Description
Strategies
Marketing Management 3.
Marketing Planning
Strategy vs. Tactics
Strategy: a marketing plan for a period longer than a year (i.e., long-run). Must be consistent, measurable, acceptable, and realistic Stratagus (Greek word) = the art of general (or the art of thinking in general terms) Tactics: marketing plan for a period of a year or less
Focus is on the 4Ps within a given budget and timeframe Test: What are the seven major steps of a marketing plan Details: for your team projects
Strategic plan handout:
Generic Strategies by Michael Porter
Selecting Strategies: Managerial Techniques
Corporate performance objectives (Profits, Sales«) Portfolio analysis (complex analysis of corporate units) BCG Matrix GE Matrix Ansoff Matrix SWOT Analysis PLC (Product Life Cycle) Gap Analysis (comparing goals vs. actual results) 80/20 rule: focus on 20% of products / customers that provide about 80% of sales volume and profits
Portfolio Analysis
SBU: Strategic Business Unit, any part of the company that can be managed separately SBUs are often called divisions or departments In Marketing a product, product line, or a brand may be an SBU Portfolio Management: management of SBUs according to organizational objectives and the SBU¶s contribution to the company¶s performance Ex: investing in selected SBUs vs. eliminating SBUs
BCG: Boston Consulting Group BCG¶s Growth-Share Matrix
High Market Growth Rate
QUESTION MARKS: STARS: Earnings are low & Earnings are high, unstable, but growing stable, and growing. Strategy: Invest or Strategy: ? extend product lines DOGS: Earnings are low & unstable. Strategy: Divest? CASH COWS: Earnings are high & stable Strategy: ³Milk´ = harvest revenues
Low Market Growth Rate
Dimensions
Low relative market share
High relative market share
BCG Matrix
Star: Sony Playstation 2 (trendy products) Cash Cow: Ivory soap for Procter & Gamble (old, stable brands) ???: MP3 players (relatively new products) Dogs: Playboy ± the magazine (lossmakers to keep or )
The G.E. Matrix: Indexes of SBU Performance
?Market share ?Customer knowledge ?Customer satisfaction ?Cost efficiency ?Product quality ?Financial strength
?Market size ?Market growth ?Comp. pressure ?Price level ?Regulation
Index of Business Strength
Strong High Green Green Yellow? Average Green Yellow? Red Weak Yellow? Red Red
Market Medium Attractiveness Low Index
GE Matrix
Green SBU ± go ahead and invest in the long-run Yellow SBU ± be cautious, SBU ³maintenance´ Red SBU ± stop, drive SBU out of market
Ansoff-Matrix or Product-Market Expansion Grid
Dimensions Existing Products New Products
Existing Markets
1.1.
Do nothing 2. Withdraw 3. Consolidate 4. Penetrate
Product Development (risky + expensive)
New Markets
Market Development (when product is very competitive)
Diversification (assuming new activities)
Ansoff-Matrix
Improving the performance of existing businesses ³Do Nothing´ if the environment is static (short-run only) ³Withdraw´ when there is an irreversible decline in demand or opportunity costs of staying in a market are too high ³Consolidation´ means concentration of resources and focusing on existing competitive advantages ³Penetration´ means gaining market share
SWOT Analysis
SWOT is a universal analytical tool developed by the military: Matching corporate skills and resources with forecasted market opportunities Strengths: Internal Positives (available skills & 1. competencies) 2. Weaknesses: Internal Negatives (poor use or lack of skills) 3. Opportunities: External Positives (evaluating areas where advantages may be gained, ex: add a new product, target new segments) 4. Threats: External Negatives (evaluating forces that may prevent the company from accomplishing its objectives, ex: competition, regulation, customer preferences)
doc_790608866.ppt
Strategies
Marketing Management 3.
Marketing Planning
Strategy vs. Tactics
Strategy: a marketing plan for a period longer than a year (i.e., long-run). Must be consistent, measurable, acceptable, and realistic Stratagus (Greek word) = the art of general (or the art of thinking in general terms) Tactics: marketing plan for a period of a year or less
Focus is on the 4Ps within a given budget and timeframe Test: What are the seven major steps of a marketing plan Details: for your team projects
Strategic plan handout:
Generic Strategies by Michael Porter
Selecting Strategies: Managerial Techniques
Corporate performance objectives (Profits, Sales«) Portfolio analysis (complex analysis of corporate units) BCG Matrix GE Matrix Ansoff Matrix SWOT Analysis PLC (Product Life Cycle) Gap Analysis (comparing goals vs. actual results) 80/20 rule: focus on 20% of products / customers that provide about 80% of sales volume and profits
Portfolio Analysis
SBU: Strategic Business Unit, any part of the company that can be managed separately SBUs are often called divisions or departments In Marketing a product, product line, or a brand may be an SBU Portfolio Management: management of SBUs according to organizational objectives and the SBU¶s contribution to the company¶s performance Ex: investing in selected SBUs vs. eliminating SBUs
BCG: Boston Consulting Group BCG¶s Growth-Share Matrix
High Market Growth Rate
QUESTION MARKS: STARS: Earnings are low & Earnings are high, unstable, but growing stable, and growing. Strategy: Invest or Strategy: ? extend product lines DOGS: Earnings are low & unstable. Strategy: Divest? CASH COWS: Earnings are high & stable Strategy: ³Milk´ = harvest revenues
Low Market Growth Rate
Dimensions
Low relative market share
High relative market share
BCG Matrix
Star: Sony Playstation 2 (trendy products) Cash Cow: Ivory soap for Procter & Gamble (old, stable brands) ???: MP3 players (relatively new products) Dogs: Playboy ± the magazine (lossmakers to keep or )
The G.E. Matrix: Indexes of SBU Performance
?Market share ?Customer knowledge ?Customer satisfaction ?Cost efficiency ?Product quality ?Financial strength
?Market size ?Market growth ?Comp. pressure ?Price level ?Regulation
Index of Business Strength
Strong High Green Green Yellow? Average Green Yellow? Red Weak Yellow? Red Red
Market Medium Attractiveness Low Index
GE Matrix
Green SBU ± go ahead and invest in the long-run Yellow SBU ± be cautious, SBU ³maintenance´ Red SBU ± stop, drive SBU out of market
Ansoff-Matrix or Product-Market Expansion Grid
Dimensions Existing Products New Products
Existing Markets
1.1.
Do nothing 2. Withdraw 3. Consolidate 4. Penetrate
Product Development (risky + expensive)
New Markets
Market Development (when product is very competitive)
Diversification (assuming new activities)
Ansoff-Matrix
Improving the performance of existing businesses ³Do Nothing´ if the environment is static (short-run only) ³Withdraw´ when there is an irreversible decline in demand or opportunity costs of staying in a market are too high ³Consolidation´ means concentration of resources and focusing on existing competitive advantages ³Penetration´ means gaining market share
SWOT Analysis
SWOT is a universal analytical tool developed by the military: Matching corporate skills and resources with forecasted market opportunities Strengths: Internal Positives (available skills & 1. competencies) 2. Weaknesses: Internal Negatives (poor use or lack of skills) 3. Opportunities: External Positives (evaluating areas where advantages may be gained, ex: add a new product, target new segments) 4. Threats: External Negatives (evaluating forces that may prevent the company from accomplishing its objectives, ex: competition, regulation, customer preferences)
doc_790608866.ppt