Lecture Basic Marketing: A global managerial approach - Chapter 2: Strategic market planning and the evaluation of marketing opportunities

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)