advertisement

ch02 Mktg Strategy PFkotZik n42 29aug06

60 %
40 %
advertisement
Information about ch02 Mktg Strategy PFkotZik n42 29aug06
Entertainment

Published on January 14, 2008

Author: Camilla

Source: authorstream.com

advertisement

Planning The Framework for the Future.. developing and maintaining a strategic fit between the organization’s capabilities and its changing marketing opportunities.” :  Planning The Framework for the Future.. developing and maintaining a strategic fit between the organization’s capabilities and its changing marketing opportunities.” Chapter 2 Strategic Planning Components of Strategic Planning:  Components of Strategic Planning Analysis of Organization's Strengths and Weaknesses And identification of Opportunities & Threats Organizational Mission and Goals Corporate and Business-Unit Strategies MARKETING Objectives Strategy Marketing Plan PRODUCTION Objectives Strategy Production Plan FINANCE Objectives Strategy Finance Plan HUMAN RESOURCES Objectives Strategy Human Re- sources Plan Source: Adapted from Marketing Strategy by O.C. Ferrell, Michael Hartline, George Lucas, and David J. Luck. Copyright © 1999 by Harcourt Brace & Company, reproduced by permission of the publisher. SWOT Stage 1 Assess Organizational Opportunities and Resources:  Stage 1 Assess Organizational Opportunities and Resources + “Uncontrollable” Environmental Events Timing Market Opportunity (Circumstances) The Billion dollar Aftermath of Hurricane Francis & Charlie (2004) Katrina (Sept,2005)..april,2006 $1.4 bil false claims & illegal payments :  The Billion dollar Aftermath of Hurricane Francis & Charlie (2004) Katrina (Sept,2005)..april,2006 $1.4 bil false claims & illegal payments Market Opportunity .. circumstances & timing that allow a company to take action to reach a target market Assessing Organizational Opportunities and Resources :  Assessing Organizational Opportunities and Resources Will it fit? Strategic Windows Core Competencies (Relative skills) A temporary period of optimal fit between the key requirements of a market and a firm’s capabilities Marketing Mix Assessing Organizational Opportunities and Resources:  Assessing Organizational Opportunities and Resources A Competitive Advantage exists when your core competencies (relative to competition) match marketplace opportunities …identifies a company’s competitive advantage that can be absolute or relative Physical or Psychological Levels of Strategic Planning (Stage 1 SWOT Analysis):  Levels of Strategic Planning (Stage 1 SWOT Analysis) Stage 2: Establish a Corporate Mission Statement:  Stage 2: Establish a Corporate Mission Statement Mission statement is set by top management A long-term view, or vision, of what the organization wants to become Key Questions What business are we in? What is our core competency? How do we organize? Who are our customers? What are L-T goals? Key Goals Provides direction for the entire direction Supports a consumer-oriented perspective Includes a statement of ethical credo Slide9:  Distinguishes from competing organizations Gives a clear purpose and direction for strategic planning In Theory: Fosters a marketing orientation Mission Statement Benefits In Reality: Marketing Myopia often occurs which is a failure to define its purpose from a consumer orientation perspective. Slide10:  Clip art from Ben and Jerry’s © Ben & Jerry's Homemade Holdings, Inc. 1999. Ben & Jerry's is a trademark of Ben & Jerry's Homemade Holdings, Inc. Used with permission of Ben & Jerry's Homemade Holdings, Inc., 1999. Example Slide11:  Remember: In THEORY- a consumer orientation In REALITY- absence of a customer orientation The vision should be refocused because . . . . . Just as companies operate to meet the organization’s needs Customers will take actions to meet their own needs The Corporate Vision (Avoid marketing myopia) Developing Corporate and Business-Unit Strategies:  Market orientation: The organizationwide generation of, dissemination of and responsiveness to market intelligence pertaining to current and future customer needs. Developing Corporate and Business-Unit Strategies Stages 3-4 Slide13:  A SBU is self supporting profit center organized around some meaningful common element such as…. SBU Corporate & Business-Unit Strategy Strategic Business Unit (SBU) Analyze the current business portfolio & shape the future business portfolio: build, hold, harvest, divest SBU ‘s change positions overtime What Is A Market ?:  What Is A Market ? A market is . . . Access to a Sufficient Number of potential customers sharing similar wants/needs Who Want the Available Product Who have Sufficient Resources $ who are willing to exchange value (Spend $) and are eligible (legal) to buy Examples of Market Growth-Market Share Boundaries:  Examples of Market Growth-Market Share Boundaries Product or service category Geography Physical customer groupings Examples: People who buy luxury cars Intangibles Westerners prefer dark roasted coffee Hospitals have different needs than corporate health centers Low-end versus high-end market Present customers (users) and prospects Boston Consulting Group’s Market Growth- Market Share Matrix:  Boston Consulting Group’s Market Growth- Market Share Matrix High Relative Market Share High Low Low Product-Market Growth (%) A strategic planning tool based on the philosophy that a product’s market growth rate and market share are important in determining marketing strategy Portfolio Analysis Increase market share, increase economies of scale, increase profits Market Growth – Market Share Matrix:  Market Growth – Market Share Matrix High Relative Market Share High Low STARS PROBLEM CHILD CASH COWS DOGS Low Product-Market Growth (%) Source: Perspectives. No. 66. “The Product Portfolio.” Reprinted by permission from the Boston Consulting Group, Inc. Boston, MA Copyright ã 1970. Low market share in growth mkt needs much cash to incr mkt sh Product – Market Growth Strategies:  Market Penetration Product Development Market Development Present New P R O D U C T New M A R K E T Diversification Present Source: H.I. Ansoff, New Corporate Strategy (New York: Wiley, 1988), p. 109. Product – Market Growth Strategies (minimize risk) Product Strategy :  Product Strategy Market Penetration Increase share of existing product in existing market Two strategies: Persuade users