kotler02_11.PPT

Company and Company and Marketing StrategyMarketing Strategy

Chapter 2Chapter 2

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Strategic Planning

Strategic planning is defined as:Strategic planning is defined as: ““The process of developing and The process of developing and

maintaining a strategic fit between maintaining a strategic fit between the organization’s goals and the organization’s goals and capabilities and its capabilities and its changing marketing opportunities.”changing marketing opportunities.”

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Steps in the Strategic Planning Process

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Marketing Management

A mission statement asks.. What is our

business? Who is the

customer? What do

consumers value?

What should our business be?

A mission statement should be: An “invisible hand” Neither too narrow

nor too broad Fitting of market

environment Based on distinctive

competencies Motivating

Market-Oriented Mission

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Strategic Planning

Business portfolio:Business portfolio: “the collection of businesses “the collection of businesses and products that make and products that make up the company.”up the company.” Designing the businessDesigning the business

portfolio is a key step in portfolio is a key step in the strategic planning the strategic planning process.process.

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Strategic Planning

Step 1: Step 1: Analyze the Analyze the current business current business portfolioportfolio

Step 2: Step 2: Shape the future Shape the future business portfoliobusiness portfolio

Identify strategic business Identify strategic business units (SBUs)units (SBUs)Assess each SBU:Assess each SBU: The BCG growth-share The BCG growth-share

matrix classifies SBUs matrix classifies SBUs into one of four into one of four categories using:categories using:Market growth rate Market growth rate The SBU’s relative market The SBU’s relative market

share within the market.share within the market.

Portfolio DesignPortfolio Design

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Growth-Share Matrix

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Marketing Management

Build Increase market

share Works well for

question marks

Hold Preserve market

share Good for cash

cow

Harvest Increases short-

term cash flow Good for weak

cash cows, question marks and dogs

Divest Sell or liquidate Good for dogs

and question marks

Analyzing the Current Business Portfolio

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Strategic Planning

Step 1: Step 1: Analyze the Analyze the current business current business portfolioportfolio

Step 2:Step 2: Shape the future Shape the future business portfoliobusiness portfolio

Determine the future role of Determine the future role of each SBU and choose the each SBU and choose the appropriate resource appropriate resource allocation strategy:allocation strategy: BuildBuild HoldHold HarvestHarvest DivestDivest

SBUs change positions SBUs change positions over timeover time

Portfolio DesignPortfolio Design

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Product / Market Expansion Grid

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The Marketing Process

The strategic planning The strategic planning and business portfolio and business portfolio analysis processes analysis processes help to identify and help to identify and evaluate marketing evaluate marketing opportunities.opportunities.

The purpose of the The purpose of the marketing process is marketing process is to help the firm plan to help the firm plan how to capitalize on how to capitalize on these opportunities.these opportunities.

Key ElementsKey Elements

Analyzing marketing Analyzing marketing opportunitiesopportunities

Selecting target Selecting target marketsmarkets

Developing the Developing the marketing mixmarketing mix

Managing the Managing the marketing effortmarketing effort

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Key ElementsKey Elements The segmentation The segmentation process divides the process divides the total market into total market into market segments.market segments.

Target marketingTarget marketing chooses which chooses which segment(s) are segment(s) are pursued.pursued.

Market positioningMarket positioning for the product is for the product is then determined.then determined.

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Customers grouped Customers grouped by:by:GeographicGeographicDemographicDemographicPsychographicPsychographicBehavioralBehavioral

Market segment is a Market segment is a groups of consumers groups of consumers who respond in who respond in similar ways to similar ways to marketing efforts.marketing efforts.

1. Market Segmentation

2. Target marketing

3. Market Positioning

Marketing Strategy

StrategyStrategy

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Evaluation of each Evaluation of each segment’s segment’s attractivenessattractiveness

Selection of Selection of segments with segments with greatest long-term greatest long-term profitabilityprofitability

A company can A company can choose one or choose one or several segments several segments to targetto target

Marketing Strategy

StrategyStrategy


2. Target marketing


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The place the product The place the product occupies in the occupies in the consumer’s mindconsumer’s mind

Products are Products are positioned relative to positioned relative to competing productscompeting products

Marketers look for Marketers look for clear, distinctive and clear, distinctive and desirable place in desirable place in positioningpositioning

Marketing Strategy

StrategyStrategy


2. Target marketing


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The Marketing ProcessCompetitor analysis Competitor analysis guides competitive guides competitive marketing strategy marketing strategy development.development.Strategy leads to tactics Strategy leads to tactics via the marketing mix: via the marketing mix: The “Four Ps” – product, The “Four Ps” – product,

price, place, promotion price, place, promotion (seller viewpoint)(seller viewpoint)

The “Four Cs” – The “Four Cs” – customer solution, cost, customer solution, cost, convenience, and convenience, and communication communication (customer viewpoint)(customer viewpoint)






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Marketing Mix

The marketing mix includes controllable The marketing mix includes controllable and tactical marketing tools knows as the and tactical marketing tools knows as the 4P’s4P’s

The 4P’s includeThe 4P’s includeProductProductPlacePlacePromotionPromotionPricePrice

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The Marketing Mix

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Marketing analysisMarketing analysis Provides information Provides information

helpful in planning, helpful in planning, implementation, and implementation, and controlcontrol

Marketing planningMarketing planning Strategies and tacticsStrategies and tactics

Marketing Marketing implementationimplementation Turns plans into actionTurns plans into action

Marketing controlMarketing control Operating controlOperating control Strategic controlStrategic control






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Finding Finding opportunitiesopportunities

Avoiding threatsAvoiding threats Understanding Understanding

strengthsstrengths Analyzing Analyzing

weaknessesweaknesses

• Analysis• Planning• Implementation• Control

Managing the Marketing Effort

Marketing FunctionsMarketing Functions

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Marketing plans include: Marketing plans include: Executive summaryExecutive summaryAnalysis of current Analysis of current

situationsituationObjectivesObjectivesTargets and positioningTargets and positioningMarketing mixMarketing mixBudgetBudgetControlsControls




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Plans are turned Plans are turned into action with into action with day-to-day day-to-day activities activities

Good Good implementation is implementation is a challengea challenge




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Evaluation of the Evaluation of the results of results of marketing marketing strategiesstrategies

Checks for Checks for differences differences between goals and between goals and performanceperformance




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