book review assignment strategic marketing management planning, implementation and control second...
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Book Review assignment
Strategic Marketing ManagementPlanning , implementation and control
Second edition
Presented by
Mohamed Refaat Helmy
Strategic Marketing ManagementPlanning , implementation and control
Second edition
Richard M.S. WilsonProfessor of business administration
The business school - loughborough university
Visiting professor - Sheffield Hallam university
Colin GilliganProffessor of marketing
Sheffield business school;
Sheffield Hallam University
• The Marketing Series is one of the most comprehensive, widely used and important collection of books in marketing and sales currently available worldwide.
• Published by Butterworth-Heinemann on behalf of the Chartered Institute of Marketing (CIM) .
• First published 1992• Second Edition 1997• Reprinted 1998 , 1999 , 2001
• Oxford , Auckland , Boston , Johannesburg , Melborne , New Delhi .
• Printed and bound in Great Britain by the Bath Press, Bath • ( Nos of pages 827 pages )
Strategic planning &Strategic planning & Marketing Planning Marketing Planning Strategic planning &Strategic planning & Marketing Planning Marketing Planning
* Strategic planning logically precedes marketing planning by providing a framework within which marketing plans might be formulated
• As Cravens (1986 , p.77) has stated :
Understanding the strategic situation confronting an organization is an essential starting point in developing a market strategy
Stage One
Where Are We Now?
Strategic Analysis
Stage Two
Where Do We Want To Be?Strategic Direction and Strategy
formulation
Stage Three
How Might We Get There?Strategic Choice
Stage Four
Which Way Is Best?Strategic Evaluation
Stage Five
How Can We Ensure Arrival?Strategic Implementation and Control
Stage One
Where Are We Now?Strategic and Marketing Analysis
Approaches to
Customer
Analysis
Approaches to
Competitor
Analysis
Segmental,
Productivity
&
Ratio
Analysis
Marketing
Auditing
&
SWOT
Analysis
Stage Two
Where Do We Want To Be?Strategic Direction and Strategy
formulation
Market Segmentation,
Targeting
and
Positioning
Missions
and
Objectives
The
Formulation
of
Strategy
Stage Three
How Might We Get There?Strategic Choice
The Distribution
Plan
The
Promotional
Plan
Pricing
Policies
and
Strategies
Product and
Service
Strategies
Stage Five
How Can We Ensure Arrival?
Strategic Implementation and Control
Problems
to
Overcome
Management
Control
Measurement
System
Strengths and Weaknesses Analysis
Strengths
Performance Importance
Fundamental strength
Marginal strength
Neutral Marginal weakness
Fundamental weakness
High Medium Low
Marketing Factors
Financial Factors
Manufacturing Factors
Organizational Factors
MARKERTING FACTORSMARKERTING FACTORS
1-RELATIVE MARKET SHARE1-RELATIVE MARKET SHARE 9-PRODUCT QUALITY9-PRODUCT QUALITY 17-AFTER SALES SERVICES17-AFTER SALES SERVICES
2-REPUTATION2-REPUTATION 10-PROGRAMME OF PRODUCT 10-PROGRAMME OF PRODUCT
MODIFICATIONMODIFICATION18-MANUFACTURING COSTS18-MANUFACTURING COSTS
3-PREVIOUS PERFORMANCE3-PREVIOUS PERFORMANCE 11-NEW PRODUCT PROGRAM11-NEW PRODUCT PROGRAM 19-MANUFACTURING FLEXIBILITY19-MANUFACTURING FLEXIBILITY
4-COMPETITIVE STANCE4-COMPETITIVE STANCE 12-DISTRIBUTION COSTS12-DISTRIBUTION COSTS 20-RAW MATERIAL ADVANTAGE20-RAW MATERIAL ADVANTAGE
5-CUSTOMER BASE5-CUSTOMER BASE 13-DEALER NETWORK13-DEALER NETWORK 21-PRICING21-PRICING
6-CUSTOMER LOYALTY6-CUSTOMER LOYALTY 14-DEALER LOYALTY14-DEALER LOYALTY 22-ADVERTISING22-ADVERTISING
7-BREADTH OF PRODUCT RANGE7-BREADTH OF PRODUCT RANGE 15-GEOGRAPHICAL COVERAGE15-GEOGRAPHICAL COVERAGE 23-UNIQUE SELLING PROPOSITIONS23-UNIQUE SELLING PROPOSITIONS
8-DEPTH OF PRODUCT RANGE8-DEPTH OF PRODUCT RANGE 16-SALES FORCE16-SALES FORCE 24-STRUCTURE OF COMPETITION24-STRUCTURE OF COMPETITION
