1University of Technical Education University of Sunderland HO CHI MINH CITY 200Cha!ter 2Cha!ter 2The Marketing Process:Strategy & Planning2Outline 1. Strategy 3. Marketing Audit4. Strategy formulation. Market segmentation !. "e#elo$ing a marketing $lan3"# Strate$yDefinition 1 Strategyisacourseofactiontoachievea specific objectiveDefinition 2Astrategyisafundamentalpatternof presentandplannedobjectives,resource deployments,andinteractionsofan organisationwithmarkets,competitors,and other environmental factors.NextNext4Strate$ies develo! at several levelsorporatelevel!developmentofan organisation"s business activities#$arketingstrategy!theorganisation"s activities in relation to its markets#Deliberate strategies !planning#%mergent strategiesNextNext5Cor!orate Strate$y%usiness Strate$y&unctional Strate$yThree 'evels of Strate$yNextNext6orporate& orporate level strategy fundamentally is concerned with the selection of business in which the company should compete and with the development and coordination of that portfolio of businesses.Three 'evels of Strate$yNextNext'usiness& A strategic business unit may be a division, product line, or other profit center that can be planned independently from the other business units of the firm.7(unctional& )he functional level of the organisation is the level of the operating divisions and departments.%*& $arketing, (inance, Accounting, +perations, ,), -uman .esourcesThree 'evels of Strate$y82# (evelo! a )ar*etin$ !lanStructure of a marketing planAnalysesoftheorganisationandits market A statement of objective )he development of a strategy $ethods for plan implementationNextNext9The +lannin$ cycleEstablishobjectivesPlan the strategyRevie !rogress"#!le#ent the strategy$eci%e tactics1&Mission State)ent$ission statement / A statement of the organi0ation"s purpose what it wants to accomplish in the larger environment.NextNext11"e#elo$ment of the organisation%s mission statement'tate#ent o( objectives'it)ational analysis'trategy %evelo!#ent'!eci(ic !lans"#!le#entationNextNext12(efinition of o,-ectiveorporate objectives define specific goals fortheorganisationasawholeandmay bee*pressedintermsofprofitability, returnsoninvestment,growthofasset base, earnings per share and so on.13.# Mar*etin$ /uditDefinitionAmarketingauditissimplyasystematic analysisandevaluationofthe organisastion"smarketingpositionand performance.NextNext14Environ)ental Scannin$+EST 0 C 0 C Political environ#ent &cono#ic environ#ent Social environ#ent Technological environ#ent"n a%%ition to 'ons)#er behavio)r 'o#!etitive behavio)r15Activity 3 page 47161# Strate$y for)ulationS1+) analysisNextNext17%*ternal environment +pportunity and threat NextNext,nternal environment Strength and weakness 18Strengths !atents strong bran% na#es goo% re!)tation a#ong c)sto#ers cost a%vantages (ro# !ro!rietary *no+ho excl)sive access to high gra%e nat)ral reso)rces (avorable access to %istrib)tion netor*sNextNext19(eaknesses lac* o( !atent !rotection a ea* bran% na#e !oor re!)tation a#ong c)sto#ers high cost str)ct)re lac* o( access to the best nat)ral reso)rces lac* o( access to *ey %istrib)tion channelsNextNext2&O$$ortunities an )n()l(ille% c)sto#er nee% arrival o( ne technologies loosening o( reg)lations re#oval o( international tra%e barriersNextNext21Threatsshi(ts in cons)#er tastes aay (ro# the (ir#,s !ro%)cts e#ergence o( s)bstit)te !ro%)cts ne reg)lations increase% tra%e barriersNextNext22$arket penetration2 !for growth# or consolidation !to maintain position# or withdrawal 3roduct development$arketdevelopmentDiversification3resent 4ew3resentMar*et4ew+roduct3roduct/$arket areas&.elated !vertical or hori0ontal integration#5nrelated !conglomerate diversification#)ro*th strategies-nso((,s !ro%)ct . #ar*et #atrix 23+T,& MA-.&T/2# Mar*et se$)entation Segment 1Segment 2Segment 2NextNext24Mar*et Se$)entation%ases for Se$)entin$ Consu)er Mar*ets"emogra$hic/$e3 $ender3 fa)ily si4e and life cycle3 or inco)e "emogra$hic/$e3 $ender3 fa)ily si4e and life cycle3 or inco)e Psychogra$hic Social class3 lifestyle3 or !ersonalityPsychogra$hic Social class3 lifestyle3 or !ersonality0eha#iouralOccasions3 ,enefits3 uses or res!onses0eha#iouralOccasions3 ,enefits3 uses or res!onses)eogra$hic 1ations2 states2 regions or cities )eogra$hic 1ations2 states2 regions or cities 255uestions1. 6ist the stages in strategic planning2. 1hy should an organisation carry out an environmental analysis78. 1hat do the letters in S1+) analysis stand for79. Differentiate between market and product development726