Principles of Marketing Lecture-7

Summary of Lecture-6

Strategic Planning and Marketing Process

Corporate Level Business unit, product, and market level Planning, marketing, and other functional Strategies Defining the Company Mission Setting Company Objectives and Goals Designing the Business Portfolio

Corporate Marketing Plan

Strategy Formulation Mission Goals External analysis Internal analysis Strategic choice Mission = statement of org’s reasons for being customers served needs satisfied value received by customers technology used Goals = what org hopes to achieve in the medium- to long-term future how mission will be operationalized External analysis = examining org’s operating environment to identify strategic opportunities and threats Internal analysis = attempts to identify org’s strengths and weaknesses Strategic choice = org’s strategy ways org will attempt to fulfill its mission achieve its long-term goals

Today’s Topics

Portfolio Analysis Marketing Process

Portfolio Analysis: A tool by which management evaluates the various business making up the company

The Boston Consulting Group’s Growth-Share Matrix

? ? ? ? 4 1 3 5 2 8 6 7 Market growth rate Relative market share Stars 20%- 18%- 16%- 14%- 12%- 10%- 8%- 6%- 4%- 2%- Stars Question marks 4 ? ? 1 3 ? ? 5 2 Market growth rate Dogs Cash cow 8 6 7 10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x Relative market share 2

Product/Market Expansion Grid

Current products New products Current markets New markets penetration strategy Product- development strategy Current markets Market- development strategy (Diversification strategy) New markets 5

Product/ Market Expansion Grid Market Penetration: Making more sales to current customers without changing its products. How? Add new stores in current market areas, improve advertising, adjust prices, service or store design.

Market Development: develop new markets for its current products. How? Identify new demographic or geographic markets.

Product Development: Offering modified or new products to current markets. How? New styles, flavors, colors, or modified products.

Diversification: New products for new markets. How? Start up or buy new businesses.

Strategic Planning, Implementation, and Control Process

Planning Implementation Control Corporate Measuring planning Division Business Product Organizing Implementing Measuring results Diagnosing Taking corrective action 1

Marketing Strategy Planning Process

Customers Company Competitors Needs and other Segmenting Dimensions Company Mission, Objectives, & Resources Competitors Current & Prospective

Customers Company Competitors Needs and other Segmenting Dimensions S. W. O. T. Company Mission, Objectives, & Resources Competitors Current & Prospective External Market Environment

External Market Environment Customers Needs and other Segmenting Dimensions Targeting & Segmentation S. W. O. T. Company Mission, Objectives, & Resources Positioning & Differentiation Competitors Current & Prospective External Market Environment

External Market Environment Narrowing down to focused strategy with quantitative and qualitative screening criteria Customers Needs and other Segmenting Dimensions Targeting & Segmentation S. W. O. T. Company Mission, Objectives, & Resources Positioning & Differentiation Competitors Current & Prospective External Market Environment

Marketing Process

Analyzing marketing opportunities Selecting target markets Developing the marketing Mix Managing the marketing effort

Enough for today. . .

Summary

? ? ? ? 4 1 3 5 2 8 6 7 Market growth rate Relative market share Stars 20%- 18%- 16%- 14%- 12%- 10%- 8%- 6%- 4%- 2%- Stars Question marks 4 ? ? 1 3 ? ? 5 2 Market growth rate Dogs Cash cow 8 6 7 10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x Relative market share 2

Product/Market Expansion Grid

Current products New products Current markets New markets penetration strategy Product- development strategy Current markets Market- development strategy (Diversification strategy) New markets 5

Marketing Process

Next….

Analyzing marketing opportunities Selecting target markets Developing the marketing Mix Managing the marketing effort

Principles of Marketing Lecture-7