Financial FactorsFinancial Factors
25.25. Cost of capitalCost of capital
26.26. Availability of capitalAvailability of capital
27.27. ProfitabilityProfitability
28.28. Financial stabilityFinancial stability
29.29. MarginsMargins
Manufacturing factorsManufacturing factors
30.30. Production facilitiesProduction facilities
31.31. Economies of scalesEconomies of scales
32.32. FlexibilityFlexibility
33.33. WorkforceWorkforce
34.34. Technical skillTechnical skill
35.35. Delivery capabilitiesDelivery capabilities
36.36. Supplier sourcing flexibilitySupplier sourcing flexibility
Organizational factorsOrganizational factors
37.37. CultureCulture
38.38. LeadershipLeadership
39.39. Managerial capabilitiesManagerial capabilities
40.40. WorkforceWorkforce
41.41. FlexibilityFlexibility
42.42. Adaptability Adaptability
The TOWS Matrix
Internal elements
External elements
Organizational strengths
Organizational weaknesses
Strategic options
Environmental opportunities (and risks)
SO: Strengths can be used to capitalize or build upon existing or emerging opportunities
WO : The strategies developed need to overcome organizational weaknesses if existing or emerging opportunities are to be exploited
Environmental threats
ST : Strengths in the organization can be used to minimize existing or emerging threats
WT : The strategies pursued must minimize or overcome weaknesses and as far as possible cope with threats
Market Audit
MarketingEnvironment
MarketingFunctions
Task Environment
DistributionDistribution
PromoPromoPricePrice
Sales ForceSales ForceProductsProducts
MarketsMarkets
PRPRAgenciesAgencies
SuppliersSuppliers
DealersDealersCompetitorsCompetitors
Macro Environment
Economic/Economic/Demog.Demog.
EcologicalEcological
Techno.Techno.
Social/Social/CulturalCultural
Political/Political/LegalLegal
Vision
Vision is the art of seeing things invisible
Jonathan Swift
The Best Way to Predict the Future is to Invent it
Dennis Gabor
Vision
Goals
Objectives
(sub-goals)
Strategies
Mission
1-Market segment scope
2-Industry scope
3-Technology scope
4-Vertical scope
5-Geographical scopeHow to
achieve
EXAMPLES OF COMPANY MISSION & VISION STATEMENTSEXAMPLES OF COMPANY MISSION & VISION STATEMENTS
OTIS ELVATOROTIS ELVATOR
Our mission is to provide any customer a means of moving people and things up, down and sideways over short distances with reliability than any similar enterprise in the world.
THE SATURN DIVISION OF GENERAL MOTORSTHE SATURN DIVISION OF GENERAL MOTORS
To market vehicles developed and manufactured in the United States that are world leaders in quality, cost, and customer satisfaction through the integration of people, technology, and business systems and to transfer knowledge, technology, and experience throughout General Motors.
Different Strategies
ExitExit
M&AM&A
Special Special AdvantageAdvantage
OrganizationOrganizationDesignDesign
ProductionProductionImprovementImprovement
MarketingMarketingMix positioningMix positioning
MarketMarkettargetingtargeting
New productNew product
PRINCIPLES OF DEFENSIVE MARKETING WARFAREPRINCIPLES OF DEFENSIVE MARKETING WARFARE
1. ONLY THE MARKET LEADER SHOULD CONSIDER PLAYING DEFENSE.
2. THE BEST DEFENSIVE STRATEGY IS THE COURAGE TO ATTACK.
3. STRONG COMPETITIVE MOVES SHOULD ALWAYS BE BLOCKED.
PRINCIPLES OF OFFENSIVE MARKETING WARFAREPRINCIPLES OF OFFENSIVE MARKETING WARFARE
1. THE MAIN CONSIDERATION IS THE STRENGTH OF THE LEADER’SPOSITION2. FIND WEAKNESS IN THE LEADER’S STRENGTH AND ATTACK AT THAT POINT.3. LAUNCH THE ATTACK ON AS NARROW A FRONT AS POSSIBLE.
PRINCIPLES OF FLANKING MARKETING WARFAREPRINCIPLES OF FLANKING MARKETING WARFARE
1. A GOOD FLANKING MOVE MUST BE MADE INTO AN UNCONTESTED AREA.2. TACTICAL SURPRISE OUGHT TO BE AN IMPORTANT ELEMNT OF THE PLAN.3. THE PURSUIT IS AS CRITICAL AS THE ATTACK ITSELF.
