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Strategic marketing plnng

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  • 1. StrategicStrategic MarketingMarketing ManagementManagement ProcessProcess Chapter 15Chapter 15 Also includesAlso includes Appendix AAppendix A Accounting forAccounting for marketersmarketers © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-1
  • 2. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-2 Strategic PlanningStrategic Planning nn The managerial process of matching anThe managerial process of matching an organisationorganisation’’s resources with itss resources with its marketing opportunities over the longmarketing opportunities over the long run.run.
  • 3. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-3 Strategic PlanningStrategic Planning nn The process:The process: –– Define organisationDefine organisation’’s mission.s mission. –– Set organisational objectives.Set organisational objectives. –– Evaluate organisationEvaluate organisation’’s strategic businesss strategic business units (units (SBUSBU’’ss).). –– Select strategy to achieve organisationSelect strategy to achieve organisation’’ss objectives.objectives.
  • 4. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-4 The marketing managementThe marketing management processprocess PLANNING Analyse situation Set goals Select strategies and tactics IMPLEMENTATION Organise Staff Direct EVALUATION Compare performance with goals Feedback, so management can adapt future plans and their implementation to the changing environment
  • 5. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-5 The Mission StatementThe Mission Statement nn A mission statement is a short clearA mission statement is a short clear statement defining the central reasonstatement defining the central reason for an organisationfor an organisation’’s existence.s existence. nn It answers the questions:It answers the questions: –– What business are we in?What business are we in? –– What business should we be in?What business should we be in? nn It is expressed in terms of benefits.It is expressed in terms of benefits.
  • 6. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-6 EvaluatingEvaluating SStrategictrategic BBusinessusiness UUnitsnits nn An analysis of current products and theAn analysis of current products and the markets in which they are operating.markets in which they are operating. nn An SBU may be:An SBU may be: –– A major division in an organisationA major division in an organisation –– A group of related productsA group of related products –– A single product or brandA single product or brand
  • 7. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-7 B.C.G. Product Portfolio AnalysisB.C.G. Product Portfolio Analysis Stars Cash cows Dogs Question marks High Low High Low COMPANY’S MARKET SHARE INDUSTRY GROWTHRATE
  • 8. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-8 THE BOSTON CONSULTING GROUP MATRIX • A strategic business unit (SBU) model can be classified according to two factors: – its market share relative to competitors – the growth rate of the industry in which the SBU operates • These models, known as portfolio analysis, assess the needs of particular SBUs.
  • 9. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-9 THETHE BBOSTONOSTON CCONSULTINGONSULTING GGROUPROUP MATRIXMATRIX nn They are divided into high and lowThey are divided into high and low categories.categories. nn They seek to reduce risk and optimiseThey seek to reduce risk and optimise outcomes and determine resourceoutcomes and determine resource allocation.allocation. nn A company should seek a balancedA company should seek a balanced portfolio of SBUs with a mix of stars,portfolio of SBUs with a mix of stars, cash cows, and questions marks, butcash cows, and questions marks, but hopefully no dogs.hopefully no dogs.
  • 10. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-10 High Low High Low BUSINESS POSITION MARKETATTRACTIVENESS Medium Medium INVEST INVEST PROTECT INVEST PROTECT HARVEST PROTECT HARVEST DIVEST
  • 11. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-11 GENERAL ELECTRIC BUSINESS SCREEN • Management can classify SBUs or major products based on two factors, market attractiveness and business position. • Each of these factors is rated according to several criteria. • Each SBU is rated with respect to all criteria. • Overall ratings (usually numerical scores) for both factors are calculated for each SBU. • Based on these ratings, each SBU is labelled as high, medium, or low with respect to: (a) market attractiveness, and (b) business position.
  • 12. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-12 PRESENT PRODUCTS PRESENT MARKETS NEW PRODUCTS NEW MARKETS Market penetration Market development Product development Diversification The Growth MatrixThe Growth Matrix
  • 13. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-13 The Growth MatrixThe Growth Matrix nn Market penetrationMarket penetration——Marketing ofMarketing of present products to present markets.present products to present markets. nn Market developmentMarket development——MarketMarket present products to new markets.present products to new markets. nn Product developmentProduct development——MarketingMarketing new products to present markets.new products to present markets. nn DiversificationDiversification——Market new productsMarket new products to new markets.to new markets.
