Essay Marketing
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chap002_1.pptx02
DEVELOPING MARKETING STRATEGIES AND A MARKETING PLAN
McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
CHAPTER
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Chapter 2 – Developing Marketing Strategies and a Marketing Plan
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Developing Marketing Strategies and a Marketing Plan
LO1 Define a marketing strategy.
LO2 Describe the elements of a marketing plan.
LO3 Analyze a marketing situation using SWOT analyses.
LO4 Describe how a firm chooses which consumer group(s) to pursue with its marketing efforts.
LO5 Outline the implementation of the marketing mix as a means to increase customer value.
LO6 Summarize portfolio analysis and its use to evaluate marketing performance.
LO7 Describe how firms grow their business.
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LEARNING OBJECTIVES
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These questions are the learning objectives guiding the chapter and will be explored in more detail in the following slides.
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Sustainable Competitive Advantage
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This slide covers the four strategies to create and deliver value and a sustainable competitive advantage. Ask students to think of companies who they are very loyal to in many categories (food, electronics, personal care)? Is it their product, location, operational, or customer excellence that draws the student’s loyalty?
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Check Yourself
What are the various components of a marketing strategy?
List the four macro strategies that can help a firm develop a sustainable competitive advantage.
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1. Identifies a firm’s target market, related marketing mix — their four Ps — and the bases upon which the firm plans to build a sustainable competitive advantage.
2. Customer excellence, operational excellence, product excellence, locational excellence.
The Marketing Plan
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Explain to students that the marketing plan should be a written plan yet many companies do not write it down. Ask students why companies tend to not write down marketing plans. The most likely answer is that they don’t take the time or haven’t organized the strategy.
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Three Phases of a Strategic Plan
Ryan McVay/Getty Images
Comstock Images/Almay
Getty Images/Digital Vision
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A poorly executed plan leads to failure, regardless of how good or solid the plan may be. The world is full of good plans poorly executed. When initially introduced, diapers designed differently for boys and girls bombed because the market was not ready for the product; through improved execution, the diaper manufacturer ultimately found success. However, even well-executed plans require monitoring and updating, because the needs of any market constantly change.
Planning
Implementing
Controlling
Step One: 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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Group activity: Students should develop a mission statement for their school. The resultant mission statement would offer a good way to assess and set student expectations.
Step Two: Conduct a Situation Analysis Using SWOT
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A SWOT analysis is comprehensive, in that it offers both an internal and an external assessment. The firm therefore must possess expertise in both what the firm can provide and what the market wants the firm to provide.
Students can take a few minutes and fill in a SWOT analysis for their in-class exercise of building a marketing plan for their college.
Step Three: Identifying and Evaluating Opportunities Using STP
Courtesy The Hertz Corporation
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After completing the situation audit, the next step is to identify and evaluate opportunities for increasing sales and profits using STP (segmentation, targeting, and positioning). With STP, the firm first divides the marketplace into subgroups or segments, determines which of those segments it should pursue or target, and finally
decides how it should position its products and services to best meet the needs of
those chosen targets.
Segmentation
Targeting
Positioning
Step Four: Implement Marketing Mix and Allocate Resources
Courtesy Bel Brands USA
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In all firms, resources are scarce and must be allocated so that they create the most value for the firm. Ask Students to point out the elements of the marketing mix in this ad? They will certainly see the value creation in the product and the promotion which targets busy women.
Product
Value Creation
Price
Value Capture
Place
Value Delivery
Promotion Value Communication
Successful products and services are those that customers perceive as valuable enough to buy.
Product and Value Creation
Courtesy Amazoncom
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Because the key to the success of any marketing program is the creation of value, firms attempt to develop products and services that customers perceive as valuable enough to buy.
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Price and Value Capture
Price must allow for customers to perceive good value for the product they receive.
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These will be covered in the pricing chapters later in the book. It is worth spending some time on Value-based pricing. Show students two differently priced products from the same category and ask students which one they view as better value and why?
For example, an Apple i-Pod vs. an Microsoft Zune player. Or alternatively Aquafina vs. Perrier. Also explain that in this course, more discussion of value will be done throughout the semester.
Place and Value Delivery
The product must be readily accessible
Why is this retailer growing?
Courtesy Sephora USA, Inc
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Getting the product to consumers at the exact moment they desire it is difficult. Firms therefore are experimenting with different forms of distribution, such as vending machines for cell phones, to offer consumers 24/7 access to products. Staples has incorporated web kiosks in their stores to access Staples.com. Thus, consumers are able to buy products that are out of stock in-store. Ask students if they are familiar with Sephora, if they like it, and why? Most likely they will be very fond of this retailer. They offer an incredible assortment in a well organized, well lighted, exciting retail environment.
Promotion and Value Communication
Television
Radio
Magazines
Sales force
New Media
©Lars A Niki
The McGraw-Hill Companies, Inc/ Jill Braaten, photographer
McGraw-Hill Companies, Inc/ Gary He, photographer
The McGraw-Hill Companies, Inc/ John Flournoy, photographer
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Consumers enter into an exchange only if they know that the firm’s product or service appears in the marketplace. This is why promotion is so important. They won’t buy if they don’t know about it.
Step Five: Evaluate Performance and Make Adjustments
P&G Website
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Firms cannot simply remain content with a strategy for too long. Over time, all strategies must be revised to adjust to new markets, new competitors, and new technologies. The firm must recognize not only its failures, but also its successes to ensure continued success. The full description of the Boston Consulting Group Matrix is found in the Appendix to Chapter One. In general it is an example of portfolio analysis. Visit the P&G website and ask students to recognize stars, cash cows and question marks (newer products). You won’t find any dogs at the P&G website.
Check Yourself
What are the five steps in creating a marketing plan?
What tool helps a marketer conduct a situation analysis?
What is STP?
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Business mission and objectives, situation analysis and SWOT, identify opportunities, implement marketing mix, evaluate performance using marketing metrics.
SWOT analysis (strengths, weaknesses, opportunities, threats)
Segmentation, Targeting, Positioning
Growth Strategies
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The growth strategies model is crucial for students to understand. Fundamentally, all strategies involve one or a combination of the four factors pictured in this slide. Each can be used to achieve different objectives.
Check Yourself
What are the four growth strategies?
What type of strategy is growing the business from existing customers?
Which strategy is the riskiest?
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Market penetration, market development, product development, diversification
Product development and market penetration
Diversification
Glossary
A marketing plan is a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four P’s, action programs, and projected or pro-forma income (and other financial) statements.
Return to slide
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A marketing plan is a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four P’s, action programs, and projected or pro-forma income (and other financial) statements.
Glossary
A mission statement is a broad description of a firm’s objectives and the scope of activities it plans to undertake.
Return to slide
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A mission statement is a broad description of a firm’s objectives and the scope of activities it plans to undertake.
Glossary
A situation analysis uses a SWOT analysis that assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats.
Return to slide
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A situation analysis uses a SWOT analysis that assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats.
Glossary
STP stands for segmentation, targeting, and positioning, and is used to identify and evaluate opportunities for increasing sales and profits.
Return to slide
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STP stands for segmentation, targeting, and positioning, and is used to identify and evaluate opportunities for increasing sales and profits.
Glossary
A sustainable competitive advantage is an advantage over the competition that is not easily copied, and thus can be maintained over a long period of time.
Return to slide
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A sustainable competitive advantage is an advantage over the competition that is not easily copied, and thus can be maintained over a long period of time.
