I. Marketing Analysis

II. The Global Environment

III. Planning and Market Research

IV. Market Segmentation

The Marketing Strategy

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General Instructions• Select a company from the list on the

inside cover of your textbook• Each time we finish a unit, you will

describe the issues in that unit using your chosen company.

• Make a copy of the Market Strategy Outline as a guide

• Use this PowerPoint presentation to help in analyzing your company’s strategy.

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I. Marketing Analysis• This section of the marketing

strategy examines the current situation of the company.

• An internal analysis looks at what is happening within the company.

• An external analysis examines the marketing environments (environmental scanning).

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Internal Analysis• What type of business is it?• To what industry does this company

belong?• What products are sold?• Where is it headquartered?

(Internal Analysis continued on next slide)

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Other Internal Information• Number of employees

• Annual Revenue

• Annual Profit (earnings)

• Bond rating

• Most recent stock price

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The External Analysis This section of the strategy examines

what the company must consider from the outside. It includes scanning the five environments: economic, competitive, societal/cultural, political/legal, technological.

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The Economic Environment• How is the company affected by what

is happening in the economy?

For example:– inflation?– Interest rates?– Unemployment?–Wholesale and consumer price index?

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Competitive Environment• Who is this company’s major

competition?

• How well is this company doing compared to the competition?

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Societal/Cultural Environment• What are current societal trends

impacting on this company?

• Are there any cultural taboos or fads that might affect business?

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Political/Legal Environment• Are there government regulations

affecting the company?

• Are there political trends impacting this business?

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Technological Environment• What trends in current technology

might impact on this business?

• Is this company being helped by technology? How?

• Is this company being hurt by new technology? How?

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II. The Global Environment

• This segment of the strategy examines the extent to which this company is marketing its products internationally and the problems encountered in global marketing.

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Global Marketing• Where is the company involved

internationally?

• How is the company involved in international marketing?

• What are some of the major considerations they must make to market their product internationally

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International Environment

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• How does the international environment differ from the domestic one? Give some examples of these differences?– Economically?– Competitively?– Culturally?– Politically?– Technologically?

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III. Planning, Forecasting, and ResearchThis segment of the strategy

examines:

• Company mission

• Strategic plans of the company

• Market research and forecasting (How does the company collect market information and use it?)

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Planning• What is the company’s mission?

• What are some of the plans for this year?

• What are the plans over the next several years?

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Forecasting• Does the company do forecasting?– Quantitative information used?– Qualitative information used?

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Market research

• Does the company do any market research?

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Secondary Data

• What secondary data is used?

• What are the major sources of this secondary data?

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Primary Data

• Does the company execute its own market studies?

• How and where does it collect data?

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Market Segmentation• This segment of the strategy describes the

type of customer to whom the company is marketing.

– Select ONE of your company’s products to identify a market

(You cannot describe ALL of the company’s various target markets)

– Decide whether the target market is a consumer or an organization.

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Consumers (Households)If you want to describe this type of

consumer use the following categories:

geographic

demographic

psychographic

product-related

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Geographic Segmentation• Local, national international?

• Urban, suburban, rural?

• Warm or cold climate?

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Demographic Segmentation• Gender? Age?

• Income? Occupation? Education?

• Race? Religion? Ethnic group?

• Height? Weight? Body type?

• Marital status?

• Other characteristics?

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Psychographic Segmentation• Lifestyle?

• Personality traits?

• Other psychographics

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Product-related Segmentation• Familiarity (unknown to brand -loyal)

• Usage rate (heavy to non-user)

• Benefits sought in the product

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Organizational Buyer• If the target is an organizational

market, describe the organization using the following categories:– demographic– customer-type– end-use application– purchasing situation

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Demographic Segmentation• Type of businesses to which

company is marketing?(SIC)

• Size of these businesses?

• Corporate culture of these businesses (leading edge or traditional)?

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Customer-type Segmentation• Manufacturer?

• Wholesaler/Retailer?

• Government

• Non-profit?

IndexEnd-use Application Segmentation• How will the product be used?– in the manufacture of other products?– for resale to other customers?– as an end-product, consumed by the

business?– as a custom-designed product for a

particular customer?

