Objectives • Understand the importance of strategic marketing. Know the outline for a marketing plan. • Define an appropriate business mission statement. • Describe criteria for good marketing objectives. • Explain components of a situation analysis. • Identify strategic alternates and describe tools to select them.
EVOLVING MARKET OPPORUNITIES RESOURCES & OBJECTIVES The Nature of Strategic Planning LONG RUN PROFITABILITY AND GROWTH Plus
Marketing Plan What is a Marketing Plan? Planning: Process of anticipating future events and determining strategies • Marketing planning involves designing activities relating to marketing objectives and the changing marketing environment. • For example: product lines, prices, communication • Why? Clearly stated activities to work toward common goals Basis for comparison of actual and expected performance Aware of threats and opportunities
Business Mission Statement Objectives Situation or SWOT Analysis Target Market Strategy Marketing Mix Distribution Product Promotion Price ImplementationEvaluationControl Marketing Plan Elements Marketing Strategy
Define the Business Mission • Answers the question: • What business are we in and where are we going? Example: PepsiCo’s Business Mission • Focuses on the market(s) rather than the good or service • Marketing myopiaif focus is on specific goods/service • Examples? Frito-Lay is in the snack-food business • No clear foundation if focus is too broad • Examples? Amazon? • Strategic Business Units may also have a mission statement – characteristics of a SBU Back
PepsiCo’s Mission Statement “To be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.” http:\\www.pepsico.com Back
Characteristics Strategic Business Units 1. A distinct mission and specific target market 2. Control over their resources 3. Their own competitors 4. Plans independent of other businesses Back
Marketing Objectives Must Be: “Our objective is to increase market share by 40% and to obtain customer satisfaction ratings of at least 90% in 2005.” Marketing Plan Objectives Realistic Measurable For a Defined Period of Time Consistent with Organizational Objectives Back
S Internal W O External T Situation Analysis Things the company does well. Things the company does not do well. Conditions in the external environment that favor strengths. Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.
Opportunities Strengths Opportunities: Strategic Windows Limited period when the “fit” between key requirements of a market and competencies of the firm are optimum
MarketPenetration Increase market share among existing customers Market Development Attract new customers to existing products Product Development Create new products for present markets Diversification Introduce new products into new markets Discovering Strategic Alternatives (Windows)
Common Tools Common Goals Profitability Goals Market Share Selecting a Strategic Alternative • BCG Portfolio Matrix More • GE Market Attractiveness Matrix More
Differential Advantage • Unique aspects of an organization that cause target market to patronize firm • A Sustainable Competitive Advantage cannot be copied by the competition. Back to The Marketing Process
Differential or Competitive Advantage • A set of unique features of a company & its products that are perceived by the target market as significant and superior to the competition • Two basic sources are: • Superior skills • Superior resources • A Sustainable Competitive Advantage cannot be copied by the competition. Back to The Marketing Process
Marketing Strategy …involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.
Marketing Strategy • Target Market Strategy • Identify the market segments that are of interest to the firm • Analyze market based on attractiveness of market segments • Select one or more target markets • The Marketing Mix • Product Strategies • Distribution (Place) Strategies • Promotion Strategies • Pricing Strategies