Download Objectives - Cameron School of Business

Chapter 2:
Planning Marketing
Strategies
Pride/Ferrell
Foundations of Marketing
Fourth Edition
Prepared by Milton Pressley
University of New Orleans
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Objectives
1. Describe the strategic planning process.
2. Explain how organizational resources and
opportunities affect the planning process.
3. Understand the role of the mission statement in
strategic planning.
4. Examine corporate, business-unit, and marketing
strategies.
5. Understand the process of creating the marketing
plan.
6. Describe the marketing implementation process and
the major approaches to marketing implementation.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Strategic Planning Process
• The process of establishing an
organizational mission and formulating
goals, corporate strategy, marketing
objectives, marketing strategy, and a
marketing plan
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Understanding the Strategic
Planning Process
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Marketing Strategy
• A plan of action for
identifying and
analyzing a target market
and developing a
marketing mix to meet
the needs of that market.
The Marketing Strategy
Wendy’s targets the “late night”
market by keeping some of its
locations open until midnight
and beyond
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Effective Marketing Strategy
Reflects overall direction of organization
Coordinated with firm’s functional areas
Contributes to achievement of:
• Marketing objectives
• Organizational goals
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Assessing Organizational Resources
and Opportunities
Core
Competencies
Competitive
Advantage
Strategic
Windows
Market
Opportunities
The place where opportunities, core competencies, and strategic windows meet.
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Core Competencies
• Things a firm does extremely well, which
sometimes give it an advantage over its
competition
– McDonald’s consistent delivery of fast
food
– Starbuck’s gourmet coffee drinks
– BMW’s production of sporty, luxury
automobiles
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Marketing Plan
A written document that specifies the
activities to be performed to implement and
control an organization’s marketing
activities
– Strengths
– Weaknesses
– Opportunities
– Threats
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Market Opportunity
• A combination of circumstances and timing
that permits an organization to take action
to reach a particular target market.
– Real estate is all about Market Opportunity
– Explore www.realtor.com
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Strategic Window
• Temporary periods of optimal fit between
the key requirements of a market and the
particular capabilities of a firm competing
in the market.
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Competitive Advantage
• The result of a company’s matching a core
competency (superior skill or resources) to
opportunities in the marketplace
– cheaper, more widely available, stronger
service support, higher quality
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The Four-Cell SWOT Matrix
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Establishing an Organizational Mission
and Goals
Mission
Statement
Marketing Goals
and Objectives
Organizational Goals
and Objectives
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Mission Statement
• Mission Statement Answers:
– Who are our customers?
– What is our core competency?
• Corporate Identity
– Unique Symbols
– Personalities
– Philosophies
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Establishing an Organizational
Mission and Goals
• Mission Statement
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Discussion Question
• After reviewing the mission statements for FedEx
on the previous slide and the USPS (below), which
do you think is the better statement? Why?
Source: http://www.usps.com/postalhistory/_pdf/MissionandMotto.pdf#search='postal service. Accessed
Sept. 13, 2009)
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Marketing Objective
• A statement of what is to be accomplished
through marketing activities to match
strengths to opportunities, or to provide for
the conversion of weaknesses to strengths
– Should be stated in clear, simple terms
– Should be accurately measurable
– Should specify a time frame for
accomplishment
– Should be consistent with business-unit
and corporate strategy
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Developing Corporate, Business
Unit, and Marketing Strategies
Corporate and Business Unit Strategies
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Fig. 2.4 Levels of Strategic Planning
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Corporate Strategy
• A strategy that determines the means for utilizing
resources in the various functional areas to reach
the organization’s goals.
Corporate Strategy
Boeing continues to excel in producing innovative new jetliners such as
the Dream Liner
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Business-Unit Strategy
• Strategic Business Units (SBU)
– A division, product line, or other profit
center within a parent company
• Market
– a group of individuals and/or organizations
that have needs for products and the
ability, willingness and authority to buy
• Market Share
– the percentage of a market that actually
buys a specific product from a specific
company
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Marketing Strategy
Marketing
Strategy
Target Market
Selection
Creating a
Marketing Mix
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Target Market Selection
Selecting an appropriate target market may be
the most important decision a company has to
make.
Target Market
Selection
L.L. Bean targets
the outdoor
enthusiast with
many of its
products
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Marketing Strategy
• Components of marketing strategy
– Target Market Selection
– Creating the Marketing Mix
– Sustainable Competitive Advantage
• an advantage not readily copied by competitors
• Wal-Mart’s buying power as the world’s largest
retailer
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Creating the Marketing Mix
• All marketing mix
decisions should be
consistent with the business
unit and corporate
strategies.
Creating the Marketing Mix
Tropicana’s marketing mix is
designed to satisfy the needs
of health-conscious customers
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Creating the Marketing Plan
• Marketing Planning
– The process of assessing opportunities
and resources, determining objectives,
defining strategies, and establishing
guidelines for implementation and control
of the marketing program
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Table 2.1 Components of the Marketing Plan
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Marketing Implementation
Marketing
Implementation
Intended
Strategy
Realized
Strategy
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Implementing Marketing
Strategies
• The process of putting marketing strategies
into action
– Intended Strategy
– Realized Strategy
Intended
Strategy
Implementation
Realized
Strategy
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Approaches to Marketing
Implementation
• Customers
– External customers
– Internal customers
• Internal Marketing
– External Customers
– Internal Customers
• Total Quality Management
– Benchmarking
– Empowerment
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Approaches to Marketing
Implementation
Implementing
Marketing
Strategy
Internal
Marketing
Customer
Relationship
Management
Total Quality
Management
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Marketing Activities
Organizing Marketing Activities
Organizing
by
Functions
Organizing
by
Regions
Organizing
by
Products
Organizing
by
Types of
Customers
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The Control Marketing Process
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
After Reviewing This Chapter
You Should:
1. Be able to describe the strategic planning process.
2. Know how organizational resources and
opportunities affect the planning process.
3. Understand the role of the mission statement in
strategic planning.
4. Be able to examine corporate, business-unit, and
marketing strategies.
5. Understand the process of creating the marketing
plan.
6. Be able to describe the marketing implementation
process and the major approaches to marketing
implementation.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Key Concepts
•
Strategic planning
•
Sustainable competitive advantage
•
Marketing strategy
•
Marketing planning
•
Marketing plan
•
Marketing implementation
•
Core competencies
•
Intended strategy
•
Market opportunity
•
Realized strategy
•
Strategic windows
•
External customers
•
Competitive advantage
•
Internal customers
•
SWOT analysis
•
Internal marketing
•
Mission statement
•
Total quality management (TQM)
•
Marketing objective
•
Benchmarking
•
Corporate strategy
•
Empowerment
•
Strategic business unit (SBU)
•
Centralized organization
•
Market
•
Decentralized organization
•
Market share
•
Marketing control process
•
Market growth/market share
matrix
•
Performance standard
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.