Principles og MArketing PTPA: not mine

1. MARKET OPPORTUNITY
ANALYSIS AND
CONSUMER ANALYSIS
CHAPTER 3

2. THE STRATEGIC MARKETING
PROCESS
Mission
identification
Situation
analysis
Objective
setting
Marketing
strategy
development
Strategy
evaluation and
control

3. Step 1
•Mission Indentification
The company’s mission statement is
articulated. A mission statement
defines what an organization is, why it
exists, its reason for being, its primary
customers, the products and services it
provides.

4. This step assesses and evaluates the
market, customers, and the company’s
internal and external environment. The
objective is to identify the
company’s strengths and
weaknesses, as well as the available
Step 2
•Situation Analysis

5. Objectives are marketing targets that are
Specific, Measurable, Attainable, Realistic, and
Time-bound (SMART). These enable a company to
control its marketing plan and provide a
consistent focus for all functions of an
organization. These objectives include sales
revenue, market share, and profits.
They are used as basis for strategy selection
Step 3
•Objective Setting

6. The development of a marketing strategy
involves market segmentation, identification
of target market, positioning, selection of
broad marketing strategies, and the
translation of strategies into action plan.
Strategies can be broadly classified into
three categories. The are cost leadership,
Step 4
•Marketing strategy development

7. COST LEADERSHIP
This is a strategy primarily for achieving
low cost leadership among industry
competitors. Cost leadership can be
achieved through low cost supply contracts,
overhead expense control, economies of
scale and comprehensive cost-cutting
efforts, among others.

8. DIFFERENTIATION
Differentiation seeks to achieve
superior product attributes and features
that are different from industry
competitors. This results in pronounced
consumer preference for the company’s
products.

9. FOCUSED
Efforts are concentrated on a
relatively small but profitable market.
The development od products and
services primarily ensures that the needs
and wants of this market are addressed
and that satisfaction is provided.

10. Cost leadership, differentiation, and
focused strategies may be implemented
through the following sub categories:
1. Forward Integration This involves
gaining ownership or increased control
over distributors or retailers.
Example: A known newspaper company
buying 418 newspaper stands in Metro
Manila

11. 2. Backward Integration This
involves gaining ownership or
increased control over suppliers.
Example: A consumer goods company
in the Philippines purchasing a cow
farm and dairy facility in General
Santos City.

12. 3.Horizontal integration This involves
purchase of or increased control over competitors.
Example: A pizza company buying a controlling
interest in another pizza company.
4.Market penetration The objective
of this strategy is to increase market share of
current products or services in current

13. Example: A dougnut company launching a
₱56 million advertising campaign directed
at current customers.
5. Market development This strategy
involves the introduction of existing
products or services into a new geographical
area or market. Example: A private learning
institution opening a campus in Cebu City.

14. 6. Product development This
strategy involves the improvement of
current products or services or the
development of new products with
the purpose of increasing sales.
Example: A company on carbonated
beverages introducing its product line in

15. 7.Related diversification This involves
introducing new but related products or
services. Example: Battery manufacturers
introducing salar powered automotive
batteries
8.Unrelated diversification This involves
introducing new but unrelated products or
services. Example: A bank opening a chain
of ice cream parlors

16. 9. Retrenchment This involves halting
or reversing declining sales and profits
through cost or cost reduction.
Example :A shopping mall selling off its
hardware department and
laying off 847 of its department store
employees.

17. 10.Divestiture This involves selling a
division or part of an organization.
Exemple: A conglomerate selling an airline
11.Liquidation This involves selling all of
a company’s assets, in parts or as a whole,
for the tangible worth.
Example: A prime building company selling
all its companies

18. After the strategy is developed,
periodic monitoring and evaluation
are needed. This is necessary to
identify deviations and make
necessary adjustments and
corrections.
Step 5
•Strategy evaluation and control