Chapter II
MARKETING STRATEGY PLANNING
THE MANAGEMENT JOB IN MARKETING
The marketing management process: See exhibit 2-1, page 35
1) Planning marketing activities
2) Directing (implementing) activities
3) Controlling plans
WHAT IS MARKETING STRATEGY PLANNING?
Marketing strategy: specifies target market and mix
Target market: Homogenous group of customers (See exhibit 2-3, page 37 for production vs marketing orientation views of the market)
Marketing mix: The 4 P’s -- Product, Place (Distribution), Price and Promotion
DEVELOPING MARKETING MIXES FOR TARGET MARKETS
Marketing mix involves the 4 P’s (see exhibit 2-4) -- The controllable variables. Note: Customer is at the center of the 4 P's
Product: good or service for target market
Place: reaching the target market
Promotion: telling and selling the customer (personal selling, mass selling and sales promotion
Price: make it right
Note: 4 P’s are all equally important and the marketing mix (4 P’s), and target market are interrelated.
MARKETING PLAN IS GUIDE TO IMPLEMENTATION AND CONTROL
Marketing plan: Delineates strategy and provides time line. It involves:
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Marketing mix (4 P’s) |
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Company’s anticipated resources/costs |
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Results expected |
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Control procedures |
ELEMENTS OF A FIRM’S MARKETING PROGRAM
See exhibit 2-8, page 45
CREATIVE STRATEGY PLANNING NEEDED FOR SURVIVAL
See exhibit 2-10, page 50
Are those that a firm has some chance of doing something about, given its resources and objectives.
Need to find breakthrough opportunities and develop competitive advantage via the 4 P’s (product, place, price, and promotion).
MARKETING STRATEGY PLANNING PROCESS HIGHLIGHTS OPPORTUNITIES
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See Exhibit 2-10 |
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Must zero in on the best strategy |
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Must narrow process down to superior, differentitated marketing mix |
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Useful aid is SWOT analysis |
TYPES OF OPPORTUNITIES TO PURSUE
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Market Penetration Present products in present markets via 4 P’s |
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Market Development Present products in new markets via 4 P’s |
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Product Development New products in present markets via 4 P’s. |
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Diversification Totally different lines. New products in new markets via 4 P’s. |
INTERNATIONAL OPPORTUNITIES SHOULD BE CONSIDERED
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World is getting much smaller |
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Lower prices can lead to a competitive advantage |
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Foreign countries are at different stages of development and market needs.
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Next Steps: Please review the PowerPoint Overview slides (15-24) for this chapter. Then proceed to the Discussion Area.
