Chap002
description
Transcript of Chap002
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CHAPTERCHAPTERCHAPTER
ELEMENTS OF MARKETING STRATEGY AND PLANNING
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Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reservedMcGraw-Hill/Irwin
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LEARNING OBJECTIVES
Examine the concept of value and the elements and role of the value chain
Understand the conditions required for successful marketing planning, that marketing planning is focused on the value proposition, and that marketing planning is a dynamic process
Identify various types of organizational strategies
Conduct a situation analysis
Use the framework provided for marketing planning, along with the content in future chapters, to build a marketing plan
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VALUE IS AT THE CORE OF MARKETINGValue is a ratio of benefits to costs, as
viewed from the eyes of the beholder (the customer).
Form utility
Time utility
Place utility
Ownership utility
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VALUE IS AT THE CORE OF MARKETINGValue proposition is the firm’s
communication of the unique value of its products to its customers.
The value message may include the whole bundle of benefits the company promises to deliver – not just the benefits of the product itself.
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VALUE IS AT THE CORE OF MARKETINGA firm’s value proposition must be
strong enough to move customers past satisfaction.
Customers Satisfaction Customer Loyalty
Customer Retention
Customer Switching
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VALUE IS AT THE CORE OF MARKETINGThe Value Chain serves as a means
for firms to identify ways to create, communicate, and deliver more customer value within a firm.
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PORTER’S VALUE CHAINEXHIBIT 2.1
Source: Michael E. Porter, Competitive Advantage (New York: Simon & Schuster, 1985).
SupportActivities
Primary Activities
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VALUE-CREATING ACTIVITIES
Primary activities
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VALUE-CREATING ACTIVITIES
Support activities
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MARKETING PLANNING
Marketing planning is the ongoing process of developing and implementing market-driven strategies for an organization.
The resulting document that records the marketing planning process in a useful framework is the marketing plan.
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MARKETING PLANNING IS BOTH STRATEGIC AND TACTICALMarketing (Big M) serves as a core
driver of business strategy.
marketing (little m) represents the specific programs and tactics aimed at customers and other stakeholder groups.
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FOR EFFECTIVE MARKETING PLANNINGEveryone in an organization must
understand and support the concept of customer orientation.
All internal organizational processes and systems must be aligned around the customer.
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FRAMEWORK FOR MARKETING PLANNINGMarketing plan is connected to the
firm’s business plan
Perform any needed market research
Establish marketing goals and objectives
Develop marketing strategies
Marketing mix strategies
Develop implementation plans
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CONNECTING THE MARKETING PLAN TO THE FIRM’S BUSINESS PLAN
Market-driven strategic planning is often used to describe the process at the corporate or strategic business unit (SBU) level of marshaling the various resource and functional areas of the firm toward a central purpose around the customer.
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ELEMENTS OF MARKETING PLANNINGPortfolio analysis views SBUs and
sometimes even product lines as a series of investments from which it expects maximization of returns.
◦ Boston Consulting Group (BCG) Growth-Share Matrix
◦ GE Business Screen
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BOSTON CONSULTING GROUP GROWTH-SHARE MATRIXEXHIBIT 2.3
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GE BUSINESS SCREENEXHIBIT 2.4
“GE Business Screen,” Business Resource Software Online, www.brs-inc.com/pwxcharts.asp?32, accessed May 16, 2008.
High Med LowH
igh
Med
Low
Market Attractiveness
Bu
sin
ess
Posit
ion
Invest/Grow
SelectiveInvestme
nt
Harvest/Divest
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ELEMENTS OF MARKETING PLANNINGMarketing planning does not occur in a
vacuum
◦ A mission statement articulates an organization’s purpose, or reason for existence.
◦ Most mission statements also include a discussion of what the company would like to become in the future – its strategic vision.
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ELEMENTS OF MARKETING PLANNINGGoals eventually become refined into
specific, measurable, and (hopefully) attainable objectives for the firm.
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ELEMENTS OF MARKETING PLANNINGOrganizational Strategies
◦ A strategy is a comprehensive plan stating how the organization will achieve its mission and objectives.
◦ A firm’s generic strategy is its overall directional strategy at the business level.
