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Chapter 2

Chapter 2 - Developing a Marketing Plan and Marketing Strategies

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Wilfrid Laurier University
Dave Ashberry

Chapter 2 Developing a Marketing Plan and Marketing Strategies Levels of Strategic Planning in Corporations  Strategic planning occurs on at least 2 levels: o Corporate level » Done by top mgmt & focuses on overall direction of the entire firm » Focus on long-term, decide mission/vision, goals, etc o Functional level » Undertake some form of planning; example: marketing plan for brand » Set goals and establish portfolio of products and markets for the business unit o *Strategic Business Unit (SBU) » Only in some companies » Managed independently b/c it develops marketing plans for specific products, brands, markets » Medium to long term The Marketing Plan The Strategic Marketing Planning Process  Planning Phase is where marketing executives and other top managers (1) define the mission or vision of the business, (2) evaluate the situation by assessing how various players, bother in and outside the organization, affect the firm’s potential for success.  Implementation Phase is where marketing managers (3) identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning, and (4) develop and implement the marketing mix, 4P’s  Control Phase entails (5) evaluating the performance of the marketing strategy by using marketing metrics and take any necessary corrective actions. Developing a Marketing Plan 1. Define the business mission and objectives. a. A mission statement is a broad description of a firm’s objectives and the scope of activities it plans to undertake. What type of business are we? What do we need to accomplish our goals? Must be completed by the highest officials before other departments can do so. b. Building a sustainable competitive advantage entails something firms do persistently better than rivals. Acts like a wall, competitors can’t get in & company can boost profits for longer 2. Conduct a Situation Analysis using SWOT. o Uses a 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 3. Identify and Evaluate Opportunities by Using STP. o Must divide the market into subgroups or segments, determine which of those segments it should pursue or target, and decide how it should position its products to meet the needs of its chosen targets. o Segmentation – A market segment is a group of consumers who respond similarly to a firm’s marketing efforts. Market segmentation is the process of dividing the market into groups of customers with different needs, wants, or characteristics – who therefore might appreciate products or services geared especially for them. o Targeting - Target marketing or targeting is the process of evaluating the attractiveness of various segments and then deciding which to pursue/ as a market. o Positioning – Market positioning involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products. o Set Marketing Objectives – setting specific marketing objectives for the product or brand over the life of the plan; objectives includes market share, revenues and profitability targets, unit sales volume, and brand awareness 4. Implement Marketing Mix and Allocate Resources o Product and Value Creation – firms attempt to develop products and services that customers perceive as valuable enough to buy. o Price and Value for Money – getting value for your money » Cost-based Pricing: pricing strategy that involves first determining the costs of producing or providing the product, then adding a fixed amount above that total to arrive at the selling price. » Competitor-based Pricing – strategy involves pricing below, at or above competitors’ offerings » Value-based Pricing – strategy that involves first determining the perceived value of the product from the customer’s point of view and then pricing accordingly. o Place and Value Delivery – making the product readily accessible to customers when/where they want o Promotion and Value Communication – marketers communicate the value of their offering, or value proposition to their customers through a variety of media. 5. Evaluate Performance by Using Marketing Metrics. o Metrics (measuring system) are used to explain why things happened and to project the future o Who is Accountable for Performance? – at each level of an organization, the business unit and its manager should be held accountable only for the revenues, expenses, and profits that they can control o Performance Objectives and Metrics – hard to find a single metric to evaluate performance; so (1) compare a firm’s per
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