Download Essentials of Marketing, 10e

CHAPTER TWO
Marketing Strategy
Planning
For use only with
Perreault and McCarthy
texts.
© 2006 McGraw-Hill
Companies, Inc.
McGraw-Hill/Irwin
www.mhhe.com/fourps
When we finish this lecture you should
1. Understand what a marketing manager
does.
2. Know what marketing strategy planning
is--and why it will be the focus of the
book.
3. Understand target marketing.
4. Be familiar with the four Ps in a
marketing mix.
5. Know the difference between a marketing
strategy, a marketing plan, and a
marketing program.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
When we finish this lecture you should
6. Be familiar with the text’s framework for
marketing strategy planning—and why it
involves a process of narrowing down
from broad opportunities to the most
attractive marketing strategy.
7. Know four broad types of marketing
opportunities that help in identifying new
strategies.
8. Understand why strategies for
opportunities in international markets
should be considered.
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Management Job in Marketing
Marketing
Planning
Control Marketing Plan(s)
and Program
Whole-Company
Strategic
Management
Planning
Implement Marketing
Plan(s) and Program
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exhibit 2-2
What is Marketing Strategy Planning?
The
marketing mix
C
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exhibit 2-3
Selecting a Market-Oriented Strategy Is Target Marketing
Production-oriented manager sees
everyone as basically similar and
practices “mass marketing”
Marketing-oriented manager sees
everyone as different and
practices “target marketing”
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
An Application of Target Marketing
+
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exhibit 2-4
Developing Marketing Mixes for Target Markets
Product
Place
C
Price
Promotion
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Product Element of the Marketing Mix
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
+
Exhibit 2-6
The Place Element of the Marketing Mix
Examples of Channels of Distribution
AOL
Del
Monte
Procter &
Gamble
Wholesaler
Wholesaler
Nissan
Wholesaler
Retailer
Retailer
Consumer
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Retailer
The Promotion Element of the Marketing Mix
Personal
Selling
Advertising
Telling and
Selling
the Customer
Sales
Promotion
Publicity
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Price Element of the Marketing Mix
Price of Other
Products In
the Line
Competition
and
Substitutes
Price
Sensitivity
Cost and
Demand
Pricing
Objectives
Price
Setting
Legal
Environment
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Price
Flexibility
Price Changes
Over the Life
Cycle
Discounts
and
Allowances
Geographic
Pricing Terms
Interactive Exercise: Marketing Mix
Product
Place
C
Price
Promotion
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
All Four Ps Contribute to the Whole
Product
Place
Promotion
Selection
of Target
Market
Price
Understanding the Target Market Leads to Good Strategies!
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Marketing Plan Guides
Implementation and Control
Target
Market
+
Marketing
Mix
=
Marketing
Strategy
+
TimeRelated
Details
=
Marketing
Plan
+
Other
Marketing
Plans
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
=
A Firm’s
Marketing
Program
The Importance of Marketing Strategy Planning
Strategy Decisions Usually Determine
Success and Failure
•
Timex had captured a large
market share
•
Low price, dependability, good
ads, unconventional channels
•
Stiff competition arose
•
New product refinements
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Creative Strategy Planning Needed for Survival
Death-wish
marketing
Best-practices
marketing
(Below
average)
68%
(Average
Marketing
Program)
(Well below
average)
2%
Failure
(Above
average)
14%
Poor
Fair
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
(Well above
average)
14%
Good
2%
Exceptional
What Are Attractive Opportunities?
Breakthrough
Opportunities
Avoid Hit-or-Miss
Marketing
Competitive
Advantage
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Importance of Good Research
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exhibit 2-10
Marketing Strategy Planning Process Highlights Opportunities
External Market Environment
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exhibit 2-11
Types of Opportunities to Pursue
Present products
New products
Present
markets
Market
penetration
Product
development
New
markets
Market
development
Diversification
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Market Penetration
+
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Product Development
+
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Product Development
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Interactive Exercise: Types of Growth
Opportunities for Marketing Strategy
Present products
New products
Present
markets
Market
penetration
Product
development
New
markets
Market
development
Diversification
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
International Opportunities Should Be Considered
Smaller
World
Competitive
Advantage
Early Start
Better
Trends?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Global Competitive Advantage
+
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Key Terms
•
Marketing
management process
•
Strategic
(management)
planning
Marketing strategy
Target market
Marketing mix
Target marketing
Mass marketing
Channel of
distribution
•
•
•
•
•
•
• Personal selling
• Mass selling
• Advertising
• Publicity
• Sales promotion
• Marketing plan
• Implementation
• Operational decisions
• Marketing program
• Breakthrough opportunities
• Competitive advantage
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Key Terms
• Differentiation
• S.W.O.T. analysis
• Market penetration
• Market development
• Product development
• Diversification
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin