Download Marketing Planning Marketing Plan - Parkway C-2

Strategic Planning
for Competitive
Advantage
1
Enduring Understandings for
Market Planning Unit
• Marketing is customer focused.
• Marketing is much more than
advertising and selling.
• A marketing plan is a roadmap
for all companies' business efforts.
Essential Questions for
Market Planning Unit
• What is marketing?
• How do marketers find their
customers?
• What makes marketing
dynamic?
• What causes a business to "close
its doors"?
The Importance of Strategic Marketing
What
Strategic Planning
Why
Long-term profitability
and growth
How
Write a marketing plan
GE, Toys R Us, McDonalds
Strategic Marketing Management
What is the organization’s main activity?
How will it reach its goals?
THE ANSWER IS A MARKETING PLAN.
Marketing Planning
Marketing Plan- A written document
that acts as a guidebook for the
marketing manager.
Building a marketing plan is more than just meeting and
knocking around ideas haphazardly…
And it’s DEFINITELY more than adopting a strategy
just because “all of a sudden” you decided it seemed like
a good idea…
A Marketing Plan is a Roadmap for All of
a Company’s Business Efforts
Marketing Plans are:
– Strategic and extensive
– Organized and analytical
– Either short or long range (depending on the company)
Marketing Plan Elements
Business Mission
Statement
Situation or SWOT
Analysis
Objectives
Marketing Strategy
Target Market
Strategy
Marketing Mix
Product
Distribution
Promotion
Price
Implementation
Evaluation
Control
Business Mission Statement
Q: What business are we in?
A: Business mission statement
Too narrow
Too broad
Just right
marketing myopia
no direction
focus on markets
served and benefits
customers seek
Star Trek Enterprise
Why is a mission statement important?
Starbucks Mission
Statement
Our mission: to
inspire and nurture
the human spirit –
one person, one
cup and one
neighborhood at a
time.
DECA Mission Statement
DECA prepares emerging leaders and
entrepreneurs for careers in marketing, finance,
hospitality and management in high schools and
colleges around the globe.
Nike Mission Statement
Our mission for the Nike brand is:
To bring inspiration and innovation to every athlete* in
the world.
*"If you have a body, you are an athlete."
Find a sample to share
Parkway Mission statement
Samples
Defining the Business Mission
•
Answers the question,
“What business are we in?”
•
Focuses on the market(s)
rather than the good or service
•
Strategic Business Units (SBUs) may
also have a mission statement
Strategic Business Unit (SBU)
• Company division or a
• Product line within a division or a
• Single product or company brand that has an
objective and mission different from other
company business
• Can be marketed independently from the rest
of the company.
Strategic Business Unit
(SBU)
• GE Technology Infrastructure
(healthcare, aviation,
transportation)
• GE Energy
(energy, oil & gas,
water)
• GE Capital
(Commercial Finance, GE
Money)
• NBC Universal
(television, music, film)
Marketing Plan Elements
Business Mission
Statement
Situation or SWOT
Analysis
Objectives
Marketing Strategy
Target Market
Strategy
Marketing Mix
Product
Distribution
Promotion
Price
Implementation
Evaluation
Control
Conducting a Situation Analysis
LO3
SWOT Analysis- Identifying internal
strengths and weaknesses and also
examining external
opportunities and threats.
SWOT Analysis
S
W
O
T
Things the company does well.
Internal
External
Things the company does not do well.
Conditions in the external environment that
favor strengths.
Conditions in the external environment that
do not relate to existing strengths or favor
areas©South-Western
of currentCollege
weakness.
Publishing
THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
Step 1: Situation (SWOT)
Analysis
• Situation Analysis
• SWOT Analysis
 Strengths
 Weaknesses
 Opportunities
 Threats
THE STRATEGIC MARKETING PROCESS
THE PLANNING PHASE
Step 1: Situation (SWOT)
Analysis
• SWOT Analysis Study
 Identify Industry Trends
 Analyze Competitors
 Assess the Organization
 Research Present and
Prospective Customers
Ben & Jerry’s SWOT analysis

production costs

marketing skills

financial resources

image

technology
ENVIRONMENT
INTERNAL
Components of a Situation Analysis
Environmental Scanning
Environmental Scanning- The collection
and interpretation of information about
forces, events, and relationships in the
external environment that may affect the
future of the organization or the
implementation of the marketing plan.
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
26
Marketing Objective
A statement of what is
to be accomplished
through marketing activities.
Marketing Objectives

