Marketing Eight

Strategic planning, Marketing Planning and Marketing Process

Assessing growth opportunities.......

Ansoff’sProduct/Market Expansion Grid Strategies for company growth Existing Products

Existing Markets

New Markets

Market Penetration Increasing sales of current products to current market segments without changing the product. Market Development Identifying and developing new market segments for current products.

New Products

Product Development Offering modified or new products to current market segments.

Diversification Starting up or acquiring businesses outside the company’s current products and markets.

Maruti Suzuki India Limited

Tata plan home furniture retail with Steinhoff International

Changing a corporate culture is often the key to successfully implementing a new strategy • Nokia....................:Culture of innovation at all levels

Strategic Business Units (SBUs)

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Characteristics

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1.

A distinct mission and specific target market

2.

Control over their resources

3.

Their own competitors

4.

Plans independent of other SBUs Chapter 2 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson

BCG Market Share/Market Growth Matrix

BCG Portfolio Matrix Example

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MARKET SHARE DOMINANCE

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HIGH LOW

MARKET GROWTH RATE

HIGH

LOW

SubNotebooks and Hand-Held Computer STAR Laptop and Personal Computers

Integrated phone/Palm devices PROBLEM CHILD Mainframe Computer

CASH COW

DOG Chapter 2 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson

Strategies for Resource Allocation

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Build

Provide financial resources if SBU (Problem Child) has potential to be a Star.

Hold

Preserve market share if SBU is a successful Cash Cow. Use cash flow for other SBUs.

Harvest Divest 11

Increase short-term cash return. Appropriate for all SBUs except Stars. Get rid of SBUs with low shares in low-growth markets. Chapter 2 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson

Three Basic Strategies for any Business Old classification (Porter) O v e ra ll C o s t L e a d e rs h i p

Focus

D iffe re n tia tio n

Three Basic Strategies for any Business New classification (Treacy-Wiersema)

O p e ra tio n a l E x c e l e n c e

P ro d u c t L e a d e r s h i p

C u s to m e r In tim a c y

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Marketing Objectives Marketing Objectives Must Be:

● Realistic ● Measurable ● Time specific

“Our objective is to increase market share by 40% and to obtain customer satisfaction ratings of at least 90% in 2008.”

● Consistent with Organization’s Priorities 14

Chapter 2 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson

Marketing Plan Objectives

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●

Communicate marketing management philosophies

●

Provide direction

●

Serve as motivators

●

Clarify thinking

●

Provide basis for control Chapter 2 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson

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Following Up the Marketing Plan ● Implementation ● Evaluation ● Control ● Marketing Audit

−Comprehensive −Systematic −Independent −Periodic

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Chapter 2 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson

Elements of a Marketing Plan Executive Summary Current Marketing Situation Threats and Opportunities Objectives and Issues Marketing Strategy Action Programs Budgets Controls

Elements in typical marketing and business plans targeted at different audiences

1

Marketing PlanBusiness Mission Statement Process Objectives

Situation or SWOT Analysis Marketing Strategy Target Market Strategy

Marketing Mix Product Promotion

Distributi on (Place) Price

Implementation Evaluation Chapter 2 Marketing 7e Lamb Hair Control 19

McDaniel ©2004 South-Western/Thomson

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Task for Today………. ● Consider any product you want to introduce in the market and prepare a marketing plan for the same ● www.esnips.com/web/defmm

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Chapter 2 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson

“Know your enemy, know yourself, and your victory will not be threatened. Know the terrain, know the weather, and your victory will be complete.”