CHAPTER TWO MARKETING MANAGEMENT: STRATEGY 1. Marketing Management The process of: 1. planning, 2....
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Transcript of CHAPTER TWO MARKETING MANAGEMENT: STRATEGY 1. Marketing Management The process of: 1. planning, 2....
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CHAPTER TWO
MARKETING MANAGEMENT: STRATEGY
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Marketing Management
• The process of:1. planning, 2. executing, and3. controlling marketing activities to attain the marketing goals and objectives effectively and efficiently.
• Change is constant and therefore the process is a continuous process.
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What is a marketing strategy?
• A plan identifying what marketing goals and objectives will be pursued and how they will be achieved in the time available.
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Planning: A Framework for the Future
Establishing goals and objectives
Envisioning the Future
Designing strategies to beimplemented in the future
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Top Management: Mission Statement
A mission statement is:• A broad statement of the company’s
purpose• Explains the purpose of the organization• Provides direction for the entire company
Walt Disney’s Mission“The Walt Disney Company is committed to balance environmental stewardship with our corporate goals throughout the world”
http://corporate.disney.go.com/environmentality/mission_history.html
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Top Management:Mission statement
Three Guiding Principles:1. Success depends on customer satisfaction2. Consumer oriented perspective3. Avoid short-sighted, narrow-minded thinking
Consumer wants?
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What’s Happening?
• http://www.stumbleupon.com/su/30Vd1d/creativecriminals.com/ambient/creative-bus-stop-advertisements/
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Strategic business units (SBU)
• Operates as a “company within a company”• A SBU is organized around some common element
such as….
SBU
Industry Technology
TargetMarket
Customerneed
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Boston consulting groups growth-share matrix
• Commonly referred to as the BCG Matrix• Develop to evaluate SBU’s performance based
industry growth (vertical axis) versus relative market share (horizontal axis)
• Assists management to determine resource allocation
• Four categories: Stars, Cash cows, Dogs, Question Marks (see exhibit 2-3, page 34)
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Boston consulting groups growth-share matrix
STAR QUESTIONMARK
CASHCOW
DOG
MARKET SHARE(Cash Generation)
LOWHIGH
HIGH
LOW
GR
OW
TH
RATE
(Cash
Use)
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Marketing Strategies at the SBU LEVEL
• Marketing managers focus on two key aspects of SBU strategies:
1. Establish a competitive advantage– Superior to or favourably different from
competitors– Examples include: price leadership,
differentiation strategy2. Plan growth strategies
– (Visit Exhibit 2-5, page 37)
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Planning business-unit growth strategies
The Market/Product Matrix (Exhibit 2-5)
Market Penetration
MarketDevelopment
ProductDevelopment
Diversification
New
Existing
Existing
New
Markets
Pro
du
ct
s
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The six stages of the Strategic marketing Process
Planning stages1. Identifying and evaluating opportunities2. Analyzing market segments and selecting target markets3. Planning a market position and developing a marketing
mix strategy4. Preparing a formal marketing plan
6. Controlling efforts and evaluating the results
5. Executing the plan
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Stage One: Identifying and Evaluating Opportunities
Situation Analysis: two major components:1. Environmental scanning & monitoring
– External forces and trends are identified as opportunities and threats
– Forces include: sociocultural, demographic, economic, etc.
2. Internal analysis– Internal strengths and weakness are identified– Key topics include: customers, suppliers
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Stage One: Identifying and Evaluating Opportunities
Bringing the internal and external analysis together:
Strengths(build on)
Weaknesses(deal with)
Opportunities(take advantage)
Threats(avoid)
Internal Micro-environment
External Macro-environment
S.W.O.T
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Stage Two: Analyzing Market Segments &
Selecting Target Markets
• Consumer Market (B2C) vs. Organizational Markets (B2B) (Visit exhibit 2-8, page 42)
• Market segment– Portion of a larger market (i.e. French Canadians)
• Market segmentation– Dividing the mass market into smaller groups with similar
characteristics that are likely to become the target market
• Target market– The specific group(s) the organization directs its marketing mix
towards
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Stage Three: Market Positioning and Marketing Mix strategy
• Market position:– How consumers perceive a brand relative to its
competition• Developing marketing mix (4P’s):
– Product– Price– Place (distribution)– Promotion
Recall from
Chapter 1?
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Stage 4: preparing a Formal Marketing Plan
The yearly marketing plan is a written report that includes:– Marketing objectives (S.M.A.R.T)– Marketing strategies– Marketing mix– Responsibility allocation – Implementation timeline
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Stage 5: Executing the marketing plan
Putting the plan into action!Management best practices:• Ensure resources are
properly allocated• Clearly understand and
communicate goals and expectations
• Create reasonable expectations and deadlines
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Stage 6: controlling efforts and evaluation results
Marketing Audits: Ensure that planned activities are executed properly
• Benchmark: establish performance standards• Supervision: investigate to ensure tasks have been
completed “checking up”• Adjustments: evaluate to determine if goals have
been achieved – Yes? Continue with the plan– No? Make adjustments and monitor
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Ethics and Responsibility
• Worldwide consumerism and environmentalism movements exert pressure for greater responsibility
• Notion of “caring capitalism” tied to the marketing concept.– Seeking ways to make a profit by serving the best
long-run interests of customers and communities.
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Next Class,….
• Case Analysis in BSAD 231, please visit the course website for all the material, and bring them to class (case and case analysis guidelines).