Principles Of Marketing Chapter 2 - Strategic Planning

2- 1 PRINCIPLES OF MARKETING Chapter 2 Strategic Planning and the Marketing Process Strategic Planning Process 2- 2 Strategic Planning involves developing an overall company strategy for long-run survival and gr...

2- 1 PRINCIPLES OF MARKETING Chapter 2 Strategic Planning and the Marketing Process Strategic Planning Process 2- 2 Strategic Planning involves developing an overall company strategy for long-run survival and growth. This process involves: – Defining a Mission: Statement of an organization’s purpose; should be market oriented. – Setting Company Objectives: Supporting goals and objectives to guide the entire company. – Designing a Business Portfolio: Collection of businesses and products that make up the company. – Planning Functional Strategies: Detailed planning for each department designed to accomplish strategic objectives.  2-2-3 3 Mission Mission Statements Statements 2-3 Market Market Oriented Oriented Motivating Motivating Realistic Realistic Characteristics Characteristics of of Good Good Mission Mission Statements Statements Distinctive Distinctive Specific Specific Competencies Competencies Fit Fit Market Market Environment Environment  Copyright 1998 Prentice Hall 2- 4 Designing the Business Portfolio 2- 5 The best portfolio is the one that best fits the company’s strengths and weaknesses to the opportunities in the environment. The company must: –analyze its current business portfolio or Strategic Business Units (SBU’s) –decide which SBU’s should receive more, less, or no investment –develop growth strategies for adding new products or businesses to the portfolio 2- 6  2- 7 Planning at Different Managerial Levels 2- 8  2- 9 The Marketing Process 2- 10 2- 11  2- 12 Portfolio Matrix Question Marks – Low Market Share – High Market Growth Stars – High Market Share – High Market Growth Dogs – Low Market Share – Low Market Growth Cash Cows – High Market Share – Low Market Growth  2- 13 Mover Advantage  2- 14 SWOT Analysis Product/ Market Expansion Grid 2- 15 Market Penetration: increase sales to present customers with current products. How? Market Development: develop new markets with current products. How? Product Development: offering modified or new products to current customers. How? Diversification: new products for new markets. Marketing’s Role in Strategic 2- 16 Planning Process of Selecting Target Consumers –Market Segmentation: determining distinct groups of buyers (segments) with different needs. –Market Targeting: evaluating and selecting which target segments to enter. –Market Positioning: products distinctive and desirable place in the minds of target segments compared to competing products.  2- 17 Marketing Strategies for Competitive Advantage Market Leader – It is the company with the largest market share in an industry that can often use its dominance to affect competitive landscape. (Investopedia.com) Market Challenger – It is a firm that has a market share below market leader, but have enough presence to exert upward pressure. (investopedia.com) Market Follower – A company with lower market shares and less resources, that is content to follow the market leaders or becoming a challenger (pmlive.com) Market Nicher – They are marketers or companies who make specific products and/or services for specific demand. (mbaskool.com) Marketing Mix- The Four P’s 2- 18 Price Product “Goods-and-service” Amount of money combination that a that consumers company offers a have to pay to obtain target market the product Target Customers Intended Positioning Activities that Company activities persuade target that make the customers to buy product available the product Promotion Place