1. CHAPTER 2 – STRATEGY PLANNING

2. Target Marketing vs. Mass Marketing
Marketing mix is tailored to fit specific target customer(s)
MASS MARKETING
Vaguely aims at "everyone" with the same marketing mix

3. The Four Ps and Marketing Mix Planning
PRODUCT
PROMOTION
PLACE (DISTRIBUTION)
PRICE

4. Strategy Decision Areas Organized by the 4 Ps
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing

5. Market Strategy = Target Market + Marketing Mix
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing

6. The Marketing Plan
Marketing plan: a written statement of a marketing strategy and the time related details for carrying out the strategy.
Spells out, in detail:
What marketing mix is to be offered
To what target market
For how long
What resources (costs) are needed at what rate
What results are expected
What control procedures will be used.

7. Elements of a Firm’s Marketing Program
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing

8. The Marketing Plan Marketing plan: Marketing Mix Target Market Time
Resources
Measurable Results
Control Procedures
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing

9. Overview of Strategy – Planning Process

10. Marketing Strategy Planning Process
Narrowing down from broad market opportunities that a firm might pursue to a specific strategy
Marketing strategy specifies a specific target market and a specific marketing mix
Not just “some” strategy, but one that will offer target customers superior value
Segmentation helps pinpoint a specific target market

11. Marketing Strategy Planning Process cont’d
Differentiation helps pinpoint a marketing mix that is different from and better than what is available from a competitor
Screening criteria make it clear why you select a specific strategy (and why others are “screened out”)
S.W.O.T. analysis identifies and lists a firm’s strengths and weaknesses and its opportunities and threats
S.W.O.T helps identify relevant screening criteria (what is needed to get a competitive advantage)

12. Competitive Advantage
Superior Customer Value
Total Company Effort to Satisfy
Customers
Customer Satisfaction
Customer Retention
Profitable Relationships with Customers
Customer Acquisition

13. Competitive Advantage
Requires that the firm:
understand current competitors' offerings
anticipate competitors' likely plans
monitor effects of changes in competition
REALLY understand the target customers' needs

14. Examples of Different Types of Opportunities
Market Penetration
Arm & Hammer promotes new uses of its baking soda
Market Development
Marriott Hotels target families for weekend "get-aways" to rent rooms filled by business travelers during the week
Product Development
Microsoft develops a new version of its Windows operating system to appeal to the people who bought an earlier version but now want more features
Diversification
RJR, the cigarette producer, adds baked goods to its product line to appeal to new customers

15. Four Basic Types of Opportunities