Description
The presentation on Market-Oriented Strategic Planning.
Market-Oriented Strategic Planning
Strategic Marketing Planning
?
?
?
Companies should look ahead and develop long-term strategies ?to meet changing conditions in their industries and ensure longterm survival The task of selecting an overall company strategy for long-run survival and growth ? “strategic planning” Marketing’s key role in strategic planning
Strategic Planning
?
Strategic Planning ? Managerial process of
developing and maintaining a match between the
organization’s resources, goals and capabilities and the changing market opportunities.
The aim ? to shape and reshape company’s businesses and products in order to reach to targeted profits and growth. Top-management job Part of a broader process: strategic management
?
? ?
Strategic Planning, Implementation, and Control Process
Planning
Corporate planning Division planning Business planning Product planning
Implementation
Organizing
Control
Measuring results Diagnosing results
Implementing Taking corrective action
Steps in Strategic Planning
Corporate Level
Business unit, product, and market level
Defining the Company Mission
Setting Company Objectives and Goals
Designing the Business Portfolio
Planning marketing and other functional strategies
Corporate and Division Strategic Planning
All corporate headquarters undertake four planning activities:
1) Defining the corporate mission 2) Establishing the strategic business units (SBUs)
3) Assigning resources to each SBU
4) Planning new businesses, downsizing or
terminating older businesses.
Steps in Strategic Planning:
Company Mission Statement
?
A mission statement ?a statement of
the organization’s purpose --- what it wants to accomplish in the larger environment
?
A clear mission statement ?acts as “invisible hand” that guides employees to work toward realizing the organization’s goals.
Company Mission
?
Fundamental questions:
?
?
A mission statement should be:
?
?
?
?
What is our business? Who is the customer? What do consumers value? What should our business be?
?
?
? ?
Neither too narrow nor too broad Fitting of market environment Based on distinctive competencies An “invisible hand” Motivating
Company Mission (cont.)
Limited number of goals Stress major policies & values Define competitive scopes
Company Mission (cont.)
?
?
“Market-oriented definitions” of a business ? better than product or technological definitions A market-oriented mission statement ? defines the business in terms of satisfying basic
customer needs
?
(see examples)
Mission statement ?to be guided by a “vision” - an almost “impossible dream” that provides a direction for the company for the next 10 to 20 years
Company Mission
Market Oriented Realistic Specific Fit Market Environment Distinctive Competencies Motivating
Characteristics of a Good Mission Statement:
P&G
“We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.”
Motorola
“The purpose of Motorola is to honorably
serve the needs of the community by providing products and services of superior quality at a fair price to our customers; to do this so as to earn an adequate profit which is required for the total enterprise to grow; and by doing so, provide the opportunity for our employees and shareholders to achieve their personal objectives.”
ITU
?
Mission
As a higher education and research institution dedicated to the advancement of basic and applied sciences, our mission is to educate the technological leaders and entrepreneurs of the future in a rich intellectual environment sensitive to both local and global issues.
Vision
?
ITU’s vision is to become a national and international focal point of pioneering studies in the fields of science, technology, social sciences, and the arts.
Goals and Objectives of ITU in Education and Research ? Attain international standards ? Be aware of the national and institutional (ITU) values ? Provide interdisciplinary domains ? Help to provide an international and a local competitive edge to industry ? Assist young Turkish universities to build up their faculty, teaching and research substructure ? Build two “Technocity” sites for mutual benefit of university and industry ? Create intersections of engineering, architecture and science education and research with music, art, fashion, humanities and social sciences ? Establish worldwide known centers of excellence
eBay
“We help people trade anything on earth. We will continue to enhance the online trading experiences of all–collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers.”
Arçelik
Vision To be the largest and most successful Turkish company listed on international stock exchanges
?
Mission To present products and services which enrich quality of life at homes
?
?
