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Strategic marketing
Chapter 13
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by Joe Rosagrata
13-1
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
Slides prepared by Joe Rosagrata
13-2
Strategic planning
The 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
Slides prepared by Joe Rosagrata
13-3
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
Slides prepared by Joe Rosagrata
13-4
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
Slides prepared by Joe Rosagrata
13-5
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
13-6
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
Slides prepared by Joe Rosagrata
13-7
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
Slides prepared by Joe Rosagrata
13-8
The Boston Consulting Group
matrix
• 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.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by Joe Rosagrata
13-9
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
Slides prepared by Joe Rosagrata
13-10
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
Slides prepared by Joe Rosagrata
13-11
General Electric business screen
• 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.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by Joe Rosagrata
13-12
The product-market growth
matrix
Fig 13.5, p 431
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 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
Slides prepared by Joe Rosagrata
13-14
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
Slides prepared by Joe Rosagrata
13-15
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
Slides prepared by Joe Rosagrata
13-16
Strategic
company
planning
Strategic
marketing
planning
Annual
marketing
planning
Planning sequence
1. Define organisational mission.
2. Conduct situation analysis.
3. Set organisational objectives.
4. Select appropriate strategies.
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.
Prepare annual marketing plan for each
major product and company division.
Implementation and evaluation
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix
Slides prepared by Joe Rosagrata
13-17