May 5th Lecture

8/7/2019 May 5th Lecture

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Marketing StrategyMarketing Strategy

& Environment& Environment

May 5th


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Last ClassLast Class

What is marketing

The objective (tasks) of marketing

needs/wants; market/marketplace, customersatisfaction,

4Ps;

What is good marketing


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Todays TopicsTodays Topics

Steps for marketing plan

Situational analysis (SWOT)

Marketing environment scan


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Organizations Mission driven by strategic

planning.

Strategic Planningis the process of

developing and maintaining a strategic fitbetween the organizations goals and

capabilities and its changing marketing

opportunities.


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Before PlanningBefore Planning

Why we need a marketing plan?

Sets the common goals for team

Draws the roadmap toward common goals

Provides a basis forevaluate the performance

But wait

Before the planning, lets hear what boss says


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Levels of strategy in organizations


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Strategic IssuesStrategic Issues

Higher level strategy issues that

influences Marketing Plan:

Business Mission Statement

Goals set for marketing activities

The attention and resources allocation within a

company (Future development direction)


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Setting Goals & DirectionsSetting Goals & Directions

Corporate level strategy issues thatinfluences Marketing Plan:

Business Mission Statementstates thestates theorganizations purpose, and provides directionsorganizations purpose, and provides directionsof development.of development.

Focus on the markets instead of productsFocus on the markets instead of productsNot too broad not too narrow(e.g.,Not too broad not too narrow(e.g.,Frito_Lay,Telus)Frito_Lay,Telus)

Avoid marketing myopiaAvoid marketing myopia


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ExampleExample

McDonald's vision is to be the world's best quick servicerestaurant experience. Being the best means providingoutstanding quality, service, cleanliness and value, so thatwe make every customer in every restaurant smile. Toachieve our vision, we are focused on three worldwide

strategies:Be the best employer for our people in each community

around the world,

Deliver operational excellence to our customers in each ofour restaurants, and

Achieve enduring profitable growth by expanding thebrand and leveraging the strengths of the McDonald'ssystem through innovation and technology.


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ExampleExample

Dell's mission is to be the most successful computercompany in the world atdelivering the best customerexperience in markets we serve. In doing so, Dell willmeet customer expectations of:

Highest qualityLeading technology

Competitive pricing

Individual and company accountability

Best-in-class service and support

Flexible customization capability

Superior corporate citizenship

Financial stability


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Setting Strategic GoalsSetting Strategic Goals


Profit, Sales Revenue, Unit Sales

Market Share

Quality, Customer Satisfaction

Employee welfare, Social responsibility


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Setting Strategic GoalsSetting Strategic Goals


Statements of what is to be accomplished through

marketing activities.

Realistic, measurable, and time specific

Consistent, indicating the priorities of the organization.


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Goal StatementGoal Statement


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A company could have more than one

product (or lines of product)

The business portfolio is the collection of

businesses and products that make up the

company.

Not every product gets same attention and

resources

How to decide

Strategic Planning involves optimizing the returns fromthe Business Portfolio.


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The company must:

Analyze its currentbusiness portfolio orStrategic

Business Units (SBUs).

Definition: an organization (or a part of an organization)

that markets a set of related products to clearly defined

group of customers.

Canon: http://www.canon.ca/inetCA/marketHome?msegid=5

3M: http://www.3m.com/Product/opunits.html#top
http://www.canon.ca/inetCA/marketHome?msegid=5http://www.3m.com/Product/opunits.htmlhttp://www.3m.com/Product/opunits.htmlhttp://www.canon.ca/inetCA/marketHome?msegid=5


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Business Portfolio Analysis (BCG Matrix)BCG: Boston Consulting Group

What strategic decisions the company is faced with?


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Business Portfolio Analysis (BCG Matrix)BCG: Boston Consulting Group

Low

High

High Low

Relative Market share

Nurture

to feedcash to

Usecash to

makeintostar

Defend

position

Fix or abandon

Market

Growthrate


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ExampleExample

A large Computer Manufacturer

Laptop and personal computers

Subnotebooks / Handheld computers

Integrated phone

Mainframe computer
http://en.wikipedia.org/wiki/File:MacBookEeePCNintendoDS.JPG


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ExampleExample

Laptop and personal

computers

Integrated phone

Subnotebooks

Low

High

High Low

Market share

MarketGrowthrate

??

Mainframe computer


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ExampleExample

Laptop and personal

computers

Integrated phone

Subnotebooks

Low

High

High Low

Market share

MarketGrowthrate

??

Mainframe computerHoldHold


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ExampleExample

Laptop and personal

computers

Integrated phone

Subnotebooks

Low

High

High Low

Market share

MarketGrowthrate

??

Mainframe computerBuildBuild


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ExampleExample

Laptop and personal

computers

Integrated phone

Subnotebooks

Low

High

High Low

Market share

MarketGrowthrate

??

Mainframe computer

HarvestHarvest


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ExampleExample

Laptop and personal

computers

Integrated phone

Subnotebooks

Low

High

High Low

Market share

MarketGrowthrate

??

Mainframe computer

DivestDivest SOL

D


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Market-Product Analysis


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Examples


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One glass of milk is good, but two is

better


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ExampleExample

ARM & HAMMER Fridge FreshRefrigerator Air Filter

ARM & HAMMER Clear Balance PoolMaintenance Tablets


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ExampleExample


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ExampleExample


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Before PlanningBefore Planning (summary)(summary)

If you are going to make a marketing plan

for a business unit, now we are clear

about:

The business mission - FitFit

The goal set for marketing plan - AchieveAchieve

The possible resource you can get from your

company (or direction) - AdaptAdapt


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Marketing PlanMarketing Plan

For any kind of planning, we need to

figure out:

Where are we now?

