Chapter 2 MARKETING 16

Chapter Planning, implementing & evaluating marketing strategies Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Marketing Strategic planningWarm up • Is the profit motive the only real motive for a company’s existence? • What are the dangers to a company of over-planning? Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Khac Thong, MBA Strategic Marketing Planning Strategic planning is the process of developing and maintaining a feasible fit between the organization’s objectives, skills, and resources and its changing marketing opportunities Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham What is Strategic Marketing Planning? (Philip Kotler ) Process > Strategic Fit: /4 principles (steps) + Market +Goals opportunities +Capabilities Skills & Resources Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Khac Thong, MBA Reasons for Planning • If we not know where we are going any road will take us there • The essence of strategic planning is the consideration of current decision alternatives in the light of their probable consequence over time • The future is unpredictable but it is not a random walk Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Four Organizational Levels of Large Corporations A.Corporate Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Unit B SBU Functional A Corporate Strategic Planning Four Planning Activities Defining the corporate mission Establishing strategic business units ( SBU) Assigning resources to each SBU Developing growth strategies Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Corporate Strategic Planning (cont.) Step 1.Defining the corporate mission • The mission should define the competitive scopes within which the company will operate Industry scope, products and applications scope, competencies scope, marketsegment scope, and vertical scope • Mission – What business are we in? What businesses should we be in? What we best? What are the values/ethics of the firm? – Define business by need rather than product - Lodging vs hotel - Quick service restaurants vs fast food hamburgers – Marketing myopia - Transportation vs railroad Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham A good mission statement features clear, specific, Text AT&T’s efficient service to customers Mark & Spencer’s value for money realistic, motivating too broad, narrow Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Khac Thong, MBA customer-satisfying process Technological process Business activities: customer-satisfying or technological process? Theodore Levitt: not a technological process process of satisfying customers whereas products and technologies are easily out of Market needs always exist & develop date Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Khac Thong, MBA 10 SHARE-GROWTH MATRIX BCG ( Boston Consulting Group) Conclusion an effective tool * can help strategic planner to assess suitable positions of SBUs & give each of them the most reasonable objective *for strategic planning of companies Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Khac Thong, MBA 20 Corporate Strategic Planning (cont.) Step Developing Growth Strategies – Intensive growth opportunities: Identify further opportunities to achieve growth within the company’s current business • Market penetration strategy seeks to increase current products in current markets • Market development strategy looks for new markets in which current products can expand • Product development strategy considers new product possibilities Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham 21 Corporate Strategic Planning (cont.) - Diversification growth opportunities: Identify opportunities to add attractive businesses that are unrelated to the company’s current businesses • Concentric diversification strategy: Company seeks new products that have technological and/or marketing synergy with existing product lines, even though the product may appeal to a new class of customers Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham 22 Corporate Strategic Planning (cont.) - Horizontal diversification strategy: Company searches for new products that could appeal to its current customers though technologically unrelated to its current product line • Conglomerate diversification strategy Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham 23 Corporate Strategic Planning (cont.) - Integrative growth opportunities • Backward integration: A hotel company acquiring one of its suppliers • Forward integration: A hotel company acquiring tour wholesaler or travel agents • Horizontal integration: A hotel company acquiring one or more competitors, provided the government does not bar the move Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham 24 Developing Growth Strategies in the Age of Connectedness Product/ Market Expansion Grid Existing Products Existing Markets New Markets New Products Market Penetration Product Development Market Development Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Diversification 25 Business Strategy Planning – B Planning at the SBU Level 1.Business mission 2.External environment analysis– opportunities and threats 3.Internal environment analysis– strengths and weaknesses 4.Goal Formulation (What we want?)–The vision Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham 26 Business Strategy Planning (cont.) Strategy Formulation (How we get there?) - Michael Porter’s three generic types of strategy: • Overall cost leadership • Differentiation • Focus – Strategic Alliances: companies need to form strategic alliances with domestic or multinational companies that complement or leverage their capabilities and resources to achieve leadership nationally or globally Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham 27 Business Strategy Planning (cont.) Program formulation A company must develop hiring, training, advertising, and other programs to support its strategy Implementation A firm must communicate its strategy to its employees and it must have the resources to carry out its strategy Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham 28 Business Strategy Planning (cont.) Feedback and control are absolutely necessary to track results and monitor new developments in the environment Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham 29 The process of strategic planning 1.Defining Corporate mission =>a good mission statement 1.2.Setting up a Business objectives= profits b Marketing objectives = market share 2.Sketching out Developing Business Marketing Portfolio (strategic) > plan &functional for best product strategies Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Khac Thong, MBA 30 The international Mineral Chemical Corporation 1.Defining MISSION & PURPOSE * Main activity: Fertilizer Business Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Khac Thong, MBA ‘To fight the world Hunger ( Strategic objectives ) 31 2.Setting up supporting Objectives (short-term) by researching new fertilizer (costly) increase agricultural productivity => higher crops Business objectives: improve profits increasing sales reducing costs Marketing objectives: enlarge market share & enter foreign markets Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Khac Thong, MBA 32 4.Setting up Marketing & Functional Strategic plans + Products available promotion Marketing & Functional Strategic plans +Prices cut down & calling on large farms abroad Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Khac Thong, MBA 33 Berkowitz & Kevin ‘s 4- approaches 1.Where have we been? Where are we now? Where are we headed with our existing plan? To analyze our current position To increase M growth & Market share How we 2.Where we want to go? allocate our resources to get where we want to go? To identify objectives To sketch out business portfolio Chapter2: Planning, implementing,&evaluating Marketing stategies- Pham Khac Thong, MBA 4.How we convert our plan into action? To formulate strategies & develop marketing plan 34 ... random walk Chapter2 : Planning, implementing,&evaluating Marketing stategies- Pham Four Organizational Levels of Large Corporations A.Corporate Chapter2 : Planning, implementing,&evaluating Marketing. .. and/or marketing synergy with existing product lines, even though the product may appeal to a new class of customers Chapter2 : Planning, implementing,&evaluating Marketing stategies- Pham 22 Corporate... skills, and resources and its changing marketing opportunities Chapter2 : Planning, implementing,&evaluating Marketing stategies- Pham What is Strategic Marketing Planning? (Philip Kotler ) Process