Foundations of Strategic Marketing Mgmt

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Foundations of Strategic Marketing Mgmt

  1. 1. Foundations of Strategic Marketing Management
  2. 2. “ Marketing” Defined <ul><li>AMA Definition </li></ul><ul><li>The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that will satisfy individual and organizational objectives. </li></ul>
  3. 3. Needs, Wants, & Demands <ul><li>Needs </li></ul><ul><ul><li>involve a state of felt deprivation of some basic satisfaction. </li></ul></ul><ul><li>Wants </li></ul><ul><ul><li>are desires for specific satisfiers of needs. </li></ul></ul><ul><li>Demands </li></ul><ul><ul><li>are wants for specific products that are backed by an ability, willingness, & authorization to buy. </li></ul></ul>
  4. 4. Product <ul><li>Anything offered for sale that that satisfies a need or want. </li></ul><ul><li>Can consist of goods, services, and/or ideas. </li></ul>
  5. 5. Exchanges <ul><li>Exchange means obtaining a desired product by offering something desirable in return. </li></ul>
  6. 6. Conditions Necessary for Exchanges to Occur <ul><li>At least 2 parties. </li></ul><ul><li>Each has something valued by the other. </li></ul><ul><li>Each is capable of communication & delivery. </li></ul><ul><li>Each is free to accept or reject offer. </li></ul><ul><li>Each feels it is desirable/appropriate to deal with the other party. </li></ul>
  7. 7. Markets <ul><li>A market consists of </li></ul><ul><li>all the potential customers </li></ul><ul><li>sharing a particular need or want, </li></ul><ul><li>who might be willing, able & authorized </li></ul><ul><li>to engage in exchanges. </li></ul>
  8. 8. Company Orientations Toward the Marketplace <ul><li>Production Concept </li></ul><ul><li>Product Concept </li></ul><ul><li>Sales (or Selling) Concept </li></ul><ul><li>Marketing Concept </li></ul><ul><li>Societal Marketing Concept </li></ul>
  9. 9. Customers’ Viewpoint: What Does Marketing Provide? <ul><li>Utilities </li></ul><ul><li>Possession Utility </li></ul><ul><li>Minimum risk and shopping time. </li></ul><ul><li>Place Utility </li></ul><ul><li>Convenient Locations </li></ul><ul><li>Time Utility </li></ul><ul><li>Product is available when the customer needs it. </li></ul>
  10. 10. Strategic Marketing Management Processes <ul><li>Defining the organization’s business, mission, and goals </li></ul><ul><li>Identifying & framing organizational growth opportunities </li></ul><ul><li>Formulating product-market strategies </li></ul><ul><li>Budgeting marketing, financial, & production resources </li></ul><ul><li>Developing reformulation & recovery strategies </li></ul>
  11. 11. Strategy <ul><li>A fundamental pattern of </li></ul><ul><ul><li>present and planned </li></ul></ul><ul><ul><li>objectives, resource deployments, and interactions of an organization with </li></ul></ul><ul><ul><li>markets, competitors, and other environmental factors. </li></ul></ul>
  12. 12. Business Definition, Mission & Goals <ul><li>Business Definition </li></ul><ul><ul><li>Essentially, determining what business an organization is in </li></ul></ul><ul><ul><li>MUST be defined from a customer or market perspective </li></ul></ul><ul><li>Business Mission </li></ul><ul><ul><li>Defines scope of operations and reflects management’s vision of what the organization seeks to do. </li></ul></ul><ul><li>Business Goals </li></ul><ul><ul><li>Desired levels of performance over specified time periods </li></ul></ul><ul><ul><li>Should be problem- or future-oriented. </li></ul></ul>
  13. 13. Identifying & Framing Growth Opportunities <ul><li>3 Basic Questions: </li></ul><ul><li>What might we do? </li></ul><ul><ul><li>Environmental opportunities </li></ul></ul><ul><li>What do we do best? </li></ul><ul><ul><li>Distinctive/core competencies </li></ul></ul><ul><li>What must we do? </li></ul><ul><ul><li>Basic requirements to compete successfully </li></ul></ul>
  14. 14. The SWOT Analysis INTERNAL Strengths Weaknesses EXTERNAL Opportunities Threats
  15. 15. Hierarchy of Strategies <ul><li>Corporate Strategy </li></ul><ul><li>Definition of the firm’s mission </li></ul><ul><li>Business-Level Strategy </li></ul><ul><li>Competencies & Number of Mkts </li></ul><ul><li>Marketing (functional) Strategy </li></ul><ul><li>Target Markets & Mktg Mix </li></ul>
  16. 16. Types of Corporate Strategy <ul><li>Growth for Current Markets </li></ul><ul><li>Growth for New Markets </li></ul><ul><li>Consolidation Strategies </li></ul>
  17. 17. Growth Strategies <ul><li>Current Markets </li></ul><ul><li>Market Penetration </li></ul><ul><li>Product Development </li></ul><ul><li>Vertical Integration </li></ul><ul><li>New Markets </li></ul><ul><li>Market Development </li></ul><ul><li>Market Expansion </li></ul><ul><li>Diversification </li></ul><ul><li>Strategic Alliances </li></ul>
  18. 18. Consolidation Strategies <ul><li>Retrenchment </li></ul><ul><li>Pruning </li></ul><ul><li>Divestment </li></ul>
  19. 19. The Marketing Mix <ul><li>Product Strategy </li></ul><ul><ul><li>Kind of good, service, or idea </li></ul></ul><ul><li>Communication Strategy </li></ul><ul><ul><li>Promoting the product </li></ul></ul><ul><li>Channel Strategy </li></ul><ul><ul><li>Distributing the product </li></ul></ul><ul><li>Price Strategy </li></ul><ul><ul><li>Determining amount buyer will/should pay for the product </li></ul></ul>

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