Transcript Marketing Chapter 4 Marketing Planning and Organization Strategy Gilbert A. Churchill, Jr. J. Paul Peter.

Marketing
Chapter 4
Marketing Planning and
Organization Strategy
Gilbert A. Churchill, Jr.
J. Paul Peter
Slide
4-1a
Strategic Planning Responsibilities
Top
Management
Strategic
Planning
Long
Term
Activities that lead to the development of a clear organizational mission,
organizational objectives and the strategies that enable the organization to achieve its
objectives.
Slide
4-1b
Tactical Planning Responsibilities
Top
Management
Strategic
Planning
Middle
Management
Tactical
Planning
Medium
Term
Involves the creation of objectives and strategies aimed at attaining goals for specific
divisions or departments over a medium time frame (1-5 years).
Slide
4-1c
Operational Planning Responsibilities
Top
Management
Strategic
Planning
Middle
Management
Tactical
Planning
Lower
Management
Operational
Planning
Short
Term
Involves the creation of objectives and strategies for individual operating units over a
short time span (less than 1 year).
Slide
4-2a
Figure
4.1
The Strategic Planning Process I
Information
Implementation
The Environment
The Organizations Strategic Plan
Organizational
Mission
Organizational
Objectives
Organizational
Strategies
Organizational
Portfolio Plan
Activities by which people in an organization get the marketing job done.
Source: J. Paul Peter and James H. Donnelly, Jr., A Preface to Marketing
Management, 7th ed. (Burr Ridge, Ill.: Irwin, 1997), p. 10.
Slide
4-2b
The Strategic Planning Process II
Business
Mission
Statement
Business
Objectives
Situation
Analysis
Business Strategy
Target Market
Strategy
Marketing Mix
Source: Lamb, Hair, and McDaniel,
Marketing, 5th ed. (ITP p. 20.)
Product
Distribution
Promotion
Price
Implementation
Evaluation Control
Slide
4-3
Mission Statement
A statement of the organization’s distinct purpose (i.e., what
business are we in). A good mission statement must:
Define and satisfy the key stakeholders (i.e., customers,
shareholders, employees)
Not suffer from marketing myopia (i.e., defining it in terms of
the offering rather than benefits; e.g., “railway business”,
“slide-rule business”)
Not depart too radically from history
Fit the market environment (e.g., GSA - “To prepare young girls
for motherhood and wifely duties”)
Specific and Realistic (e.g., SIA - “to become the worlds largest
airline”)
Slide
4-4
Criteria for Organizational Objectives
Realistic
Measurable - 15% ROI, Increase sales by 10%
Clear - for a Defined Period of Time
Consistent with Organizational Objectives
A statement of what is to be accomplished through marketing activities.
Slide
4-7
Figure
4.3
Growth Strategies: Product Market Matrix
Strategic Opportunity Matrix
Products
Present
Products
New
Products
Markets
Present
Customers
New
Customers
Market Penetration
Product Development
(Arm & Hammer)
(McDonald’s Pizza)
Market Development
Diversification
(Taco Bell)
(Mrs. Tea)
Situation Analysis
Slide
4-5
To Identify Marketing Opportunities
S
Internal Strengths - Things the company does
well (e.g., production, marketing, brand image,
employees, brand loyalty).
W
Internal Weaknesses - Things the company
O
External Opportunities - Conditions in the
T
External Threats - Conditions in the environment
does not do well (e.g., high production costs).
environment that favor strengths (e.g., unmet
demand, technology).
that do not relate to existing strengths or favor areas
of current weakness (e.g., stronger competitors).
Slide
4-6
Table
4.1
Examples of SWOT Issues
Internal Environment
Strengths
Weaknesses
Financial Resources
Lack of Strategic Direction
Well-known brands
High Costs
Technological Skills
Obsolete Facilities
External Environment
Opportunities
Threats
Potential New Markets
New Competition
Potential New Products
Slow Market Growth
Falling International Trade
Barriers
New Regulations
Slide
4-8b
BCG Portfolio Matrix
Market Growth Rate
Star
Problem Child
(question mark)
High
10%
Cash Cow
Dog
Low
10x
1x
High
Low
Relative Market Share
0.1x
Slide
4-8a
The Boston Consulting Group Matrix
High
Industry
Growth
Rate
Low
High
Market Share
Low
Market/Industry Attractiveness
Slide
4-9
GE Portfolio Matrix
High
Medium
Low
Strong
Medium
Business Strength/Position
Weak
Slide
4-10
Table
4.2
Some Questions for Evaluating
a Marketing Plan
• Are the objectives clear? Specific? Measurable? Challenging, but
achievable? Written?
• Have the industries that are growing been identified? Those that are
stagnant? Those that are declining?
• Who are the principal competitors?
• What are the organization’s strengths? Weaknesses?
• Does the plan take advantage of the organization’s special
competencies and vulnerabilities?
• What are the target markets?
• Do our products and services appeal to the needs and wants of the
target markets?
• What are the best ways to promote the products to customers?
• Where do customers like to purchase?
• How do our prices compare with the competition?
• What are the costs and benefits of the plan?
Slide
4-11a
Table
4.3
Forecasting Techniques
Technique
Benefits
Limitations
Qualitative Methods
Jury of
Executive
Opinion
Quick; simple; opinions come
from executives with expertise in
different departments; useful for
new or innovative products
Data typically must be broken
down by product. region, etc.;
consumes time of executives;
may not give greatest weight
to those with most expertise.
Sales Force
Composite
Providing number can
motivate salespeople;
salespeople know customers,
product and competitors.
Salespeople have a vested
interest, so they may give
biased estimates.
Survey of
Buyer
Intentions
Based on estimates obtained
directly from buyers; can
provide detailed information;
often provides insight into
buyer’s thinking; can be used
for new products.
Intention to buy may not result
in actual purchase; expensive;
time consuming; useful only
when there are a few, welldefined potential customers.
Delphi
Technique
Estimators less likely to
succumb to group pressure.
Time consuming; expensive.
Slide
4-11b
Table
4.3
Forecasting Techniques
Technique
Benefits
Limitations
Quantitative Methods
Trend
Analysis
Quick; inexpensive; effective
when demand and environmental
factors are stable.
Assumes future is
continuation of past; does not
consider marketing plans or
changes in environment; not
useful for new or innovative
products.
Exponential
Smoothing
Same benefits as trend
analysis but emphasizes more
recent data.
Same limitations as trend
analysis but not as severe
because of emphasis on more
recent data.
Market Tests
Provide more realistic
information because based on
actual purchases rather than
intent to buy; permits
assessment of effects of
marketing plan; useful for new
or innovative products.
Time consuming; expensive;
alerts competition to
organization’s plans.
Source: J. Paul Peter and James H. Donnelly, Jr., A Preface to Marketing Management, 7th ed. (Burr Ridge, Ill.: Irwin, 1997), p. 10.