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Part 1: Designing Customer-Oriented Marketing Strategies. Marketing: Creating Satisfaction through Customer Relationships Strategic Planning and the Marketing Process The Marketing Environment, Ethics, and Social Responsibility E-Commerce: Marketing in the Digital Age. Chapter 2.
Part 1: Designing Customer-Oriented Marketing Strategies • Marketing: Creating Satisfaction through Customer Relationships • Strategic Planning and the Marketing Process • The Marketing Environment, Ethics, and Social Responsibility • E-Commerce: Marketing in the Digital Age
Chapter 2 Strategic Planning and the Marketing Process
Chapter Objectives • Distinguish between strategic planning and tactical planning. • Explain how marketing plans differ at various levels in an organization. • Identify the steps in the marketing planning process. • Describe successful planning tools and techniques, including Porter’s Five Forces model, first and second mover strategies, SWOT analysis, and the strategic window. • Identify the basic elements of a marketing strategy. • Describe the environmental characteristics that influence strategy decisions. • Describe the methods for marketing planning, including business portfolio analysis and the BCG matrix.
Marketing Planning: The Basics for Strategy and Tactics • Planning: Process of anticipating future events and conditions and of determining the best way to achieve organizational goals • Marketing planning: Implementing planning activities devoted to achieving marketing objectives
Strategic Planning versus Tactical Planning • Strategic planning: Process of determining an organization’s primary objectives and adopting courses action that will achieve those objectives • Tactical planning: Process that guides the implementation of activities specified in the strategic plan.
Strategic Planning versus Tactical Planning • Top management • Greater proportions of their time engaged in planning • Usually focus their planning activities on long-range strategic issues • Middle level managers • Focus on operational planning; creating and implementing tactical plans • Supervisors • Developing the specific programs to meet goals in their areas of responsibility
Defining the Mission of the Organization • Mission: the essential purpose that differentiates one company from others • The mission statement specifies the organization’s overall goals and operational scope and provides general guidelines for future management actions
Determine Organizational Objectives • An organization lays out its basic objectives, or goals, in its mission statement • These objectives in turn guide development of supporting marketing objectives and plans • Well-developed objectives should state specific, quantitative intentions along with deadlines for achieving them
Assessing Organizational Resources and Evaluating Environmental Risks and Opportunities • This step involves a back-and-forth assessment of strengths, risks, and available opportunities.
Formulating, Implementing, and Monitoring a Marketing Strategy • Marketing strategy: a firm’s overall program for selecting and satisfying a target market • A marketing strategy is aimed at satisfying consumers in the selected target market through a careful balance of the elements of the marketing mix – each of which represents a subset of the overall marketing strategy
Successful Strategies: Tools and Techniques • All planning strategies have the goal of creating a sustainable competitive advantage for a firm. • An advantage where other companies cannot provide the same offering or value.
First Mover and Second Mover Strategies • First mover strategy: Theory advocating that the company that is first to offer a product in a marketplace will be the long-term market winner. • Second mover strategy: Theory that advocates observing closely the innovations of first movers and then introducing new products that improve on the original offering to gain advantage in the marketplace.
SWOT is an acronym for strengths, weaknesses, opportunities, and threats • A SWOT analysis is a method of studying organizational resources and capabilities to assess the firm’s strengths and weaknesses and scanning its environment to identify opportunities and threats
The Strategic Window • A limited period with an optimal fit between the key requirements of a market and the particular competencies of a firm • HR Block recognizes the strategic window of their business.
Elements of a Marketing Strategy • Blending the four strategy elements of marketing decision-making to satisfy chosen target markets • Product • Price • Distribution • Promotion
Target Market • Group of people toward whom the firm decides to direct its marketing efforts
Marketing Mix Variables • Product Strategy • What goods or services to offer • Customer service • Package design • Brand names • Trademarks • Warranties • Product Life Cycle • Positioning • New-product development
Marketing Mix Variables • Distribution StrategyPlanning that ensures that consumers find their products in the proper quantities at the right times and places. • Modes of transportation • Warehousing • Inventory control • Order processing • Marketing channels
Marketing Mix Variables • Promotional Strategy • Blending together the various elements of promotion to communicate most effectively with the target market • Informing, persuading, and influencing a consumer’s purchase decision. • IMC
Marketing Mix Variables • Pricing Strategy • Deals with the methods of setting profitable and justifiable prices
The Marketing Environment • Competitive • Political – Legal • Economic • Technological • Social – Cultural • Rule of three
Methods for Marketing Planning • Business Portfolio Analysis • Strategic Business Units (SBUs) are key business units within diversified firms • A division, product line, or single product may define an SBU • Firms redesign their SBUs as market conditions dictate
The BCG Matrix • Market Share/ Market Growth Matrix: a marketing planning tool that classifies a firm’s SBU’s or products according to industry growth rates and market shares relative to competing products • Stars • Cash Cows • Dogs • Question Marks
Figure 2.10 • BCG Market Share/Market Growth Matrix