care, animal
health and consumer health care. Our products are available
in more than 150 countries.
Example: Mission Statement
Ritz-Carlton Hotels
The Ritz-Carlton Hotel is a place where the genuine care and
comfort of our guests is our highest mission.
We pledge to provide the finest personal service and facilities
for our guests who will always enjoy a warm, relaxed yet
refined ambiance.
The Ritz-Carlton experiences enlivens the senses, instills wellbeing, and fulfills even the unexpressed wishes and needs of
our guests.
Example: Mission Statement
Apple Computer
Apple Computer, Inc., ignited the personal computer revolution
in the 1970s with the Apple II, and reinvented the personal
computer in the 1980s with the Macintosh.
Apple is now committed to its original mission--to bring the best
personal computing products and support to students,
educators, designers, scientists, engineers, business persons and
consumers in over 140 countries around the world.
Rubbermaid Commercial Products, Inc.
“Our vision is to be the Global Market Share
Leader in each of the markets we serve. We
will earn this leadership position by
providing to our distributor and end-user
customers innovative, high-quality, costeffective and environmentally responsible
products. We will add value to these products
by providing legendary customer service
through our uncompromising Commitment
to Customer Satisfaction.”
Motorola
“The purpose of Motorola is to honorably
serve the needs of the community by providing
products and services of superior quality at a
fair price to our customers; to do this so as to
earn an adequate profit which is required for
the total enterprise to grow; and by doing so,
provide the opportunity for our employees and
shareholders to achieve their personal
objectives.”
eBay
“We help people trade anything on earth.
We will continue to enhance the online
trading experiences of all—collectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.”
Chapter 2 Strategic Planning in Contemporary Marketing
Trevecca Nazarene University
▮ “Trevecca Nazarene University is a Christian
community providing education for leadership
and service.”
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 2 Strategic Planning in Contemporary Marketing
Steps in the Marketing Planning Process
▮ Objectives - Guide the development of
marketing objectives and plans
• For example:
• Generate a 15 percent profit over the next 24 months
• Add 25 new outlets within the next year
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
Assessing Organizational Resources and Evaluating
Environmental Risks and Opportunities
▮ Resources include: ▮ Strengths help planners:
•
•
•
•
•
Production
Marketing
Finance
Technology
Employees
• Set objectives
• Develop plans
• Take advantage of
marketing opportunities
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
Formulating, Implementing, and Monitoring a
Marketing Strategy
▮ Marketing strategy - Selecting and satisfying
target consumers through the marketing mix
elements
▮ The final steps of the planning process:
• Marketers put the marketing strategy into action
• Marketers monitor performance to ensure that
objectives are achieved
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
Successful Strategies: Tools and Techniques
▮ Porter’s Five Forces model
•
•
•
•
•
The potential of new entrants
The bargaining power of buyers
The bargaining power of suppliers
The threat of substitute products
Rivalry among competitors
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
Figure 2.2 - Porter’s Five Forces Model
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
First Mover and Second Mover Strategies
▮ First mover strategy - The company first to
offer a product in a marketplace will be the
long-term market winner
▮ Second mover strategy - Observing the
innovations of first movers and then improving
on them to gain advantage in the marketplace
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Chapter 2 Strategic Planning in Contemporary Marketing
SWOT Analysis
▮ Helps planners compare internal organizational
strengths and weaknesses with external
opportunities and threats
• Provides managers with a critical view of the
organization’s internal and external environments
• Helps them evaluate the firm’s fulfillment of its
basic mission
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Chapter 2 Strategic Planning in Contemporary Marketing
Figure 2.3 - SWOT Analysis
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SWOT Analysis
Chapter 2 Strategic Planning in Contemporary Marketing
Strengths
Weaknesses
Opportunities
Threats
Figure 2.2
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DaimlerChrysler
▮ Strengths
• Leading market position
• Strong brand portfolio
• Strong commercial vehicle
business
▮ Opportunities
• New launches
• Hybrid vehicles
• Booming car sales in China
▮ Weaknesses
• Poor performance of
Mercedez Benz unit
• Weak top line growth in
Western Europe
▮ Threats
• Rise in steel prices
• Slow down in Euro zone
• Increasing competition from
Japanese groups
Chapter 2 Strategic Planning in Contemporary Marketing
The Strategic Window
▮ Limited periods when key requirements of a
market and a firm’s particular competencies best
fit together
▮ Requires a thorough analysis of:
• Current and projected external environmental
conditions
• Current and projected internal company capabilities
• How, whether, and when the firm can reconcile
environmental conditions and company capabilities
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Chapter 2 Strategic Planning in Contemporary Marketing
