2

MarketingMarketing

Harcourt, Inc.

CHAPTER 2

Strategic Planning and the

Marketing Process

Copyright 1999 Prentice Hall

2- 32- 3Strategic Planning ProcessStrategic Planning Process

• Strategic Planning involves developing an overall company strategy for long-run survival and growth.

• This process involves:–Defining a Mission: Statement of an organization’s

purpose; should be market oriented.–Setting Company Objectives: Supporting goals and

objectives to guide the entire company.–Designing a Business Portfolio: Collection of businesses

and products that make up the company.–Planning Functional Strategies: Detailed planning for

each department designed to accomplish strategic objectives.

Copyright 1999 Prentice Hall

2- 42- 4

The Marketing ProcessThe Marketing Process

TargetConsumers

Product

Place Price

Promotion

Mar

ketin

g

Im

plem

enta

tion

Marketing

Planning

Marketing

Control

Mar

ketin

g

Analys

is

Competitors

MarketingIntermediaries

PublicsSuppliers

Demographic-Economic

Environment

Technological-Natural

Environment

Political-Legal

Environment

Social-Cultural

Environment

Copyright 1999 Prentice Hall

2- 52- 5Marketing’s Role in Strategic Planning Marketing’s Role in Strategic Planning

• Process of Selecting Target Consumers

–Market Segmentation: determining distinct groups of buyers (segments) with different needs.

–Market Targeting: evaluating and selecting which target segments to enter.

–Market Positioning: products distinctive and desirable place in the minds of target segments compared to competing products.

Copyright 1999 Prentice Hall

2- 62- 6Marketing Mix- The Four P’s Marketing Mix- The Four P’s

Target Customers

Product“Goods-and-service”combination that a company offers a

target market

Price

Amount of moneythat consumers

have to pay to obtainthe product

Activities that persuade target

customers to buythe product

Promotion

Company activitiesthat make the

product available

Place

The Global Marketing Environment

Ó Copyright 1999 Prentice Hall

3-83-8

Marketing EnvironmentMarketing Environment

• All the actors and forces influencing the company’s ability to transact business effectively with it’s target market.

• Includes:–Microenvironment - forces close to the

company that affect its ability to serve its customers.

–Macroenvironment - larger societal forces that affect the whole microenvironment.

Think with me

Ó Copyright 1999 Prentice Hall

3-103-10The Marketing EnvironmentThe Marketing Environment

Company

DemographicEconomic

Natural

Technological

Political

Cultural

Company

CustomersIntermediaries

Suppliers

Competitors

Publics

Ó Copyright 1999 Prentice Hall

3-113-11The Marketing EnvironmentThe Marketing Environment

Company

Demographic

Economic

Natural

Technological

Political

Cultural Company

Customers

Intermediaries

Suppliers

Competitors

Publics

Ó Copyright 1999 Prentice Hall

3-123-12

The MicroenvironmentThe Microenvironment

CompanyCompany

CustomersCustomers

PublicsPublics Suppliers Suppliers

CompetitorsCompetitors IntermediariesIntermediaries

Forces Affecting a Company’s Ability to

ServeCustomers

Forces Affecting a Company’s Ability to

ServeCustomers

Ó Copyright 1999 Prentice Hall

3-133-13

The Company’s MicroenvironmentThe Company’s Microenvironment

• Company’s Internal Environment- functional areas such as top management, finance, and manufacturing, etc.

• Suppliers - provide the resources needed to produce goods and services.

• Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.

Ó Copyright 1999 Prentice Hall

3-143-14

The Company’s MicroenvironmentThe Company’s Microenvironment

• Customers - those who purchase a company’s goods and services.

• Competitors - those who serve a target market with similar products and services.

• Publics - any group that perceives itself having an interest in a company’s ability to achieve its objectives.

Ó Copyright 1999 Prentice Hall

3-153-15The MacroenvironmentThe Macroenvironment

DemographicDemographic

TechnologicalTechnological

CulturalCultural EconomicEconomic

PoliticalPolitical NaturalNatural

Forces that ShapeOpportunities

and Pose Threatsto a Company

Forces that ShapeOpportunities

and Pose Threatsto a Company

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3-163-16

The Company’s MacroenvironmentThe Company’s Macroenvironment

• Demographic - monitors population in terms of age, sex, race, occupation, location and other statistics.

• Economic - factors that affect consumer buying power and patterns.

• Natural - natural resources needed as inputs by marketers or that are affected by marketing activities.

Ó Copyright 1999 Prentice Hall

3-173-17The Company’s MacroenvironmentThe Company’s Macroenvironment

• Technological - forces that create new product and market opportunities.

• Political - laws, agencies and groups that influence or limit marketing actions.

• Cultural - forces that affect a society’s basic values, perceptions, preferences, and behaviors.

Thanks a lot & see you