Download CHAPTER 2 – STRATEGY PLANNING

CHAPTER 2 –
STRATEGY
PLANNING
Target Marketing vs. Mass
Marketing
 TARGET
MARKETING
Marketing mix is tailored to fit
specific target customer(s)
 MASS MARKETING
Vaguely aims at "everyone" with the
same marketing mix
The Four Ps and Marketing
Mix Planning
PRODUCT
PROMOTION
PLACE
PRICE
(DISTRIBUTION)
Strategy Decision Areas Organized
by the 4 Ps
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing
Market Strategy =
Target Market + Marketing Mix
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing
The Marketing Plan
Marketing plan: a written statement of a
marketing strategy and the time related
details for carrying out the strategy.
 Spells out, in detail:

 What
marketing mix is to be offered
 To what target market
 For how long
 What resources (costs) are needed at what
rate
 What results are expected
 What control procedures will be used.
Elements of a Firm’s Marketing Program
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing
The Marketing Plan
• Marketing plan:
• Marketing Mix
Target Market
Time
Resources
Measurable Results
Control Procedures
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing
Overview of Strategy – Planning
Process
Marketing Strategy Planning
Process

Narrowing down from broad market
opportunities that a firm might pursue to a
specific strategy
 Marketing
strategy specifies a specific target
market and a specific marketing mix
 Not just “some” strategy, but one that will offer
target customers superior value

Segmentation helps pinpoint a specific target
market
Marketing Strategy Planning
Process cont’d



Differentiation helps pinpoint a marketing mix that is
different from and better than what is available from a
competitor
Screening criteria make it clear why you select a specific
strategy (and why others are “screened out”)
S.W.O.T. analysis identifies and lists a firm’s strengths
and weaknesses and its opportunities and threats

S.W.O.T helps identify relevant screening criteria (what is
needed to get a competitive advantage)
Competitive Advantage
Total Company
Effort to Satisfy
Customers
Profitable
Relationships with
Customers
Superior
Customer
Value
Customer
Retention
Customer
Acquisition
Customer
Satisfaction
Competitive Advantage

Requires that the firm:
 understand current competitors' offerings
 anticipate competitors' likely plans
 monitor effects of changes in competition
 REALLY understand the target customers'
needs
Examples of Different Types of
Opportunities

Market Penetration


Market Development


Marriott Hotels target families for weekend "get-aways" to rent
rooms filled by business travelers during the week
Product Development


Arm & Hammer promotes new uses of its baking soda
Microsoft develops a new version of its Windows operating
system to appeal to the people who bought an earlier version but
now want more features
Diversification

RJR, the cigarette producer, adds baked goods to its product line
to appeal to new customers
Four Basic Types of Opportunities