Realistic

Measurable

Time specific

Compared to a
benchmark
“Our objective is to
increase sales of Purina
brand cat food by 15
percent over 2009 sales of
$300 million.”
Criteria for Good Marketing Objectives
Realistic, measurable, and time-specific objectives
consistent with the firm’s objectives:
1. Communicate marketing management philosophy
2. Provide management direction
3. Motivate employees
4. Force executives to think clearly
5. Allow for better evaluation of results
Marketing Plan Elements
Business Mission
Statement
Situation or SWOT
Analysis
Objectives
Marketing Strategy
Target Market
Strategy
Marketing Mix
Product
Distribution
Promotion
Price
Implementation
Evaluation
Control
Describing the Target Market
Discuss target
market strategies.
Vals Study
Marketing Strategy
Marketing Strategy- The activities
of selecting and describing one or
more target markets and developing
and maintaining a market mix that
will produce mutually satisfying
exchanges with target markets.
Target Market Strategy
• Segment the market based on
groups with similar characteristics
• Analyze the market based on attractiveness
of market segments
• Select one or more target markets
Target Market Strategy
Appeal to the entire market
with one marketing mix
Concentrate on one
marketing segment
Appeal to multiple markets
with multiple marketing mixes
The Concept of Market Segmentation
Bases for Segmenting Consumer Markets
Geography
• Region
• Market size
• Market
density
• Climate
Demographics
Psychographics
•
•
•
•
•
•
•
•
•
Age
Gender
Income
Race/ethnicity
Family life
cycle
Personality
Motives
Lifestyle
Geodemographics
Benefits
• Benefits
sought
Usage Rate
•
•
•
•
Former
Potential
1st time
Light or
irregular
• Medium
• Heavy
Family Life Cycle
How do we Understand the Pet Owner’s Attitudes?
There are
7distinct segments of pet owners and they all shop in your stores:
Segmentation study
tells us how pet
owners feel about
their pets and the role
food plays in that
relationship.
Their attitudes
influence the
brands they purchase
and their sensitivity
to price, promotion,
and assortment.
Expert Driven Providers
Expert advice – from veterinarian,
breeder or other perceived expert –
is very important.
 Information seekers
 Nutrition focused
 Primarily feed dry food
 Very low price sensitivity
Practical Providers
Uninvolved Owners
They like pets, but are not
goo-goo about them.
 Food must be:
- Affordable
- Quick
- Easy to feed
 Look for convenient, practical,
affordable food
 High price sensitivity
- Will switch for a good deal
Healthy Habitualists
Basic Food Feeders
Look for something easy
and nutritious.
Pet most likely belongs to the children,
but needs to be fed.
 Very brand loyal
 Not as worried about taste
 Food that looks like human food is
more appealing
 Very high price sensitivity
 High price sensitivity-look for sales
Indulgent Nutritionists
Pampering Preparers
Still searching for right balance of
taste and nutrition.
Homemade food is used to show love.
 Try new products
 Nutrition is important, but taste is paramount
 Food = Love
 Average price sensitivity
 Mix wet and dry
 Like variety
 Below average price sensitivity
 Store-bought food alone does not suffice
38
Segmentation Example
Macy’s Department store: classified into five
groups based upon demographics, values, and
attitudes.
For Example:
1. Fashion Statement-most affluent and
educated, use credit cards, expect to be
treated well by retail personnel.
2. Wanna-Buys –similar to a fashion statement
but with less income. Enjoy buying on
impulse.
Segmentation Example
3. Family Values – represent large families,
often are professionals, buying focuses on
children or the home
4. Down to Basics – Most likely to have
children, not college educated, careful
spenders, prefer not to use credit,
like coupons.
5. Matriarchs- older often retired, they like
department stores but are risk adverse
and have few purchase plans.
Who’s Who?
1.Fashion Statement
2.Family Values
3. Wanna Buy’s
4. Matriarch
5.Down-to-Basics
Who’s Who?
Matriach
Family
Values
Down-toBasics
Wanna
Buy’s
Fashion
Statement
Marketing Plan Elements
Business Mission
Statement
Situation or SWOT
Analysis
Objectives
Marketing Strategy
Target Market
Strategy
Marketing Mix
Product
Distribution
Promotion
Price
Implementation
Evaluation
Control
Strategic Directions
Identify strategic alternatives.
