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CHAPTER TWO Marketing Strategy Planning For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. ©  2008 M...
When we finish this lecture you should <ul><li>Unfair trade practice acts </li></ul><ul><li>Dumping </li></ul><ul><li>Phon...
When we finish this lecture you should <ul><li>Unfair trade practice acts </li></ul><ul><li>Dumping </li></ul><ul><li>Phon...
The Management Job in Marketing Marketing Planning Implement Marketing Plan(s) and Program Control Marketing Plan(s) and P...
What is Marketing Strategy Planning?  (Exhibit 2-2) The marketing mix C
Selecting a Marketing-Oriented Strategy Is Target Marketing (Exhibit 2-3) Production-oriented manager sees everyone as bas...
An Application of Target Marketing
Developing Marketing Mixes for Target Markets  (Exhibit 2-4) Place Promotion Price Product C
The Product Element of the Marketing Mix
The Place Element of the Marketing Mix (Exhibit 2-6) Examples of Channels of Distribution Charles Schwab Toyota Sara Lee N...
The Promotion Element of the Marketing Mix Personal Selling Advertising Publicity Advertising Publicity Personal Selling T...
The Price Element of the Marketing Mix Pricing Objectives Legal Environment Cost and Demand Price Flexibility Price Change...
All Four Ps Contribute to the Whole Understanding the Target Market Leads to Good Strategies! Selection of Target Market P...
Checking your knowledge General Motors is considering increasing the length of its bumper-to- bumper warranty on new vehic...
Checking your knowledge <ul><li>A television network is trying to generate interest in a new television show in advance of...
The Marketing Plan Guides Implementation and Control Other Marketing Plans Target Market + Marketing Mix = Marketing Strat...
Checking your knowledge <ul><li>An entrepreneurial teenager decides to start a new dog-walking business aimed at dog owner...
Checking your knowledge <ul><li>A large consumer products company markets several different lines of products, with many i...
Customer Equity (Exhibit 2-9) As Customer Equity Grows, so do Earnings! time Business enters market Initial Customers C fi...
The Importance of Marketing Strategy Planning Strategy Decisions Usually Determine Success and Failure <ul><li>Low price, ...
Creative Strategy Planning Needed for Survival 2% 14% 14% 2% (Well below average) Poor Fair Good Exceptional (Below averag...
What Are Attractive Opportunities? Breakthrough Opportunities Breakthrough Opportunities Competitive Advantage Avoid Hit-o...
Marketing Strategy Planning Process Highlights Opportunities (Exhibit 2-11)
Checking your knowledge <ul><li>A large metropolitan university has an established summer-school  </li></ul><ul><li>progra...
Market Penetration Coffee so good You just can’t wait.
Checking your knowledge <ul><li>An electronics superstore sends a special coupon to its current </li></ul><ul><li>customer...
Product Development
International Opportunities Should Be Considered Smaller World Competitive Advantage Better Trends? Early Start Competitiv...
Global Competitive Advantage
You now <ul><li>Unfair trade practice acts </li></ul><ul><li>Dumping </li></ul><ul><li>Phony list prices </li></ul><ul><li...
You now <ul><li>Unfair trade practice acts </li></ul><ul><li>Dumping </li></ul><ul><li>Phony list prices </li></ul><ul><li...
Key Terms <ul><li>Marketing management process </li></ul><ul><li>Strategic (management) planning  </li></ul><ul><li>Market...
Key Terms <ul><li>Competitive advantage </li></ul><ul><li>Differentiation </li></ul><ul><li>S.W.O.T. analysis </li></ul><u...
