Chapter 2: Developing Marketing Strategies and a Marketing Plan PDF

Chapter 2 Developin g Marketing Strategies and a Marketing Plan © 2023 McGraw Hill Limited 2-1  Chapter 2: Developing Marketing...

Chapter 2 Developin g Marketing Strategies and a Marketing Plan © 2023 McGraw Hill Limited 2-1  Chapter 2: Developing Marketing Strategies and a Marketing Plan LEARNING OBJECTIVES LO1 De'ne a marketing strategy LO2 Describe the elements of a marketing plan LO3 Analyze a marketing situation using a SWOT analysis LO4 Explain how a 'rm chooses what consumer group(s) to pursue with its marketing eGorts LO5 Outline the implementation of the marketing mix as a means to increase customer value LO6 Describe how 'rms grow their businesses © 2023 McGraw Hill Limited 2-2  Looking for Opportunities  PepsiCo 'nds opportunity in the growing groups of consumers who search for healthy options  They also pursue value through novel packaging, such as smaller packages to help consumers limit their calorie or sodium consumption.  Desirous of sustainable sourcing  Such versatility and diversity represent key strengths of the broad corporate brand. © 2023 McGraw Hill Limited 2-3  What is a marketing strategy? Marketing strategy identi'es: a 'rm’s target market (s) a related marketing mix –the four P’s and the bases upon which the 'rm plans to build a sustainable competitive advantage Leads to sustainable competitive advantage! © 2023 McGraw Hill Limited 2-4  Sustainable Competitive Advantage Strong brand Innovative capabilities Extensive distribution network Loyal customers Discussion Question Why have these factors been the keys to Pepsi’s sustainable advantage? Are there other factors to consider? © 2023 McGraw Hill Limited 2-5  Test Your Knowledge What is sustainable competitive advantage? A) A broad description of the 'rm's objectives and scope of its activities. B) Tool used to evaluate marketing performance. C) Something the 'rm can consistently do better than its competitors, not easily copied. D) Written document that discusses competitor strengths and weaknesses, and the 'rms advantages over them. © 2023 McGraw Hill Limited 2-6  Test Your Knowledge What is sustainable competitive advantage? A) A broad description of the 'rm's objectives and scope of its activities. B) Tool used to evaluate marketing performance. C) Something the Prm can consistently do better than its competitors, not easily copied. D) Written document that discusses competitor strengths and weaknesses, and the 'rms advantages over them. © 2023 McGraw Hill Limited 2-7 Developing Customer Value Macro Strategies for Developing Customer Value © 2023 McGraw Hill Limited 2-8  Customer Excellence Retain loyal customers Provide outstanding customer service © 2023 McGraw Hill Limited 2-9 Operational Excellence ETcient operation s Strong Excellent supply supplier chain relations managem hips ent © 2023 McGraw Hill Limited 2-10  Product Excellenc e High perceived value + EGective branding and positioning © 2023 McGraw Hill Limited 2-11  Locational Excellence Starbucks The three most important things in retailing are location, location, location. Tim Hortons © 2023 McGraw Hill Limited 2-12 Multiple Sources of Advantage Multiple approaches: Customer value Customer service Customer relations Great prices Good service = Good value © 2023 McGraw Hill Limited 2-13  Test Your Knowledge Customer excellence focuses on? A) having products with high perceived value and eGective branding and positioning. B) develops value-based strategies for retaining loyal customers and providing excellent customer service. C) having a good physical location and Internet presence. D) eacient operations and excellent supply chain and human resource management. © 2023 McGraw Hill Limited 2-14  Test Your Knowledge Customer excellence focuses on? A) having products with high perceived value and eGective branding and positioning. B) develops value-based strategies for retaining loyal customers and providing excellent customer service. C) having a good physical location and Internet presence. D) eacient operations and excellent supply chain and human resource management. © 2023 McGraw Hill Limited 2-15 Developing a Marketing Plan © 2023 McGraw Hill Limited 2-16  Step 1: De'ne the Business Mission & Objectives De'ning the Mission Tim Hortons states: “We work hard to deliver the highest-quality products and services and strive to be a leader in everything we do. It’s that simple.” © 2023 McGraw Hill Limited 2-17 Another example: non-proPt The Heart and Stroke Foundation mission: Promote health. Save lives. Enhance recovery. © 2023 McGraw Hill Limited 2-18  Step 2: Conduct a Situation Analysis (using SWOT) Environmen Evaluation t Positive Negative Internal Strengths Weaknesses Superior resources and capabilities Little or no brand recognition Superior management, marketing, Lack of 'nancial resources technical talent Lack of other resources and capabilities Strong brand Lack of marketing, management, and Superior product oGerings technical talent Extensive marketing reach Limited market reach or distribution Wide distribution networks network (national/global) No proprietary technology Strong 'nancial resources Poor location Excellent geographic location Limited customer base or loyalty Proprietary technologies/intellectual Lack of credibility property Strong base of loyal customers External Opportunities Threats CDSTEP changes that oGer opportunities Political or regulatory changes (e.g., new for the 'rm to serve new markets with laws