MARKETING ADM 2303 Marketing Strategie

Chapter 2 - Developing

!evel o" Strategi# $lanning in Corporation

Occurs in both in the Corporate level (cos top management decides on the overall direction of company) and .. ..%&n#tional level (various business functions, i.e., marketing where they also undertake their own form of planning.) In addition to the two strategic levels above.. arge companies with several business lines (i.e. !isney " media networks # resorts # consumer products) may see each of its strategic business units ($%&) develop their own plans.

The Strategi# Marketing $lanning $ro#e

' ' (epresents a set of steps a marketer goes through to develop a strategic marketing plan. !eveloping a )arketing *lan o *lanning *hase +) )arketing e,ecutives, along with other top managers, define the mission and-or vision of the business. %) .hey evaluate the situation by assessing how various players, both inside and outside of the organi/ation, affect the firms potential for success. 0) )arketing managers indentify and evaluate different opportunities by engaging in a process as segmentation, targeting, and positioning ($.*). .hey are responsible for developing the marketing mi, (1*s).

Implementation *hase )arketing managers are responsible for implementing the marketing mi, strategy, which re2uires obtaining ade2uate resources through a budget, developing the marketing organi/ation, and establishing schedules and timelines for the various marketing activities of the 1*$.

0ontrol *hase .. Is for evaluating the performance of the marketing strategy and taking any necessary corrective actions.

MARKETING ADM 2303 Marketing Strategie

Chapter 2 - Developing

Step 1: Define the Business Mission ' )ission statement3 + broad description of a firms ob4ective and the scope of activities It plans to undertake5 attempts to answer two main 2uestions3 6hat type of business is it7 6hat does it need to do to accomplish +nother key goal or ob4ective often embedded in a mission statement is building a. $ustainable competitive advantage3 $omething the firm can persistently do better than its competitors. + competitive advantage acts like a wall that the firm has built around its position in the market.

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Step 2: Conduct a Situation Analysis Using SWOT ' $ituation +nalysis3 $econd step in a marketing plan5 uses of a $6O. analysis that assesses both the internal environment with regard to its $trengths and 6eaknesses and the e,ternal environment in terms of its Opportunities and .hreats.

Step 3: dentify and !"aluate Oppo#tunities Using ST$ %Seg&entation' Ta#geting' and $ositioning( $egmentation ' +fter completing the situation audit, the ne,t step is to identify and evaluate opportunities for increasing sales and profits using. $.* (segmentation, targeting, and positioning)3 .he processes of segmentation, targeting, and positioning that firms use to identify that

MARKETING ADM 2303 Marketing Strategie

Chapter 2 - Developing

firms use to identify and evaluate opportunities for increasing sales and profits. ' ' )arket $egment3 + group of consumers who respond similarly to a firms marketing efforts. )arket segmentation3 .he process of dividing the market into groups of customers with different needs, wants or characteristics 8 who therefore might appreciate products or services geared especially for them.

.argeting ' +fter a firm has indentified the various market segments it might pursue, it evaluates each segments attractiveness and decides which to pursue using a process known as. .arget marketing-targeting3 .he process of evaluating the attractiveness of various segments and then deciding which to pursue as a market.

*ositioning ' 6hen the firm decides which segments to pursue, it must determine how it wants to be positioned within those segments. )arket positioning3 Involves the process of defining the marketing mi, variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

De"elop Ma#)eting Mi* In this step of the planning process, marketers develop the marketing mi, 8 product, price promotion, and place 8 for each product and service on the basis of what they believe their target markets will value. ' *roduct and 9alue 0reation o $uccess of marketing comes from the creation of value, firms attempt to develop products and services that customers perceive as valuable enough to buy.

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*rice and 9alue for )oney o 9alue'based marketing re2uires that firms charge a price that customers perceive as giving them good value for the products and services they receive. :irms practice ; types of pricing strategies3 0ost'based pricing3 + pricing strategy that involves first determining the costs of producing or providing a product and

MARKETING ADM 2303 Marketing Strategie

Chapter 2 - Developing

then adding a fi,ed amount above that total to arrive at the selling price. o o 0ompetitor'based pricing3 + strategy that involves pricing below, at, or above competitors offerings. 9alue'based pricing3 + pricing strategy that involves first determining the perceived value of the product from the customers point of view and then pricing accordingly.

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*lace and 9alue !elivery o .he firm must be able to, after it has created value through a product and-or service, make the product or service readily accessible when and where the customer wants it.

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*romotion and value 0ommunication o )arketers communicate the value of their offering, or the value proposition, to their customers through a variety of media including television, radio, maga/ines, sales promotion, and so on.

Step +: &ple&ent the Ma#)eting Mi*: Allocating ,esou#ces ' +fter developing the marketing mi,, marketing managers must allocate the resources needed to put the plan into action. $trategic business unit ($%&)3 + division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or ob4ectives. *roduct line3 + group of products that consumers may u together or perceive as similar in some way.

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Step -: !"aluate $e#fo#&ance ha"e and Ma)e Ad.ust&ents ' ' .his final step includes evaluating the results of the strategy and implementation program. .he firm must determine why it achieved or did not achieve its performance goals.

Gro'th Strategie
:irms consider pursing various market segments as part of their overall growth strategies.

MARKETING ADM 2303 Marketing Strategie

Chapter 2 - Developing

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)arket penetration strategy3 + growth strategy that employs the e,isting marketing mi, and focuses the firms efforts on e,isting customers. )arketing development strategy3 + growth strategy that employs the e,isting marketing offering to reach new market segments, whether domestic or international. *roduct development strategy3 + growth strategy that offers a new product or service to a firms current target market. !iversification strategy3 + growth strategy whereby affirm introduces a new product or service to a market segment that it does not currently serve.

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Ma#ro Strategie
&nlike growth strategies, macro strategies focus on elements of e,cellence to create and deliver value and to develop sustainable competitive advantages. ' ' ' 0ustomer $ervice3 Involves a focus on retaining loyal customers and e,cellent customer service. Operational <,cellence3 Involves a firms focus on efficient operations and e,cellent supply chain management. *roduct <,cellence3 Involves a focus on achieving products5 effective branding and positioning are key. high'2uality

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MARKETING ADM 2303 Marketing Strategie

Chapter 2 - Developing

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MARKETING ADM 2303 Marketing Strategie

Chapter 2 - Developing

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MARKETING ADM 2303 Marketing Strategie

Chapter 2 - Developing

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