1. MGT301 Principles of Marketing
Lecture-7

2. Summary of Lecture-6

3. Strategic Planning and Marketing Process

4. 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

5. Corporate
Marketing
Plan

6. 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

7. Today’s Topics
Portfolio Analysis
Marketing Process

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

9. The Boston Consulting Group’s Growth-Share Matrix

10. ? ? ? ? 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 x 2x 1.5x 1x
.5x .4x .3x .2x .1x
Relative market share 2

11. Product/Market Expansion Grid

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

13. 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.

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

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

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

17. Strategic Planning, Implementation, and Control Process

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

19. Marketing Strategy Planning Process

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

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

22. 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

23. 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

24. Marketing Process Analyzing marketing opportunities
Selecting target markets
Developing the marketing Mix
Managing the marketing effort

25. Enough for today. . .

26. Summary

27. ? ? ? ? 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 x 2x 1.5x 1x
.5x .4x .3x .2x .1x
Relative market share 2

28. Product/Market Expansion Grid

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

30. Marketing Process

31. Next…. Analyzing marketing opportunities Selecting target markets
Developing the marketing Mix
Managing the marketing effort

32. MGT301 Principles of Marketing
Lecture-7