aGecting business or products) existing products and/or pursue New entrants into the industry or market completely new market opportunities New technology that could render existing Existing 'rms exit the market because of technology or business practices obsolete 'nancial or other diaculties (i.e., Natural or human-made disasters reduced competition) Recession or economic downturn that Acquiring another 'rm and gaining aGects consumers’ purchasing power and market access, new customers, new con'dence © 2023 and technology and expertise, McGraw Hill Limited 'nancial Changes in sociocultural or demographic 2-19  Step 3: Identify and Evaluate Opportunities by using STP Segmentation Targeting Positioning © 2023 McGraw Hill Limited 2-20  An example: Hertz Market Segmentation Segment Segment Segment Segment Segment 1 2 3 4 5 Segments Single Business Environme Families Commerci thrill customers ntally al seekers and conscious customers and gear families customers heads on who prefer vacation a luxurious ride Adrenaline Prestige Green SUV/ Commerci Collection Collection Collection crossover/ al 4×4 van/truck Cars Corvette In'niti Toyota Toyota Ford cargo OGered ZHZ QX56 Prius Rav 4 van Chevrolet Cadillac Ford Ford Camaro Escalade Fusion Explorer © 2023 McGraw Hill Limited 2-21  Test Your Knowledge Which of the following refers to a group of consumers who respond similarly to a Prm’s marketing e[orts? A) Market segment B) Target market C) Targeting D) Positioning © 2023 McGraw Hill Limited 2-22  Test Your Knowledge Which of the following refers to a group of consumers who respond similarly to a Prm’s marketing e[orts? A) Market segment B) Target market C) Targeting D) Positioning © 2023 McGraw Hill Limited 2-23 Step 4: Implement Marketing Mix and Allocate Resources © 2023 McGraw Hill Limited 2-24 Product and Value Creation Discussion Question How does Dyson deliver value based upon the products it creates? © 2023 McGraw Hill Limited 2-25 Price and Value for Money Exchange: product = money Customer perception of value Price is only a part of value! © 2023 McGraw Hill Limited 2-26 Place and Value Delivery Product must be readily accessible When and where the customer wants it Why is this retailer growing? © 2023 McGraw Hill Limited 2-27  Promotion and Value Communication Marketers communicate the value of their oGering, or the value proposition, to their customers through a variety of media, including:  Television  Radio  Magazines  Sales force  Internet © 2023 McGraw Hill Limited 2-28  Step 5: Evaluate Performance by Using Marketing Metrics Outcomes need to be evaluated. Metrics are used to explain why things happened and to project the future. In particular:  Who Is Accountable for Performance? © 2023 McGraw Hill Limited 2-29  Evaluate Performance by using Marketing Metrics It can be diacult to 'nd one measure to evaluate performance.  Performance Objectives and Metrics – hard to 'nd a single metric  Financial Performance Metrics  Social Responsibility Performance Metrics © 2023 McGraw Hill Limited 2-30  Strategic Planning Is Not Sequential The actual planning processes can move back and forth among the 've steps in the marketing plan due to environmental forces. © 2023 McGraw Hill Limited 2-31 Portfolio Analysis Boston consulting Group Matrix (BCG) © 2023 McGraw Hill Limited 2-32  Test Your Knowledge One of the keys in place and value delivery is to provide the consumer _______________. A) a wide product selection B) merchandise they want at the time they want it C) a variety of media communication methods D) accessible management personnel to handle complaints © 2023 McGraw Hill Limited 2-33  Test Your Knowledge One of the keys in place and value delivery is to provide the consumer _______________. A) a wide product selection B) merchandise they want at the time they want it C) a variety of media communication methods D) accessible management personnel to handle complaints © 2023 McGraw Hill Limited 2-34 Growth Strategies © 2023 McGraw Hill Limited 2-35  Test Your Knowledge Which of the following is NOT considered a marketing growth strategy? A) Market penetration B) Diversi'cation C) Product development D) Sequential planning © 2023 McGraw Hill Limited 2-36  Test Your Knowledge Which of the following is NOT considered a marketing growth strategy? A) Market penetration B) Diversi'cation C) Product development D) Sequential planning © 2023 McGraw Hill Limited 2-37 Market Penetration  Existing marketing mix  Existing customers Discussion Question In what way is a sale a market penetration strategy? © 2023 McGraw Hill Limited 2-38  Market Development Strategy  Existing marketing oGering  New market segments (domestic, international) not currently being served © 2023 McGraw Hill Limited 2-39  Product Development  New product/service  Current target market © 2023 McGraw Hill Limited 2-40 DiversiPcation  New product/service  New market segment not currently being served © 2023 McGraw Hill Limited 2-41  Test Your Knowledge A diversiPcation strategy introduces a new product or service to a market segment that _______________. A) is currently not served B) includes many ethnicities C) already exists D) does not traditionally respond to mixed media © 2023 McGraw Hill Limited 2-42  Test Your Knowledge A diversiPcation strategy introduces a new product or service to a market segment that _______________. A) is currently not served B) includes many ethnicities C) already exists D) does not traditionally respond to mixed media © 2023 McGraw Hill Limited 2-43