STRATEGIC MARKETING Dr. Arivalan Ramaiyah B.Econs Hons. (UUM), MBA, (UK), DBA (Phil).

Slide 1-2© 2010 Pearson Education, Inc. publishing as Prentice Hall INTRODUCTION CHAPTER 1: FOUNDATIONS OF STRATEGIC MARKETING MANAGEMENT

Slide 1-3© 2010 Pearson Education, Inc. publishing as Prentice Hall To create long-term and mutually beneficial exchange relationships between an entity and the publics (individuals and organizations) with which it interacts. PURPOSE OF MARKETING

Slide 1-4© 2010 Pearson Education, Inc. publishing as Prentice Hall  Define business, mission, and goals  Identify/frame growth opportunities  Formulate product-market strategies  Budget resources  Develop reformulation and recovery strategies STRATEGIC MARKETING MANAGEMENT PROCESSES

Slide 1-5© 2010 Pearson Education, Inc. publishing as Prentice Hall MARKETING STRATEGY FRAMEWORK Satisfied Customers Realized Organization Objectives Market Selection Marketing Programs Marketing Strategy Target Markets

Slide 1-6© 2010 Pearson Education, Inc. publishing as Prentice Hall IDENTIFYING AND FRAMING ORGANIZATIONAL GROWTH OPPORTUNITIES CHAPTER 1: FOUNDATIONS OF STRATEGIC MARKETING MANAGEMENT

Slide 1-7© 2010 Pearson Education, Inc. publishing as Prentice Hall CONVERTING ENVIRONMENTAL OPPORTUNITIES INTO ORGANIZATIONAL OPPORTUNITIES  What might we do? Ask three questions:  What do we do best?  What must we do? Environmental Opportunities Distinctive Competencies Success Requirements

Slide 1-8© 2010 Pearson Education, Inc. publishing as Prentice Hall SWOT analysis is a formal framework for identifying and framing organizational growth opportunities. StrengthsWeaknesses Internal Capabilities Opportunities External Environment Threats OrganizationFavorableUnfavorable - Type of Factor - SWOT ANALYSIS

Slide 1-9© 2010 Pearson Education, Inc. publishing as Prentice Hall FORMULATING PRODUCT-MARKET STRATEGIES CHAPTER 1: FOUNDATIONS OF STRATEGIC MARKETING MANAGEMENT

Slide 1-10© 2010 Pearson Education, Inc. publishing as Prentice Hall A product-market strategy involves selecting specific markets and profitably reaching them through an integrated program called a marketing mix. PRODUCT-MARKET STRATEGY

Slide 1-11© 2010 Pearson Education, Inc. publishing as Prentice Hall EXHIBIT 1.2: PRODUCT-MARKET STRATEGIES Market Development New Offering Development Market Penetration Diversification New Existing Existing New Markets Offerings

Slide 1-12© 2010 Pearson Education, Inc. publishing as Prentice Hall Licensing Joint Venture/ Strategic Alliance Exporting Direct Investment PRODUCT-MARKET STRATEGIES Market Development Strategy International Forms

Slide 1-13© 2010 Pearson Education, Inc. publishing as Prentice Hall Aggressive competition Passive competition Aggressive competition Price Strategy Communication Strategy Product Strategy Channel Strategy Customer THE MARKETING MIX

Slide 1-14© 2010 Pearson Education, Inc. publishing as Prentice Hall CHAPTER 4 Opportunity Analysis, Market Segmentation, and Market Targeting

Slide 1-15© 2010 Pearson Education, Inc. publishing as Prentice Hall MARKETING STRATEGY FRAMEWORK Satisfied Customers Realized Organization Objectives Market Selection Marketing Programs Marketing Strategy Target Markets

Slide 1-16© 2010 Pearson Education, Inc. publishing as Prentice Hall OPPORTUNITY ANALYSIS CHAPTER 4: OPPORTUNITY ANALYSIS, MARKET SEGMENTATION, AND MARKET TARGETING

Slide 1-17© 2010 Pearson Education, Inc. publishing as Prentice Hall OPPORTUNITY ANALYSIS Opportunity- Organization Matching Opportunity Evaluation Opportunity Identification Opportunity analysis consists of three interrelated activities:

Slide 1-18© 2010 Pearson Education, Inc. publishing as Prentice Hall WHAT IS A MARKET?  A served market is one in which a company, offering, or brand competes for targeted customers  Marketing managers often look closely at served market share when considering strategic options Use a market development strategy Use either a product development or market penetration strategy “High” Served Market Share “Low” Served Market Share Market Share

Slide 1-19© 2010 Pearson Education, Inc. publishing as Prentice Hall MARKET SEGMENTATION CHAPTER 4: OPPORTUNITY ANALYSIS, MARKET SEGMENTATION, AND MARKET TARGETING

Slide 1-20© 2010 Pearson Education, Inc. publishing as Prentice Hall MARKET SEGMENTATION  Each segment possesses a homogeneous characteristic that relates to its purchasing behavior and response to a marketing program  “Cannot be all things to all people” Market Segmentation  Information technology and flexible manufacturing and service delivery systems can create “segments of one”  A technique that involves breaking down or building up of potential buyers into groups, which are called market segments

Slide 1-21© 2010 Pearson Education, Inc. publishing as Prentice Hall MARKET SEGMENTATION Behavioral Variables Gender Age ConsumersIndustrial Buyers Socioeconomic Characteristics Behavioral Variables Socioeconomic Characteristics Occupation Income Family Life Cycle Education Location Benefits Sought Usage Lifestyle Attitudes Company Size Location Industry Customers Served Purchasing Objectives Product Benefits Bases for Market Segmentation Psychographic Variables

Slide 1-22© 2010 Pearson Education, Inc. publishing as Prentice Hall MARKET TARGETING CHAPTER 4: OPPORTUNITY ANALYSIS, MARKET SEGMENTATION, AND MARKET TARGETING

Slide 1-23© 2010 Pearson Education, Inc. publishing as Prentice Hall MARKET TARGETING Marketers ask three questions after a market has been segmented: Where to Compete? How to Compete? When to Compete?

