1. © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2. 2-2 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin LEARNING OBJECTIVES DEVELOPING MARKETING STRATEGIES AND A MARKETING PLAN How does a firm set up a marketing plan? How are SWOT analyses used to analyze the marketing situation? How does a firm choose what group(s) of people to pursue with its marketing efforts? How does the implementation of the marketing mix increase customer value? How can firms grow their businesses?

3. 2-3 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Dunkin’ Donuts versus Starbucks Dunkin’ Donuts Commercial

4. 2-4 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Sustainable Competitive Advantage

5. 2-5 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Customer Excellence Retaining loyal customers Customer service Virgin Atlantic Website

6. 2-6 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Operational Excellence Efficient operations Excellent supply chain management.

7. 2-7 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Product Excellence

8. 2-8 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Locational Excellence How does Rachael Ray as a spokesperson tie into locational excellence?

9. 2-9 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Check Yourself 1. What are the various components of a marketing strategy? 2. List the four macro strategies that can help a firm develop a sustainable competitive advantage.

10. 2-10 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Marketing PlanMarketing Plan

11. 2-11 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Three Phases of a Strategic Plan PlanningImplementingControlling

12. 2-12 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Step One: Defining the Mission and/or Vision MADD mission statement:mission statement MADD strives to stop drunk driving, support the victims of this violent crime and prevent underage drinking. MADD mission statement:mission statement MADD strives to stop drunk driving, support the victims of this violent crime and prevent underage drinking.

13. 2-13 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin MADD Promotion

14. 2-14 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Step Two: Conduct a Situation Analysis Using SWOTSituation Analysis

15. 2-15 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Step Three: Identifying and Evaluating Opportunities Using STPSTP SegmentationTargetingPositioning

16. 2-16 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Disney: Segmentation, Targeting, Positioning Families w/younger kids Magic Kingdom Adults, families w/older kids Epcot Singles and Couples Pleasure Island

17. 2-17 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Power of the Internet Building Brand evangelists online Real Beauty campaign Dove evolution viral video Dove “Real Beauty” Commercial

18. 2-18 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Step Four: Implement Marketing Mix and Allocate Resources Product Value Creation Price Value Capture Place Value Delivery Promotion Value Communication

19. 2-19 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Price and Value Capture Competitor-based pricing Cost-based pricing Value-based pricing

20. 2-20 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Place and Value Delivery The product must be readily accessible Why is this retailer growing?

21. 2-21 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Promotion and Value Communication Television Radio Magazines Sales force New Media

22. 2-22 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Step Five: Evaluate Performance and Make Adjustments P&G Website

23. 2-23 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Check Yourself 1. What are the five steps in creating a marketing plan? 2. What tool helps a marketer conduct a situation analysis? 3. What is STP?

24. 2-24 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Growth Strategies

25. 2-25 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Market Penetration Existing marketing mix Existing customers In what way is a sale a Market penetration strategy? Market penetration strategy? Cartier Website

26. 2-26 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Market Development Strategy What can a company do to continue to grow in a difficult retail environment?

27. 2-27 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Product Development New product or serviceCurrent target market Disney Fairy Tale Weddings

28. 2-28 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Diversification New product or serviceNew market segment FedEx acquires Kinko’s

29. 2-29 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Check Yourself 1. What are the four growth strategies? 2. What type of strategy is growing the business from existing customers? 3. Which strategy is the riskiest?

30. 2-30 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Scenario Planning

31. 2-31 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Check Yourself 1. Identify the steps of the scenario planning process 2. How is scenario planning used in a firm?

32. 2-32 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Customer excellence is achieved when a firm develops value-based strategies for retaining loyal customers and provides outstanding customer service. Return to slide

33. 2-33 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A diversification strategy introduces a new product or service to a market segment that currently is not served. Return to slide

34. 2-34 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Locational excellence occurs by having a good physical location and Internet presence. Return to slide

35. 2-35 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A market development strategy employs the existing marketing offering to reach new market segments, whether domestic or international. Return to slide

36. 2-36 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A market penetration strategy employs the existing marketing mix and focuses the firm’s efforts on existing customers. Return to slide

37. 2-37 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A marketing plan is a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four P’s, action programs, and projected or pro- forma income (and other financial) statements. Return to slide

38. 2-38 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A mission statement is a broad description of a firm’s objectives and the scope of activities it plans to undertake. Return to slide

39. 2-39 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Operational excellence is achieved through efficient operations and excellent supply chain and human resource management. Return to slide

40. 2-40 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A product development strategy offers a new product or service to a firm’s current target market. Return to slide

41. 2-41 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Product excellence occurs by having products with high perceived value and effective branding and positioning. Return to slide

42. 2-42 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary Scenario planning integrates information obtained as part of the situation and opportunity analysis steps of the marketing plan to better understand the potential performance outcomes associated with different marketing mix applications. Return to slide

43. 2-43 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A situation analysis uses a SWOT analysis that assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats. Return to slide

44. 2-44 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary STP stands for segmentation, targeting, and positioning, and is used to identify and evaluate opportunities for increasing sales and profits. Return to slide

45. 2-45 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Glossary A sustainable competitive advantage is an advantage over the competition that is not easily copied, and thus can be maintained over a long period of time. Return to slide