Chapter 2

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Chapter 2Chapter 2

Strategic Planning and the Marketing

Process

What is Marketing Planning?What is Marketing Planning?

Planning: Anticipating future events and conditions and determining the courses of action necessary to achieve organizational objectivesMarketing planning

Strategic Marketing Planning Levels

Mission/Goal StatementMission/Goal Statement

Corporate StrategyCorporate Strategy

SBU StrategySBU Strategy

Marketing StrategyMarketing Strategy

Marketing Mix ElementsMarketing Mix Elements

KraftAdding Products

to Increase Market Share

GM Ads Strengthen Relationships With Women Car Buyers

Strategic Planning versus Tactical PlanningStrategic Planning versus Tactical Planning

Strategic planning

Tactical planning

Planning at Different Organizational Planning at Different Organizational LevelsLevels

Top managers

Middle level managers

Supervisors

Steps in the Marketing Planning Steps in the Marketing Planning ProcessProcess

Defining the Organization’s MissionDefining the Organization’s Mission

Mission: the essential purpose that differentiates one company from another

CrestEducation

Programs: Part of Procter & Gamble’s Mission to Improve the Lives of Consumers

Determining Organizational ObjectivesDetermining Organizational ObjectivesAn organization lays out its basic objectives,

or goals, in its mission statementThese objectives guide development of

supporting marketing objectives and plans

Assessing Organizational Resources and Assessing Organizational Resources and Evaluating Environmental Risks and Evaluating Environmental Risks and OpportunitiesOpportunities

SWOT analysis: The study of a firm’s internal strengths and weaknesses and external opportunities and threats

Strategic window: a limited period with an optimal fit between the market and the firm

SWOT is an acronym for strengths, weaknesses, opportunities, and threats

Taking Advantage of a Strategic Window

Growth in Internet Creates a Strategic Window for

HydrogenMedia

Formulating a Marketing StrategyFormulating a Marketing StrategyMarketing strategy: a firm’s overall

program for selecting and satisfying a target marketRequires a careful balance of the

marketing mix elements – each of which represents a subset of the overall marketing strategy

This advertisement shows the Chrysler auto lineup including the

highly successful PT Cruiser.

Each product offering targets a specific market segment.

Elements of a Marketing StrategyElements of a Marketing Strategy

Blending the four strategy elements of marketing decision-making to satisfy chosen target marketsProductPriceDistributionPromotion

Target MarketTarget MarketGroup of

people toward whom the firm decides to direct its marketing efforts

Product StrategyProduct StrategyWhat goods or services to offerCustomer servicePackage designBrand namesTrademarksWarrantiesProduct Life Cycle PositioningNew-product development

Product Strategy: The cell phone is now positioned to

compete directly with land-lines as shown in this AT&T

advertisement.

Ad Stressing a New Package Design

(Part of the Total Product)

Elements of the Champion Product Strategy

Distribution StrategyDistribution StrategyModes of transportationWarehousingInventory controlOrder processingMarketing channels

This Ad illustrates the Challenges of Finding

Distribution for your Product.

Promotional StrategyPromotional StrategyBlending together the various elements of

promotion to communicate most effectively with the target marketadvertisingsales promotionpublic relationspersonal selling

This advertising campaign communicates effectively with

its Target Market

Advertising As a Part of the Pepto-Bismol Promotional Strategy

Pricing StrategyPricing StrategyDeals with the methods of setting profitable

and justifiable prices

The Marketing EnvironmentThe Marketing EnvironmentCompetitiveSocial – CulturalTechnologicalEconomicPolitical – Legal

The Competitive Environment, as well as, changes in Technology,

has influenced the way these two competitors differentiate their

product offerings.

TOYOTAAd Promotes a Product Developed for the Changing Legal and Social-Cultural Environments

Tools for Marketing PlanningTools for Marketing Planning

Strategic Business UnitsStrategic Business Units (SBUs) are key business units within diversified firmsA division, product line, or single product

may define an SBUFirms redesign their SBUs as market

conditions dictate

3MTape Products:

A 3M Strategic Business Unit

Market Share/ Market Growth MatrixMarket Share/ Market Growth Matrix: Classifies a firm’s products according to industry growth rates and market shares relative to competing products

Market Attractiveness/Business Market Attractiveness/Business Strength MatrixStrength Matrix: Rates SBUs according to the attractiveness of their markets and their organizational strengths

Market Share/ Market Growth Matrix

Market Attractiveness/Business Strength Matrix

Spreadsheet analysisSpreadsheet analysis helps planners anticipate marketing performance given specified sets of circumstances

Chapter 2

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