Strategy and Goals To become one of the top five leading household appliance companies in Europe Leadership in Turkey To grow in regional markets To be involved in new businesses in Turkey
Steps in Strategic Planning:
Company Goals and Objectives
?
? ? ?
Company’s mission ?needs to be turned into detailed, supporting objectives for each level of management Mission ?hierarchy of objectives As specific as possible Marketing strategies ?must be developed to support these marketing objectives
Hierarchy of Objectives
Mission Statement
Marketing Objective # 1
Marketing Objective # 2
Marketing Objective # 3
Marketing Strategy
Marketing Strategy
Steps in Strategic Planning:
Business Portfolio
?
Business portfolio ?collection of
businesses and products that make up the company
1) Analyzing
its current business portfolio and decide which business should receive more, less or no investment 2) Developing growth strategies to add new products/businesses to the current portfolio
Business Portfolio (cont.)
?
Portfolio Analysis ?to identify and
evaluate the various businesses that make up the company
?
To identify key businesses ?Strategic Business Units (SBUs)
?
SBU: unit of the company (separate mission and
objectives / can be planned independently from other company businesses)
?
To assess the attractiveness of its various SBUs and decide how much support each deserves
The Boston Consulting Group’s Growth-Share Matrix
20%18%16%14%12%10%8%6%4%2%0
10x
Market Growth Rate
Stars
4
Question marks
3
5
Cash cow
?2
7
?
1
Dogs
8 6
4x 2x 1.5x 1x .5x .4x .3x .2x .1x
Relative Market Share
Boston Consulting Group (BCG) Approach
Stars
Market Growth Rate
High
• High growth & share • Profit potential • May need heavy investment to grow Cash Cows
? • High growth, low share
Dogs
Question Marks
• Build into Stars or phase out • Require cash to hold market share
• Low growth, high share • Low growth & share • Established, successful • Low profit potential SBU’s •Produce cash
Low
Relative Market Share
High Low
The BCG Growth-Share Matrix and Strategies
?
After the classification of its SBUs ?to determine what role each will play in the future
? Build ?to invest more in
? Harvest ?to increase
? Good for weak cash cows, question marks and dogs
the SBU in order to build its share
? Increase market share ? Works well for question marks
the SBU’s short-term cash flow
? Hold ?to invest enough
just to hold at the current level
? Preserve market share ? Good for cash cow
? Divest ?to sell or to
liquidate the business
? Good for dogs and question marks
Problems With Matrix Approaches
Can be Difficult, Time-Consuming, & Costly to Implement
Difficult to Define SBU’s & Measure Market Share/ Growth
Focus on Current Businesses; provide little advice for future planning
Can Lead to Unwise Expansion or Diversification
Growth Strategies Existing products
Ansoff’s Product / Market Expansion Grid
New products
Existing markets
1. Market penetration
3. Product development
New markets
2. Market development 4. Diversification
Product / Market Expansion Grid
?
Market Penetration: making more sales to current customers without changing its products.
?
Add new stores in current market areas, improve advertising, prices, service or store design.
?
Market Development: develop new markets for its current products
?
Identify new demographic or geographic markets.
?
Product Development: offering modified or new products to current markets.
?
New styles, flavors, colors, or modified products. Start up or buy new businesses.
?
Diversification: new products for new markets.
?
Downsizing
?
Many reasons that a company might want to
abandon products or markets:
?
?
?
The market environment might change (making some of the company’s product or markets less profitable – economic recession) The company may have grown too fast or entered areas where it lacks experience Some of the company’s products or business units age and die.
Steps in Strategic Planning:
Functional Planning
?
?
?
?
The company’s overall strategic plan ? establishes what kind of businesses the company will be in future & its objectives for each business. More detailed planning must take place within each business unit The major functional departments in each unit ?must work together to accomplish strategic objectives Marketing plays a key role
Marketing’s Key Role in Strategic Planning
Marketing’s Role in Strategic Planning
Provide a guiding philosophy
Identify attractive opportunities
Inputs to Design Strategic effective Planners strategies
Build strong value chains
Form superior value delivery networks
Marketing’s Key Role:
Partner Relationship Management
Partner relationship management
?
