1 PowerPoint Presentations for Effective Marketing Adapted for the First Canadian Edition by...

transcript

PowerPoint Presentations for

Effective Marketing

Adapted for the

First Canadian Edition by

Jennifer MonkAlgonquin College

2CHAPTER TWO

MARKETING MANAGEMENT: STRATEGY

Learning Objectives

1. Discuss the roles of marketing planning and execution at the corporate level, at the strategic business unit level, and at the operational level of management.

2. Understand the concept of the organizational mission.3. Understand the nature of competitive advantage.4. Explain the market/product mix.5. Identify the stages of the strategic marketing process.6. Understand the nature of marketing ethics and social

responsible behaviour.

Marketing Management

The process of:1. planning, 2. executing, and3. controlling marketing activities to attain the marketing goals and objectives effectively and efficiently.

Change is constant and therefore the process is a continuous process.

What is a marketing strategy?

A plan identifying what marketing goals and objectives will be pursued and how they will be achieved in the time available.

Planning: A Framework for the Future

Establishing goals and objectives

Envisioning the Future

Designing strategies to beimplemented in the future

Level of management planning

Planning: A Framework for the Future

Management Level

Planning Focus

Marketing Questions (visit page 31)

TopManagement

Corporate plans

What is the mission?Business structure?

Middle Management

Strategic Business Unit

Competitive strategy for growth?Competitive advantage?

OperationalManagement

Operational plans

How to support the competitive strategy?Weekly operational schedules

Top Management: Mission Statement

A mission statement is: A broad statement of the

company’s purpose Explains the purpose of the

organization Provides direction for the entire

company

Walt Disney’s Mission“The Walt Disney Company is committed to balance environmental stewardship with our corporate goals throughout the world”

http://corporate.disney.go.com/environmentality/mission_history.html

Top Management:Mission statement

Three Guiding Principles:1. Success depends on customer

satisfaction2. Consumer oriented perspective3. Avoid short-sighted, narrow-minded

thinking Consumer

wants?

Strategic business units (SBu)

Operates as a “company within a company” A SBU is organized around some common

element such as….

Industry Technology

TargetMarket

Customerneed

Boston consulting groups growth-share matrix

Commonly referred to as the BCG MatrixDevelop to evaluate SBU’s performance

based industry growth (vertical axis) versus relative market share (horizontal axis)

Assists management to determine resource allocation

Four categories: Stars, Cash cows, Dogs, Question Marks (see exhibit 2-3, page 34)

STAR QUESTIONMARK

CASHCOW

MARKET SHARE(Cash Generation)

LOWHIGH

Stars:High market share Rapid growthRequire significant cash

investmentMarket leaders & generate lots

of cashOver time growth will slow down

Two options: become a cash cow or a dog

Cash Cows: Market share is high and cash

generation is high Slow growth and low cash use Consistent cash flow to pay for

overheadPossible Objective:

strong cash cow - Hold share, weakening cash cow –

Harvest

Dogs:Low market share Low growthMoney pitPossible

Objectives: harvest or

divest

Question Marks: Low in market shareHigh in growth rateHigh use of cashSuccess is a gamblePossible Objectives:

Shows promise? Build Share

Dicey? Harvest or Divest

Marketing Strategies at the SBU LEVEL

Marketing managers focus on two key aspects of SBU strategies:

1. Establish a competitive advantage

Superior to or favourably different from competitors

Examples include: price leadership, differentiation strategy

2. Plan growth strategies (Visit Exhibit 2-5, page 37)

The Market/Product Matrix (Exhibit 2-5)

Market Penetration

MarketDevelopment

ProductDevelopment

Diversification

Existing

Markets

Planning business-unit growth strategies

The six stages of the Strategic marketing Process

Planning stages1. Identifying and evaluating opportunities2. Analyzing market segments and selecting target markets3. Planning a market position and developing a marketing

mix strategy4. Preparing a formal marketing plan

6. Controlling efforts and evaluating the results

5. Executing the plan

Stage One: Identifying and Evaluating Opportunities

Situation Analysis: two major components:1. Environmental scanning & monitoring

External forces and trends are identified as opportunities and threats

Forces include: sociocultural, demographic, economic, etc.

2. Internal analysis Internal strengths and weakness are

identified Key topics include: customers, suppliers

Stage One: Identifying and Evaluating Opportunities

Bringing the internal and external analysis together:

Strengths(build on)

Weaknesses

(deal with)

Opportunities

(take advantage)

Threats(avoid)

Internal Micro-environment

External Macro-environment

S.W.O.T

Stage Two: Analyzing Market Segments &

Selecting Target Markets Consumer Market (B2C) vs. Organizational

Markets (B2B) (Visit exhibit 2-8, page 42) Market segment

Portion of a larger market (i.e. French Canadians) Market segmentation

Dividing the mass market into smaller groups with similar characteristics that are likely to become the target market

Target marketThe specific group(s) the organization directs its

marketing mix towards

Stage Three: Market Positioning and Marketing Mix strategy

Market position:How consumers perceive a brand

relative to its competitionDeveloping marketing mix (4P’s):

ProductPricePlace (distribution)Promotion

Recall from

Chapter 1?

The yearly marketing plan is a written report that includes:Marketing objectives (S.M.A.R.T)Marketing strategiesMarketing mixResponsibility allocation Implementation timeline

Stage 4: preparing a Formal Marketing Plan

Putting the plan into action!Management best

practices:Ensure resources are

properly allocatedClearly understand and

communicate goals and expectations

Create reasonable expectations and deadlines

Stage 5: Executing the marketing plan

Marketing Audits: Ensure that planned activities are executed properly

Benchmark: establish performance standards

Supervision: investigate to ensure tasks have been completed “checking up”

Adjustments: evaluate to determine if goals have been achieved Yes? Continue with the planNo? Make adjustments and monitor

Stage 6: controlling efforts and evaluation results

Managerial Ethics & Socially Responsible Behavior

Marketing Ethics(Exhibit 2-10, page 49)

Moral Behaviour

Successful managers will take action by:1. Recognizing and clarifying the dilemma2. Getting all possible facts3. Listing the options – all of them4. Testing each option by asking:

“Is it legal? Is it right? Is it beneficial?”5. Making a decision6. Double checking the decision

“How would if feel if family and friends found out?”

“Would I feel the same if the decision was printed in the paper?”

7. Take the action if warranted

Resolving ethical dilemmas

IT’S OVER TO YOU…

You’re now in spot light! Please explain the following learningobjectives using your own words. 1. Discuss the roles of marketing planning and execution at

the corporate level, at the strategic business unit level, and at the operational level of management.

2. A good organization mission will (complete the sentence)3. Describe competitive advantage and market position4. Explain the market/product mix and the four embedded

marketing strategies5. Identify and explain the stages of the strategic marketing

process.6. Describe are the seven guidelines for overcoming ethical

dilemmas.

1 PowerPoint Presentations for Effective Marketing Adapted for the First Canadian Edition by...

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