MARKETING MANAGEMENTMARKETING MANAGEMENT

Chapter 2Chapter 2

Developing and Implementing

Marketing Strategies and

Plans(Chapter 2&3 in text book)

Chapter QuestionsChapter Questions

What is a strategic plan?What is SWOT analysis and what

are some of the environmental forces that shape marketing strategy?

What are some of the marketing strategies and competing forces that shape them?

Where does integrated marketing fit in?

2-2

The Strategic Planning ProcessThe Strategic Planning Process

2-3

Step 1: Defining The Company MissionStep 1: Defining The Company Mission• Mission: a statement of the organisation’s Mission: a statement of the organisation’s

purpose – what it wants to accomplish in purpose – what it wants to accomplish in the larger environment (the firm’s overall the larger environment (the firm’s overall justification for existing)justification for existing)

• Defining a business: What is our business? Defining a business: What is our business? Who are our customers? Who should our Who are our customers? Who should our customers be? What needs do we meet? customers be? What needs do we meet? How do we meet these needs?How do we meet these needs?

• Google: “To organize the world’s Google: “To organize the world’s information and make it universally information and make it universally accessible and useful”accessible and useful”

2-4

Step 2: AnalysisStep 2: Analysis

2-5

Strengths

Weaknesses

Opportunities

Threats

Environmental ForcesEnvironmental Forces

3-6

Demographic

EconomicPolitical-Legal

Socio-CulturalTechnological

Natural

The Five Competitive Forces that Shape The Five Competitive Forces that Shape Strategy (The Reading)Strategy (The Reading)

What are Porter’s competitive forces?◦The power of suppliers◦The power of buyers◦The threat of substitutes◦Rivalry among existing competitors◦Barriers to entry

What do these forces impact and how?

What are the implications for strategy?

2-7

Stars

Cash Cows

Question Marks

Dogs

Mar

ket

Gro

wth

Rat

e

Relative Market ShareHigh Low

Hig

hL

ow

?? ?? ?

Portfolio Assessment Tool: BCG Portfolio Assessment Tool: BCG matrixmatrix

Step 3: Goal FormulationStep 3: Goal Formulation

To be effective, goals must be:◦Ordered in terms of priority (hierarchical)◦Stated quantitatively◦Realistic◦Consistent

Increase our market share by 10% compared to Competitors over the next five years

Increase our profits by 5% every year during the next five years

2-9

Step 4: Strategy Formulation: Porter’s Step 4: Strategy Formulation: Porter’s Generic StrategiesGeneric Strategies

2-10

Overall cost leadership

Differentiation

Focus

Growth Strategies: Ansoff’s Growth Growth Strategies: Ansoff’s Growth Vector MatrixVector Matrix

Market penetration

Market development

Diversification

Product / Service development

Pre

sen

tN

ewPresent New

MA

RK

ET

PRODUCTS / SERVICES

Week 3: ing 12Slide 2-40

Developing an Integrated Marketing Mix: Tactical Planning

Step 6: Program Formulation and Step 6: Program Formulation and ImplementationImplementation

Break every program into its component activities

Identify associated costsEstimated involved timeSet up responsibilities

2-13

Step 7: Tracking PerformanceStep 7: Tracking Performance

Set performance objectives◦ Market share,

Profitability, Return on net worth, Customer satisfaction

Select method (s) for evaluation◦ Financial analysis,

Market research

2-14

The Marketing PlanThe Marketing Plan

A written statement of a marketing strategy and the time-related details for carrying out the strategy◦Executive summary◦Introduction and situation analysis

(SWOT, Portfolio assessment)◦Defining objectives◦Strategic options and selected strategy◦Tactical elements: the marketing mix◦Budget and timing◦Control procedures

15

For Next WeekFor Next Week

Reading 3 (Blue Ocean Strategy)

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