?
?
working closely with partners in other departments (to form an effective “value chain” that serves the customer) & partnering effectively with other companies in the marketing system for a superior “value delivery network” to jointly bring greater value to customers
Marketing’s Key Role:
Partner Relationship Management
?
Each department in the company ?as a link in the company’s value chain;
? ?
Each dept.carries out value-creating activities The company’s overall success ?depends also on how well the activities of various dept. are coordinated
?
Departmental relations are full of conflicts
?
Marketers must find ways to get all dept. to “think consumer” and to develop a smoothly functioning value chain
Marketing’s Key Role:
Partner Relationship Management
?
The company needs to look beyond its own value chain in order to create customer value:
?
Value-delivery network ?network made up of the
company, suppliers, distributors, and customers who partner with each other to improve the performance of the entire sytem
?
Competition today takes place between the entire value delivery networks!
The Marketing Process
?
The task of any business is to deliver customer value at a profit. There are at least 2 views of the valuedelivery process
?
Two Views of the Value Delivery Process
Traditional Process Sequence
? ?
Value Creation and Delivery Sequence
? ?
Make product Sell product
?
Choose the value Provide the value Communicate the value
The Value-Delivery Process
The Marketing Process
?
The Marketing Process:
? ? ? ? ?
Analyzing marketing opportunities Researching and selecting target markets Designing marketing strategies Planning marketing programs Organizing, implementing, controlling the marketing effort
The Marketing Process
(cont.)
SWOT ANALYSIS
?
External Environment Analysis ?to build a
MIS to monitor: ? Key external macroenvironment forces ? Significant microenvironment actors ? Trends and important developments ?to identify the associated opportunities and threats
?
Internal Environment Analysis ?to evaluate
its internal strengths and weaknesses periodically
?
“Checklist
analysis”
for performing strengths/weaknesses
Example of a Checklist
?
PERFORMANCE
Main Strength 2nd Strength Moderate 2nd Main Weakness Weakness High
IMPORTANCE
Medium Low
MARKETING Firm's reputation Market share Product/service quality Pricing Distribution Promotion Sales force R&D / Innovation Geographical location FINANCE High profitability Low cost of capital Cash flow Financial stability PRODUCTION Scale economies Capacity of meeting demand Talented productive power Timely production Technical competence ORGANIZATION Skillful managers Loyal employees Entrepreneurship orientation Flexibility degree Rapid adaptation
The Marketing Process
Strategy
1. Market Segmentation 2. Target marketing 3. Market Positioning
? ? ? ?
(cont.)
? Customers grouped by:
Geographic Demographic Psychographic Behavioral
? Market segment is a groups of consumers who respond in similar ways to marketing efforts.
Strategy
1. Market
?
Evaluation of each segment’s attractiveness
Segmentation 2. Target marketing 3. Market Positioning
?
Selection of segments with greatest long-term profitability
A company can choose one or several segments to target
?
Strategy
1. Market
?
Segmentation 2. Target marketing 3. Market Positioning
?
?
The place the product occupies in the consumer’s mind Products are positioned relative to competing products Marketers look for clear, distinctive and desirable place in positioning
The Marketing Process (cont.)
Designing marketing strategies for competitive advantage
? ?
?
?
Market Market Market Market
leader strategies challenger strategies follower strategies nicher strategies
The Marketing Process
Planning marketing programs
?
(cont.)
Decisions on: ? Marketing expenditures ? Marketing mix – 4Ps ? Marketing budget allocation
The marketing mix includes controllable and
tactical marketing tools known as the 4P’s
The Marketing Mix
2 - 46
The Marketing Process
(cont.)
Managing the marketing effort
? ? ? ?
