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Marketing
Chapter 2
Developing
Marketing Strategies
Dhruv Grewal
Michael Levy
McGraw-Hill/Irwin
Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved.
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Disney Goes Digital
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Global positioning
satellites
Smart sensors
Wireless technology
Mobile devices
Pal Mickey
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The Strategic Marketing Planning
Process
Steps in developing the strategic marketing plan
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Three Phases of a Strategic Plan
Planning
Implementing
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Controlling
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Step One: Defining the Mission
and/or Vision
1. Defining the Mission and/or Vision
MADD mission statement:
MADD strives to stop drunk driving, support the
victims of this violent crime and prevent underage
drinking.
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MADD Promotion
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Sustainable Competitive Advantage
Discussion question
What do you think are the keys to
McDonald’s sustainable advantage?
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Test Your Knowledge
What is sustainable competitive advantage?
A)
A broad description of the firms objectives and
scope of it’s activities.
B)
Tool used to evaluate marketing performance.
C)
Something the firm can consistently do better
than it’s competitors.
D)
Written document that discusses competitor
strengths and weaknesses, and the firms
advantages over them.
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Sustainable Competitive Advantage
What can a firm to do compete against a wellestablished market leader?
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Case in Point:
Apple Computers
Challenge
Answer
Results
Competing against a wellestablished market leader.
Produce high-quality, low cost,
easy to use products that
incorporate high technology for
the individual. We are proving
that high technology does not
have to be intimidating for
noncomputer experts.
54% increase in sales, over 2
million computers sold. 50,000
MacIntosh computers sold in the
first 100 days after launch.
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Step Two: Conduct a Situation
Analysis Using SWOT
2. Situation Analysis
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Step Three: Identifying and Evaluating
Opportunities Using STP
Segmentation
Targeting
Positioning
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Disney:
Segmentation, Targeting, Positioning
Magic Kingdom
Families w/younger kids
Pleasure Island
Singles and Couples
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Epcot
Adults, families w/older kids
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Test Your Knowledge
Which of the following refers to a group that responds similarly
to a firm’s marketing efforts?
A)
Segmentation
B)
Following the leader
C)
Targeting
D)
Positioning
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Step Four: Implement Marketing Mix
and Allocate Resources
4. Implementing Marketing Mix and Resources
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Product and Value Creation
Discussion question
How does satellite radio deliver value?
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Price and Value Capture
Customer perception of value.
Price is only a part of value.
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Pricing Strategies
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Cost-Based Pricing
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Competitor-Based Pricing
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Value-Based Pricing
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Implementing Pricing Strategies
The Internet has had a
dramatic impact on pricing
strategies.
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Place and Value Delivery
Must be readily accessible
 Examples:
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Staples integrated Internet
Vodaphone’s new “Quickphone”
vending machines
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Test Your Knowledge
One of the keys in place and value delivery is to provide the
consumer _______________.
A)
a wide product selection
B)
more than one channel of distribution
C)
a variety of media communication methods
D)
accessible management personnel to handle
complaints
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Promotion and Value Communication
Television
 Radio
 Magazines
 Sales force
 New Media
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Allocating Resources
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Step Five: Evaluate Performance and
Make Adjustments
5. Evaluate Performance
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Strategic Planning is Not Sequential
X
X
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Topic Two: Growth Strategies
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Test Your Knowledge
Which of the
strategy?
A)
B)
C)
D)
following is NOT considered a marketing growth
Market penetration
Diversification
Product development
Sequential planning
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Market Penetration
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Existing marketing mix
Existing customers
Discussion question
In what way is a sale a market
penetration strategy?
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Market Development Strategy
What can a company do to continue to
grow in a difficult retail environment?
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Case in Point: Dunkin Donuts
Challenge
Answer
Results
To continue to grow in a difficult
retail environment.
Continue an aggressive global
expansion strategy combined
with an expanding multi-channel
strategy.
4,400 US outlets, 1,700 non US in
29 countries including:
Philippines, Indonesia, South
Korea, and Thailand as well as in
the EU. Revenue worldwide of
$3.6 Billion
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Product Development
New product or service
Current target market
A good example is the Healthy Choice line.
What examples of product development can you identify?
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Ethical Dilemma 2.1:Microsoft’s Marketing
Penetration and Product Development
Strategies
When is a firm too big and too powerful?
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Diversification
New product or service
New market segment
Related
• Existing
vendors
• Same distribution system
• Same management information system
• Same advertising venue
Unrelated – no common elements with the present business
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Test Your Knowledge
A diversification strategy introduces a new product or service to
a market segment that _______________.
A)
is currently not served
B)
includes many ethnicities
C)
already exists
D)
does not traditionally respond to mixed media
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Entrepreneurial Marketing 2.1:
FedEX Kinkos
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New service/new market
Current service/current market
New service/current market
Current service/new market
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Topic Three: Macro Strategies
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Customer Excellence
Retaining loyalty with excellent
customer service.
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Operational Excellence
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Efficient operations
Excellent supply chain management
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Product Excellence
Achieving effective branding and positioning
Discussion question
How are these two firms positioned in
the market place?
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Adding Value 2.1: Customer Service
at Virgin Atlantic
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Focused on service
Three tiers of service
Even the lowest offers increased
service
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Chapter 2 Glossary
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Competitor-based pricing: When a firm prices below, at, or above its competitors’
offerings.
Cost-based pricing: When a firm determines the costs of producing or providing its
product and then adds a fixed amount above that total to arrive at the selling price.
Market penetration strategy: Employs the existing marketing mix and focuses the
firm’s efforts on existing customers.
Market segmentation: The process of dividing the market into groups of customers
with different needs, wants, or characteristics—who therefore might appreciate products
or services geared especially for them.
Mission statement: a broad description of a firm’s objectives and the scope of activities
it plans to undertake.
Positioning: When the firm decides which segments to pursue, it must determine how it
wants to be positioned within those segments so that target customers have a clear,
distinctive, desirable understanding of the product in comparison with competing
products.
Sustainable competitive advantage: Something the firm can persistently do better
than its competitors.
Targeting: After a firm has identified the various market segments it might pursue, it
evaluates each segment’s attractiveness and decides which to pursue.
Value-based pricing: When the firm first determines the perceived value of the product
from the customer’s point of view and then prices accordingly.