Mastering Marketing

CHAPTER TWOCHAPTER TWO

Marketing Strategy Planning

CHAPTER TWOCHAPTER TWO

Marketing Strategy Planning

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1. Understand what a marketing manager does.

2. Know what marketing strategy planning is--and why it will be the focus of the book.

3. Understand target marketing.4. Be familiar with the four Ps in a

marketing mix.5. Know the difference between a marketing

strategy, a marketing plan, and a marketing program.

When we finish this lecture you should

Mastering Marketing

6. Be familiar with the text’s framework for marketing strategy planning—and why it involves a process of narrowing down from broad opportunities to the most attractive marketing strategy.

7. Know four broad types of marketing opportunities that help in identifying new strategies.

8. Understand why strategies for opportunities in international markets should be considered.

When we finish this lecture you should

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The Management Job in Marketing

Implement Marketing Plan(s) and Program

Control Marketing Plan(s) and Program

Implement Marketing Plan(s) and Program

Whole-CompanyStrategic

ManagementPlanning

MarketingPlanning

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What is Marketing Strategy Planning?Exhibit 2-2

Themarketing mix

C

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Selecting a Market-Oriented Strategy Is Target MarketingExhibit 2-3

Production-oriented manager sees everyone as basically similar and practices “mass marketing”

Marketing-oriented manager sees everyone as different and practices “target marketing”

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An Application of Target Marketing

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Developing Marketing Mixes for Target MarketsExhibit 2-4

Place

PromotionPrice

Product

C

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The Product Element of the Marketing Mix

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The Place Element of the Marketing MixExhibit 2-6

Examples of Channels of Distribution

AOL NissanDel

MonteProcter &Gamble

Wholesaler

Wholesaler

Retailer

Consumer

Wholesaler

RetailerRetailer

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AdvertisingAdvertising

PublicityPublicity

Personal Selling

Personal Selling

Telling andSelling

the Customer

Telling andSelling

the Customer

Personal Selling

Personal Selling AdvertisingAdvertising

PublicityPublicity

The Promotion Element of the Marketing Mix

Sales Promotion

Sales Promotion

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Price Flexibility

Price Flexibility

Price Changes Over the Life

Cycle

Price Changes Over the Life

Cycle

Price Flexibility

Price Flexibility

Price Changes Over the Life

Cycle

Price Changes Over the Life

Cycle

Pricing Objectives

Pricing Objectives

PriceSettingPrice

Setting Discounts and

Allowances

Discounts and

Allowances

Geographic Pricing Terms

Geographic Pricing Terms

Legal Environment

Legal Environment

Cost and Demand

Cost and Demand

Competition and

Substitutes

Competition and

Substitutes

Price Sensitivity

Price Sensitivity

Price of Other Products In

the Line

Price of Other Products In

the Line

Pricing Objectives

Pricing Objectives

Discounts and

Allowances

Discounts and

Allowances

Geographic Pricing Terms

Geographic Pricing Terms

Legal Environment

Legal Environment

Cost and Demand

Cost and Demand

Competition and

Substitutes

Competition and

Substitutes

Price Sensitivity

Price Sensitivity

The Price Element of the Marketing Mix

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Interactive Exercise: Marketing Mix

Product Place

PromotionPrice

C

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Selectionof TargetMarket

Selectionof TargetMarket

All Four Ps Contribute to the Whole

ProductProduct

PlacePlace

PromotionPromotion

PricePrice

Understanding the Target Market Leads to Good Strategies!Understanding the Target Market Leads to Good Strategies!

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Target MarketTarget Market

+

Marketing Mix

Marketing Mix

= Marketing Strategy

Marketing Strategy

+Other

Marketing Plans

Other Marketing

Plans

+Time-

Related Details

Time-Related Details

Marketing Plan

Marketing Plan=

Other Marketing

Plans

Other Marketing

Plans

Time-Related Details

Time-Related Details

Marketing Plan

Marketing Plan

Target MarketTarget Market

Marketing Mix

Marketing Mix

Marketing Strategy

Marketing Strategy

The Marketing Plan Guides Implementation and Control

A Firm’s Marketing Program

A Firm’s Marketing Program

=

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The Importance of Marketing Strategy Planning

Strategy Decisions Usually Determine Success and Failure

Strategy Decisions Usually Determine Success and Failure

• Timex had captured a large market share

• Low price, dependability, good ads, unconventional channels

• Stiff competition arose

• New product refinements

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Creative Strategy Planning Needed for Survival

2% 14% 14% 2%

(Well below average)

Poor Fair Good Exceptional

(Below average)

(Above average)

(Well above average)

Death-wish marketing

Best-practices marketing

68% (Average Marketing Program)

Failure

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Breakthrough OpportunitiesBreakthrough Opportunities

Avoid Hit-or-Miss Marketing

Competitive AdvantageCompetitive Advantage

What Are Attractive Opportunities?

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Marketing Strategy Planning Process Highlights OpportunitiesExhibit 2-10

External Market Environment

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DiversificationMarketdevelopment

Productdevelopment

Marketpenetration

Types of Opportunities to PursueExhibit 2-11

Present products New products

Presentmarkets

Newmarkets

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Market Penetration

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Product Development

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Interactive Exercise: Marketing Strategy

DiversificationMarketdevelopment

Productdevelopment

Marketpenetration

Present products New products

Presentmarkets

Newmarkets

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Early StartEarly Start Competitive Advantage

Competitive Advantage

Better Trends?

Better Trends?

Smaller World

Smaller WorldSmaller World

Smaller World

Competitive Advantage

Competitive Advantage

Better Trends?

Better Trends?

International Opportunities Should Be Considered

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Global Competitive Advantage

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• Marketing management process

• Strategic (management) planning

• Marketing strategy

• Target market

• Marketing mix

• Target marketing

• Mass marketing

• Channel of distribution

• Personal selling

• Mass selling

• Advertising

• Publicity

• Sales promotion

• Marketing plan

• Implementation

• Operational decisions

• Marketing program

• Breakthrough opportunities

• Competitive advantage

Key Terms

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• Differentiation

• S.W.O.T. analysis

• Market penetration

• Market development

• Product development

• Diversification

Key Terms