BK12e Ch02 Basic

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Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Part 1: Designing Customer-

Oriented Marketing Strategies

1. Marketing: Creating Satisfactionthrough Customer Relationships

2. Strategic Planning and theMarketing Process

3. The Marketing Environment,

Ethics, and Social Responsibility

4. E-Commerce: Marketing in theDigital Age



Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Chapter 2

Strategic Planningand the Marketing

Process



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Chapter Objectives

1. Distinguish between strategic planning and tactical

planning.2. Explain how marketing plans differ at various levels inan organization.

3. Identify the steps in the marketing planning process.

4. Describe successful planning tools and techniques,including Porter’s Five Forces model, first and secondmover strategies, SWOT analysis, and the strategicwindow.

5. Identify the basic elements of a marketing strategy.

6. Describe the environmental characteristics thatinfluence strategy decisions.

7. Describe the methods for marketing planning, includingbusiness portfolio analysis and the BCG matrix.




Marketing Planning: The Basics forStrategy and Tactics

Planning: Process of anticipating futureevents and conditions and of determining thebest way to achieve organizational goals

Marketing planning: Implementing planningactivities devoted to achieving marketing

objectives




Strategic Planning versus Tactical Planning

Strategic planning: Process of determiningan organization’s primary objectives and

adopting courses action that will achievethose objectives

Tactical planning: Process that guides theimplementation of activities specified in the

strategic plan.




Strategic Planning versus Tactical Planning

Top management

Greater proportions of their time engagedin planning

Usually focus their planning activities onlong-range strategic issues

Middle level managers

Focus on operational planning; creatingand implementing tactical plans

Supervisors

Developing the specific programs to meetgoals in their areas of responsibility


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Steps in the Marketing Planning Process



Defining the Mission of the Organization

Mission: the essential purpose thatdifferentiates one company from others

The mission statement specifies the

organization’s overall goals andoperational scope and provides generalguidelines for future management actions



Determine Organizational Objectives

An organization lays out its basic objectives,or goals, in its mission statement

These objectives in turn guide development

of supporting marketing objectives and plansWell-developed objectives should state

specific, quantitative intentions along withdeadlines for achieving them



Assessing Organizational Resources and

Evaluating Environmental Risks andOpportunities

This step involves a back-and-forthassessment of strengths, risks, andavailable opportunities.



Formulating, Implementing, and

Monitoring a Marketing StrategyMarketing strategy: a firm’s overall

program for selecting and satisfying atarget market

A marketing strategy is aimed at satisfyingconsumers in the selected target marketthrough a careful balance of the elements

of the marketing mix – each of whichrepresents a subset of the overallmarketing strategy



Successful Strategies: Tools andTechniques

All planning strategies have the goal ofcreating a sustainable competitiveadvantage for a firm.

An advantage where other companies cannotprovide the same offering or value.



Porter’s

Five ForcesModel



First Mover and Second Mover Strategies

First mover strategy: Theory advocating

that the company that is first to offer aproduct in a marketplace will be the long-term market winner.

Second mover strategy: Theory thatadvocates observing closely theinnovations of first movers and thenintroducing new products that improve on

the original offering to gain advantage inthe marketplace.



SWOT is an acronym for strengths,

weaknesses, opportunities, and threats

A SWOT analysis is a method of studying

organizational resources and capabilities toassess the firm’s strengths and weaknesses

and scanning its environment to identifyopportunities and threats



SWOT

Analysis



The Strategic Window

A limited period with an optimal fit betweenthe key requirements of a market and theparticular competencies of a firm

HR Block recognizes the strategic windowof their business.



Elements of a Marketing Strategy

Blending the four strategy elements ofmarketing decision-making to satisfy chosentarget markets

Product

PriceDistribution

Promotion



Target Market

Group ofpeopletowardwhom the

firm decidesto direct itsmarketingefforts



Marketing Mix Variables

Product Strategy

What goods or services to offerCustomer service

Package design

Brand names

Trademarks

Warranties

Product Life Cycle

PositioningNew-product development




Distribution StrategyPlanning that ensures that consumers findtheir products in the proper quantities at theright times and places.

Modes of transportation

Warehousing

Inventory control

Order processing

Marketing channels




Promotional Strategy

Blending together the various elementsof promotion to communicate most

effectively with the target marketInforming, persuading, and influencing a

consumer’s purchase decision.

IMC



Marketing Mix VariablesPricing Strategy

Deals with the methods of setting profitableand justifiable prices




The Marketing Environment

CompetitivePolitical – Legal

Economic

Technological

Social – Cultural

Rule of three




Methods for Marketing Planning

Business Portfolio Analysis

Strategic Business Units (SBUs) are keybusiness units within diversified firms

A division, product line, or single productmay define an SBU

Firms redesign their SBUs as marketconditions dictate




The BCG Matrix

Market Share/ Market Growth Matrix: amarketing planning tool that classifies afirm’s SBU’s or products according toindustry growth rates and market shares

relative to competing productsStars

Cash Cows

Dogs

Question Marks



Figure 2.10

BCG Market Share/Market Growth Matrix

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BK12e Ch02 Basic