planning and its four steps. Discuss how to design business portfolios and develop growth strategies.
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Learning Objectives Describe the elements of a customer- driven marketing strategy and mix and the forces that influence it. List the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring and managing return on marketing investment. Copyright 2015 Pearson Education, Inc. 2-3 Strategic Planning Strategic planning involves adapting the firm to take advantage of opportunities in its constantly changing environment. Strategic planning helps a firm to maintain a strategic fit between its goals and capabilities and its changing marketing opportunities.
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Figure 2.1 - Steps in Strategic Planning
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Mission Statement Statement of the organizations purpose What it wants to accomplish in the larger environment Market oriented and defined in terms of satisfying basic customer needs Emphasizes the companys strengths Focuses on customers and the customer experience the company seeks to create Copyright 2015 Pearson Education, Inc. 2-6 Setting Company Objectives
and Goals The mission should be converted to supporting objectives at each level of management. The mission leads to setting a hierarchy of objectives. Business objectives Marketing objectives
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Business Portfolio Collection of businesses and products that make up the company Steps in business portfolio planning: Analyze the firms current business portfolio Develop strategies for growth and downsizing to shape the future portfolio
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Portfolio Analysis Evaluation of the products and businesses that make up the company by the management Steps: Identifying the strategic business units (SBUs) Assessing the attractiveness of its various SBUs and deciding the support each SBU deserves The purpose is to direct resources toward more profitable businesses while phasing out or dropping weaker ones. Copyright 2015 Pearson Education, Inc. 2-9 Figure 2.2 - The BCG Growth-Share Matrix
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Figure 2.3 - The Ansoff Product/Market Expansion Grid
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Downsizing Reduces the business portfolio by eliminating products or business units that are not profitable or that no longer fit the companys overall strategy Reasons for downsizing: Rapid growth of the company Lack of experience in a market Change in market environment Decline of a particular product Copyright 2015 Pearson Education, Inc. 2 - 12 Marketing Strategy Marketing logic by which the company hopes to create customer value and achieve profitable customer relationships Marketing mix: Integration of product, price, place, and promotion Activities for best marketing strategy and mix involve: Marketing analysis Planning, implementation, and control Copyright 2015 Pearson Education, Inc. 2 - 13 Market Segmentation and Market Targeting
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Positioning Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers Begins with differentiation Differentiation: Differentiating the market offering to create superior customer value The entire marketing program should support the chosen positioning strategy.
Contents of a Marketing Plan Section Purpose Executive Brief summary of the main summary goals and recommendations Current marketing Gives the market description situation and the product, competition, and distribution review Threats and Helps management to opportunities anticipate important positive or analysis negative developments Objectives and States and discusses marketing issues objectives and key issues
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Contents of a Marketing Plan Section Purpose Marketin Outlines the broad marketing logic and the g specifics of target markets, positioning, strategy marketing expenditure levels, and strategies for each marketing mix element Action Spells out how marketing strategies will be program turned into specific action programs s Budgets Details a supporting marketing budget that is a projected profit-and-loss statement Controls Outlines the controls that will be used to monitor progress, allow management to review implementation Copyright 2015 Pearson Education, Inc. 2 - 19 Market Implementation Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives Addresses the who, where, when, and how of the marketing activities