principles of marketing chapter 2 (strategic planning
TRANSCRIPT
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Strategic Planning and
the Marketing Process
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GROUP 2 Principles of MarketingPrinciples of Marketing
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Objectives
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What is strategic marketing planning?
Scope and importance of strategic planning
Corporate and division strategic planning
Business unit strategic planningThe marketing processImplementation and control
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BYBYMR. JUNAID YUSUFMR. JUNAID YUSUF
Introduction to Strategic Marketing
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Strategic Planning
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Strategic Planning is the Process of Developing and Maintaining a Strategic Fit
Between the Organization’s Goals and Capabilities and Its Changing Marketing
Opportunities.
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Strategic planning in market involves
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Where should be the company be in the next 5 to 10 years?
Why do we exist? What are the goals of org?
Which are the market it should serve?What are the products it should offer?Should there any product live or brand extension?
What resources do we need for successful future?
Who will be our customers?
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Marketing Strategy
“Marketing Strategy is a series of integrated actions leading to a sustainable competitive advantage.”
John Scully
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BY MISS. SABBA ABBAS
Understanding Corporate Level
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Organizational Marketing Levels
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Hofer and Schendel suggested that organizations develop strategies at three structural levels:
Corporate level—(corporate marketing)
SBU level—(Strategic Marketing)Product/Market level—(Functional Marketing)
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Market OrientedMarket Oriented
RealisticRealistic
Fit Market EnvironmentFit Market Environment
Distinctive CompetenciesDistinctive Competencies
MotivatingMotivating
Specific
A Mission Statement is a Statement of the Organization’s Purpose.
Corporate and Division Strategic Planning
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Good Mission Statements:
Limited number of goals
Stress major policies & values
Define competitive scopes
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Setting Corporate Objectives and Goals
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Designing the Business Portfolio
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The business portfolio is the collection of businesses and products that make up the company.
The company must:analyze its current business portfolio or Strategic Business Units (SBU’s)
decide which SBU’s should receive more, less, or no investment
develop growth strategies for adding new products or businesses to the portfolio
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What is a Strategic Business Unit? (SBU)
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An SBU has three characteristics:It is single business, or a collection of related businesses, that can be planned separately.
It has its own set of competitors.It has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit.
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Analyzing the Current Business Portfolio
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Analyzing Current SBU’s:Boston Consulting Group Approach
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Question Marks
• High growth, low share • Build into Stars or phase out • Require cash to hold market share
Stars
• High growth & share• Profit potential • May need heavy investment to grow
Cash Cows
• Low growth, high share• Established, successful SBU’s•Produce cash
Relative Market ShareHigh Low
Mark
et
Gro
wth
Rate
Low
H
igh ?
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Market Attractiveness: Competitive- Position Portfolio Classification
MA
RK
ET
AT
TR
AC
TIV
EN
ES
SM
AR
KE
T A
TT
RA
CT
IVE
NE
SS
5.005.00
3.673.67
2.332.33
1.001.00
Lo
wL
ow
Med
ium
Med
ium
Hig
hH
igh
StrongStrong MediumMedium WeakWeakBUSINESS STRENGTHBUSINESS STRENGTH
1.001.002.332.333.673.675.005.00
Invest/growInvest/grow Selectivity/earningsSelectivity/earnings Harvest/divestHarvest/divest
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Problems With Matrix Approaches
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Can be Difficult, Time-Consuming, & Costly to Implement
Difficult to Define SBU’s & Measure Market Share/ Growth
Focus on Current Businesses, But Not future Planning
Can Lead to Unwise Expansion or Diversification
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BY BY MR. FARHAN MALIKMR. FARHAN MALIK
Assessing Growth Opportunities
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The Strategic-Planning Gap
Integrative growth
Intensive growth
Strategic-Strategic-planningplanning
gapgap
DiversificationDiversification growthgrowth
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Developing Growth Strategies
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1. Market Penetration
2. Market Development
3. Product Development
4. Diversification
ExistingMarkets
NewMarkets
ExistingProducts
NewProducts
Product/ Market Expansion Grid
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Product/ Market Expansion Grid
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Market Penetration: making more sales to current customers without changing its products. How? Add new stores in current market areas, improve advertising, prices, service or store design.
Market Development: develop new markets for its current products. How? Identify new demographic or geographic markets.
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Product/ Market Expansion Grid
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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.
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Business Unit Strategic Planning
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Historical review and situation analysis
Purpose: To develop a marketing strategy an
organization requires information on its past and present position.