IndexPurchasing-situation Segmentation• Centralized or decentralized

purchaser

• Usage rate (non-user to brand loyal user)

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Selecting Target MarketIn defining the target market, is your

company using:

• an undifferentiated strategy?

• a differentiated strategy?

• a concentrated strategy?

What led you to this conclusion?

V. Product Strategy

VI. Pricing and Placing Strategy

VII. Promotion Strategy

VIII. Conclusions

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The Marketing Mix (con’d)BMGT 130 On-Line

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V. Product StrategyThis section of the market strategy

describes all of the considerations made to develop the company’s products.

(At this point you will use the ONE PRODUCT you selected when you described your target market, and use that product throughout all of the marketing mix discussion)

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Product Strategy: CategorizationWhich category best describes this

product:– convenience good?– shopping good?– specialty good?

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Product Strategy: Characteristics

• Physical qualities (if this is a tangible product)?

• Service package offered?

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Product Strategy: Brand Name• Where did the name come from?

• What does the name say about the product?

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Product Strategy: Packaging• What considerations were made in

packaging this product?

• What type of packaging is used?

• How does the packaging help market the product?

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Product Strategy: Enhancers• What else is being offered to make

this product attractive to the previously chosen target market?(guarantees, warranties, services, etc.)

• What product factors separate your product from that of your competition?

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Product Strategy: Product Line

Is this a single stand-alone product, or is there a line of similar or complimentary products sold with this product?

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VI. Pricing StrategyThis segment of the strategy describes

considerations the company must make in determining what price to charge its customers

IndexPricing Strategy: Pricing ObjectivesWhat major objective(s) does the company use

in determining price?

• Profitability

• Competitive

• Volume (market share)

• Prestige (quality)

How does this objective relate to the target market chosen?

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Pricing Strategy: The ContinuumWhere are they on the Pricing

Continuum?Undercutting the competition (penetration)?

Going for a quality image (prestige)?

Not using price to compete (competitive)?

below cost break even penetration competitive prestige no sales

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VI. Placing Strategy

This segment of the strategy describes the distribution channel by which the product travels from manufacturer to final consumer.

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Placing Strategy: IntermediariesDoes the manufacturer use some help

(intermediaries) in distributing the product to consumers?–Wholesalers? Describe them.– Retailers? Describe them.

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Placing Strategy: Non-traditionalDoes the company use other non-

traditional retailing to distribute the product?

• Catalogs

• Internet

• Automatic merchandising

• Other

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VII. Promotion This section of the marketing strategy

analyzes how the company sends its product message to the chosen target market.

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Promotion Strategy:Design• Do they use a “push” or a “pull”

strategy?

• How do they budget for promotion?

• Are there any ethical issues involved in their strategy?

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Promotion Strategy: 4 ElementsHow does the company use each of

the 4 elements of the promotion Mix?

• Advertising

• Sales promotion

• Publicity

• Personal selling

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Promotion Strategy: Advertising• What message are they attempting to

convey?• What appeal are they making to the

target market?• What media are they using to convey

their message?• How are they using the internet to

advertise?

IndexPromotion Strategy:Sales PromotionWhat sales promotion tactics does the company

use?– Trade shows?– coupons and cents-off?– samples and premiums?– sweepstakes and contests?– in-store displays (POP displays)?– Other?

What sales promotion do they have on the internet?

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Promotion Strategy: Publicity• What does the company do to get

“free” publicity?

• In what types of public relations activities do they participate?

• Are they using the internet to get publicity? How?

• How effective is their PR campaign?

IndexPromotion Strategy: Personal Selling• How does the company use personal

selling to reach the target market?• In what types of personal selling

activities do they participate?– field selling?– over-the-counter selling?– telemarketing?– Internet?

IndexVIII. Conclusions and RecommendationsComment on your observations of this

company’s marketing strategy.

What can you conclude from what you now know of this marketing strategy?

What recommendations would you make to this company about this strategy?

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THE END

This ends the PowerPoint presentation for the Marketing Strategy.

If you still have questions on any part of this, e-mail your instructor on Private Mail in WebCT.

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Support Document

• Applicable textbook Chapters

• Company Web Site

• Company Annual Report

• Current Periodicals in HCC Library (magazines, newspapers, journals)

• Databases in the Library(click here to connect to library)