Shekter_1ce_PPT_accessible_fullppt_02 (2).pptx

Marketing Chapter 2 Developing Marketing Strategies and Plans Copyright © 2021 Pearson Canada, Inc. 2-1 Learning Objectives After studying this chapter you should be able to: 2.1 Understand strategic planning in an organization 2.2 Analyze the components of the marketing planning process 2.3 Dis...

Marketing Chapter 2 Developing Marketing Strategies and Plans Copyright © 2021 Pearson Canada, Inc. 2-1 Learning Objectives After studying this chapter you should be able to: 2.1 Understand strategic planning in an organization 2.2 Analyze the components of the marketing planning process 2.3 Distinguish strategic alternatives 2.4 Explain the marketing mix 2.5 Evaluate the result of marketing activities Copyright © 2021 Pearson Canada, Inc. 2-2 Strategic Planning in an Organization (1 of 9) • Identify the place of marketing in the strategic plan – Marketing and the marketing plan is only one piece of the larger plan for the organization Copyright © 2021 Pearson Canada, Inc. 2-3 Strategic Planning in an Organization (2 of 9) Figure 2.1 The Elements of an Organizational Plan Copyright © 2021 Pearson Canada, Inc. 2-4 Strategic Planning in an Organization (3 of 9) • Differentiate between organization strategic planning and marketing planning – As a subset of the larger organizational plan, marketing plans are more focused, short term, and specific to the areas which marketing impacts Copyright © 2021 Pearson Canada, Inc. 2-5 Strategic Planning in an Organization (4 of 9) Figure 2.2 Distinguishing between Organizational and Marketing Planning Type of Planning Additional Players Key Purpose Responsibility Time Frame Organizational Set the overall goals and objectives for the organization as a whole CEO or equivalent Functional division leaders (Finance, Marketing, Human Resources, Manufacturing) Long Term: 5+ years, with specific goals and objectives for each year Marketing Define the marketing strategies, plan, and tactics to achieve marketing’s contribution to the Overall organizational Goals VP Marketing Other players on the marketing team; functional partners such as research, Product development, external marketing agencies Short Term: 1 year based on annualized budget and specific annual corporate goals; longer-term year-by-year goals and activities aligned with organizational 5year plan Copyright © 2021 Pearson Canada, Inc. 2-6 Strategic Planning in an Organization (5 of 9) • Explain the purpose of a mission statement – The mission is generally regarded as the first step in the planning process. Often the mission is identified in a statement characterized in the following graphic Copyright © 2021 Pearson Canada, Inc. 2-7 Strategic Planning in an Organization (6 of 9) Figure 2.3 The Mission Statement Defined What Is It? What Does It Contain? What Does It Leave Out? Who Is Its Audience? A succinct statement identifying the organization’s purpose and reason for existing Broad statements about what it hopes to accomplish, the role it will play in society, and what guiding principles employees are expected to operate under Specific details of how the mission will be achieved Numerical or financial targets References to current or short term challenges Employees – who understand what the organization is all about Functional Heads – who use the mission statement to define their functional objectives Shareholders – who hold management accountable for delivering on the mission Potential Employees – who might use it to evaluate whether this is an organization for which they might want to work Copyright © 2021 Pearson Canada, Inc. 2-8 Strategic Planning in an Organization (7 of 9) • Identify the characteristics of a mission statement – A good mission statement should contain 5 criteria: 1. Clear and inspiring 2. Not overly directive 3. Speaks to its audience 4. Describes the benefit to the target consumer 5. Distinctive Copyright © 2021 Pearson Canada, Inc. 2-9 Strategic Planning in an Organization (8 of 9) • Compare product-based and market-based mission statements – A good mission statement talks from the perspective of the consumer (the market), rather from that of the organization (product). Copyright © 2021 Pearson Canada, Inc. 2 - 10 Strategic Planning in an Organization (9 of 9) Figure 2.4 Contrasting Product-Based and Market-Based Mission Statements Organization Global cosmetics brand Global charity Product-Based Mission Statement We