  • 14. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-14 PorterPorter’’s Generic Strategics Generic Strategic ModelModel nn Overall cost leadershipOverall cost leadership –– Producing standardised product at a lowProducing standardised product at a low costcost nn DifferentiationDifferentiation –– Market a USP (Unique Selling Proposition)Market a USP (Unique Selling Proposition) nn FocusFocus –– Concentration on a small specialty marketConcentration on a small specialty market
  • 15. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-15 Marketing AuditMarketing Audit nn A marketing audit is a comprehensiveA marketing audit is a comprehensive review and evaluation of the marketingreview and evaluation of the marketing function in an organisation.function in an organisation. –– An audit examines:An audit examines: nn Marketing strategyMarketing strategy nn Structure of the marketing divisionStructure of the marketing division nn Marketing systemsMarketing systems nn Marketing productivityMarketing productivity nn Marketing functionsMarketing functions
  • 16. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-16 . Strategic company planning 1. Define org. mission 2. Conduct situation analysis 3. Set org. objectives 4. Select appropriate strategies Strategic marketing planning 1. Conduct situation anal. 2. Develop marketing obj. 3. Determine positioning and differential advantage 4. Select target markets, measure market demand 5. Design strategic marketing mix Annual marketing planning Prepare annual marketing plan for each major product and company division PLANNING SEQUENCE IMPLEMENTATION AND EVALUATION
  • 17. Accounting for MarketersAccounting for Marketers Appendix A, Chapter 15Appendix A, Chapter 15
  • 18. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-18 Accounting reportsAccounting reports nn Two typesTwo types –– Balance SheetBalance Sheet –– Profit and Loss StatementProfit and Loss Statement nn Balance SheetBalance Sheet——a snapa snap--shot of theshot of the financial position of a business at afinancial position of a business at a given point in time.given point in time.
  • 19. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-19 Balance sheetBalance sheet nn Three main elements:Three main elements: –– AssetsAssets——What the company owns or isWhat the company owns or is owed.owed. –– LiabilitiesLiabilities——What the company owes toWhat the company owes to others.others. –– OwnerOwner’’s equitys equity——The net worth of a firm.The net worth of a firm.
  • 20. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-20 Profit and loss statementProfit and loss statement nn Usually structured as follows:Usually structured as follows: –– SalesSales $$ –– Less Cost of goods soldLess Cost of goods sold $____$____ –– EqualsEquals Gross profitGross profit $$ –– Less ExpensesLess Expenses $____$____ –– Equals Net profitEquals Net profit $____$____ (See Table 15A(See Table 15A –– 1 in the text)1 in the text)
  • 21. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-21 MarkMark--up and gross marginup and gross margin nn Dollar markDollar mark--upup nn MarkMark--up %up % -------------------- nn CostCost nn Dollar markDollar mark--upup nn Gross margin (markGross margin (mark--up %)up %)---------------------- nn (based on selling price) Selling price(based on selling price) Selling price
  • 22. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-22 Analytical ratiosAnalytical ratios –– Net profit percentage, Net profitNet profit percentage, Net profit ------------------------------------ Net salesNet sales –– Expense ratio, ExpensesExpense ratio, Expenses ------------------------------ Net salesNet sales
  • 23. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-23 Analytical ratiosAnalytical ratios nn Stock turn rate,Stock turn rate, cost of goods soldcost of goods sold nn Rate of stock turnRate of stock turn ------------------------------------------ average inventory at cost ofaverage inventory at cost of goods soldgoods sold nn Total dollar markTotal dollar mark downdown nn Mark down %Mark down % ------------------------------------------------------------ Total net salesTotal net sales (given(given period)period)
  • 24. © 2001 McGraw-Hill Australia PPT slides t/a Rix, Marketing: A Practical Approach 4th ed 15-24 Analytical ratiosAnalytical ratios nn Average collection periodAverage collection period Net salesNet sales -------------------------------------------------------------------------------------- average accounts receivable (oraverage accounts receivable (or debtors)debtors) nn Return on investment (ROI)Return on investment (ROI) Net profitNet profit SalesSales ROI=ROI= ---------------- XX -------------------- sales investmentsales investment