After studying this chapter you will be able to: Know the variables that shape the environment of marketing strategy planning, understand why company objectives are important in guiding marketing strategy planning, understand target marketing, be familiar with the four Ps in a marketing mix,...
Chapter 2: Strategic Market Planning and the Evaluation of Marketing Opportunities For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited The Marketing Management Process Whole-Company Whole-Company Strategic Strategic Management Management Planning Planning Adjust Plans as Needed Control Control Marketing Marketing Plan(s) Plan(s)and andProgram Program Marketing Marketing Planning Planning Implement ImplementMarketing Marketing Plan(s) Plan(s) and and Program Program Exhibit 21 22 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited A Marketing Strategy The Marketing Mix C Exhibit 22 23 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited The Four Ps of the Marketing Mix Product Place C Price Promotion Exhibit 23 24 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Strategy Decision Areas Organized by the Four Ps Product Physical Goods Service Features Quality Level Accessories Installation Instructions Warranty Product Lines Packaging Branding Place Objectives Channel Type Market Exposure Kinds of Middleman Kinds and Locations of Stores How to Handle Transporting and Storing Service Levels Recruiting Middlemen Managing Channels Promotion Objectives Blend Salespeople Kind Number Selection Training Motivation Advertising Targets Kinds of Ads Media Type Copy Thrust Who Prepares? Sales Promotion Publicity Price Objectives Flexibility Level over Product Life Cycle Geographic Terms Discounts Allowances Exhibit 24 25 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Four Examples of Basic Channels of Distribution for Consumer Products Manufacturer or Producer CIBC Del Monte Procter & Gamble Wholesaler Wholesaler Nissan Wholesaler Retailer Retailer Retailer Consumer Exhibit 25 26 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Elements of a Firm’s Marketing Program Target Market + Marketing Mix = Marketing Strategy + = Time-Related Details and Control Procedures Marketing Plan + = Other Marketing Plans A Firm’s Marketing Program Exhibit 27 27 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Distribution of Different Firms Based on Marketing Performance Death-wish marketing Best-practices marketing (Below average) (Well below average) 2% Total Failure 14% Poor 68% (Average Marketing Program) Fair (Above average) (Well above average) 14% Good 2% Exceptional Exhibit 29 28 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Types of Opportunities Four Basic Types of Opportunities Present Products Present Markets New Markets New Products Market Penetration Product Development Market Development Diversification Exhibit 210 29 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Sales and Cost Curves of Two Strategies Product A Dollars Sales Total cost In this graphic, a toonarrow focus on the first year’s results might cause the marketing manager to abandon this product as too costly Years 210 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Evaluating Opportunities Industry Attractiveness Low Medium High Medium No Growth Low Business Strength High Borderline Growth Exhibit 213 211 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited ler Sm al Ea rl y St ar t 212 ive ti t e pe g m n ta Co va Ad W or ld Considering International Opportunities n e r T r te t Be ? s d For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited Continuum of Environmental Sensitivity Insensitive Industrial products Sensitive Basic commoditytype consumer products Consumer products that are linked to cultural variables Exhibit 214 213 For use with Shapiro, Wong, Perreault, and McCarthy texts Copyright © 2002 McGraw-Hill Ryerson Limited .. .The Marketing Management Process Whole-Company Whole-Company Strategic Strategic Management Management Planning Planning Adjust Plans as Needed Control Control Marketing Marketing Plan(s) Plan(s )and. .. Plan(s )and andProgram Program Marketing Marketing Planning Planning Implement ImplementMarketing Marketing Plan(s) Plan(s) and and Program Program Exhibit 21 22 For use with Shapiro, Wong, Perreault,... Distribution of Different Firms Based on Marketing Performance Death-wish marketing Best-practices marketing (Below average) (Well below average) 2% Total Failure 14% Poor 68% (Average Marketing Program)