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Chapter 2

Marketing - Chapter 2.docx

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Department
Business
Course
BU352
Professor
Dave Ashberry
Semester
Fall

Description
Chapter Two: Developing Marketing Strategies Levels of Strategic Planning Strategic Marketing Planning Process 1) Define Mission/Vision 2) Situation Analysis 3) Identify and Evaluate Opportunities 4) Implement Marketing Mix 5) Evaluate Performance Growth Strategies 1) Market Penetration 2) Market Development 3) Product Development 4) Diversification Macro Strategies 1) Customer Excellence 2) Customer Service 3) Operational Excellence Levels of Strategic Planning Levels of Planning Scope Duration Strategic Focus Entire Firm Long-term (5 years) Define the company’s Corporate Planning mission, set company’s goals, and establish the business portfolio Strategic Business Unit Single SBU within the Medium to Long-Term Set goals and establish (SBU)/Division Planning firm (3 to 5 years) portfolio of products (applies only to large and markets for the firms with more than business unit one distinct line of businesses) Product portfolio, single Short-term to medium Develop marketing Functional Planning product, brand or term (1 to 3 years) plans for specific market products, brands, or markets 1) Planning Phase – 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, both in and outside the organization affect the firm’s potential for success 3. Identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning, and develop the marketing mix, 4Ps 2) Implementation Phase – where marketing managers implement the marking mix, allocate resources, and develop the marketing organization 3) Control Phase – the part of the strategic marketing planning process when managers evaluate the performance of the marketing strategy and take any necessary corrective actions See page 33 for a sample outline of a marketing plan. Developing a Marketing Plan Step 1: Define the Business Mission Mission Statement – a broad description of a firm’s objectives and the scope of activities it plans to undertake; attempts to answer two main questions: What type of business is it? What does it need to do to accomplish its goals and objectives? Ex. The Heart and Stroke Foundation - mission is to improve the health of Canadians by preventing and reducing disability and death from heart disease and stroke through research, health promotion and advocacy Another key goal or objective often embedded in a mission statement is building a sustainable competitive advantage (an advantage sustainable over a longer period of time): Sustainable Competitive Advantage – something the firm can persistently do better than its competitors Step 2: Conduct a Situation Analysis Using SWOT Situation Analysis – second step in a marketing plan; uses of a SWOT analysis that assesses both the internal environment with regard to its strengths, weaknesses and the external environment in terms of its threats and opportunities SWOT Analysis for Disney Internal Strengths Weaknesses - diverse businesses – operates in four - over-reliance on relationships business lines - seasonal fluctuations - well known brand image - risky foreign operations - weak performance of some External Opportunities Threats - expand into international markets - increasing competitive pressures - expand existing business in the US - piracy of its media assets - expand cruise line business - regulatory risks Step 3: Identify and Evaluate Opportunities Using STP (Segmentation, Targeting, and Positioning) STP – the processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits 1. Segmentation -many types of customers appear in any market and most firms cannot satisfy everyone’s needs Market Segment – a group of consumers who respond similarly to a firm’s marketing efforts Market Segmentation – the process of dividing the market into groups of customers with different needs, wants, or characteristics – who therefore might appreciate products or service geared especially for them Disney targets its Pleasure Island to singles/couples, Epcot to families with older children/adults, and the Magic Kingdom to families with younger children. 2. Targeting Target Marketing/Targeting – the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market Disney realizes that the Magic Kingdom’s primary appeal is to young families, so the bulk of its marketing efforts for this business are directed toward that group. 3. Positioning Market Positioning – involves the process of defining the marketing mix variables so that target customers have a clean, distinctive, desirable understanding of what the product does or represents in comparison with competing products Disney defines itself as an entertainer and consumers percei
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