Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
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13-1
Chapter 13
Strategic marketing
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
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Strategic planning
Definition:• The managerial process of
matching an organisation’s resources with its marketing opportunities over the long run.
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
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Strategic planningThe process:• Define the organisation’s mission.• Set the organisational objectives.• Evaluate organisation’s strategic
business units (SBUs).• Select the strategy to achieve the
organisation’s objectives.
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
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13-4
The marketing management process
Planning• Analyse situation.• Set goals.• Select strategies and tactics.
Implementation• Organise.• Staff.• Direct.
Evaluation• Compare performance with goals.
Feedback so management can adapt future plans to the changing environment
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
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13-5
The mission statement
Definition:• A short, clear statement defining the
central reason for an organisation’s existence. It answers the questions:
– What business are we in?– What business should we be in?
• The mission statement is expressed in terms of benefits.
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
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13-6
Evaluating strategic business units (SBUs)
• Analysis of current products and the markets in which they are operating provides SBUs.
SBUs may be:
• A major division in an organisation.
• A group of related products.
• A single product or brand.
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by Joe Rosagrata
13-7
BCG product portfolio analysis
Insert Fig 13.2 P 424
Fig 13.4, p 424
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
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13-8
The Boston Consulting Group matrix
A strategic business unit (SBU) model can be classified according to 2 factors: – Its market share relative to competitors. – The growth rate of the industry in which
the SBU operates.
These models, known as portfolio analysis, assess the needs of particular SBUs.
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
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• SBUs are divided into high and low categories.
• The analysis seeks to reduce risk and optimise outcomes and determine resource allocation.
• A company should seek a balanced portfolio of SBUs with a mix of stars, cash cows, and questions marks but, hopefully, no dogs.
The Boston Consulting Group matrix
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by Joe Rosagrata
13-10
Business position
Fig 13.3, p 426
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
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General Electric business screen
Management can classify SBUs or major products based on 2 factors:
• Market attractiveness.• Business position.
The factors are rated according to several criteria.
Contd.
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
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• Each SBU is rated with respect to all criteria.
• Overall ratings (usually numerical scores) are calculated for each SBU.
• From these ratings, each SBU is labelled high, medium, or low with respect to:
– market attractiveness.– business position.
General Electric business screen
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by Joe Rosagrata
13-13
The product-market growth The product-market growth matrixmatrix
Fig 13.5, p 431
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
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13-14
The growth matrix
• Market penetration – Marketing of present products to present markets.
• Market development – Market present products to new markets.
• Product development – Marketing new products to present markets.
• Diversification – Market new products to new markets.
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
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13-15
Porter’s generic strategic model
• Overall cost leadership – Produce standardised product at a low cost.
• Differentiation – Market a USP (unique selling proposition).
• Focus – Concentrate on a small specialty market.
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
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13-16
Competitive market position and marketing strategy• Market leader – has the largest market share
and widest market coverage.• Market challenger – has the second or
third largest market share and widest market coverage.
• Market follower – follows the innovations of the leader and challengers.
• Market specialist – has the largest market share of a small segment within the market.
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
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13-17
Strategic company planning
1. Define organisational mission.2. Conduct situation analysis.3. Set organisational objectives.4. Select appropriate strategies.
Strategic marketing planning 1. Conduct situation analysis.
2. Develop marketing objectives.3. Determine positioning and differential advantage.4. Select target markets, measure market demand.5. Design strategic marketing mix.
Annual marketing planning Prepare annual marketing plan for each
major product and company division.
Planning sequence
Implementation and evaluation