* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download chp1 - courses.psu.edu
First-mover advantage wikipedia , lookup
Grey market wikipedia , lookup
Service parts pricing wikipedia , lookup
Digital marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Market analysis wikipedia , lookup
Neuromarketing wikipedia , lookup
Youth marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Target audience wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Supermarket wikipedia , lookup
Direct marketing wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Multi-level marketing wikipedia , lookup
Segmenting-targeting-positioning wikipedia , lookup
Marketing channel wikipedia , lookup
Street marketing wikipedia , lookup
Advertising campaign wikipedia , lookup
Target market wikipedia , lookup
Product planning wikipedia , lookup
Multicultural marketing wikipedia , lookup
Market penetration wikipedia , lookup
Green marketing wikipedia , lookup
Sensory branding wikipedia , lookup
Global marketing wikipedia , lookup
J. Paul Peter • James H. Donnelly, Jr. 6th Edition Marketing Management P 1-1 Knowledge and Skills Chapter 1 P 1-2 Strategic Planning and the Marketing Process The Strategic Planning Process The Environment Cooperative Competitive Economic Social Political Legal The organization’s strategic plan INFORMATION Organizational Mission Organizational Objectives Organizational Strategies Organizational Portfolio Plan P 1-3 IMPLEMENTATION Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Mission Statements Organization Mission • Goodyear Our mission is constant improvement in products and services to meet our customers’ needs. This is the only means to business success for Goodyear and prosperity for its investors and employees. P 1-4 • Intel Corporation Do a great job for our customers, employees, and stockholders by being the preeminent building block supplier to the computing industry. (continued) SOURCE: Patricia Jones and Larry Kahaner, Say It and Live It: The 50 Corporate Mission Statements That Hit the Mark (New York: Doubleday, 1995). P 1-5 Mission Statements Organization Mission • Levi Strauss & Co. The mission of Levi Strauss & Co. is to sustain responsible commercial success as a global marketing company of branded casual apparel. We must balance goals of superior profitability and return on investment, leadership market positions, and superior products and service. We will conduct our business ethically and demonstrate leadership in satisfying our responsibilities to our communities and to society. Our work environment will be safe and productive and characterized by fair treatment, teamwork, open communications, personal accountability, and opportunities for growth and development. (continued) SOURCE: Patricia Jones and Larry Kahaner, Say It and Live It: The 50 Corporate Mission Statements That Hit the Mark (New York: Doubleday, 1995). P 1-6 Mission Statements Organization Mission • Merck & Co., Inc. The mission of Merck & Co., Inc., is to provide society with superior products and services— innovations and solutions that satisfy customer needs and improve their quality of life—to provide employees with meaningful work and advancement opportunities and investors with a superior rate of return. • Marriott Grow a worldwide lodging business using total quality management (TQM) principles to continuously improve preference and profitability. Our commitment is that every guest leaves satisfied. SOURCE: Patricia Jones and Larry Kahaner, Say It and Live It: The 50 Corporate Mission Statements That Hit the Mark (New York: Doubleday, 1995). Sample Organizational Objectives (manufacturing firm) Area of Performance Possible Objective To make our brands number one in their field in terms of market share. 2. Innovations To be a leader in introducing new products by spending no less than 7 percent of sales for research and development. 3. Productivity To manufacture all products efficiently as measured by the productivity of the workforce. 4. Physical and financial resources To protect and maintain all resourcesequipment, buildings, inventory, and funds. P 1-7 1. Market standing (continued) Irwin/McGraw-Hill Figure 1-2 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Sample Organizational Objectives (manufacturing firm) Area of Performance Possible Objective To achieve an annual rate of return on investment of at least 15 percent. 6. Manager performance and responsibility To identify critical areas of management depth and succession. 7. Worker performance and attitude To maintain levels of employee satisfaction consistent with our own and similar industries. 8. Social responsibility To respond appropriately whenever possible to societal expectations and environmental needs. P 1-8 5. Profitability Irwin/McGraw-Hill Figure 1-2 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Potential Sources of Cross-Functional Conflict for Marketers What They May Want to Deliver What Marketers May Want Them to Deliver Research and development Basic research projects Product features Few projects Products that deliver customer value Customer benefits Many new products Production/ operations Long production runs Standardized products No model changes Long lead times Standard orders No new products Short production runs Customized products Frequent model changes Short lead times Customer orders Many new products P 1-9 Functions (continued) SOURCE: G. A. Churchill, Jr., and J. Paul Peter, Marketing: Creating Value for Customers (Burr Ridge, IL: Irwin/McGraw-Hill, 1998), p. 15. Potential Sources of Cross-Functional Conflict for Marketers Functions Finance What They May Want to Deliver What Marketers May Want Them to Deliver Rigid budgets Flexible budgets Budgets based on return Budgets based on need to on investment increase sales High sales commissions Accounting Standardized billing Strict payment terms Strict credit standards Custom billing Flexible payment terms Flexible