CHAPTER TWO
Marketing Strategy Planning
[Link]/fourps
Questions Questions
Questions
Questions
What is Marketing Strategy Planning?
When we finish this lecture you should
1. Understand what a marketing manager Unfair trade practice does.
acts 2. Know what marketing strategy planning is Dumping it will be the focus of the book. and why [Link] list prices Understand target marketing. [Link]-Lea with the four Ps in a marketing Be familiar Amendment mix. [Link] fixing difference between a marketing Know the Robinson-Patman Act plan, and a marketing strategy, a marketing program. Price discrimination 6. Understand what customer equity is and why marketing strategy planners seek to increase it.
2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
When we finish this lecture you should
7. Be familiar with the texts framework for Unfair trade practice
acts marketing strategy planningand why it Dumping a process of narrowing down from involves Phony list prices broad opportunities to the most attractive marketing Wheeler-Lea strategy. Amendment 8. Know four broad types of marketing opportunities that help in identifying new Price fixing strategies. Robinson-Patman Act 9. Understand why strategies for opportunities Price discrimination in international markets should be considered.
2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Management Job in Marketing
The marketing management process refers to the planning, implementation, and control of marketing activities.
Marketing Planning
Whole-Company Strategic Management Planning
Controlling
Marketing Plan(s) and Program
Implement Marketing Marketing Plan(s) and Plan(s) and Program Program
Implementing
What is Marketing Strategy Planning?
Marketing strategy planning means finding opportunities and developing profitable marketing strategies that the company can use to capitalize on the opportunities.
E.g. My Happy Pizza Company
The marketing mix C
Marketing mix--the controllable variables (4 Ps) the company puts together to satisfy the target market.
Selecting a Marketing-Oriented Strategy Is Target Marketing (Exhibit 2-3)
E.g. My Happy Pizza Company
Production-oriented manager sees everyone as basically similar and practices mass marketing
Marketing-oriented manager sees everyone as different and practices target marketing
An Application of Target Marketing
Target Market for my Diet Pizza: 1. Value seekers 2. Variety seekers 3. Weight Watchers
Developing Marketing Mixes for Target Markets
(Exhibit 2-4)
Marketers have to make many decisions in developing a marketing mix that will satisfy their target customers. All of these variables making up the marketing mix can be reduced to four basic categories.
Product C Price
Place
Promotion
E.g. My Happy Pizza Company
The Product Element of the Marketing Mix
Ensure products/services are developed to meet the needs of target customers
The Place Element of the Marketing Mix (Exhibit 2-6)
The objective for the place, or distribution, is to get the right product, to the right consumer, in the right place, at the right time, in the right quantity, and in the right condition.
Examples of Channels of Distribution
Charles Schwab
Toyota
Sara Lee
Nestle
Wholesaler
Wholesaler
Wholesaler
Retailer
Retailer
Retailer
Consumer
The Promotion Element of the Marketing Mix
telling the target market about the product and selling the product
Personal Selling
Advertising
Telling and Selling
the Customer
YouTube: Evian Ad
Sales Promotion
Publicity
The Price Element of the Marketing Mix
Price is the revenue-generating function of the marketing mix
Price of Other Products In the Line Competition and Substitutes Price Sensitivity Pricing Objectives Price Flexibility
Price Changes Over the Life Cycle
Price Setting
Discounts and Allowances Geographic Pricing Terms
Cost and Demand
Legal Environment
All Four Ps Contribute to the Whole
E.g. In your course project
Product Place Promotion Price
Understanding the Target Market Leads to Good Strategies!
Selection of Target Market
The Marketing Plan Guides Implementation and Control
Target Market
+
Marketing Mix
Marketing Strategy
+
TimeRelated Details
Marketing Plan
+
Other Marketing Plans
A Firms Marketing Program
Customer Equity Business enters market C
is the expected earnings stream over time
time
Current Customers
firm
C
New Customers
As Customer Equity Grows, so do Earnings!
The Importance of Marketing Strategy Planning
Strategy Decisions Usually Determine Success and Failure
Timex had captured a large market share Low price, dependability, good ads, unconventional channels Stiff competition arose New product refinements
Creative Strategy Planning Needed for Survival
Death-wish marketing
Best-practices marketing
(Below average) (Well below average)
(Above average)
68% (Average Marketing Program) 14% Poor 14% Good
(Well above average)
2% Failure
Fair
2% Exceptional
What Are Attractive Opportunities?
Breakthrough Opportunities
Avoid Hit-or-Miss Marketing
Competitive Advantage
Marketing Strategy Planning Process Highlights Opportunities (Exhibit 2-11)
1. Market Penetration
T
High Promotion and/or Low Pricing
Coffee so good You just cant wait.
2. Product Development
Offer new or improved products
International Opportunities Should Be Considered 3. Market Development
Moving to new markets geographically OR Moving into new businesses YouTube: McCafe Ad
Smaller World
Early Start
Competitive Advantage
Better Trends?
Global Competitive Advantage
You now
1. Understand what a marketing manager Unfair trade practice
does. acts 2. Know what marketing strategy planning is Dumping and why it will be the focus of the book. Phony list prices 3. Understand target marketing. Wheeler-Lea 4. Are familiar with the four Ps in a marketing Amendment mix. Price fixing 5. Know the difference between a marketing Robinson-Patman Act plan, and a marketing strategy, a marketing Price discrimination program.
6.
Understand what customer equity is and why marketing strategy planners seek to increase it.
2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
You now
7. Be familiar with the texts framework for Unfair trade practice
acts marketing strategy planningand why it Dumping a process of narrowing down from involves Phony list prices broad opportunities to the most attractive marketing Wheeler-Lea strategy. Amendment 8. Know four broad types of marketing opportunities that help in identifying new Price fixing strategies. Robinson-Patman Act 9. Understand why strategies for opportunities Price discrimination in international markets should be considered.
2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Key Terms
Marketing management process Strategic (management) planning Marketing strategy Target market Marketing mix Target marketing Mass marketing Channel of distribution Personal selling Customer service Mass selling Advertising Publicity Sales promotion Marketing plan Implementation Operational decisions Marketing program Customer equity Breakthrough opportunities
Key Terms
Competitive advantage Differentiation S.W.O.T. analysis Market penetration Market development Product development Diversification