Presentation on theme: "Chapter 15 The marketing process and marketing strategy"— Presentation transcript:
1Chapter 15 The marketing process and marketing strategy
2Learning objectives1 Understand the importance of strategic marketing and prepare a basic outline for a marketing plan2 Develop an appropriate business mission statement3 Describe the criteria for stating good marketing objectives
3Learning objectives (cont.) 4 Explain the components of an internal and external environmental scan5 Discuss target market strategies6 Describe the elements of the marketing mix7 Explain why implementation, evaluation and control of the marketing plan are necessary
4Learning objectives (cont.) 8 Discuss the importance of global marketing9 Describe the external environment facing global marketers10 List the basic elements involved in developing a global marketing mix11 Consider how the Internet is affecting global marketing
5Organisational overview of strategy Corporate strategyStrategic business unitFunctional strategy
6Marketing orientations Production orientationSales orientationMarketing orientationRelationship marketing orientation
7Define the term marketing Learning objective 1Understand the importance of strategic marketing and prepare a basic outline for a marketing planDefine the term marketing
81PlanningThe process of anticipating future events and determining strategies to achieve organisational objectives in the future.
91Strategic planningThe managerial process of creating and maintaining a fit between the organisation’s objectives and resources and evolving market opportunities.
10Strategic plan 1 Defining the company mission. Setting company objectives and goals.Designing the business portfolio.Planning the marketing and other functional activities.
11Marketing strategy issues 1Marketing strategy issuesWhat is the organisation’s main marketing activity at a particular time?How will it reach its goals?What are the appropriate target markets?What are the most appropriate objectives for each of the target markets?What is the appropriate marketing mix in each market?
12Describe four marketing management philosophies. Learning objective 2Describe four marketing management philosophies.Develop an appropriate business mission statement
13Mission statement 2 The firm’s long-term vision based on a careful analysis of benefitssought by present and potentialcustomers and analysis of existingand anticipated environmentalconditions.
14Describe four marketing management philosophies. Learning objective 3Describe four marketing management philosophies.Describe the criteria for stating good marketing objectives
15Marketing objective 3 A statement of what is to be accomplished throughmarketing activities.
16Learning objective 4Explain the components of an internal and external environmental scan
22Learning objective 7Explain why implementation, evaluation and control of the marketing plan are necessary
23Reasons why marketing plans fail 7Reasons why marketing plans failPlanning done in isolationTrade-off problems between short- and long-term objectivesResistance to changeImportance of controlConduct marketing audit
247Marketing auditA thorough, systematic periodic evaluation of the goals, strategies, structure and performance of the marketing organisation.
25Learning objective 8Discuss the importance of global marketing
26Global vision 8 Recognising and reacting to international marketing opportunities, being aware of threats from foreign competitors in all markets, and effectively using international distribution networks.
27Learning objective 9Describe the external environment facing global marketers
299CultureThe common set of values shared by its citizens that determine what is socially acceptable.
30Culture (cont.) 9 Language Religion Superstitions Etiquette Customs TraditionsNotion of time
31Lessons about the notion of time 9Lessons about the notion of time1 Know appropriate arrival time.2 Understand the line between work time and social time.3 Study the rules of the waiting game.4 Learn to reinterpret ‘doing nothing’.5 Ask about accepted sequences.6 Are people on clock time or event time?
32Economic and technological development 9Economic and technological developmentType of societyDescriptionTraditionalAgricultural, little upward mobilityPre-industrialSocial and economic changeTakeoffNew industriesIndustrialisingSpread of technologyFully industrialExporter, technology as driver of new innovation
33Legal structures which encourage or limit trade 9Legal considerationsLegal structures which encourage or limit tradeTariffQuotaBoycottExchange controlMarket groupingTrade agreement
34Legal considerations (cont.) 9Legal considerations (cont.)TariffA tax levied on goods entering a country.QuotaLimit on the amount of a product that can enter a country.BoycottExclusion of products from a country.Exchange controlForeign exchange must be sold to a control agency.Market groupingA common trade alliance.Trade agreementAn agreement to stimulate international trade.
35Trade agreements: Uruguay Round 9Trade agreements: Uruguay RoundReduces tariffs by one-third world-widePatent/copyright protectionServices under international rulesReduction of farm subsidies
36World Trade Organization (WTO) 9World Trade Organization (WTO)The World Trade Organization replaces the old General Agreement on Tariffs and trade (GATT).All WTO members must fully comply with all the agreements under the Uruguay Round.China has joined the WTO.
37Marketing considerations 9Demographic makeupMarketing considerationsPopulation densityUrban or ruralPersonal incomeRise of global middle classSupply of professionals
38Natural resources 9 Differences in natural resources create: international dependenciesshifts of wealthinflation and recessionexport opportunities if resources are abundantstimulus for military intervention.
39Learning objective 10List the basic elements involved in developing a global marketing mix
4010PricingMust consider transportation and insurance costs, taxes and tariffs.Determine what customers will spend.Ensure that foreign buyers will pay them.May need to simplify a product to lower price.
4110DumpingThe sale of an exported product at a price lower than that charged for the same or a like product in the exporter’s ‘home’ market.
4210CountertradeA form of trade in which all or part of the payment for goods or services is in the form of other goods or services.
43Distribution challenges 10Distribution challengesJapanese distribution system is the most complicated in the world.Retail institutions may differ from company’s domestic market.Distribution channels and physical infrastructure may be inadequate.
44Learning objective 11Consider how the Internet is affecting global marketing
45Going global 11 More than 50% of Australians own computers. Australia is among the leading countries with access to the net for the population.Internet purchases are still a small percentage of overall retail sales.US customers are more likely to buy online.Complexity of tariffs, freight.