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Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1 Learning Outcomes – Chapter 2 1. Understand the importance.

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Presentation on theme: "Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1 Learning Outcomes – Chapter 2 1. Understand the importance."— Presentation transcript:

1 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1 Learning Outcomes – Chapter 2 1. Understand the importance of strategic marketing and know a basic outline for a marketing plan 2. Develop an appropriate business mission statement 3. Describe the criteria for stating good marketing objectives 4. Explain the components of a situation analysis 5. Identify sources of competitive advantage 6. Identify strategic alternatives 7. Discuss target market strategies 8. Describe the elements of the marketing mix 9. Explain why implementation, evaluation, and control of the marketing plan are necessary 10. Identify several techniques that help make strategic planning effective

2 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 2 LO 1 Strategic Planning The managerial process of creating and maintaining a fit between the organization’s objectives and resources and evolving market opportunities. The goals are long-term profitability and growth. Strategic Planning Strategic Marketing Management What is the organization’s main activity? How will it reach its goals? THE ANSWER IS A MARKETING PLAN.

3 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 3 LO 1 Strategic Planning A written document that acts as a guidebook of marketing activities for the marketing manager. Marketing Plan Provides a basis for comparison of actual and expected performance Provides clearly stated activities to work toward common goals Serves as a reference for the success of future activities Provides an examination of the marketing environment Allows entry into the marketplace with awareness Why Write a Marketing Plan? Because it: LO1

4 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 4 LO 1 Marketing Plan Elements Marketing Strategy ProductDistribution Price Marketing Mix Business Mission Statement Objectives Situation or SWOT Analysis Target Market Strategy Implementation Evaluation Control Promotion

5 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 5 LO 2 Defining the Business Mission  Answers the question, “What business are we in?”  Focuses on the market(s) rather than the good or service  Strategic Business Units (SBUs) may also have a mission statement AMA’s Mission Statement

6 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 6 Marketing Objective LO 3 A statement of what is to be accomplished through marketing activities. Objectives should be Marketing Objective 1. Realistic 2. Measurable 3. Time specific 4. Consistent with and indicate the organization’s priorities “Our objective is to achieve 10 percent dollar market share in the cat food market within 12 months of product introduction.”

7 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 7 REVIEW LEARNING OUTCOME LO 3 Criteria for Good Marketing Objectives Realistic, measurable, and time-specific objectives consistent with the firm’s objectives: They help in five ways: 1. Communicate marketing management philosophy 2. Provide management direction 3. Motivate employees 4. Force executives to think clearly 5. Allow for better evaluation of results

8 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 8 LO 4 SWOT Analysis Identifying internal strengths (S) - Things the company does well. Internal weaknesses (W) - Things the company does not do well Examining external opportunities (O) Conditions in the external environment that favor strengths. External threats (T) Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness. SWOT Analysis LO 4

9 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 9 Competitive Advantage LO 5 Competitive Advantage The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition. From doing a SWOT analysis one should be able to determine:

10 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 10 Competitive Advantage LO 5 Niche Strategies Cost Product/Service Differentiation Types of Competitive Advantage The key to a competitive advantage is to be able to sustain the advantage over a long period of time – A Sustainable Competitive Advantage

11 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 11 Sources of Sustainable Competitive Advantage LO 5 Patents Copyrights Locations Equipment Technology Customer Service Promotion Skills and Assets of an Organization Skills and Assets of an Organization

12 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 12 Strategic Alternatives LO 6 Market Penetration Market Development Product Development Diversification Increase market share among existing customers Attract new customers to existing products Introduce new products into new markets Create new products for present markets

13 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 13 Diversification Strategy – new product, new market

14 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 14 Portfolio Matrix LO 6 Stars Cash Cows Problem Children Dogs

15 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 15 Marketing Strategy LO 7 The activities of selecting and describing one or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target markets. Marketing Strategy Marketing Strategy Marketing Strategy is: 1.The target market or customer you select to serve. 2.The Marketing Mix you develop to serve the selected target markets.

16 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 16 Target Market Strategy LO 7 1.Segment the market based on groups with similar characteristics 2.Analyze the market based on attractiveness of market segments 3.Select one or more target markets First Managers: Then Managers Decide either to: 1.Appeal to the entire market with one marketing mix 2.Concentrate on one marketing segment 3.Appeal to multiple markets with multiple marketing mixes

17 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 17 The Marketing Mix LO 8 A unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market. Marketing Mix

18 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 18 Marketing Mix: The “Four Ps” LO 8 Price Promotion Place Product

19 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 19 Marketing Mix: The “Four Ps” LO 8  The starting point of the “4 Ps”  Includes  Physical unit  Package  Warranty  Service  Brand  Image  Value Product  Products can be…  Tangible goods  Ideas  Services

20 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 20 Marketing Mix: The “Four Ps” LO 8  Product availability where and when customers want them  All activities from raw materials to finished products  Ensure products arrive in usable condition at designated places when needed Place

21 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 21 Marketing Mix: The “Four Ps” LO 8 Promotion Online http://www.paramount.com http://www.warnerbros.com http://www.universalstudios.com  Role is to bring about exchanges with target markets by:  Informing  Educating  Persuading  Reminding  Includes integration of:  Personal selling  Advertising  Sales promotion  Public relations

22 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 22 Marketing Mix: The “Four Ps” LO 8 Price  Price is what a buyer must give up to obtain a product.  The most flexible of the “4 Ps”-- quickest to change  Competitive weapon  Price x Units Sold = Total Revenue

23 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 23 REVIEW LEARNING OUTCOME LO 8 Elements of the Marketing Mix Targeted Market Segment

24 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 24 REVIEW LEARNING OUTCOME LO 9 Implementation, Evaluation, and Control Product Place Promotion Price Product Place Promotion Price Met objectives? ImplementationEvaluation Audits comprehensive systematic independent periodic Audits comprehensive systematic independent periodic

25 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 25 REVIEW LEARNING OUTCOME LO 10 Techniques for Effective Strategic Planning Effective Strategic Planning Continual attention Creativity Management commitment Management commitment

26 Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 26 NOW Go to www.mktg4me.comwww.mktg4me.com At this website, study and review the flash cards. Take the practice the quiz Explore other aspects of this site for chapter 2 Take the chapter 2 quiz in the allocated time!!!!


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