PRINCIPLES OF GUERRILLA MARKETING WARFAREPRINCIPLES OF GUERRILLA MARKETING WARFARE
1. FIND A SEGMENT OF THE MARKET SMALL ENOUGH TO DEFEND.
2. NO MATTER HOW SUCCESSFUL YOU BECOME, NEVER ACT LIKE THE LEADER.
3. BE PREPARED TO BUGOUT AT A MOMENT’S NOTICE.
The seven different types of buyers
1- Loyal buyers who remain loyal to a source for considerable periods .
2- Opportunistic buyers who choose between sellers on the basis of who will best for his long-term interest .
3-Best deal buyers who concentrate on the best deal available at the time .
4- Creative buyers who tell the seller precisely what they want in terms of the product , service and price .
5 – Advertising buyers who demand advertising support as part of the deal.
6 – Chisellers who constantly demand extra discounts.
7 – Nuts and bolts buyers who select products on the basis of the quality of their construction.
Nine Ways to Build Demand
Products
Existing Modified New
Existing Sell more of our existing products to our existing types of customers. (Market penetration)
Modify our current products and sell more of them to our existing customers. (Product modification)
Design new products that will appeal to our existing customers. (New product development)
Markets Modified
Enter and sell our products in other geographical areas. (Geographical expansion)
Offer and sell modified products to new geographical markets.
Design new products for prospects in new geographic areas.
New Sell our existing products to new types of customers. (Segment invasion)
Offer and sell modified products to new types of customers.
Design new products to sell to new types of customers. (Diversification)
Choosing a Specific Positioning
•Best quality•Best performance•Most reliable•Most durable•Safest•Fastest•Best value for the money•Least expensive•Most prestigious•Best designed or styled•Easiest to use•Most convenient
P = publications
E = events
N = news
C = community
I = identity media
L = lobbying activity
S = social responsibility
Public Relations
The dimensions of a market”s price profile
1- Competitors : Who are our direct and indirect competitors ? What pricing strategy does each pursue ? Is there price competitive ? How are they likely to behave when faced ? What are their financial resources ?
2-Legal : Are there any constraints upon pricing? Is there freedom to engage in price promotion ? Do price should be printed on the product? Does retail price exist ?
3- Customers : How do consumers perceive these types of product ? How important is the product s country origin ? Do any social or cultural factors exist that might influence the prices?
4- Distribution : What are the implications of the patterns of distribution for costs ? What margins typically exist throughout the channel
5- Other : Are there any trade association that might be usefully be consulted ? will our price strategy be affected by the behavior of others in the market in the past ? How is the market as a whole likely to respond to price changes?
The implications of the PLC for pricing decisions
Product life-cycle stage
1 Pre - launch
2 Introduction
3 Growth
4 Maturity
5 Decline
The nature of price decisions
Establish price objectives . Analyze the various influence .
Penetration or Skimming price.
Use price to combat competition.
Price to protect position .
Price to maximize profits .
The nine price/quality strategies
PRICE Low Medium High
LOW
Pr.Quality Med.
High
Cheap value strategy
Out-of-step strategy
Exploitative strategy
Above average value strategy
Middle-of-the-road strategy
Overcharging strategy
Superb value strategy
High value strategy
Premium strategy
The promotion mix and its contribution in marketing strategy
Product price place PromotionAdvertising Packaging Personal selling Sponsorship Publicity exhibitions Sales
promotion Point of sales
Corporate objectives
Marketing strategy
Marketing Plan
Corporate strategy
Advertising Sales Promotion
Public Relations
Sales Force
Direct Marketing
Print and broadcast ads
Contests, games, sweep
Press kits Sales presentations
Catalogs
Packaging-outer Stakes, lotteries Speeches Sales meetings
Mailings
Packaging inserts Premiums and gifts Seminars Incentive programs
Telemarketing
Motion pictures Sampling Annual reports Samples Electronic shopping
Brochures and booklets
Fairs and trade shows
Charitable donations
Fairs and trade shows
TV shopping
Posters and leaflets Exhibits Sponsorships Fax mail
Directories Demonstrations Publications E-mail
Reprints of ads Coupons Community relations
Voice
Billboards Rebates Lobbying
Display signs Low-interest financing
Identity media
Point-of-purchase Entertainment Company magazine
Displays Trade-in-allowances Events
Audio-visual material
Continuity programs
Symbols and logos Tie-ins
Videotapes
Examples of Different Promotion Tools
Three generic marketing channels
*Advertising * Own sales force * Merchants
* Telephone * Another firms * Agents* Mail * Contract force * Facilitators * Catalogue
Channel options
Direct marketing Sales forceIntermediary
marketing channel