credit standards Human resources Trainable employees Low salaries Skilled employees High salaries P 1-10 Low sales commissions SOURCE: G. A. Churchill, Jr., and J. Paul Peter, Marketing: Creating Value for Customers (Burr Ridge, IL: Irwin/McGraw-Hill, 1998), p. 15. Organizational Growth Strategies Products Present Products New Products Present customers Market penetration Product Development New customers Market Development P 1-11 Markets Irwin/McGraw-Hill Figure 1-3 Diversification Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Strategic Planning and Marketing Planning The strategic plan Organizational mission Organizational objective Organizational strategies Organizational portfolio The marketing plan Situation analysis Marketing objectives Target market selection Marketing mix Product strategy Promotion strategy Pricing strategy Distribution strategy Marketing information system and marketing research P 1-12 Implementation and control Irwin/McGraw-Hill Figure 1-4 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Criteria for Setting Marketing Objectives P 1-13 Criteria Poor Goal Good Goal Overall marketing objectives are clearly stated. To get people to buy our new Betty Crocker Microwave Bread Shop products. To obtain 5 percent of the freshbacked bread market in 12 months Behavioral objectives are clearly stated. To have sales increase. To stimulate 30 percent of all U.S. households to try one loaf of Betty Crocker Microwave bread. Expectations are realistic. To obtain half the freshbaked bread market. Given the strong name of Betty Crocker in the baked bread goods market and that Americans consume 50 lbs. of bread a year, we hope to achieve an 18 percent share of the fresh-baked bread market. (continued) SOURCE: Charles W. Lamb, Jr., Joseph F. Hair, Jr., and Carl McDaniel, Principles of Marketing, p. 27. Reproduced with the permission of the South- Criteria for Setting Marketing Objectives Criteria P 1-14 Adequate support exists for the program. Poor Goal No mention of budget dollars in the program statement. No check to make sure the program meshes with corporate goals. Good Goal Given the commitment by General Mills to grow in the baked goods market, the budget for Betty Crocker’s Microwave Bread Ship over the next three years is $45 million, $41 million, and $35 million, respectively. SOURCE: Charles W. Lamb, Jr., Joseph F. Hair, Jr., and Carl McDaniel, Principles of Marketing, p. 27. Reproduced with the permission of the SouthWestern Publishing Co. © 1992, Cincinnati, by South-Western Publishing Co. All rights reserved. The Cross-Functional Perspective in Planning The strategic plan Mission Objectives Strategies Portfolio plan Functional area plans derived from strategic plan P 1-15 Production plan Marketing plan Objectives Forecast Budgets Strategies and program policies Irwin/McGraw-Hill Objectives Forecast Budgets Strategies and program policies Figure 1-5 Human resource plan Objectives Forecast Budgets Strategies and program policies Finance plan Objectives Forecast Budgets Strategies and program policies Facilities plan Objectives Forecast Budgets Strategies and program policies Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. A Blueprint for Management Action: Relating the Market Plan to the Strategic Plan and the Production Plan Achieve an annual rate of return on investment of at least 15 percent One organizational objective (the profitability objective) from Figure 1-2 P 1-16 Two possible organizational strategies from the product-market matrix, Figure 1-3 1. Market penetration Improve position of present products with present customers 2. Market development Find new customers for present products (continued) Irwin/McGraw-Hill Figure 1-6 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. A Blueprint for Management Action: Relating the Market Plan to the Strategic Plan and the Production Plan Two possible marketing objectives and two possible production objectives derived from the strategic plan P 1-17 Specific course of action of the marketing and production departments designed to achieve the objective 1. Marketing department objective Increase rate of purchase by existing customers by 10 percent by year end Marketing strategy and programs Irwin/McGraw-Hill Figure 1-6 2. Production department objective 1. Marketing department objective 2. Production department objective Design additional features into product that will induce new uses by existing buyers Increase market share by 5 percent by attracting new market segments for existing use by year end. Design additional features into product that will open additional markets with new uses. Marketing strategy and programs Production strategy and programs Production strategy and programs Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Experience Curve and Resulting Profit Curve Experience curve RIO Cost P 1-18 Market share Irwin/McGraw-Hill Profit curve based on experience curve Figure A-1 Market share Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. The Boston Consulting Group Portfolio Model Relative Market Share P 1-19 Market Growth Rate Irwin/McGraw-Hill High Low High Stars Question Marks Low Cash cows Dogs Figure A-2 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. The General Electric Portfolio Model Business Strength P 1-20 Industry Attractiveness Irwin/McGraw-Hill Figure A-3 Strong Average Weak High A A B Medium A B C Low B C C Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Components of Industry Attractiveness and Business Strength at GE Industry Attractiveness Market size Market Growth Profitability Cyclicality Ability to recover from inflation P 1-21 World scope Irwin/McGraw-Hill Figure A-4 Business Strength Market Position Domestic market share World market share Share growth Share compared with leading competitor Competitive strengths Quality leadership Technology Marketing Relative profitability Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.