4. What are the elements of a marketing strategy?
Copyright © 2013 by South
Western, a division of Cengage
Learning.
All rights
© 2014 Cengage
Learning.
All reserved.
Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 2 Strategic Planning in Contemporary Marketing
Elements of a Marketing Strategy
▮ The target market
▮ Marketing mix variables
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Chapter 2 Strategic Planning in Contemporary Marketing
The Target Market
▮ The group of people toward whom the firm
directs its marketing efforts and merchandise
• Example: Boeing markets most of their products
to business buyers such as Delta Airlines
▮ Diversity plays a critical role
• Example: Growing Hispanic population in United
States
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
The Target Market
▮ Targeting consumers in specific global markets
represents a challenge and an opportunity
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Chapter 2 Strategic Planning in Contemporary Marketing
Marketing Mix Variables
▮ Marketing mix - Blending four strategy
elements to fit the needs and preferences of a
specific target market
• Product
• Distribution
• Promotion
• Pricing
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
Figure 2.4 - Element of a Marketing Strategy
and Its Environmental Framework
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Chapter 2 Strategic Planning in Contemporary Marketing
Product Strategy
▮ Deciding what goods or services the firm
should offer to a group of consumers
• Customer service
• Package design
• Brand names, trademarks, patents, and warranties
• Lifecycle of a product
• Product positioning
• New-product development
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
Distribution Strategy
▮ Consumers find their products in the proper
quantities at the right times and places
▮ Involves modes of transportation,
warehousing, inventory control, order
processing, and selection of marketing
channels
▮ Technology has opened new channels of
distribution in many industries
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
Promotion Strategy
▮ Communication link between sellers and
buyers
▮ Firms may communicate messages:
• Directly through salespeople
• Indirectly through advertisements and promotions
▮ Many companies use integrated marketing
communications (IMC)
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
Pricing Strategy
▮ Deals with methods of setting profitable and
justifiable prices
▮ Subject to regulation and public scrutiny
▮ A good pricing strategy:
• Creates value for customers
• Builds and strengthens customer relationships with
a firm and its products
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
39
Chapter 2 Strategic Planning in Contemporary Marketing
5. What are the various tools for marketing
planning?
Copyright © 2013 by South
Western, a division of Cengage
Learning.
All rights
© 2014 Cengage
Learning.
All reserved.
Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 2 Strategic Planning in Contemporary Marketing
Methods for Marketing Planning
▮ Business portfolio analysis
• An evaluation of a company’s products and
divisions to determine the strongest and weakest
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Chapter 2 Strategic Planning in Contemporary Marketing
Strategic Business Units
▮ Key business units within diversified firms
• Each strategic business unit (SBU):
• Has its own managers, resources, objectives, and
competitors
• Pursues its own distinct mission and develops its own
plans independently
▮ Help focus the attention of company managers
▮ Companies may have to redefine their SBUs
as market conditions dictate
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
The BCG Matrix
▮ Developed by the Boston Consulting Group
▮ A market share/market growth matrix that
plots market share against market growth
potential
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 2 Strategic Planning in Contemporary Marketing
Figure 2.5 - BCG Market Share/Market
Growth Matrix
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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