make a variety of personal care and beauty products sourced using the highest quality ingredients. We collect money and redistribute it to those in need. Popular health We offer the best, most up-to-date club chain facilities in Canada. Market-Based Mission Statement We will dedicate ourselves to developing products that bring out the true inner beauty of our users. We help those who wish to give and contribute to the well-being of their community to do so in a meaningful way. We will develop a community of members focused on health and fitness who can find inspiration and motivation at our facilities. Copyright © 2021 Pearson Canada, Inc. 2 - 11 Components of the Marketing Planning Process (1 of 5) • Identify elements of the marketing planning process Copyright © 2021 Pearson Canada, Inc. 2 - 12 Components of the Marketing Planning Process (2 of 5) • Construct a situation analysis – A S W OT matrix is an example of a situation analysis Figure 2.5 A S W OT Matrix Copyright © 2021 Pearson Canada, Inc. 2 - 13 Components of the Marketing Planning Process (3 of 5) • Define a marketing objective – A specific goal to be achieved through marketing efforts – The figure on the following slide provides some examples of areas where there will be a specific marketing objective Copyright © 2021 Pearson Canada, Inc. 2 - 14 Components of the Marketing Planning Process (4 of 5) Figure 2.6 Goals That Marketing Is Responsible For Category Issue Objective Strategies Measure of Success Time Frame Product Lineup Current products are obsolete and not competitive with our competitors Develop a lineup of products that is up to date and offers a competitive advantage over our competition • Initiate “New Product Development” team focused solely on innovation • Seek out new technologies or patents • 3 new products launched within next year • All products are regarded by industry experts as “state of the art” 1 year Distribution Current area of distribution is limited to Western Canada Broaden scope of sales to Ontario and Quebec • Seek out new distribution channels in these markets • Partner with Ontario-and/ or Quebec-based companies seeking Western distribution for reciprocal benefit • 15 new distribution outlets in Ontario • 10 new distribution outlets in Quebec 1 year (Ontario) 18 months (Quebec) Promotion Current self-produced advertising and trade shows are not yielding results Re-examine entire promotion strategy • Explore viability of outsourcing promotional activities to professional agency • More positive consumer reaction to advertising efforts • 50% improvement in leads and sales generated through trade shows 18 months Copyright © 2021 Pearson Canada, Inc. 2 - 15 Components of the Marketing Planning Process (5 of 5) • Articulate characteristics of a S M ART marketing objective – A good objective is defined by being: ▪ Stretch – Aspirational, far-reaching ▪ Measurable – We can figure out when we have reached it ▪ Achievable – While an effort, it is possible to achieve ▪ Relevant – What we are doing is important to the Mission ▪ Timely – There is a specific time frame in mind to achieve it Copyright © 2021 Pearson Canada, Inc. 2 - 16 Strategic Alternatives (1 of 2) • Compare marketing strategies for organizational growth – The two most important factors in growing and organization are: 1. New or existing consumers 2. New or existing products Copyright © 2021 Pearson Canada, Inc. 2 - 17 Strategic Alternatives (2 of 2) Figure 2.7 Strategic Alternatives Copyright © 2021 Pearson Canada, Inc. 2 - 18 The Marketing Mix (1 of 5) • The collection of activities that marketers use to achieve their marketing goals • The identification of the proper consumer to pursue Copyright © 2021 Pearson Canada, Inc. 2 - 19 The Marketing Mix (2 of 5) Figure 2.8 The Marketing Mix Copyright © 2021 Pearson Canada, Inc. 2 - 20 The Marketing Mix (3 of 5) • How consumers are identified in the marketing mix – The process is known as “segmenting, targeting, and positioning” Copyright © 2021 Pearson Canada, Inc. 2 - 21 The Marketing Mix (4 of 5) Figure 2.9 Marketing Terms: Segmentation, Targeting, and Positioning Term Definition Example Segmentation Dividing the world’s (or whatever size market your organization is working in— local, provincial, national) population into distinct, clearly identifiable groups Almost all households in developed nations buy shampoo. Recognizing that not all shampoo users have the same kind of hair