Marketing Notes Chapter 2.docx

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Western University
Management and Organizational Studies
Management and Organizational Studies 2320A/B
Kenneth Bowlby

Marketing Notes Chapter 2 Developing A Marketing Plan And Marketing Strategies Levels Of Strategic Planning In Corporations Strategic planning occurs at two levels: Corporate level – done by the company’s top management and focuses on overall direction of the entire company Functional level – planning that deals with functions such as H/R, R&D, finance, etc. Strategic business units (SBU) – division of the company that can be managed somewhat independently from other divisions since it markets a specific set of products to a clearly defined group of customers Marketing planning process – a set of steps a marketer goes through to develop a marketing plan Levels of strategic planning: The Marketing Plan Marketing plan – a written document composed of an analysis of the current marketing situation, opportunities, and threats for the firm, marketing objectives and strategy specified in terms of the four P’s, action programs, and projected or proforma income (and other financial) statements Three major phases of the marketing plan: planning, implementation, and control Developing a marketing plan: Planning phase – Where marketing executives and other top managers define the mission and objectives of the business (Step 1), and evaluate the situation by assessing how various players, both inside and outside the organization, affect the firms potential for success (Step 2) Implementation phase – where marketing managers identify and evaluate different opportunities by engaging in a process know as segmentation, targeting, and positioning (Step 3), they then develop and implement the marketing mix using the four P’s (Step 4) Control phase – the part of strategic marketing planning process where managers evaluate the performance of the marketing strategy and take any necessary corrective actions (Step 5) Step 1: Define The Business Mission And Objectives Mission statement – a broad description of the firm’s objectives and scope of activities; attempts to answer two main questions: What type of business is it? And what does it need to do to accomplish its goals and objectives The questions must be answered at the highest corporate level before marketers can get involved Step 2: Conduct A Situational Analysis Situational analysis – uses the SWOT analysis that assesses both the internal environment with regard to its strengths and weaknesses and the external environment in terms of its opportunities and threats Situational analysis also includes an examination of trends, customer analysis, and competitive analysis. It also assesses cultural, demographic, social, technological, economic, and political forces (CDSTEP) The SWOT analysis enables the firm to understand where it has sustainable competitive advantage or unique advantages that cannot be easily copied by competitors Strengths and weaknesses are in the firm’s control The firm can inly respond to opportunities and threats Examples of elements considered in a SWOT analysis Step 3: Identify And Evaluate Opportunities By Using STP (Segmentation, Targeting, And Positioning) Identify and evaluate opportunities for increasing sales and profits STP – the processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits Segmentation Market segment – a group of consumers who respond similarly to a firm's marketing efforts Market segmentation – the process of diving the market into groups of customers where each individual has similar needs, wants, or characteristics – who therefore might appreciate products or services geared especially for them in similar ways Targeting Target marketing (targeting) – the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market Positioning Marketing position – involves the process of defining the marketing mix variables so that target customers have a clear, distinct, desirable, understanding of what the product does or represents in comparison with competing products Set marketing objectives These objectives may be market share, revenue and profitability targets, unit sales volumes, and brand awareness Step 4: Implement Marketing Mix And Allocate Resources Product and value creation Firms attempt to develop products and services that customers perceive as valuable enough to buy Price and value for money A firm provides a product or service and receives money Price should be based on the value customers perceive Place and value delivery The product or service must be readily accessible when and where the customer wants it Promotion and value communication Marketers communicate the value of their product to their customers through promotion Marketers must determine the most efficient and effective methods to communicate with their customers, which goes back to understanding the customer, the value created, and the message being communicated Sponsorship of charities and community events is a growing
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