Principles of marketing: Lecture 6

Principles of marketing: Lecture 6 provide students with knowledge about: strategic planning and marketing process; environmental analysis; mission and objective setting; marketing strategy development; action plans;... Please refer to this lesson for details!

MGT301 Principles of Marketing Lecture­6 Summary of   Lecture­5 Marketing  Challenges  in the  21st century Threat of New Threat of  Entrants New  Entrants Bargaining Power of Suppliers Rivalry Among Competing Firms in Industry Bargaining Power of Buyers Threat of Substitute Products *  The Information Technology Boom  Rapid Globalization  The Changing World Economy  The Call for more ethical and social Responsibility  The New Marketing Landscape Today’s Topics Strategic Planning and Marketing  Process  Strategic  planning The process of developing and maintaining a strategic fit  between the organization’s goals and capabilities and its  changing marketing opportunities.   Planning­­what are we going do  and how are we going to do it? Why  Plan?  Address changing environment and  consumers  Develop shared goals within  organization  Address competitive threat Planning is no  fun!  Who likes to think about the  future?  It is just an unnatural act! Defining the Company’s Business and  Mission A Mission Statement is a Statement of  the Organization’s Purpose Market Market Oriented Oriented Realistic Realistic Specific Characteristics of a Good Mission Statement: Fit Fit Market Market Environment Environment Distinctive DistinctiveCompetencies Competencies Motivating Motivating Setting Company Objectives and Goals  M is s io n S ta te m e n t M a r k e t in g O b je c t iv e # M a r k e t in g S tra te g y M a r k e t in g S tra te g y M a r k e t in g O b je c t iv e # M a r k e t in g S tra te g y M a r k e t in g O b je c t iv e # M a r k e t in g S tra te g y M a r k e t in g S tra te g y Designing the Business Portfolio Business Portfolio: The collection of business and products  that make up the company Portfolio Analysis: A tool by which management evaluates  the various business making up the company Strategic Business Unit (SBU): A unit of the company that  has a separate mission and objectives and that can be planned  independently from other company business   The best portfolio is the one that best fits the company’s  strengths and weaknesses to the opportunities in the  environment The company must: analyze its current business portfolio or Strategic Business  Units (SBU’s)  decide which SBU’s should receive more, less, or no  investment  develop growth strategies for adding  new products or  businesses to the portfolio  The Boston Consulting Group’s Growth­ Share Matrix Stars Question marks ? ?2 ? Market growth rate 20%18%16%14%12%10%8%6%4%2%0 10x ? Dogs Cash cow 4x 2x 1.5x 1x 5x 4x 3x 2x 1x Relative market share Enough for today. .  Summary Strategic Planning and Marketing Process Corporate  Level Defining the Company Mission Setting Company Objectives and Goals Business unit, product, and market level Designing the Business Portfolio Planning, marketing, and other functional Strategies Stars Question marks ? ?2 ? Market growth rate 20%18%16%14%12%10%8%6%4%2%0 10x ? Dogs Cash cow 4x 2x 1.5x 1x 5x 4x 3x 2x 1x Relative market share Next…     BCG Marketing Process  Analyzing marketing opportunities  Selecting target markets MGT301 Principles of Marketing Lecture­6 ...Summary of? ?  Lecture? ?5 Marketing  Challenges  in the  21st century Threat of New Threat? ?of? ? Entrants New  Entrants Bargaining Power of Suppliers Rivalry Among Competing... Marketing Process  Analyzing marketing opportunities  Selecting target markets MGT301 Principles? ?of? ?Marketing Lecture? ?6 ... Mission A Mission Statement is a Statement? ?of? ? the Organization’s Purpose Market Market Oriented Oriented Realistic Realistic Specific Characteristics of a Good Mission Statement: Fit Fit Market