<ul><li>Chapter 2 </li></ul><ul><li>Strategic Planning and the Marketing Process </li></ul>
Objectives <ul><li>Distinguish between strategic planning and tactical planning. </li></ul><ul><li>Explain how marketing p...
Objectives <ul><li>Discuss how a strategy can be implemented through marketing plans. </li></ul><ul><li>Identify the basic...
Planning <ul><li>The process of anticipating future events and conditions and determining the best way to achieve organiza...
Charles Schwab, Personal Planning Individuals, like businesses, need to consider the Planning Process to ensure the future...
Plans Formulated Within the Marketing Organization <ul><li>Product lines. </li></ul><ul><li>Pricing decision. </li></ul><u...
A portfolio of products has helped Kraft obtain the position of market leader.
Strategic Planning <ul><li>The process of determining an organization’s primary objectives. </li></ul><ul><li>Adopting cou...
There are several businesses that offer help in strategic planning. The Patricia Seybold Group represents one such firm.
Tactical Planning <ul><li>Guides the implementation of activities specified in the strategic plan . </li></ul><ul><li>Typi...
Planning at Different Management Levels Daily and weekly plans; unit budgets; departmental rules and procedures Operationa...
Mission <ul><li>The essential purpose that differentiates the company from others. </li></ul><ul><li>Specifies the organiz...
SWOT Analysis <ul><li>An important strategic planning tool. </li></ul><ul><li>Helps planners to compare internal organizat...
Elements of a Marketing Strategy <ul><li>Basic elements of a marketing strategy consist of: </li></ul><ul><ul><li>The targ...
Chrysler’s “Marketing Strategy Development” This advertisement shows the Chrysler auto lineup including the highly success...
Marketing Mix <ul><li>Product Strategy </li></ul><ul><li>Deciding what goods or services the firm should offer to a group ...
Marketing Mix <ul><li>Distribution (Place) Strategy </li></ul><ul><li>Ensures that consumers find their products in the pr...
Marketing Mix <ul><li>Promotion Strategy </li></ul><ul><li>The Communication link between sellers and buyers </li></ul><ul...
Marketing Mix <ul><li>Pricing Strategy </li></ul><ul><ul><li>Methods of setting profitable and justifiable prices. </li></...
Planning Tools for Marketing <ul><li>Four specific tools: </li></ul><ul><li>Strategic business unit </li></ul><ul><li>Mark...
Strategic Business Units (SBUs) <ul><li>SBUs are key business units within diversified firms.  </li></ul><ul><li>Each SBU ...
The Sponsor of this Advertisement is 7UP 7UP is a SBU of the Dr Pepper/Seven-Up Companies, Inc. “ In 1986 Dr Pepper merged...
Market Share / Market Growth Matrix <ul><li>A four-quadrant chart that plots market share—the percentage of a market that ...
The Boston Consulting Group Developers of the Market Share / Market Growth Matrix
Market Attractiveness/ Business Strength Matrix <ul><li>Rates SBUs according to the attractiveness of their markets and th...
Spreadsheet Analysis <ul><li>Helps planners anticipate marketing performance given specified sets of circumstances </li></...
Summary <ul><li>Discussion has centered around: </li></ul><ul><ul><li>Strategic and tactical planning </li></ul></ul><ul><...
Upcoming SlideShare
Loading in...5
×

Ch. 2 planning

682

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
682
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
26
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Ch. 2 planning

  1. 1. <ul><li>Chapter 2 </li></ul><ul><li>Strategic Planning and the Marketing Process </li></ul>
  2. 2. Objectives <ul><li>Distinguish between strategic planning and tactical planning. </li></ul><ul><li>Explain how marketing plans differ at various levels in an organization. </li></ul><ul><li>Identify the steps in the marketing planning process. </li></ul><ul><li>Describe the concept of a SWOT analysis and its major elements. </li></ul>
  3. 3. Objectives <ul><li>Discuss how a strategy can be implemented through marketing plans. </li></ul><ul><li>Identify the basic elements of a marketing strategy. </li></ul><ul><li>Describe the environmental characteristics that influence strategy decisions. </li></ul><ul><li>Explain how the strategic business unit concept, the market share/market growth matrix, the market attractiveness/business strength matrix, and spreadsheet analysis can be used in marketing planning. </li></ul>
  4. 4. Planning <ul><li>The process of anticipating future events and conditions and determining the best way to achieve organizational objectives. </li></ul><ul><li>A continuous process that includes identifying objectives and includes checkpoints. </li></ul>
  5. 5. Charles Schwab, Personal Planning Individuals, like businesses, need to consider the Planning Process to ensure the future they desire. The need to anticipate events or conditions and the ways to achieve personal objectives is critical to long term achievements.
