Download Strategic Marketing Management Process

Chapter 15
Also includes
Appendix A
Accounting for
marketers
Strategic
Marketing
Management
Process
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-1
Strategic Planning
n
The managerial process of matching an
organisation’s resources with its
marketing opportunities over the long
run.
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-2
Strategic Planning
n
The process:
– Define organisation’s mission.
– Set organisational objectives.
– Evaluate organisation’s strategic business
units (SBU’s).
– Select strategy to achieve organisation’s
objectives.
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-3
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 and their
implementation to the changing environment
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-4
The Mission Statement
A mission statement is a short clear
statement defining the central reason
for an organisation’s existence.
n It answers the questions:
n
– What business are we in?
– What business should we be in?
n
It is expressed in terms of benefits.
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-5
Evaluating Strategic
Business Units
n
An analysis of current products and the
markets in which they are operating.
n
An SBU may be:
– A major division in an organisation
– A group of related products
– A single product or brand
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-6
B.C.G. Product Portfolio Analysis
COMPANY’S MARKET SHARE
INDUSTRY
GROWTH RATE
High
Low
High
Stars
Question marks
Cash cows
Dogs
Low
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-7
THE BOSTON CONSULTING GROUP MATRIX
• A strategic business unit (SBU) model can
be classified according to two 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.
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-8
THE BOSTON CONSULTING
GROUP MATRIX
They are divided into high and low
categories.
n They seek to reduce risk and optimise
outcomes and determine resource
allocation.
n A company should seek a balanced
portfolio of SBUs with a mix of stars,
cash cows, and questions marks, but
hopefully no dogs.
n
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-9
MARKET ATTRACTIVENESS
BUSINESS POSITION
High
Medium
Low
High
INVEST
INVEST
PROTECT
Medium
INVEST
PROTECT
HARVEST
PROTECT
HARVEST
DIVEST
Low
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-10
GENERAL ELECTRIC BUSINESS SCREEN
• Management can classify SBUs or major products
based on two factors, market attractiveness and
business position.
• Each of these factors is rated according to several
criteria.
• Each SBU is rated with respect to all criteria.
• Overall ratings (usually numerical scores) for both
factors are calculated for each SBU.
• Based on these ratings, each SBU is labelled as
high, medium, or low with respect to: (a) market
attractiveness, and (b) business position.
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-11
The Growth Matrix
PRESENT PRODUCTS
NEW PRODUCTS
PRESENT
MARKETS
Market
penetration
Product
development
NEW
MARKETS
Market
development
Diversification
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-12
The Growth Matrix
Market penetration—Marketing of
present products to present markets.
n Market development—Market
present products to new markets.
n Product development—Marketing
new products to present markets.
n Diversification—Market new products
to new markets.
n
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-13
Porter’s Generic Strategic
Model
n
Overall cost leadership
– Producing standardised product at a low
cost
n
Differentiation
– Market a USP (Unique Selling Proposition)
n
Focus
– Concentration on a small specialty market
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-14
Marketing Audit
n
A marketing audit is a comprehensive
review and evaluation of the marketing
function in an organisation.
– An audit examines:
Marketing strategy
n Structure of the marketing division
n Marketing systems
n Marketing productivity
n Marketing functions
n
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-15
PLANNING SEQUENCE
Strategic company planning
1. Define org. mission
3. Set org. objectives
2. Conduct situation analysis 4. Select appropriate strategies
Strategic marketing planning
4. Select target markets,
1. Conduct situation anal.
measure market demand
2. Develop marketing obj.
3. Determine positioning and 5. Design strategic
marketing mix
differential advantage
Annual marketing planning
Prepare annual marketing plan
for each major product and
company division
© 2001 McGraw-Hill
Australia PPT slides t/a Rix,AND
Marketing:
A Practical Approach 4th ed 15-16
IMPLEMENTATION
EVALUATION
.
Accounting for Marketers
Appendix A, Chapter 15
Accounting reports
n
Two types
– Balance Sheet
– Profit and Loss Statement
n
Balance Sheet—a snap-shot of the
financial position of a business at a
given point in time.
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-18
Balance sheet
n
Three main elements:
– Assets—What the company owns or is
owed.
– Liabilities—What the company owes to
others.
– Owner’s equity—The net worth of a firm.
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-19
Profit and loss statement
n
Usually structured as follows:
– Sales
– Less Cost of goods sold
– Equals Gross profit
– Less Expenses
– Equals Net profit
$
$____
$
$____
$____
(See Table 15A – 1 in the text)
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-20
Mark-up and gross margin
n
n
Dollar mark-up
Mark-up % ---------n
Cost
n
n
Dollar mark-up
Gross margin (mark-up %)----------n
(based on selling price)
Selling price
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-21
Analytical ratios
– Net profit percentage, Net profit
-----------------Net sales
– Expense ratio,
Expenses
--------------Net sales
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-22
Analytical ratios
n
Stock turn rate,
n
Rate of stock turn
--------------------average inventory at cost of
goods sold
Total dollar mark
down
n
n
cost of goods sold
Mark down %
-----------------------------Total net sales (given
period)
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-23
Analytical ratios
n
Average collection period
Net sales
-------------------------------------------
average accounts receivable (or
debtors)
n
Return on investment (ROI)
Net profit
ROI= -------sales
Sales
X
---------investment
© 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-24