External environmentMarketCustomerCompetitorsCompany
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SWOT Analysis
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1
4
2
3
HighHigh
LowLow
HighHigh LowLow
Att
ract
iven
ess
Att
ract
iven
ess
Success ProbabilitySuccess Probability
OpportunitiesOpportunities Opportunity Matrix
1. Company develops a more powerful lighting system
2. Company develops a device for measuring the energy efficiency of any lighting system
3. Company develops a device for measuring illumination level
4. Company develops a software program to teach lighting fundamentals to TV studio personnel
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Threat Matrix
1 Competitor develops a superior lighting system
2.Major prolonged economic depression
3.Higher costs
4.Legislation to reduce number of TV studio licenses
1
4
2
3
HighHigh
LowLow
HighHigh LowLow
Ser
iou
snes
sS
erio
usn
ess
Probability of OccurrenceProbability of Occurrence ThreatsThreats
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BYMISS. IRSA JAVED AKHTER
Marketing Strategy and the Marketing Mix
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Competitive AdvantageBasically, strategy is about two things: deciding where you want your business to go, and deciding how to get there. A more complete definition is based on competitive advantage, the object of most corporate strategy.
Competitive advantage is a company’s ability to
perform in one or more ways that competitors
cannot or will not match.”
Philip Kotler
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Competitors
Marketingintermediaries
PublicsSuppliers
Factors Influencing Company Marketing Strategy
Mar
ketin
g
anal
ysis
Marketing
planning
Marketing
Control Mar
ketin
g
impl
emen
tatio
n
Product
Promotion
Place PriceTargetcustomers
Demographic/Demographic/economiceconomic
environmentenvironment
Social/Social/culturalcultural
environmentenvironment
Technical/Technical/physicalphysical
environmentenvironment
Political/Political/legallegal
environmentenvironment
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Customer Driven Marketing Strategy
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Market Segmentation: determining distinct groups of buyers (segments) with different needs, characteristics, or behavior.
Market Targeting: evaluating each segment’s attractiveness and selecting one or more segments to enter.
Market Positioning: arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
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The Role of Market Segmentation
Market SegmentationMarket SegmentationDivision of the total market into smaller, relatively homogeneous groups
No single marketing mix can satisfy everyone. Therefore, separate marketing mixes should be used for different market segments.
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No Market Segmentation
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Segmented by Sex
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Segmented by Age
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Selecting a Target Market
Before a marketing mix strategy can be implemented, the marketer must identify, evaluate, and select a target market.Market:Market: people or institutions with sufficient purchasing power, authority, and willingness to buy
Target market:Target market: specific segment of consumers most likely to purchase a particular product
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Positioning
Positioning:Positioning: a marketing strategy that emphasizes serving a specific market segment by achieving a certain position in buyers’ mindsAttributesPrice/qualityCompetitorsApplicationProduct userProduct class9-
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Developing the Marketing Mix
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TargetCustomers
IntendedPositioning
Product“Goods-and-service”combination that a company offers a
target market
PriceAmount of moneythat consumers have to pay to
Obtain the product
Activities that persuade target customers to buy
the productPromotion
Company activitiesthat make the
product available
Place
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The Marketing Process
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Analyzing marketing Analyzing marketing opportunitiesopportunities
The strategic planning and business portfolio analysis processes help to identify and evaluate marketing opportunities.
The purpose of the marketing process is to help the firm plan how to capitalize on these opportunities.
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Selecting target marketsSelecting target markets
The segmentation process divides the total market into market segments.
Target marketing determines which segment(s) are pursued.
The market positioning for the product is then determined.
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Developing the marketing Developing the marketing mixmix
Competitor analysis guides competitive marketing strategy development.
Strategy leads to tactics by way of the marketing mix: The “Four Ps” – product, price, place, promotion (seller viewpoint)
The “Four Cs” – customer solution, cost, convenience, and communication (customer viewpoint)
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Managing the marketing Managing the marketing efforteffort
Marketing analysisProvides information helpful in planning, implementation, and control
Marketing planningStrategies and tactics
Marketing implementationTurns plans into action
Marketing controlOperating controlStrategic control
Marketing audit
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The Marketing Plan
Executive Summary & Table of Contents
Current Marketing Situation
Threat & Opportunity Analysis
Objectives & Issues
Marketing Strategy
Action Programs
Budgets
Controls
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Strategic-Planning, Implementation, and Control Process
Measuringresults
Diagnosingresults
Takingcorrective
action
ImplementationImplementationPlanningPlanning
Corporateplanning
Divisionplanning
Businessplanning
Productplanning
ControlControl
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Marketing Implementation
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Marketing Strategy
Marketing Performance
Implementation
Climate andCulture
ActionPrograms
Decisionand
RewardOrganizationalStructure
HumanResources
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Marketing Control Process
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Set Goals
Measure Performance
Evaluate Performanc
e
Take Corrective
Action
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