or are looking for the same benefits, shampoo manufacturers divide the world of shampoo consumers into different “segments”: males, females, those who have dry hair, those who have oily hair, those who have scalp issues like dandruff or eczema, those whose hair is dyed or curled. These consumers have different needs, so marketers divide them (segment them) into distinct groups. Targeting Identifying which segment (or segments) to focus specific marketing activities against Some shampoo companies specialize in products that have medicinal properties for people with dry, itchy, or otherwise problematic scalps. They may focus exclusively on this particular segment with specialized products and advertising. Others may focus on consumer segments who value aesthetic properties such as shine, colour preservation, or manageability. The decision about which segment or segments to target is based on the company’s specific areas of strength and opportunity (see 2.2.2 Construct a Situation Analysis) and their preferred Strategic Alternatives (see 2.3 Strategic Alternatives). Positioning How to talk about the product and its benefits in a way that is relevant to the target A medicinal shampoo may want to talk about itself in a way that sounds clinical rather than focusing on aesthetic benefits, scent, or other aspects that would not be important to that target consumer and might even diminish the product’s credibility. Similarly, a shampoo targeted to women may focus more on shine, beauty, and manageability versus one for men that might focus more on its “manly” image or convenience. Copyright © 2021 Pearson Canada, Inc. 2 - 22 The Marketing Mix (5 of 5) • Define the roles of product, price, place, and promotion – Product – what we are marketing to consumers – Price – the value of the exchange – Promotion – how we will communicate to our consumer – Place – how consumers will access our product Copyright © 2021 Pearson Canada, Inc. 2 - 23 The Result of Marketing Activities (1 of 5) • Explain why organizations fail to achieve their missions – There are 4 reasons why an organization might fail to achieve its mission: 1. Their mission was not right 2. The goals and strategies were not right 3. Environmental changes affected the success 4. Execution was lacking Copyright © 2021 Pearson Canada, Inc. 2 - 24 The Result of Marketing Activities (2 of 5) • Understand portfolio evaluation – Portfolio evaluation allows the organization to review its products success through two lenses: 1. The growth rate of the overall industry 2. The growth rate of your organization within the industry Copyright © 2021 Pearson Canada, Inc. 2 - 25 The Result of Marketing Activities (3 of 5) Figure 2.10 Market Share Copyright © 2021 Pearson Canada, Inc. 2 - 26 The Result of Marketing Activities (4 of 5) • Describe how the Boston Consulting Group (B CG) matrix is used to evaluate an organization’s portfolio • A popular tool for organizing and planning portfolios 1. Stars – high market share and high industry growth 2. Dogs – low market share and low industry growth 3. Cash Cows – high market share but low industry growth 4. Question Marks – low market share in a high growth industry Copyright © 2021 Pearson Canada, Inc. 2 - 27 The Result of Marketing Activities (5 of 5) Figure 2.11 The B CG Matrix Copyright © 2021 Pearson Canada, Inc. 2 - 28 Summary • The organizational planning structure has been outlined • Marketing planning within the organization has been defined • The steps associated with the development of a marketing plan have been outlined • The mission statement has been defined • The situation analysis has been explained • The marketing mix has been introduced • The analysis of our results has been outlined Copyright © 2021 Pearson Canada, Inc. 2 - 29 Mini Case: Mary and Freda plan their vacation • Defining the difference between “mission” or “objective” and “strategy” or “tactic”, using the case of Mary and Freda’s vacation discussion. 1. What was the issue here from a marketing planning perspective? 2. How might Mary and Freda have approached the situation from a marketing planning perspective? Copyright © 2021 Pearson Canada, Inc. 2 - 30 Mini Case: Comparing strategic alternatives 1. Walmart and Nintendo took very different approaches to their growth Strategies. Describe Walmart’s approach and the reasoning for it? 2. How was Nintendo’s approach different? Why? Copyright © 2021 Pearson Canada, Inc. 2 - 31