Slide 1-24© 2010 Pearson Education, Inc. publishing as Prentice Hall MARKET TARGETING  Question focuses on how many market segments the organization will pursue and the marketing strategies to employ  Two market targeting approaches are: Differentiated Marketing Concentrated Marketing How to Compete?

Slide 1-25© 2010 Pearson Education, Inc. publishing as Prentice Hall CHAPTER 5 Product and Service Strategy and Brand Management

Slide 1-26© 2010 Pearson Education, Inc. publishing as Prentice Hall OFFERING STRATEGY DECISIONS Modifying the Offering Mix Positioning Offerings Branding Offerings  An organization’s profitability depends on its product or service offering(s) and the strength of its brand(s)  Marketers face three offering-related strategy decisions:

Slide 1-27© 2010 Pearson Education, Inc. publishing as Prentice Hall EXHIBIT 5.1: GENERAL FORM OF A PRODUCT LIFE CYCLE Sales Time GrowthMaturity-SaturationIntroductionDecline

Slide 1-28© 2010 Pearson Education, Inc. publishing as Prentice Hall LIFE-CYCLE CONCEPT The sales curve is the result of offering trial and repeat purchasing behavior. Sales volume= (Number of triers × average purchase amount × price) + (number of repeaters × average purchase amount × price) Time Sales Trier Volume RepeaterV olume

Slide 1-29© 2010 Pearson Education, Inc. publishing as Prentice Hall POSITIONING OFFERINGS CHAPTER 5: PRODUCT AND SERVICE STRATEGY AND BRAND MANAGEMENT

Slide 1-30© 2010 Pearson Education, Inc. publishing as Prentice Hall POSITIONING OFFERINGS Hit and Run PremiumAffordable Value for Money Price Quality High Low High

Slide 1-31© 2010 Pearson Education, Inc. publishing as Prentice Hall CHAPTER 6 Integrated Marketing Communication Strategy and Management

Slide 1-32© 2010 Pearson Education, Inc. publishing as Prentice Hall MARKETING COMMUNICATION Marketing Communication Mix Personal Selling Advertising Sales Promotion Direct Marketing Public Relations

Slide 1-33© 2010 Pearson Education, Inc. publishing as Prentice Hall INTEGRATED MARKETING COMMUNICATION STRATEGY FRAMEWORK CHAPTER 6: INTEGRATED MARKETING COMMUNICATION STRATEGY AND MANAGEMENT

Slide 1-34© 2010 Pearson Education, Inc. publishing as Prentice Hall  The purchase (or adoption) process model describes how buyers purchase a particular offering and defines the role of information PurchaseConsiderationPreferenceAwareness INFORMATION REQUIREMENTS IN PURCHASE DECISIONS  At any point in time: Different buyers are in different stages of the model Each stage requires a different communication strategy

Slide 1-35© 2010 Pearson Education, Inc. publishing as Prentice Hall CHAPTER 8 Pricing Strategy and Management

Slide 1-36© 2010 Pearson Education, Inc. publishing as Prentice Hall PRICING DECISIONS “Pricing is an art, a game played for high stakes; for marketing strategists, it is the moment of truth. All of marketing comes to focus in the pricing decision.”  Pricing decisions determine the types of customers and competitors a firm attracts  A single pricing error can effectively nullify all other marketing mix activities

Slide 1-37© 2010 Pearson Education, Inc. publishing as Prentice Hall PRICING CONSIDERATIONS  Measures how responsive consumer demand is to changes in an offering’s price  Is the ratio of the percentage change in quantity demanded relative to a percentage change in price = Price Elasticity of Demand E Percentage Change in Price Percentage Change in Quantity Demanded = Price Elasticity of Demand (E)

Slide 1-38© 2010 Pearson Education, Inc. publishing as Prentice Hall PRICING CONSIDERATIONS Elastic Demand The percentage change in quantity demanded is greater than the percentage change in price ( E > 1)  A small price reduction will result in a large increase in the quantity purchased  As a result, total revenue will rise significantly Price Elasticity of Demand (E)

Slide 1-39© 2010 Pearson Education, Inc. publishing as Prentice Hall PRICING CONSIDERATIONS Inelastic Demand The percentage change in quantity demanded is less than the percentage change in price ( E < 1)  A small price reduction will result in a small increase in the quantity purchased  As a result, total revenue will rise very little Price Elasticity of Demand (E)

Slide 1-40© 2010 Pearson Education, Inc. publishing as Prentice Hall ENTERING AND COMPETING IN FOREIGN MARKETS CHAPTER 10: GLOBAL MARKETING STRATEGY

Slide 1-41© 2010 Pearson Education, Inc. publishing as Prentice Hall EXHIBIT 10.2: FOUR GENERAL MODES OF ENTRY INTO FOREIGN MARKETS ExportingLicensing Direct Investment Joint Venture Increasing financial commitment, risk, marketing control, and profit potential

Slide 1-42© 2010 Pearson Education, Inc. publishing as Prentice Hall THANK YOU VERY MUCH!!!! Good Luck!!!