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Marketing StrategyMarketing Strategy
& Environment& Environment
May 5th
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Last ClassLast Class
What is marketing
The objective (tasks) of marketing
needs/wants; market/marketplace, customersatisfaction,
4Ps;
What is good marketing
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Todays TopicsTodays Topics
Steps for marketing plan
Situational analysis (SWOT)
Marketing environment scan
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Organizations Mission driven by strategic
planning.
Strategic Planningis the process of
developing and maintaining a strategic fitbetween the organizations goals and
capabilities and its changing marketing
opportunities.
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Before PlanningBefore Planning
Why we need a marketing plan?
Sets the common goals for team
Draws the roadmap toward common goals
Provides a basis forevaluate the performance
But wait
Before the planning, lets hear what boss says
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Before PlanningBefore Planning
Levels of strategy in organizations
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Strategic IssuesStrategic Issues
Higher level strategy issues that
influences Marketing Plan:
Business Mission Statement
Goals set for marketing activities
The attention and resources allocation within a
company (Future development direction)
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Setting Goals & DirectionsSetting Goals & Directions
Corporate level strategy issues thatinfluences Marketing Plan:
Business Mission Statementstates thestates theorganizations purpose, and provides directionsorganizations purpose, and provides directionsof development.of development.
Focus on the markets instead of productsFocus on the markets instead of productsNot too broad not too narrow(e.g.,Not too broad not too narrow(e.g.,Frito_Lay,Telus)Frito_Lay,Telus)
Avoid marketing myopiaAvoid marketing myopia
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ExampleExample
McDonald's vision is to be the world's best quick servicerestaurant experience. Being the best means providingoutstanding quality, service, cleanliness and value, so thatwe make every customer in every restaurant smile. Toachieve our vision, we are focused on three worldwide
strategies:Be the best employer for our people in each community
around the world,
Deliver operational excellence to our customers in each ofour restaurants, and
Achieve enduring profitable growth by expanding thebrand and leveraging the strengths of the McDonald'ssystem through innovation and technology.
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ExampleExample
Dell's mission is to be the most successful computercompany in the world atdelivering the best customerexperience in markets we serve. In doing so, Dell willmeet customer expectations of:
Highest qualityLeading technology
Competitive pricing
Individual and company accountability
Best-in-class service and support
Flexible customization capability
Superior corporate citizenship
Financial stability
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Setting Strategic GoalsSetting Strategic Goals
Goals set for marketing activities
Profit, Sales Revenue, Unit Sales
Market Share
Quality, Customer Satisfaction
Employee welfare, Social responsibility
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Setting Strategic GoalsSetting Strategic Goals
Goals set for marketing activities
Statements of what is to be accomplished through
marketing activities.
Realistic, measurable, and time specific
Consistent, indicating the priorities of the organization.
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Goal StatementGoal Statement
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A company could have more than one
product (or lines of product)
The business portfolio is the collection of
businesses and products that make up the
company.
Not every product gets same attention and
resources
How to decide
Strategic Planning involves optimizing the returns fromthe Business Portfolio.
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The company must:
Analyze its currentbusiness portfolio orStrategic
Business Units (SBUs).
Definition: an organization (or a part of an organization)
that markets a set of related products to clearly defined
group of customers.
Canon: http://www.canon.ca/inetCA/marketHome?msegid=5
3M: http://www.3m.com/Product/opunits.html#top
http://www.canon.ca/inetCA/marketHome?msegid=5http://www.3m.com/Product/opunits.htmlhttp://www.3m.com/Product/opunits.htmlhttp://www.canon.ca/inetCA/marketHome?msegid=58/7/2019 May 5th Lecture
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Business Portfolio Analysis (BCG Matrix)BCG: Boston Consulting Group
What strategic decisions the company is faced with?
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Business Portfolio Analysis (BCG Matrix)BCG: Boston Consulting Group
Low
High
High Low
Relative Market share
Nurture
to feedcash to
Usecash to
makeintostar
Defend
position
Fix or abandon
Market
Growthrate
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ExampleExample
A large Computer Manufacturer
Laptop and personal computers
Subnotebooks / Handheld computers
Integrated phone
Mainframe computer
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ExampleExample
Laptop and personal
computers
Integrated phone
Subnotebooks
Low
High
High Low
Market share
MarketGrowthrate
??