  6. 6. Plans Formulated Within the Marketing Organization <ul><li>Product lines. </li></ul><ul><li>Pricing decision. </li></ul><ul><li>Selection of appropriate distribution channels. </li></ul><ul><li>Promotional campaigns. </li></ul>Planning helps us hit what we aim for.
  7. 7. A portfolio of products has helped Kraft obtain the position of market leader.
  8. 8. Strategic Planning <ul><li>The process of determining an organization’s primary objectives. </li></ul><ul><li>Adopting courses of action that include allocation of necessary resources. </li></ul><ul><li>Typically longer term. </li></ul>
  9. 9. There are several businesses that offer help in strategic planning. The Patricia Seybold Group represents one such firm.
  10. 10. Tactical Planning <ul><li>Guides the implementation of activities specified in the strategic plan . </li></ul><ul><li>Typically address shorter-term actions. </li></ul>
  11. 11. Planning at Different Management Levels Daily and weekly plans; unit budgets; departmental rules and procedures Operational planning District sales manager Supervisors in staff Marketing departments Supervisory Management Quarterly and semi-annual plans; divisional budgets; divisional policies and procedures Tactical planning General sales manager Marketing research manager Advertising director Middle Management Organization-wide objectives; fundamental strategies; long-term plans; total budget Strategic planning Board of directors Chief executive officer (CEO) Chief operating officer (COO) Divisional vice presidents Top Management Examples Types of Planning Emphasized at This Level Management Level
  12. 12. Mission <ul><li>The essential purpose that differentiates the company from others. </li></ul><ul><li>Specifies the organization’s overall goals and operational scope. </li></ul><ul><li>Provides general guidelines for future management actions. </li></ul>
  13. 13. SWOT Analysis <ul><li>An important strategic planning tool. </li></ul><ul><li>Helps planners to compare internal organizational strengths and weaknesses. </li></ul><ul><li>Acronym for </li></ul><ul><ul><li>Strengths </li></ul></ul><ul><ul><li>Weaknesses </li></ul></ul><ul><ul><li>Opportunities </li></ul></ul><ul><ul><li>Threats </li></ul></ul><ul><li>Provides managers with a critical view of the organization’s internal and external environments. </li></ul>
  14. 14. Elements of a Marketing Strategy <ul><li>Basic elements of a marketing strategy consist of: </li></ul><ul><ul><li>The target market </li></ul></ul><ul><ul><li>The marketing mix variables of: </li></ul></ul><ul><ul><ul><li>product </li></ul></ul></ul><ul><ul><ul><li>distribution </li></ul></ul></ul><ul><ul><ul><li>promotion </li></ul></ul></ul><ul><ul><ul><li>price </li></ul></ul></ul>
  15. 15. Chrysler’s “Marketing Strategy Development” This advertisement shows the Chrysler auto lineup including the highly successful PT Cruiser. Based on the sales for PT Cruiser it is safe to say that Chrysler’s marketing strategy as it relates to the marketing mix variable, product is a success.