Marketing Marketing Marketing Marketing
Analysis Planning Implementation Control
Managing the Marketing Effort
Marketing Functions
?
Begins with a complete
analysis of the company’s situation
?
Analysis Planning Implementation Control
?
Finding opportunities : the company must analyze
?
?
? ? ?
Avoiding threats Understanding strengths Analyzing weaknesses
its market & mktg environment company strengths & weaknesses current and possible mktg actions
Managing the Marketing Effort
Marketing Functions
?
Marketing plans include:
? ?
Analysis Planning Implementation Control
? ? ? ? ?
Executive summary Analysis of current situation Objectives Targets and positioning Marketing mix Budget Controls
Marketing Planning
?
?
?
Through strategic planning ?the company decides what it wants to do with each business unit Marketing planning ?involves deciding on marketing strategies that will help the company reach its strategic objectives Marketing plan ?2 levels:
?
Strategic mktg plan ?develops the broad mktg objectives
and strategy based on an analysis of the current market situation and opportunities Tactical mktg plan ?outlines specific mktg tactics, including advertising, merchandising, pricing, channels, service, etc.
?
Contents of a Marketing Plan
Executive Summary & Table of Contents Current Marketing Situation Threats and Opportunity Analysis Objectives and Issues
Marketing Strategy Action Programs
Budgets Controls
Managing the Marketing Effort
Marketing Functions
?
Analysis Planning Implementation Control
The process that turns mktg plans into mktg actions in order to achieve strategic mktg objectives Deals with “who”, “where”, “when”, “how” (while mktg planning dealing with “what” and “why”) Good implementation is a challenge
?
?
Managing the Marketing Effort
Marketing Functions
Analysis Planning Implementation Control
?
Evaluation of the results of marketing strategies Checks for differences between goals and performance
?
Measuring Effectiveness
?
Return on marketing (marketing ROI)
?
The net return from a marketing investment divided by the costs of the investments
The Relationship Between Analysis, Planning, Implementation, and Control
2 - 55
doc_190606048.pptx
The presentation on Market-Oriented Strategic Planning.
Market-Oriented Strategic Planning
Strategic Marketing Planning
?
?
?
Companies should look ahead and develop long-term strategies ?to meet changing conditions in their industries and ensure longterm survival The task of selecting an overall company strategy for long-run survival and growth ? “strategic planning” Marketing’s key role in strategic planning
Strategic Planning
?
Strategic Planning ? Managerial process of
developing and maintaining a match between the
organization’s resources, goals and capabilities and the changing market opportunities.
The aim ? to shape and reshape company’s businesses and products in order to reach to targeted profits and growth. Top-management job Part of a broader process: strategic management
?
? ?
Strategic Planning, Implementation, and Control Process
Planning
Corporate planning Division planning Business planning Product planning
Implementation
Organizing
Control
Measuring results Diagnosing results
Implementing Taking corrective action
Steps in Strategic Planning
Corporate Level
Business unit, product, and market level
Defining the Company Mission
Setting Company Objectives and Goals
Designing the Business Portfolio
Planning marketing and other functional strategies
Corporate and Division Strategic Planning
All corporate headquarters undertake four planning activities:
1) Defining the corporate mission 2) Establishing the strategic business units (SBUs)
3) Assigning resources to each SBU
4) Planning new businesses, downsizing or
terminating older businesses.
Steps in Strategic Planning:
Company Mission Statement
?
A mission statement ?a statement of
the organization’s purpose --- what it wants to accomplish in the larger environment
?
A clear mission statement ?acts as “invisible hand” that guides employees to work toward realizing the organization’s goals.
Company Mission
?
Fundamental questions:
?
?
A mission statement should be:
?
?
?
?
What is our business? Who is the customer? What do consumers value? What should our business be?
?
?
? ?
Neither too narrow nor too broad Fitting of market environment Based on distinctive competencies An “invisible hand” Motivating
Company Mission (cont.)
Limited number of goals Stress major policies & values Define competitive scopes
Company Mission (cont.)