to buy more product OR Take business from competitors Present product Present market Product Strategy :  Product Strategy Market Development Find new uses for existing product Two strategies: Find new markets for product OR Aim at a broader market Present product New market Product Strategy :  Product Strategy Product Development Major modification of the product for the current market New product Present market Launch new products in new market to minimize risk New product New market Diversification (minimize risk) Product Strategy: Standardization or Customize:  Product Strategy: Standardization or Customize Sell product as is Modify product for other country Design new product for new markets Introduce a global product Strategy Development via Gap Analysis, Five strategy scenarios::  Strategy Development via Gap Analysis, Five strategy scenarios: Existing (market) usage (EU) Market potential (MP) MP = UG + EU EU = DG+PG+CG+ES Real market share = ES ---- EU Gap Analysis: Usage Gap:  Gap Analysis: Usage Gap Gap between the total potential for the market and the actual current usage by customers. Gap Analysis: Distribution Gap Sales potential in geographic regions or distribution channels where product is not currently distributed. Gap Analysis: Product Gap:  Gap Analysis: Product Gap Firm does not have product offerings in certain segments. X Differences in the effectiveness of a firm’s marketing strategy relative to its competitors. Gap Analysis: Competitive Gap Slide26:  Marketing Strategy Marketing Mix Elements based on audience needs Marketing Plan Formal marketing plans often are not developed as manager’s spend time on daily problems. Slide27:  A Marketing Strategy is an action plan to identify marketing objectives and how they will be achieved in the time available. Marketing strategy specifies … The creative Marketing Mix Based on information about Target Market Needs Developing Marketing Strategy The marketing strategy entails commitments to specified courses of action and allocation of the resources necessary to achieve the identified goals. Planning Is a Continuous Cycle:  Planning Is a Continuous Cycle 1. Assess Marketing Opportunities and Resources 4. Develop or Revise Plan for Imple- mentation and Control 3. Revise or Formulate Marketing Strategy 2. Develop or Revise Mktg. Goals Relative to Performance Short Range – Medium Range - Long Range The Strategic Marketing Process:  The Strategic Marketing Process 6. Execute the plan Control set performance standards, evaluate the results & reduce any gaps Theory Reality Desired Performance Actual Performance Approaches to Marketing Implementation:  Approaches to Marketing Implementation Internal Marketing Coordinating internal exchanges among its employees to achieve successful exchanges between the firm and its external customers Helping employees understand and accept their roles in the marketing strategy Internal customers A company’s employees Total Quality Management:  Total Quality Management Total Quality Management (TQM) A philosophy that uniform commitment to quality in all areas of the organization will promote a culture that meets customers’ perceptions of quality Benchmarking Comparing the quality of the firm’s products with that of the best-performing competitors Empowerment Giving customer-contact employees authority to make marketing decisions on their own Control – set performance standards, evaluate performance, reduce /eliminate desired & actual performance Stage Seven: Controlling Efforts and Evaluating Results:  Stage Seven: Controlling Efforts and Evaluating Results Use TQM skills . . . Supervision…set performance standards, compare & adjust Benchmark Empowerment Corporate Culture & Carl Icahn, corporate raider: Most company management is mediocre. CEO’s are survivors, they fear #2. (lean – bureaucratic, risk taking–avoidance) Source: CNBC,22May2002. Components of Total Quality Management:  Components of Total Quality Management Organizing Marketing Activities (Outcomes):  Organizing Marketing Activities (Outcomes) The Role of Marketing in an Organization depends .. Marketing Concept Sustainable competitive advantage & implementation overtime Marketing Unit Organization:  Marketing Unit Organization Low delegation of responsibilities, top management delegates little authority to levels below it. Decentralized has high delegation of authority There is no single best way! It depends… Levels of Management in Market Planning:  Levels of Management in Market Planning Slide37:  WSJ,13Sept04 New Target Market Current: Women 35+ New: Women 25-30 Applied Marketing Example: Market Development Diva is highlighted in the word Godiva, with the “Go” in a lighter shade New Marketing Campaign:  New Marketing Campaign “DIVA” is Italian for “Goddess”. Diva is Godiva’s new adv theme as “A diva feels that an indulgent lifestyle has been earned” It conveys a new message to core female customers- “Treat yourself, you’re a diva.” Ad theme is “you only live once.” Example ad: “Every woman is one part diva, much to the dismay of every man.” Media: Magazines Slide39:  Selection of a featured item every month in 275 boutiques in the U.S. Celebrity Dinner Auctions to promote truffles. Sale of small items (box of two truffles) as “divas” purchase chocolate for themselves Slide40:  I. Executive Summary II. Environmental Analysis The Marketing Environment Target Market(s) Current Marketing Objectives and Performance III. SWOT Analysis Strengths and Weaknesses Opportunities and Threats IV. Marketing Objectives (Role of Marketing) (Continued on next slide . . . ) Components of the Marketing Plan Slide41:  V. Marketing Strategies (Top Mgmt) Target Market Marketing Mix Sustainable Competitive Advantage VI. Marketing Implementation (Execute the plan) Marketing Organization Activities and Responsibilities Implementation Timetable VII. Evaluation and Control Performance Standards Financial Controls Monitoring Procedures (Audits) Components of the Marketing Plan Slide42:  OK, YOU SHOULD be able to . . . Describe the Strategic Planning Process Explain How Organizational Opportunities and Resources Affect the Planning Process Understand the Role of the Mission Statement Examine Corporate, Business-Unit, and Marketing Strategy Know About the Process of Creating the Marketing Plan

Add a comment

Related presentations