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  • Chapter Two Marketing Strategy Planning For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin
  • Transcript of "Chapter02web"

    1. 1. CHAPTER TWO Marketing Strategy Planning For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin www.mhhe.com/fourps
    2. 2. When we finish this lecture you should <ul><li>Unfair trade practice acts </li></ul><ul><li>Dumping </li></ul><ul><li>Phony list prices </li></ul><ul><li>Wheeler-Lea Amendment </li></ul><ul><li>Price fixing </li></ul><ul><li>Robinson-Patman Act </li></ul><ul><li>Price discrimination </li></ul>© 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin <ul><li>Understand what a marketing manager does. </li></ul><ul><li>Know what marketing strategy planning is — and why it will be the focus of the book. </li></ul><ul><li>Understand target marketing. </li></ul><ul><li>Be familiar with the four Ps in a marketing mix. </li></ul><ul><li>Know the difference between a marketing strategy, a marketing plan, and a marketing program. </li></ul><ul><li>Understand what customer equity is and why marketing strategy planners seek to increase it. </li></ul>
    3. 3. When we finish this lecture you should <ul><li>Unfair trade practice acts </li></ul><ul><li>Dumping </li></ul><ul><li>Phony list prices </li></ul><ul><li>Wheeler-Lea Amendment </li></ul><ul><li>Price fixing </li></ul><ul><li>Robinson-Patman Act </li></ul><ul><li>Price discrimination </li></ul>© 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin <ul><li>Be familiar with the text’s framework for marketing strategy planning—and why it involves a process of narrowing down from broad opportunities to the most attractive marketing strategy. </li></ul><ul><li>Know four broad types of marketing opportunities that help in identifying new strategies. </li></ul><ul><li>Understand why strategies for opportunities in international markets should be considered. </li></ul>
    4. 4. The Management Job in Marketing Marketing Planning Implement Marketing Plan(s) and Program Control Marketing Plan(s) and Program Implement Marketing Plan(s) and Program Whole-Company Strategic Management Planning
    5. 5. What is Marketing Strategy Planning? (Exhibit 2-2) The marketing mix C
    6. 6. Selecting a Marketing-Oriented Strategy Is Target Marketing (Exhibit 2-3) Production-oriented manager sees everyone as basically similar and practices “mass marketing” Marketing-oriented manager sees everyone as different and practices “target marketing”
    7. 7. An Application of Target Marketing
    8. 8. Developing Marketing Mixes for Target Markets (Exhibit 2-4) Place Promotion Price Product C
    9. 9. The Product Element of the Marketing Mix
    10. 10. The Place Element of the Marketing Mix (Exhibit 2-6) Examples of Channels of Distribution Charles Schwab Toyota Sara Lee Nestle Wholesaler Wholesaler Retailer Consumer Wholesaler Retailer Retailer
    11. 11. The Promotion Element of the Marketing Mix Personal Selling Advertising Publicity Advertising Publicity Personal Selling Telling and Selling the Customer Sales Promotion
    12. 12. The Price Element of the Marketing Mix Pricing Objectives Legal Environment Cost and Demand Price Flexibility Price Changes Over the Life Cycle Price Flexibility Price Changes Over the Life Cycle Pricing Objectives Price Setting Discounts and Allowances Geographic Pricing Terms Legal Environment Cost and Demand Competition and Substitutes Price Sensitivity Price of Other Products In the Line Discounts and Allowances Geographic Pricing Terms Competition and Substitutes Price Sensitivity
    13. 13. All Four Ps Contribute to the Whole Understanding the Target Market Leads to Good Strategies! Selection of Target Market Product Place Promotion Price
    14. 14. Checking your knowledge General Motors is considering increasing the length of its bumper-to- bumper warranty on new vehicles from 3 years to 5 years. The marketing mix variable being considered here is: <ul><li>product. </li></ul><ul><li>personnel. </li></ul><ul><li>place. </li></ul><ul><li>promotion. </li></ul><ul><li>price. </li></ul>
    15. 15. Checking your knowledge <ul><li>A television network is trying to generate interest in a new television show in advance of its premiere. The network sends out press releases and makes the star of the new show available for guest appearances on TV and radio talk shows. The marketing mix variable involved here is: </li></ul><ul><li>product. </li></ul><ul><li>personnel. </li></ul><ul><li>place. </li></ul><ul><li>promotion. </li></ul><ul><li>price. </li></ul>
    16. 16. The Marketing Plan Guides Implementation and Control Other Marketing Plans Target Market + Marketing Mix = Marketing Strategy + Other Marketing Plans + Time-Related Details Marketing Plan = Time-Related Details Marketing Plan Target Market Marketing Mix Marketing Strategy A Firm’s Marketing Program =
    17. 17. Checking your knowledge <ul><li>An entrepreneurial teenager decides to start a new dog-walking business aimed at dog owners who have to leave their pets at home alone during regular working hours. The teenage develops a thorough description of the people in her target market and their needs. She then comes up with a general outline of the services she will offer, some price ranges, the geographic area she will serve, and some low-cost promotion ideas. What has she developed so far? </li></ul><ul><li>A marketing program </li></ul><ul><li>A marketing plan </li></ul><ul><li>A SWOT analysis </li></ul><ul><li>A marketing strategy </li></ul><ul><li>Differentiation and segmentation </li></ul>
    18. 18. Checking your knowledge <ul><li>A large consumer products company markets several different lines of products, with many individual products in each line. Each product has its own marketing plan. The company president wants to bring together all of the different marketing plans into a single integrated document that can become part of the company’s strategic plan. It appears that the company president needs a: </li></ul><ul><li>marketing super-plan. </li></ul><ul><li>marketing program. </li></ul><ul><li>marketing strategy. </li></ul><ul><li>operational plan. </li></ul><ul><li>mass-marketing approach. </li></ul>
    19. 19. Customer Equity (Exhibit 2-9) As Customer Equity Grows, so do Earnings! time Business enters market Initial Customers C firm New Customers C C C $
    20. 20. The Importance of Marketing Strategy Planning Strategy Decisions Usually Determine Success and Failure <ul><li>Low price, dependability, good ads, unconventional channels </li></ul><ul><li>Stiff competition arose </li></ul><ul><li>New product refinements </li></ul><ul><li>Timex had captured a large market share </li></ul>
    21. 21. Creative Strategy Planning Needed for Survival 2% 14% 14% 2% (Well below average) Poor Fair Good Exceptional (Below average) (Above average) (Well above average) Death-wish marketing Best-practices marketing 68% (Average Marketing Program) Failure
    22. 22. What Are Attractive Opportunities? Breakthrough Opportunities Breakthrough Opportunities Competitive Advantage Avoid Hit-or-Miss Marketing Competitive Advantage
    23. 23. Marketing Strategy Planning Process Highlights Opportunities (Exhibit 2-11)
    24. 24. Checking your knowledge <ul><li>A large metropolitan university has an established summer-school </li></ul><ul><li>program that offers a wide variety of classes to its current students. To </li></ul><ul><li>expand enrollment, the school started promoting its summer school to </li></ul><ul><li>students who live in the area and are home for the summer, even </li></ul><ul><li>though they attend other universities during the regular school year. </li></ul><ul><li>This effort is an example of: </li></ul><ul><li>market penetration. </li></ul><ul><li>market development. </li></ul><ul><li>product development. </li></ul><ul><li>diversification. </li></ul><ul><li>a breakthrough opportunity. </li></ul>
    25. 25. Market Penetration Coffee so good You just can’t wait.