  16. 16. Marketing Mix <ul><li>Product Strategy </li></ul><ul><li>Deciding what goods or services the firm should offer to a group of consumers. </li></ul><ul><li>Includes making decisions about </li></ul><ul><ul><li>Customer service </li></ul></ul><ul><ul><li>Package design </li></ul></ul><ul><ul><li>Brand names </li></ul></ul><ul><ul><li>Trademarks </li></ul></ul><ul><ul><li>Patents </li></ul></ul><ul><ul><li>Warranties </li></ul></ul><ul><ul><li>Life cycle of a product </li></ul></ul><ul><ul><li>Positioning the product in the marketplace </li></ul></ul><ul><ul><li>New product development </li></ul></ul>
  17. 17. Marketing Mix <ul><li>Distribution (Place) Strategy </li></ul><ul><li>Ensures that consumers find their products in the proper quantities at the right times and places. </li></ul><ul><li>Involves: </li></ul><ul><ul><li>modes of transportation </li></ul></ul><ul><ul><li>warehousing </li></ul></ul><ul><ul><li>inventory control </li></ul></ul><ul><ul><li>order processing </li></ul></ul><ul><ul><li>selection of marketing channels </li></ul></ul>
  18. 18. Marketing Mix <ul><li>Promotion Strategy </li></ul><ul><li>The Communication link between sellers and buyers </li></ul><ul><ul><li>Communicate messages directly through salespeople or indirectly through advertisements and promotions. </li></ul></ul><ul><ul><li>Companies use an approach called integrated marketing communications (IMC) so the consumer receives a unified and consistent message. </li></ul></ul>
  19. 19. Marketing Mix <ul><li>Pricing Strategy </li></ul><ul><ul><li>Methods of setting profitable and justifiable prices. </li></ul></ul><ul><ul><li>Closely regulated and subject to considerable public scrutiny. </li></ul></ul><ul><ul><li>A major influence is competition. </li></ul></ul>
  20. 20. Planning Tools for Marketing <ul><li>Four specific tools: </li></ul><ul><li>Strategic business unit </li></ul><ul><li>Market share/market growth matrix </li></ul><ul><li>Market attractiveness/business strength matrix </li></ul><ul><li>Spreadsheet analysis </li></ul>
  21. 21. Strategic Business Units (SBUs) <ul><li>SBUs are key business units within diversified firms. </li></ul><ul><li>Each SBU </li></ul><ul><ul><li>has its own managers, resources, objectives, and competitors. </li></ul></ul><ul><ul><li>pursues its own distinct mission. </li></ul></ul><ul><ul><li>develops its own plans independently. </li></ul></ul><ul><ul><li>focuses the attention of company managers so that they can respond effectively to changing consumer demand. </li></ul></ul>
  22. 22. The Sponsor of this Advertisement is 7UP 7UP is a SBU of the Dr Pepper/Seven-Up Companies, Inc. “ In 1986 Dr Pepper merged with the Seven-Up Company and soon thereafter moved its manufacturing operations to facilities in St. Louis, although the company's corporate headquarters remained in Dallas. In 1992 Dr Pepper/Seven-Up Companies, Inc., was the soft drink industry's third largest marketer, with a domestic market share of 11.1 percent. Its products included Dr Pepper, Diet Dr Pepper, 7UP, Diet 7UP, Cherry 7UP, Diet Cherry 7UP, Welch's, and IBC soft drinks. The company's net sales totaled more than $658 million in 1992.” Source:http://www.tsha.utexas.edu/handbook/online/articles/view/DD/did1.html
  23. 23. Market Share / Market Growth Matrix <ul><li>A four-quadrant chart that plots market share—the percentage of a market that a firm controls—against market growth potential. </li></ul>Relative Market Share High Low High Low Industry Growth Rate Stars Generate considerable income Strategy: Invest more funds for future growth Question Marks Have potential to become stars or cash cows Strategy: Either invest more funds for growth or consider disinvesting Cash Cows Generate strong cash flow Strategy: Milk profits to finance growth of stars and question marks Dogs Generate little profits Strategy: Consider withdrawing
  24. 24. The Boston Consulting Group Developers of the Market Share / Market Growth Matrix
  25. 25. Market Attractiveness/ Business Strength Matrix <ul><li>Rates SBUs according to the attractiveness of their markets and their organizational strengths. </li></ul><ul><li>Marketing attractiveness criteria include: </li></ul><ul><ul><li>Market share </li></ul></ul><ul><ul><li>Growth </li></ul></ul><ul><ul><li>Size </li></ul></ul><ul><ul><li>Stability </li></ul></ul><ul><ul><li>Potential profitability </li></ul></ul><ul><ul><li>Extent of government regulations </li></ul></ul><ul><ul><li>Potential environmental and social impact </li></ul></ul><ul><ul><li>Competitive conditions </li></ul></ul>
  26. 26. Spreadsheet Analysis <ul><li>Helps planners anticipate marketing performance given specified sets of circumstances </li></ul><ul><li>Lays out a rigid grid of columns and rows that organize numerical information in a standardized, easily understandable format. </li></ul>
  27. 27. Summary <ul><li>Discussion has centered around: </li></ul><ul><ul><li>Strategic and tactical planning </li></ul></ul><ul><ul><li>Planning at different organizational levels </li></ul></ul><ul><ul><li>The planning process </li></ul></ul><ul><ul><li>SWOT </li></ul></ul><ul><ul><li>Planning tools available </li></ul></ul>
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×