Competitive Advantage
Cost
Types of
Competitive
Advantage
Product/Service
Differentiation
Niche Strategies
Cost Competitive Advantage
Cost Competitive Advantage- Being the
low-cost competitor in an industry
while maintaining satisfactory
profit margins.
Examples:
Obtain inexpensive raw materials
Design products for ease of manufacture
Control overhead costs
Product differentiation
•
•
•
•
•
•
Brand Names
–Lexus
Product Reliability
-Maytag
Strong Dealer Network -Caterpillar tractor
Service
-Fed Ex
Image
–Neiman Marcus
Nike---Product Innovation -Nike Air and Nike
Shox
Niche Competitive Advantage
Niche
Competitive
Advantage
The advantage achieved when
a firm seeks to target and
effectively serve a small
segment of the market.
Example:
Sensodyne/Polident/Poligrip
Orvis—fishing company
Strategic Alternatives
Market
Penetration
Increase market share among
existing customers
McDonalds: Beanie Babies
Market
Development
Attract new customers to
existing products
Coke in India 850/350
Product
Development
Create new products for
present markets
Taco Bell Fresco Style
Diversification
Introduce new products
into new markets
Sony-Columbia pictures
Ansoff’s Strategic Opportunity
Matrix
Present Product
Present
Market
New
Market
New Product
Market
Penetration
Product
Development
McDonalds sells
More happy meals
With Disney promo
McDonalds introduces
Salads and McWater
Market
Development
Diversification
McDonalds opens
Restaurants in
China
McDonalds introduces
Line of children’s
clothing
Online
Strategic Alternatives
Identify strategic alternatives
Market development
=
customers
Market penetration
=
share
Product development
=
products
=
new products +
new markets
Diversification
SETTING STRATEGIC DIRECTIONS
WHERE DO WE WANT TO GO?
Business Portfolio Analysis
(BCG) Boston Consulting Group
Market Growth Rate
High
Stars
Question Marks
Cash Cows
Dogs
Low
High
Low
Relative Market Share
BCG business portfolio analysis for
Kodak’s consumer SBUs for 2003
(solid circle) and 2011 (hollow circle)
③
②
Kodak digital
picture frame
①
Kodak digital
photo printer
④
Kodak digital
camera
Kodak film sales: US,
Canada, & W. Europe
BCG Portfolio Matrix
Boston Consulting Group
Computer Example
Stars
Notebooks
Cash Cows
Laptops/
Personal
computer
Problem
Children/Question
Marks
Palm Pilots
Dogs
Mainframe
computer
Portfolio Matrix Strategies
Build
Pringles
Hold
Bisquick/General
Mills
Harvest
Lever
Brothers/Lifebuoy
Divest
Assignment
• Select a partner
• Select a business to of interest to research
• Design a BCG (Boston Consulting Group)
Model Matrix for the business using one
PowerPoint slide
• Include the company Stars, Cash Cows,
Problem Children/Question Marks and Dogs
Marketing Plan Elements
Business Mission
Statement
Situation or SWOT
Analysis
Objectives
Marketing Strategy
Target Market
Strategy
Marketing Mix
Product
Distribution
Promotion
Price
Implementation
Evaluation
Control
Marketing Mix: The “Four Ps”
Price
Promotion
Place
Product
Marketing Mix: The “Four Ps”
 The starting point of the
“4 Ps”
 Includes
 Physical unit
 Package
 Warranty
 Service
 Brand
 Image
 Value
Product
 Products can be…
 Tangible goods
 Ideas
 Services
Marketing Mix: The “Four Ps”
 Product availability where
and when customers want
them
 All activities from raw
materials to finished
products
 Ensure products arrive in
usable condition at
designated places when
needed
Place
Marketing Mix: The “Four Ps”
 Role is to bring about
exchanges with target
markets by:




Informing
Educating
Persuading
Reminding
Promotion
Includes integration of:
Personal selling
Advertising
Sales promotion
Public relations
Marketing Mix: The “Four Ps”
 Price is what a buyer must
give up to obtain a product.
Price
 The most flexible of the
“4 Ps”-- quickest to change
 Competitive weapon
 Price x Units Sold = Total Revenue
The elements of the marketing mix
must be blended to produce a cohesive
marketing program
Techniques for Effective Strategic Planning
Continual
attention
Creativity
Effective
Strategic
Planning
Management
commitment
Following Up the Marketing Plan
• Implementation
• Evaluation
• Control
• Marketing audit is…
•
•
•
•
Comprehensive
Systematic
Independent
Periodic
Implementation, Evaluation, and Control
Implementation
Evaluation
Product
Place
Promotion
Price
Met
objectives?
Audits
•
•
•
•
comprehensive
systematic
independent
periodic