Marketing Strategy and the Marketing Plan 5 Marketing Strategy and the Marketing Plan

5 Objectives Marketing Strategy and the Marketing Plan 1. Explain the importance of strategic orientation for marketing. 2. Show the connection between organization strategy and marketing strategy. 3. Show the connection between marketing strategy and marketing plan. 4. Show that a marketing plan should be based on a good analysis of the character of the external environment. 5. Discuss in detail the steps in the marketing planning process. 6. Explain the connection between the marketing plan and the marketing mix 7. Describe how the elements of the marketing mix can be combined to produce synergistic effects. 5-1

An Overview of the Strategy and Marketing Planning Process 5 Marketing Strategy and the Marketing Plan Figure 5.1 An Overview of the Strategy and Marketing Planning Process Develop corporate strategy. Develop marketing strategy. Develop marketing plan. 5-2

5 Marketing Strategy and the Marketing Plan Corporate Strategy The overall purpose and direction of the organization that is established in the light of the challenges and opportunities found in the environment, as well as available organizational resources. 5-3

Stages in Formulating a Strategy for the Company as a Whole 5 Marketing Strategy and the Marketing Plan Figure 5.2 Stages in Formulating a Strategy for the Company as a Whole Analyze market and environmental opportunities and threats. Analyze business strengths and weaknesses. Generate objectives and strategy. Evaluate objectives and strategy. Plan implementation and control programs. Develop marketing strategy and strategies for other functions of the business. 5-4

Example of an Organizational Mission Statement 5 Marketing Strategy and the Marketing Plan Table 5.1 Example of an Organizational Mission Statement The Gillette Company is a globally focused consumer products marketer that seeks competitive advantage in quality, value- added personal care and personal use products. We are committed to building shareholder value through sustained profitable growth. Our Vision The Gillette Company’s Vision is to build Total Brand Value by innovating to deliver consumer value and customer leadership faster, better, and more completely than our competition. This Vision is supported by two fundamental principles that provide the foundation for all of our activities: Organizational Excellence and Core Values. Source: Used with permission from the Gillette Web site, “Our Vision”, page (http://www/gillette.com/company/our vision.asp). Downloaded November 8, 2002. 5-5

5 Marketing Strategy and the Marketing Plan Marketing Strategy A strategy that focuses on developing a unique long-run competitive position in the market by assessing consumer needs and the firm’s potential for gaining competitive advantage. 5-6

The Strategic Marketing Planning Process 5 Marketing Strategy and the Marketing Plan The Strategic Marketing Planning Process 1. Input from Corporate Strategies 2. Situation Analysis 3. Marketing Objectives and Strategies 4. Marketing Plan 5. Implementation and Control 5-7

5 Marketing Strategy and the Marketing Plan Situation Analysis Considering the internal circumstances of the organization or product, the external environment, competitive activity, and characteristics of the customer that may be relevant to the marketing plan. 5-8

Marketing Objectives and Strategy 5 Marketing Strategy and the Marketing Plan Marketing Objectives and Strategy Flow from the situation analysis. They are a statement of what the organization intends to accomplish with its marketing program and the general approach it will take. 5-9

5 Marketing Strategy and the Marketing Plan Marketing Plan A specific detailed statement of how the marketing mix will be used to realize the marketing strategy. 5-10

Implementation and Control 5 Marketing Strategy and the Marketing Plan Implementation and Control Consist of putting the marketing plan into action as well as doing ongoing monitoring and gathering feedback on how ell the plan is accomplishing the stated marketing program. 5-11

5 Marketing Strategy and the Marketing Plan Product Portfolio The complete collection of products or services that a company produces. 5-12

BCG Growth - Share Matrix 5 Marketing Strategy and the Marketing Plan BCG Growth - Share Matrix Figure 5.4 Source: The Boston Consulting Group. Reprinted with permission 5-13