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ELEMENTS OF MARKETING PLANNINGThree primary categories of
competitive strategy:
1. Low Cost
2. Differentiation
3. Focus (or Niche)
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GENERIC BUSINESS STRATEGIES
Generic Business
Strategies
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COMPETITIVE STRATEGY OPTIONSEXHIBIT 2.7
Source: Michael E. Porter, Competitive Advantage (New York: Simon & Schuster, 1985).
Cost Leadership Differentiation
Cost FocusFocus
Differentiation
Lower Cost Differentiation
Competitive Advantage
Narr
ow
Targ
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Com
peti
tive S
cop
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Bro
ad T
arg
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ELEMENTS OF MARKETING PLANNINGCore competencies
Distinctive competencies
Sustainable competitive advantage
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MILES AND SNOW’S STRATEGY TYPES
Strategic Types
Prospectors
Analyzers
Defenders,
Reactors
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SITUATION ANALYSIS
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SITUATION ANALYSIS
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FORCES DRIVING INDUSTRY COMPETITIONEXHIBIT 2.9
Source: Michael E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors (Boston: The Free Press, 1980).
Potential entrants(Threat ofmobility)
Supplier(Supplierpower)
Industrycompetitors
(Segment rivalry)
Buyers(Buyerpower)
Substitutes(Threat of
substitutes)
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SITUATION ANALYSIS
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ELEMENTS OF MARKETING PLANNINGSummarize the situation analysis into
a SWOT analysis:
◦ A convenient way to summarize key findings into a matrix of strengths, weaknesses, opportunities, and threats.
◦ Internal analysis reveals strengths and weaknesses, while external analysis points to potential opportunities and threats.
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SWOT ANALYSIS TEMPLATEEXHIBIT 2.10
Source: J. David Hunger and Thomas H. Wheelen, Essentials of Strategic Management, 4th ed. (Upper Saddle River, NJ: Prentice Hall, 2007).
Strengths (S)
List 5–10 internalstrengths here
Weaknesses (W)
List 5–10 internalweaknesses here
Threats (T)
List 5–10 externalthreats here
INTERNALFACTORS
(IFAS)
EXTERNALFACTORS(EFAS)
S/O Based Strategies
Generate strategies herethat use strengths to takeadvantage of opportunities
W/O Based Strategies
Generate strategies herethat take advantage ofopportunities byovercoming weaknesses
S/T Based Strategies
Generate strategies herethat use strengths toavoid threats
Opportunities (O)
List 5–10 externalopportunities here
W/T Based Strategies
Generate strategies herethat minimize weaknessesand avoid threats
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ELEMENTS OF MARKETING PLANNINGAdditional Aspects of Marketing
Planning
◦ Perform Any Needed Market Research
◦ Establish Marketing Goals and Objectives
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ELEMENTS OF MARKETING PLANNINGAdditional Aspects of Marketing
Planning
◦ Develop Marketing Strategies Market penetration strategies
Product development strategies
Market development strategies
Diversification strategies
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PRODUCT – MARKET COMBINATIONSEXHIBIT 2.11
Source: H. Igor Ansoff, The New Corporate Strategy (New York: John Wiley & Sons, 1988).
Strategy =Market
Penetration
Seek to increasesales of existingproducts toexisting markets
Strategy =Market
Development
Create growthby selling newproducts inexisting markets
Strategy =Market
Development
Introduce existingproducts to newmarkets
Strategy =Diversification
Emphasize bothnew products andnew markets toachieve growth
Existing Products New Products
Product Emphasis
ExistingMarkets
NewMarkets
MarketEmphasis
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ELEMENTS OF MARKETING PLANNINGImplementation Plan
Forecast
Budget
Appropriate Marketing Metrics
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ELEMENTS OF MARKETING PLANNINGMarketing Control
◦ Process of measuring marketing results and adjusting the marketing plan as needed.
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ELEMENTS OF MARKETING PLANNINGDevelop Contingency Plans
◦ Plans that can be implemented should something happen that negates the viability of the marketing plan.
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TIPS FOR SUCCESSFUL MARKETING PLANNING1. Stay flexible
2. Utilize input, but don’t become paralyzed by information and analysis
3. Don’t underestimate the implementation part of the plan
4. Stay strategic, but also stay on top of the tactical
5. Give yourself and your people room to fail and try again
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