Mainframe computer
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ExampleExample
Laptop and personal
computers
Integrated phone
Subnotebooks
Low
High
High Low
Market share
MarketGrowthrate
??
Mainframe computerHoldHold
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ExampleExample
Laptop and personal
computers
Integrated phone
Subnotebooks
Low
High
High Low
Market share
MarketGrowthrate
??
Mainframe computerBuildBuild
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ExampleExample
Laptop and personal
computers
Integrated phone
Subnotebooks
Low
High
High Low
Market share
MarketGrowthrate
??
Mainframe computer
HarvestHarvest
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ExampleExample
Laptop and personal
computers
Integrated phone
Subnotebooks
Low
High
High Low
Market share
MarketGrowthrate
??
Mainframe computer
DivestDivest SOL
D
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Before PlanningBefore Planning
Market-Product Analysis
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Examples
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One glass of milk is good, but two is
better
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ExampleExample
ARM & HAMMER Fridge FreshRefrigerator Air Filter
ARM & HAMMER Clear Balance PoolMaintenance Tablets
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ExampleExample
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ExampleExample
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Before PlanningBefore Planning (summary)(summary)
If you are going to make a marketing plan
for a business unit, now we are clear
about:
The business mission - FitFit
The goal set for marketing plan - AchieveAchieve
The possible resource you can get from your
company (or direction) - AdaptAdapt
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Marketing PlanMarketing Plan
For any kind of planning, we need to
figure out:
Where are we now?
Where do we want to go?
How can we get there?
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Steps for Marketing Plan
Marketing PlanMarketing Plan
Marketing PlanMarketing Plan
Marketing Mix
Product
Promotion
DistributionDistribution
Price
Situational analysis
Segmentation &
Positioning
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Marketing PlanMarketing Plan
Step-1 Situational (SWOT) analysis
Favourable Unfavourable
Internal
Strengths Weaknesses
External Opportunities Threats
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Marketing PlanMarketing Plan
Step-2 Segmentation and positioning
Segmentation: separate consumers into groups
Targeting: find a specific group to concentrate
your marketing effort
Positioning: differentiate your product from
competitors
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Marketing PlanMarketing Plan
Step-3 Marketing Program
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Steps for Marketing Plan
Marketing PlanMarketing Plan
Marketing PlanMarketing Plan
Marketing Mix
Product
Promotion
DistributionDistribution
Price
Situational analysis
Segmentation &
Positioning
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Marketing PlanMarketing Plan
Step-1 Situational (SWOT) analysis
Favourable Unfavourable
Internal
Strengths Weaknesses
External Opportunities Threats
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SWOT analysisSWOT analysis
SW
OT
Things the company does well.
Things the company does not do well.
Conditions in the external
environment that favourstrengths.
Conditions in the external environmentthat do not relate to existing strengthsor favor areas of current weakness.
Inter
nal
Externa
l
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How to Do SWOT Analysis?
Identifying trends in the firms industry
Analyzing the firms competitors
Assessing the firm itself
Researching the firms present andprospective customers
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SWOT analysisSWOT analysis
Strengths
andWeaknessesINTERNAL
Company/Brand Image
Customer resources
Production Costs
Marketing Skills
Employee Capabilities
Financial Resources
Available Technology
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SWOT analysisSWOT analysis
Opportunities
andThreatsEXTERNAL
Socio-cultural
Demographic
Economic
TechnologicalPolitical/Legal
Competitive
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ExerciseExercise
S-Powerful retail brand-Value for money
-Global growth
-IT management Advantage
-Good strategy for HR management
W-Huge span of control-Less flexibility
-Few countries worldwide (14 countries)
Wal-Mart
O-Merge with global retailers
-Expanding global markets-Diversify store types
T-Target of competition
-Political problems-Price competition
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ExerciseExercise
McGill Bookstore
Favourable Unfavourable
Internal Strengths Weaknesses
External Opportunities Threats
Strengths Company/Brand Image
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Strengthsand
Weaknesses
INTERNAL
p y g
Customer resource
Production Costs
Marketing Skills
Employee Capabilities
Financial Resources
Available Technology
Opportunitiesand
Threats
EXTERNAL
Socio-cultural
Demographic
Economic
Technological
Political/Legal
Competitive
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ExerciseExerciseMcGill Bookstore Favourable Unfavourable
Internal Strengths1.