?
?
“Market-oriented definitions” of a business ? better than product or technological definitions A market-oriented mission statement ? defines the business in terms of satisfying basic
customer needs
?
(see examples)
Mission statement ?to be guided by a “vision” - an almost “impossible dream” that provides a direction for the company for the next 10 to 20 years
Company Mission
Market Oriented Realistic Specific Fit Market Environment Distinctive Competencies Motivating
Characteristics of a Good Mission Statement:
P&G
“We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.”
Motorola
“The purpose of Motorola is to honorably
serve the needs of the community by providing products and services of superior quality at a fair price to our customers; to do this so as to earn an adequate profit which is required for the total enterprise to grow; and by doing so, provide the opportunity for our employees and shareholders to achieve their personal objectives.”
ITU
?
Mission
As a higher education and research institution dedicated to the advancement of basic and applied sciences, our mission is to educate the technological leaders and entrepreneurs of the future in a rich intellectual environment sensitive to both local and global issues.
Vision
?
ITU’s vision is to become a national and international focal point of pioneering studies in the fields of science, technology, social sciences, and the arts.
Goals and Objectives of ITU in Education and Research ? Attain international standards ? Be aware of the national and institutional (ITU) values ? Provide interdisciplinary domains ? Help to provide an international and a local competitive edge to industry ? Assist young Turkish universities to build up their faculty, teaching and research substructure ? Build two “Technocity” sites for mutual benefit of university and industry ? Create intersections of engineering, architecture and science education and research with music, art, fashion, humanities and social sciences ? Establish worldwide known centers of excellence
eBay
“We help people trade anything on earth. We will continue to enhance the online trading experiences of all–collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers.”
Arçelik
Vision To be the largest and most successful Turkish company listed on international stock exchanges
?
Mission To present products and services which enrich quality of life at homes
?
?
Strategy and Goals To become one of the top five leading household appliance companies in Europe Leadership in Turkey To grow in regional markets To be involved in new businesses in Turkey
Steps in Strategic Planning:
Company Goals and Objectives
?
? ? ?
Company’s mission ?needs to be turned into detailed, supporting objectives for each level of management Mission ?hierarchy of objectives As specific as possible Marketing strategies ?must be developed to support these marketing objectives
Hierarchy of Objectives
Mission Statement
Marketing Objective # 1
Marketing Objective # 2
Marketing Objective # 3
Marketing Strategy
Marketing Strategy
Steps in Strategic Planning:
Business Portfolio
?
Business portfolio ?collection of
businesses and products that make up the company
1) Analyzing
its current business portfolio and decide which business should receive more, less or no investment 2) Developing growth strategies to add new products/businesses to the current portfolio
Business Portfolio (cont.)
?
Portfolio Analysis ?to identify and
evaluate the various businesses that make up the company
?
To identify key businesses ?Strategic Business Units (SBUs)
?
SBU: unit of the company (separate mission and
objectives / can be planned independently from other company businesses)
?
To assess the attractiveness of its various SBUs and decide how much support each deserves
The Boston Consulting Group’s Growth-Share Matrix
20%18%16%14%12%10%8%6%4%2%0
10x
Market Growth Rate
Stars
4
Question marks
3
5
Cash cow
?2
7
?
1
Dogs
8 6
4x 2x 1.5x 1x .5x .4x .3x .2x .1x
Relative Market Share
Boston Consulting Group (BCG) Approach
Stars
Market Growth Rate
High
• High growth & share • Profit potential • May need heavy investment to grow Cash Cows
? • High growth, low share
Dogs
Question Marks
• Build into Stars or phase out • Require cash to hold market share
• Low growth, high share • Low growth & share • Established, successful • Low profit potential SBU’s •Produce cash
Low
Relative Market Share
High Low
The BCG Growth-Share Matrix and Strategies
?
