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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.