Where do we want to go?

How can we get there?


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Steps for Marketing Plan



Marketing Mix

Product

Promotion

DistributionDistribution

Price

Situational analysis

Segmentation &

Positioning


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Step-1 Situational (SWOT) analysis

Favourable Unfavourable

Internal

Strengths Weaknesses

External Opportunities Threats


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Step-2 Segmentation and positioning

Segmentation: separate consumers into groups

Targeting: find a specific group to concentrate

your marketing effort

Positioning: differentiate your product from

competitors


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Step-3 Marketing Program


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Steps for Marketing Plan



Marketing Mix

Product

Promotion

DistributionDistribution

Price

Situational analysis

Segmentation &

Positioning


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Step-1 Situational (SWOT) analysis


Internal

Strengths Weaknesses



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SWOT analysisSWOT analysis

SW

OT

Things the company does well.

Things the company does not do well.

Conditions in the external

environment that favourstrengths.

Conditions in the external environmentthat do not relate to existing strengthsor favor areas of current weakness.

Inter

nal

Externa

l


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How to Do SWOT Analysis?

Identifying trends in the firms industry

Analyzing the firms competitors

Assessing the firm itself

Researching the firms present andprospective customers


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Strengths

andWeaknessesINTERNAL

Company/Brand Image

Customer resources

Production Costs

Marketing Skills

Employee Capabilities

Financial Resources

Available Technology


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Opportunities

andThreatsEXTERNAL

Socio-cultural

Demographic

Economic

TechnologicalPolitical/Legal

Competitive


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ExerciseExercise

S-Powerful retail brand-Value for money

-Global growth

-IT management Advantage

-Good strategy for HR management

W-Huge span of control-Less flexibility

-Few countries worldwide (14 countries)

Wal-Mart

O-Merge with global retailers

-Expanding global markets-Diversify store types

T-Target of competition

-Political problems-Price competition


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ExerciseExercise

McGill Bookstore


Internal Strengths Weaknesses


Strengths Company/Brand Image


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Strengthsand

Weaknesses

INTERNAL

p y g

Customer resource

Production Costs

Marketing Skills

Employee Capabilities

Financial Resources

Available Technology

Opportunitiesand

Threats

EXTERNAL

Socio-cultural

Demographic

Economic

Technological

Political/Legal

Competitive


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ExerciseExerciseMcGill Bookstore Favourable Unfavourable

Internal Strengths1.

Weaknesses1.

External Opportunities

1.

Threats

1.


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Internal Build a Strengths Correct aWeaknesses

External Exploit anOpportunities

Avoid a Threats


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Environmental ScanEnvironmental Scan

Social

Economic

TechnologicalCompetitive

Regulatory

Trend !Trend !

Business OrganizationBusiness Organization

ConsumersConsumers

ValueSomething

to Exchange(Profit)


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Microenvironment

Actors close to the company that affect its

ability to serve its customers

Unique to the company


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Microenvironment


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Macro-environment

Larger societal forces that affect the

microenvironment

Considered to be beyond the control of the

organization



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Macro-environment


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Case: GoodLife Fitness


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Environmental Scan for Canada

as a MarketText Book Chapter 3


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Demographic Environment:

Canada: population is expected to exceed 33

million by 2011Changing age structure within Canada

The three largest age groups are: the baby

boomers, Generation X, and Generation Y.

Better Educated People

Environmental Scan (social)Environmental Scan (social)


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The Changing Canadian Household

Delayed marriages

Fewer children

High divorce rate

Single-parent families

Working women: 48% of work force


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Increasing cultural diversityCanada is more of a cultural mosaic, than the melting

pot of the U.S.

Ethnic markets are not easily targeted and served

Diversity includes more than just ethnicity: gay/lesbian

population

Respecting diversity may be the key to economic

survival for many companies


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Environmental Scan (Economic)Environmental Scan (Economic)

Factors that affect consumer buying

power and spending patternsChanges in Income

Changes in income distribution

Changing Consumer Spending Patterns

Types of economy will influenceresources to work with


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Environmental ScanEnvironmental Scan (Technological)

The most dramatic force shaping our

destiny

Rapidly changing force which creates

many new marketing opportunities but

also turns many existing products extinct

Uncontrollable?

Research and development is a key element


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Environmental ScanEnvironmental Scan (Regulatory)

Consists of laws, government agencies, andpressure groups that influence organizationsand individuals

Protect competition

Protect consumers and the interests of society

Protect the interests of society


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Environmental ScanEnvironmental Scan (Others)

Trends in natural environment changes

Shortages of raw materials

Increased pollution

Increased government intervention

Canadian federal law: Environmental

Protection Act (1989)

Green movementFocus on environmental sustainability

strategies


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Being and good environmental scanner,

you need to be:

Constantly monitoring

Thorough, but keep relevant information

Find trend, but trend is something not

happened yetBuild on O and avoid T, but sometimes it is

hard to tell O and T


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SummarySummary

Marketing activitiesPlan, Implement, Control

Marketing Plan:

Situational analysis (SWOT)Segmentation, targeting, and positioning

Marketing mix (program)

Situational analysis:

SWOT: environmental scan


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Next ClassNext Class

Librarian Presentation

Forming Group

Attendance MandatoryAttendance Mandatory

Consumer Behavior

Quantitative Analysis


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Important: Quantitative

Materials on the WebCT.Please Download and Study!


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Next ClassNext Class

Come on time

Bring quantitative materials and calculator

Prepare for your new product idea

And prepare for your first group meeting

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May 5th Lecture

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