General Electric’s Business Screen 5 Marketing Strategy and the Marketing Plan Figure 5.5 General Electric’s Business Screen 5-14

5 Marketing Strategy and the Marketing Plan SWOT Analysis The combined summary of the internal analysis and the environmental analysis. Stands for: Strengths, Weaknesses, Opportunities, and Threats. 5-15

5 Marketing Strategy and the Marketing Plan Positioning Analysis Identifying brands in each segment and how they differ from each other. 5-16

5 Customer Analysis 1. Who are our actual and potential customers? Marketing Strategy and the Marketing Plan Customer Analysis 1. Who are our actual and potential customers? 2. Why do they buy our product? 3. Why do non customers not buy our products? 4. Where do our customers buy our products? 5. How do they buy it? 6. When do they buy it? 7. What do they do with our product? 5-17

Positioning Map for Business Desktop Microcomputer Segment 5 Marketing Strategy and the Marketing Plan Figure 5.6 Positioning Map for Business Desktop Microcomputer Segment 5-18

Developing a Competitive Strategy 5 Marketing Strategy and the Marketing Plan Developing a Competitive Strategy 1. Who are our competitors? 2. What is their strategy? 3. Should we compete? 4. If so, in what markets? 5. How? 5-19

Product-Market Growth Matrix 5 Marketing Strategy and the Marketing Plan Figure 5.7 Product-Market Growth Matrix PRODUCT MARKET Present New Present Penetration Product development New Market development Diversification 5-20

Marketing Planning Model Based on Environmental Antecedents (1 of 3) 5 Marketing Strategy and the Marketing Plan Table 5.2 Marketing Planning Model Based on Environmental Antecedents (1 of 3) 5-21a

Marketing Planning Model Based on Environmental Antecedents (2 of 3) 5 Marketing Strategy and the Marketing Plan Table 5.2 Marketing Planning Model Based on Environmental Antecedents (2 of 3) 5-21b

Marketing Planning Model Based on Environmental Antecedents (3 of 3) 5 Marketing Strategy and the Marketing Plan Marketing Planning Model Based on Environmental Antecedents (3 of 3) Table 5.2 5-21c

The Strategic Marketing Planning Process 5 Marketing Strategy and the Marketing Plan Figure 5.8 The Strategic Marketing Planning Process 5-22

5 Marketing Strategy and the Marketing Plan Marketing Mix The blending of the four elements of marketing to satisfy chosen consumer segments. 5-23

5 The Marketing Mix Marketing Strategy and the Marketing Plan Figure 6.9 Products Mix Elements Pricing Consumers Marketing research Buyer needs in a market segment Communication Distribution Service/ convenience 5-24

5 Marketing Strategy and the Marketing Plan Product Management Decisions about what kind of product is needed, its uses, package design, branding, trademarks, warranties, guarantees, product life cycles, and new product development. 5-25

5 Marketing Strategy and the Marketing Plan Pricing The methods of setting competitive, profitable, and justified prices. 5-26

5 Marketing Strategy and the Marketing Plan Distribution The selection and management of marketing channels and the physical distribution of goods. 5-27

5 Marketing Strategy and the Marketing Plan Marketing Channels The steps or handling organizations that a good or service goes through from producer to final consumer. 5-28

5 Marketing Strategy and the Marketing Plan Communication Personal selling, advertising, sales, promotion, and publicity. 5-29

The Role of the Marketing Manager 5 Marketing Strategy and the Marketing Plan The Role of the Marketing Manager Figure 5.10 Strategies, Objectives, and Resources of the Organization Components of the Marketing Environment 1. The social environment and behaviour of consumers 2. The economic environment 3. The competitive 4. The legal 5. The technological Marketing Mix Elements 1. Product of service decisions 2. Pricing decisions 3. Distribution decisions 4. Communication Marketing Plan A unique blend of marketing elements related to one another and the forces bearing on the organization Manager External Factors Internal Factors 5-30

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