    26. 26. Checking your knowledge <ul><li>An electronics superstore sends a special coupon to its current </li></ul><ul><li>customers offering them a special discount for purchases made during </li></ul><ul><li>an upcoming week that occurs during a traditionally slow sales period. </li></ul><ul><li>This is an example of: </li></ul><ul><li>market penetration. </li></ul><ul><li>market development. </li></ul><ul><li>product development. </li></ul><ul><li>diversification. </li></ul><ul><li>a breakthrough opportunity </li></ul>
    27. 27. Product Development
    28. 28. International Opportunities Should Be Considered Smaller World Competitive Advantage Better Trends? Early Start Competitive Advantage Better Trends? Smaller World
    29. 29. Global Competitive Advantage
    30. 30. You now <ul><li>Unfair trade practice acts </li></ul><ul><li>Dumping </li></ul><ul><li>Phony list prices </li></ul><ul><li>Wheeler-Lea Amendment </li></ul><ul><li>Price fixing </li></ul><ul><li>Robinson-Patman Act </li></ul><ul><li>Price discrimination </li></ul>© 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin <ul><li>Understand what a marketing manager does. </li></ul><ul><li>Know what marketing strategy planning is — and why it will be the focus of the book. </li></ul><ul><li>Understand target marketing. </li></ul><ul><li>Are familiar with the four Ps in a marketing mix. </li></ul><ul><li>Know the difference between a marketing strategy, a marketing plan, and a marketing program. </li></ul><ul><li>Understand what customer equity is and why marketing strategy planners seek to increase it. </li></ul>
    31. 31. You now <ul><li>Unfair trade practice acts </li></ul><ul><li>Dumping </li></ul><ul><li>Phony list prices </li></ul><ul><li>Wheeler-Lea Amendment </li></ul><ul><li>Price fixing </li></ul><ul><li>Robinson-Patman Act </li></ul><ul><li>Price discrimination </li></ul>© 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin <ul><li>Be familiar with the text’s framework for marketing strategy planning—and why it involves a process of narrowing down from broad opportunities to the most attractive marketing strategy. </li></ul><ul><li>Know four broad types of marketing opportunities that help in identifying new strategies. </li></ul><ul><li>Understand why strategies for opportunities in international markets should be considered. </li></ul>
    32. 32. Key Terms <ul><li>Marketing management process </li></ul><ul><li>Strategic (management) planning </li></ul><ul><li>Marketing strategy </li></ul><ul><li>Target market </li></ul><ul><li>Marketing mix </li></ul><ul><li>Target marketing </li></ul><ul><li>Mass marketing </li></ul><ul><li>Channel of distribution </li></ul><ul><li>Personal selling </li></ul><ul><li>Customer service </li></ul><ul><li>Mass selling </li></ul><ul><li>Advertising </li></ul><ul><li>Publicity </li></ul><ul><li>Sales promotion </li></ul><ul><li>Marketing plan </li></ul><ul><li>Implementation </li></ul><ul><li>Operational decisions </li></ul><ul><li>Marketing program </li></ul><ul><li>Customer equity </li></ul><ul><li>Breakthrough opportunities </li></ul>
    33. 33. Key Terms <ul><li>Competitive advantage </li></ul><ul><li>Differentiation </li></ul><ul><li>S.W.O.T. analysis </li></ul><ul><li>Market penetration </li></ul><ul><li>Market development </li></ul><ul><li>Product development </li></ul><ul><li>Diversification </li></ul>

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