MARKETING MANAGEMENT: STRATEGY 1 CHAPTER TWO. Marketing Management The process of: 1. planning, 2....

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MARKETING MANAGEMENT: STRATEGY

CHAPTER TWO

Marketing Management

The process of:1. planning, 2. executing, and3. controlling marketing activities to attain the marketing goals and objectives effectively and efficiently.

Change is constant and therefore the process is a continuous process.

What is a marketing strategy?

A plan identifying what marketing goals and objectives will be pursued and how they will be achieved in the time available.

Planning: A Framework for the Future

Establishing goals and objectives

Envisioning the Future

Designing strategies to beimplemented in the future

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Level of management planning

Top Management: Mission Statement

A mission statement is: A broad statement of the company’s

purpose Explains the purpose of the organization Provides direction for the entire company

Walt Disney’s Mission“The Walt Disney Company is committed to balance environmental stewardship with our corporate goals throughout the world”

http://corporate.disney.go.com/environmentality/mission_history.html

Homework Question

Page 52, question 6 The examination of mission statements

Strategic business units (SBU)

Operates as a “company within a company”A SBU is organized around some common

element such as….

SBU

Industry Technology

TargetMarket

Customerneed

Boston consulting groups growth-share matrix

Commonly referred to as the BCG MatrixDevelop to evaluate SBU’s performance

based industry growth (vertical axis) versus relative market share (horizontal axis)

Assists management to determine resource allocation

Four categories: Stars, Cash cows, Dogs, Question Marks (see exhibit 2-3, page 34)

Boston consulting groups growth-share matrix

STAR QUESTIONMARK

CASHCOW

DOG

MARKET SHARE(Cash Generation)

LOWHIGH

HIGH

LOW

GR

OW

TH

RATE

(Cash

Use)

Marketing Strategies at the SBU LEVEL

Marketing managers focus on two key aspects of SBU strategies:

1. Establish a competitive advantage

Superior to or favourably different from competitors

Examples include: price leadership, differentiation strategy

2. Plan growth strategies (Visit Exhibit 2-5, page 37)

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Planning business-unit growth strategies

The Market/Product Matrix (Exhibit 2-5)

Market Penetration

MarketDevelopment

ProductDevelopment

Diversification

New

Existing

Existing

New

Markets

Pro

du

ct

s

What’s Happening?

 http://www.theglobeandmail.com/report-on-business/industry-news/marketing/adhocracy/toyota-matrix-campaign-shows-peril-of-pulling-pranks/article2168041/

http://www.youtube.com/watch?v=eH3GH7Pn_eA

http://www.youtube.com/watch?v=V3WtXZGiav0&feature=related

The six stages of the Strategic marketing Process

Planning stages1. Identifying and evaluating opportunities2. Analyzing market segments and selecting target markets3. Planning a market position and developing a marketing

mix strategy4. Preparing a formal marketing plan

6. Controlling efforts and evaluating the results

5. Executing the plan

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Stage One: Identifying and Evaluating Opportunities

Situation Analysis: two major components:1. Environmental scanning & monitoring

External forces and trends are identified as opportunities and threats

Forces include: sociocultural, demographic, economic, etc.

2. Internal analysis Internal strengths and weakness are identified Key topics include: organization, customers,

suppliers

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Stage One: Identifying and Evaluating Opportunities

Bringing the internal and external analysis together:

Strengths(build on)

Weaknesses(deal with)

Opportunities(take advantage)

Threats(avoid)

Internal Micro-environment

External Macro-environment

S.W.O.T

Stage Two: Analyzing Market Segments & Selecting Target

Markets

Consumer Market (B2C) vs. Organizational Markets (B2B) (Visit exhibit 2-8, page 42)

Market segment Portion of a larger market (i.e. French Canadians)

Market segmentation Dividing the mass market into smaller groups with

similar characteristics that are likely to become the target market

Target market The specific group(s) the organization directs its

marketing mix towards

Stage Three: Market Positioning and Marketing Mix strategy

Market position: How consumers perceive a brand relative to its

competitionDeveloping marketing mix (4P’s):

Product Price Place (distribution) Promotion

Recall from

Chapter 1?

Homework Question

Page 52, question 11 “How is Dr. Pepper positioned relative to

Coke and Pepsi?”

Stage 4: Preparing a Formal Marketing Plan

The yearly marketing plan is a written report that includes: Marketing objectives (S.M.A.R.T) Marketing strategies Marketing mix Responsibility allocation Implementation timeline

Stage 5: Executing the marketing plan

Putting the plan into action!Management best practices:Ensure resources are

properly allocatedClearly understand and

communicate goals and expectations

Create reasonable expectations and deadlines

Stage 6: Controlling efforts and evaluation results

Marketing Audits: Ensure that planned activities are executed properly

Benchmark: establish performance standards

Supervision: investigate to ensure tasks have been completed “checking up”

Adjustments: evaluate to determine if goals have been achieved Yes? Continue with the plan No? Make adjustments and monitor

Ethics and Responsibility

Worldwide consumerism and environmentalism movements exert pressure for greater responsibility

Notion of “caring capitalism” tied to the marketing concept. Seeking ways to make a profit by serving the best

long-run interests of customers and communities.