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 Four

Which Way Is Best?Strategic Evaluation

Criteria

of

Choice

Modeling

Approaches

Stage Five

How Can We Ensure Arrival?

Strategic Implementation and Control

Problems

to

Overcome

Management

Control

Measurement

System

Stage One

Where are We Now?

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

Stage TwoStage Two

Where Do We Want to Be?

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

Stage ThreeStage Three

How might We Get There?

Mission,

Message,

Media,

Money, and

Measurement.

Advertising – 5Ms Model

Advertising Objectives - AIDA

Awareness,

Interest,

Desire, or

Action

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