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CHAPTER TWO

CHAPTER TWO. MARKETING MANAGEMENT: STRATEGY. Marketing Management. The process of: 1. planning, 2. executing, and 3. controlling marketing activities to attain the marketing goals and objectives effectively and efficiently. Change is constant and therefore the process is a continuous process.

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CHAPTER TWO

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  1. CHAPTER TWO MARKETING MANAGEMENT: STRATEGY

  2. Marketing Management • The process of:1. planning, 2. executing, and3. controllingmarketing activities to attain the marketing goals and objectives effectively and efficiently. • Change is constant and therefore the process is a continuous process.

  3. What is a marketing strategy? • A plan identifying what marketing goals and objectives will be pursued and how they will be achieved in the time available.

  4. Establishing goals and objectives Planning: A Framework for the Future Envisioning the Future Designing strategies to beimplemented in the future

  5. Top Management: Mission Statement A mission statement is: • A broad statement of the company’s purpose • Explains the purpose of the organization • Provides direction for the entire company Walt Disney’s Mission“The Walt Disney Company is committed to balance environmental stewardship with our corporate goals throughout the world” http://corporate.disney.go.com/environmentality/mission_history.html

  6. Top Management:Mission statement Three Guiding Principles: • Success depends on customer satisfaction • Consumer oriented perspective • Avoid short-sighted, narrow-minded thinking Consumer wants?

  7. What’s Happening? • http://www.stumbleupon.com/su/30Vd1d/creativecriminals.com/ambient/creative-bus-stop-advertisements/

  8. Industry Technology Customer need Target Market Strategic business units (SBU) • Operates as a “company within a company” • A SBU is organized around some common element such as…. SBU

  9. Boston consulting groups growth-share matrix • Commonly referred to as the BCG Matrix • Develop to evaluate SBU’s performance based industry growth (vertical axis) versus relative market share (horizontal axis) • Assists management to determine resource allocation • Four categories: Stars, Cash cows, Dogs, Question Marks (see exhibit 2-3, page 34)

  10. Boston consulting groups growth-share matrix MARKET SHARE(Cash Generation) HIGH LOW HIGH GROWTH RATE(Cash Use) LOW

  11. Marketing Strategies at the SBU LEVEL • Marketing managers focus on two key aspects of SBU strategies: • Establish a competitive advantage • Superior to or favourably different from competitors • Examples include: price leadership, differentiation strategy • Plan growth strategies • (Visit Exhibit 2-5, page 37)

  12. Planning business-unit growth strategies The Market/Product Matrix (Exhibit 2-5) Markets Existing New Market Penetration MarketDevelopment Existing Products Product Development Diversification New

  13. The sixstages of the Strategic marketing Process • Planning stages • Identifying and evaluating opportunities • Analyzing market segments and selecting target markets • Planning a market position and developing a marketing mix strategy • Preparing a formal marketing plan 5. Executing the plan 6. Controlling efforts and evaluating the results

  14. Stage One: Identifying and Evaluating Opportunities Situation Analysis: two major components: • Environmental scanning & monitoring • External forces and trends are identified as opportunities and threats • Forces include: sociocultural, demographic, economic, etc. 2. Internal analysis • Internalstrengths and weakness are identified • Key topics include: customers, suppliers

  15. Stage One: Identifying and Evaluating Opportunities Bringing the internal and external analysis together: S.W.O.T InternalMicro-environment ExternalMacro-environment

  16. Stage Two:Analyzing Market Segments & Selecting Target Markets • Consumer Market (B2C)vs. Organizational Markets (B2B)(Visit exhibit 2-8, page 42) • Market segment • Portion of a larger market (i.e. French Canadians) • Market segmentation • Dividing the mass market into smaller groups with similar characteristics that are likely to become the target market • Target market • The specific group(s) the organization directs its marketing mix towards

  17. Stage Three: Market Positioning and Marketing Mix strategy • Market position: • How consumers perceive a brand relative to its competition • Developing marketing mix (4P’s): • Product • Price • Place (distribution) • Promotion Recall from Chapter 1?

  18. Stage 4: preparing a Formal Marketing Plan The yearly marketing plan is a written report that includes: • Marketing objectives (S.M.A.R.T) • Marketing strategies • Marketing mix • Responsibility allocation • Implementation timeline

  19. Stage 5: Executing the marketing plan Putting the plan into action! Management best practices: • Ensure resources are properly allocated • Clearly understand and communicate goals and expectations • Create reasonable expectations and deadlines

  20. Stage 6: controlling efforts and evaluation results Marketing Audits:Ensure that planned activities are executed properly • Benchmark: establish performance standards • Supervision: investigate to ensure tasks have been completed “checking up” • Adjustments: evaluate to determine if goals have been achieved • Yes? Continue with the plan • No? Make adjustments and monitor

  21. Ethics and Responsibility • Worldwide consumerism and environmentalism movements exert pressure for greater responsibility • Notion of “caring capitalism” tied to the marketing concept. • Seeking ways to make a profit by serving the best long-run interests of customers and communities.

  22. Next Class,…. • Case Analysis in BSAD 231, please visit the course website for all the material, and bring them to class (case and case analysis guidelines).

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