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Marketing strategies and plans chapter 02

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  1. 1. MARKETING MANAGEMENT Chapter 2 Developing and Implementing Marketing Strategies and Plans (Chapter 2&3 in text book)
  2. 2. Chapter Questions What is a strategic plan? What is SWOT analysis and what are some of the environmental forces that shape marketing strategy? What are some of the marketing strategies and competing forces that shape them? Where does integrated marketing fit in? 2-2
  3. 3. The Strategic Planning Process 2-3
  4. 4. Step 1: Defining The Company Mission• Mission: a statement of the organisation’s purpose – what it wants to accomplish in the larger environment (the firm’s overall justification for existing)• Defining a business: What is our business? Who are our customers? Who should our customers be? What needs do we meet? How do we meet these needs?• Google: “To organize the world’s information and make it universally accessible and useful” 2-4
  5. 5. Step 2: Analysis Strengths Weaknesses Opportunities Threats 2-5
  6. 6. Environmental Forces Demographic Political-Legal Economic Technological Socio-Cultural Natural 3-6
  7. 7. The Five Competitive Forces that Shape Strategy(The Reading) What are Porter’s competitive forces? ◦ The power of suppliers ◦ The power of buyers ◦ The threat of substitutes ◦ Rivalry among existing competitors ◦ Barriers to entry What do these forces impact and how? What are the implications for strategy? 2-7
  8. 8. Portfolio Assessment Tool: BCG matrixMarket Growth Rate Stars Question Marks High ?? ? ?? Cash Cows Dogs Low High Low Relative Market Share
  9. 9. Step 3: Goal Formulation To be effective, goals must be: ◦ Ordered in terms of priority (hierarchical) ◦ Stated quantitatively ◦ Realistic ◦ Consistent Increase our market share by 10% compared to Competitors over the next five years Increase our profits by 5% every year during the next five years 2-9
  10. 10. Step 4: Strategy Formulation: Porter’s GenericStrategies Overall cost leadership Differentiation Focus 2- 10
  11. 11. Growth Strategies: Ansoff’s Growth Vector Matrix PRODUCTS / SERVICES Present New Present Product / Service MARKET Market penetration development Market New Diversification development
  12. 12. Developing an Integrated Marketing Mix:Tactical Planning Week 3: ing 12 Slide 2-40
  13. 13. Step 6: Program Formulation and Implementation Break every program into its component activities Identify associated costs Estimated involved time Set up responsibilities 2- 13
  14. 14. Step 7:Tracking Performance Setperformance objectives ◦ Market share, Profitability, Return on net worth, Customer satisfaction Select method (s) for evaluation ◦ Financial analysis, Market research 2- 14
  15. 15. The Marketing PlanA written statement of a marketing strategy and the time-related details for carrying out the strategy ◦ Executive summary ◦ Introduction and situation analysis (SWOT, Portfolio assessment) ◦ Defining objectives ◦ Strategic options and selected strategy ◦ Tactical elements: the marketing mix ◦ Budget and timing ◦ Control procedures 15
  16. 16. For Next Week  Reading 3 (Blue Ocean Strategy) 2- 16