After the classification of its SBUs ?to determine what role each will play in the future
? Build ?to invest more in
? Harvest ?to increase
? Good for weak cash cows, question marks and dogs
the SBU in order to build its share
? Increase market share ? Works well for question marks
the SBU’s short-term cash flow
? Hold ?to invest enough
just to hold at the current level
? Preserve market share ? Good for cash cow
? Divest ?to sell or to
liquidate the business
? Good for dogs and question marks
Problems With Matrix Approaches
Can be Difficult, Time-Consuming, & Costly to Implement
Difficult to Define SBU’s & Measure Market Share/ Growth
Focus on Current Businesses; provide little advice for future planning
Can Lead to Unwise Expansion or Diversification
Growth Strategies Existing products
Ansoff’s Product / Market Expansion Grid
New products
Existing markets
1. Market penetration
3. Product development
New markets
2. Market development 4. Diversification
Product / Market Expansion Grid
?
Market Penetration: making more sales to current customers without changing its products.
?
Add new stores in current market areas, improve advertising, prices, service or store design.
?
Market Development: develop new markets for its current products
?
Identify new demographic or geographic markets.
?
Product Development: offering modified or new products to current markets.
?
New styles, flavors, colors, or modified products. Start up or buy new businesses.
?
Diversification: new products for new markets.
?
Downsizing
?
Many reasons that a company might want to
abandon products or markets:
?
?
?
The market environment might change (making some of the company’s product or markets less profitable – economic recession) The company may have grown too fast or entered areas where it lacks experience Some of the company’s products or business units age and die.
Steps in Strategic Planning:
Functional Planning
?
?
?
?
The company’s overall strategic plan ? establishes what kind of businesses the company will be in future & its objectives for each business. More detailed planning must take place within each business unit The major functional departments in each unit ?must work together to accomplish strategic objectives Marketing plays a key role
Marketing’s Key Role in Strategic Planning
Marketing’s Role in Strategic Planning
Provide a guiding philosophy
Identify attractive opportunities
Inputs to Design Strategic effective Planners strategies
Build strong value chains
Form superior value delivery networks
Marketing’s Key Role:
Partner Relationship Management
Partner relationship management
?
?
?
working closely with partners in other departments (to form an effective “value chain” that serves the customer) & partnering effectively with other companies in the marketing system for a superior “value delivery network” to jointly bring greater value to customers
Marketing’s Key Role:
Partner Relationship Management
?
Each department in the company ?as a link in the company’s value chain;
? ?
Each dept.carries out value-creating activities The company’s overall success ?depends also on how well the activities of various dept. are coordinated
?
Departmental relations are full of conflicts
?
Marketers must find ways to get all dept. to “think consumer” and to develop a smoothly functioning value chain
Marketing’s Key Role:
Partner Relationship Management
?
The company needs to look beyond its own value chain in order to create customer value:
?
Value-delivery network ?network made up of the
company, suppliers, distributors, and customers who partner with each other to improve the performance of the entire sytem
?
Competition today takes place between the entire value delivery networks!
The Marketing Process
?
The task of any business is to deliver customer value at a profit. There are at least 2 views of the valuedelivery process
?
Two Views of the Value Delivery Process
Traditional Process Sequence
? ?
Value Creation and Delivery Sequence
? ?
Make product Sell product
?
Choose the value Provide the value Communicate the value
The Value-Delivery Process
The Marketing Process
?
The Marketing Process:
? ? ? ? ?
Analyzing marketing opportunities Researching and selecting target markets Designing marketing strategies Planning marketing programs Organizing, implementing, controlling the marketing effort
The Marketing Process
(cont.)
SWOT ANALYSIS
?
External Environment Analysis ?to build a
MIS to monitor: ? Key external macroenvironment forces ? Significant microenvironment actors ? Trends and important developments ?to identify the associated opportunities and threats
?
Internal Environment Analysis ?to evaluate
its internal strengths and weaknesses periodically
?