Weaknesses1.
External Opportunities
1.
Threats
1.
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Favourable Unfavourable
Internal Build a Strengths Correct aWeaknesses
External Exploit anOpportunities
Avoid a Threats
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Environmental ScanEnvironmental Scan
Social
Economic
TechnologicalCompetitive
Regulatory
Trend !Trend !
Business OrganizationBusiness Organization
ConsumersConsumers
ValueSomething
to Exchange(Profit)
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Environmental ScanEnvironmental Scan
Microenvironment
Actors close to the company that affect its
ability to serve its customers
Unique to the company
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Environmental ScanEnvironmental Scan
Microenvironment
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Macro-environment
Larger societal forces that affect the
microenvironment
Considered to be beyond the control of the
organization
Environmental ScanEnvironmental Scan
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Environmental ScanEnvironmental Scan
Macro-environment
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Case: GoodLife Fitness
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Environmental Scan for Canada
as a MarketText Book Chapter 3
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Demographic Environment:
Canada: population is expected to exceed 33
million by 2011Changing age structure within Canada
The three largest age groups are: the baby
boomers, Generation X, and Generation Y.
Better Educated People
Environmental Scan (social)Environmental Scan (social)
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Environmental Scan (social)Environmental Scan (social)
The Changing Canadian Household
Delayed marriages
Fewer children
High divorce rate
Single-parent families
Working women: 48% of work force
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Environmental Scan (social)Environmental Scan (social)
Increasing cultural diversityCanada is more of a cultural mosaic, than the melting
pot of the U.S.
Ethnic markets are not easily targeted and served
Diversity includes more than just ethnicity: gay/lesbian
population
Respecting diversity may be the key to economic
survival for many companies
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Environmental Scan (Economic)Environmental Scan (Economic)
Factors that affect consumer buying
power and spending patternsChanges in Income
Changes in income distribution
Changing Consumer Spending Patterns
Types of economy will influenceresources to work with
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Environmental ScanEnvironmental Scan (Technological)
The most dramatic force shaping our
destiny
Rapidly changing force which creates
many new marketing opportunities but
also turns many existing products extinct
Uncontrollable?
Research and development is a key element
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Environmental ScanEnvironmental Scan (Regulatory)
Consists of laws, government agencies, andpressure groups that influence organizationsand individuals
Protect competition
Protect consumers and the interests of society
Protect the interests of society
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Environmental ScanEnvironmental Scan (Others)
Trends in natural environment changes
Shortages of raw materials
Increased pollution
Increased government intervention
Canadian federal law: Environmental
Protection Act (1989)
Green movementFocus on environmental sustainability
strategies
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Environmental ScanEnvironmental Scan
Being and good environmental scanner,
you need to be:
Constantly monitoring
Thorough, but keep relevant information
Find trend, but trend is something not
happened yetBuild on O and avoid T, but sometimes it is
hard to tell O and T
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SummarySummary
Marketing activitiesPlan, Implement, Control
Marketing Plan:
Situational analysis (SWOT)Segmentation, targeting, and positioning
Marketing mix (program)
Situational analysis:
SWOT: environmental scan
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Next ClassNext Class
Librarian Presentation
Forming Group
Attendance MandatoryAttendance Mandatory
Consumer Behavior
Quantitative Analysis
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Important: Quantitative
Materials on the WebCT.Please Download and Study!
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Next ClassNext Class
Come on time
Bring quantitative materials and calculator
Prepare for your new product idea
And prepare for your first group meeting