“Checklist
analysis”
for performing strengths/weaknesses
Example of a Checklist
?
PERFORMANCE
Main Strength 2nd Strength Moderate 2nd Main Weakness Weakness High
IMPORTANCE
Medium Low
MARKETING Firm's reputation Market share Product/service quality Pricing Distribution Promotion Sales force R&D / Innovation Geographical location FINANCE High profitability Low cost of capital Cash flow Financial stability PRODUCTION Scale economies Capacity of meeting demand Talented productive power Timely production Technical competence ORGANIZATION Skillful managers Loyal employees Entrepreneurship orientation Flexibility degree Rapid adaptation
The Marketing Process
Strategy
1. Market Segmentation 2. Target marketing 3. Market Positioning
? ? ? ?
(cont.)
? Customers grouped by:
Geographic Demographic Psychographic Behavioral
? Market segment is a groups of consumers who respond in similar ways to marketing efforts.
Strategy
1. Market
?
Evaluation of each segment’s attractiveness
Segmentation 2. Target marketing 3. Market Positioning
?
Selection of segments with greatest long-term profitability
A company can choose one or several segments to target
?
Strategy
1. Market
?
Segmentation 2. Target marketing 3. Market Positioning
?
?
The place the product occupies in the consumer’s mind Products are positioned relative to competing products Marketers look for clear, distinctive and desirable place in positioning
The Marketing Process (cont.)
Designing marketing strategies for competitive advantage
? ?
?
?
Market Market Market Market
leader strategies challenger strategies follower strategies nicher strategies
The Marketing Process
Planning marketing programs
?
(cont.)
Decisions on: ? Marketing expenditures ? Marketing mix – 4Ps ? Marketing budget allocation
The marketing mix includes controllable and
tactical marketing tools known as the 4P’s
The Marketing Mix
2 - 46
The Marketing Process
(cont.)
Managing the marketing effort
? ? ? ?
Marketing Marketing Marketing Marketing
Analysis Planning Implementation Control
Managing the Marketing Effort
Marketing Functions
?
Begins with a complete
analysis of the company’s situation
?
Analysis Planning Implementation Control
?
Finding opportunities : the company must analyze
?
?
? ? ?
Avoiding threats Understanding strengths Analyzing weaknesses
its market & mktg environment company strengths & weaknesses current and possible mktg actions
Managing the Marketing Effort
Marketing Functions
?
Marketing plans include:
? ?
Analysis Planning Implementation Control
? ? ? ? ?
Executive summary Analysis of current situation Objectives Targets and positioning Marketing mix Budget Controls
Marketing Planning
?
?
?
Through strategic planning ?the company decides what it wants to do with each business unit Marketing planning ?involves deciding on marketing strategies that will help the company reach its strategic objectives Marketing plan ?2 levels:
?
Strategic mktg plan ?develops the broad mktg objectives
and strategy based on an analysis of the current market situation and opportunities Tactical mktg plan ?outlines specific mktg tactics, including advertising, merchandising, pricing, channels, service, etc.
?
Contents of a Marketing Plan
Executive Summary & Table of Contents Current Marketing Situation Threats and Opportunity Analysis Objectives and Issues
Marketing Strategy Action Programs
Budgets Controls
Managing the Marketing Effort
Marketing Functions
?
Analysis Planning Implementation Control
The process that turns mktg plans into mktg actions in order to achieve strategic mktg objectives Deals with “who”, “where”, “when”, “how” (while mktg planning dealing with “what” and “why”) Good implementation is a challenge
?
?
Managing the Marketing Effort
Marketing Functions
Analysis Planning Implementation Control
?
Evaluation of the results of marketing strategies Checks for differences between goals and performance
?
Measuring Effectiveness
?
Return on marketing (marketing ROI)
?
The net return from a marketing investment divided by the costs of the investments
The Relationship Between Analysis, Planning, Implementation, and Control
2 - 55
doc_190606048.pptx