This action might not be possible to undo. Are you sure you want to continue?
Principles of Marketing GROUP 2
Strategic Planning and the Marketing
What is strategic marketing
planning? Scope and importance of strategic planning Corporate and division strategic planning Business unit strategic planning The marketing process Implementation and control
Introduction to Strategic Marketing BY MR. JUNAID YUSUF
Strategic Planning is the Process of Developing and Maintaining a Strategic Fit Between the Organization’s Goals and Capabilities and Its Changing Marketing Opportunities.
Strategic planning in market involves Where should be the company be in the next 5 to 10 years? Why do we exist? What are the goals of org? Which are the market it should serve? What are the products it should offer? Should there any product live or brand extension? What resources do we need for successful future? Who will be our customers? 6 .
” John Scully 7 .Marketing Strategy “Marketing Strategy is a series of integrated actions leading to a sustainable competitive advantage.
SABBA ABBAS 8 .Understanding Corporate Level BY MISS.
Organizational Marketing Levels Hofer and Schendel suggested that organizations develop strategies at three structural levels: Corporate level—(corporate marketing) SBU level—(Strategic Marketing) Product/Market level—(Functional Marketing) 9 .
Market Oriented Market Oriented Realistic Realistic Specific Fit Market Environment Fit Market Environment Distinctive Competencies Distinctive Competencies 10 Motivating Motivating .Corporate and Division Strategic Planning A Mission Statement is a Statement of the Organization’s Purpose.
Good Mission Statements: Limited number of goals Stress major policies & values Define competitive scopes .
Setting Corporate Objectives and Goals .
or no investment develop growth strategies for adding new products or businesses to the portfolio 13 . The company must: analyze its current business portfolio or Strategic Business Units (SBU’s) decide which SBU’s should receive more.Designing the Business Portfolio The business portfolio is the collection of businesses and products that make up the company. less.
or a collection of related businesses.What is a Strategic Business Unit? (SBU) An SBU has three characteristics: It is single business. It has its own set of competitors. 14 . that can be planned separately. who controls most of the factors affecting profit. It has a manager responsible for strategic planning and profit performance.
Analyzing the Current Business Portfolio .
successful SBU’s •Produce cash 16 Low . low share • Profit potential • Build into Stars or phase out • May need heavy • Require cash to hold investment to grow market share ? Cash Cows • Low growth. high share • Established.Analyzing Current SBU’s: Boston Consulting Group Approach Relative Market Share High Stars Low Question Marks Market Growth Rate High • High growth & share • High growth.
67 2.33 Weak 1.00 5.Position Portfolio Classification MARKET ATTRACTIVENESS Low Medium High 5.67 2.00 3.33 1.00 Invest/grow Selectivity/earnings Harvest/divest .00 Strong BUSINESS STRENGTH Medium 3.Market Attractiveness: Competitive.
& Costly to Implement Difficult to Define SBU’s & Measure Market Share/ Growth Focus on Current Businesses.Problems With Matrix Approaches Can be Difficult. Time-Consuming. But Not future Planning Can Lead to Unwise Expansion or Diversification 18 .
FARHAN MALIK 19 .Assessing Growth Opportunities BY MR.
The Strategic-Planning Gap Diversification growth Integrative growth Intensive growth Strategicplanning gap .
Product Development 4.Developing Growth Strategies Product/ Market Expansion Grid Existing Products Existing Markets New Markets 1. Market Penetration 2. Diversification 21 . Market Development New Products 3.
How? Add new stores in current market areas. current products. improve advertising. Market Development: develop new markets for its 22 . How? Identify new demographic or geographic markets. prices. service or store design.Product/ Market Expansion Grid Market Penetration: making more sales to current customers without changing its products.
colors. or modified products. How? Start up or buy new businesses. How? New styles. 23 .Product/ Market Expansion Grid Product Development: offering modified or new products to current markets. flavors. Diversification: new products for new markets.
Business Unit Strategic Planning 24 .
External environment Market Customer Competitors Company 25 .Historical review and situation analysis Purpose: To develop a marketing strategy an organization requires information on its past and present position.
SWOT Analysis 26 .
Company develops a software program to teach lighting fundamentals to TV studio personnel Opportunities Low 3 4 .Opportunity Matrix 1. Company develops a device for measuring illumination level 4. Success Probability High Low Attractiveness High 1 2 Company develops a more powerful lighting system 2. Company develops a device for measuring the energy efficiency of any lighting system 3.
Threat Matrix Probability of Occurrence High Low Threats Seriousness 1 Competitor develops a superior lighting system 2.Major prolonged economic depression 3.Legislation to reduce number of TV studio licenses .Higher costs High 1 2 Low 3 4 4.
Marketing Strategy and the Marketing Mix BY MISS. IRSA JAVED AKHTER 29 .
Competitive advantage is a company’s ability to perform in one or more ways that competitors cannot or will not match. and deciding how to get there.Competitive Advantage Basically.” Philip Kotler 30 . the object of most corporate strategy. A more complete definition is based on competitive advantage. strategy is about two things: deciding where you want your business to go.
Factors Influencing Company Marketing Strategy Marketing M an ark al eti ys n is g Demographic/ economic environment intermediaries Product M pl ark an et ni ing ng Technical/ physical environment Suppliers Place M a C rk o n et tr ing ol Target Price customers im M p l ar em ke en tin ta g ti o n Publics Promotion Political/ legal environment Competitors Social/ cultural environment .
33 . Market Targeting: evaluating each segment’s attractiveness and selecting one or more segments to enter. or behavior. and desirable place relative to competing products in the minds of target consumers.Customer Driven Marketing Strategy Market Segmentation: determining distinct groups of buyers (segments) with different needs. characteristics. Market Positioning: arranging for a product to occupy a clear. distinctive.
separate marketing mixes should be used for different market segments. 9-34 . relatively homogeneous groups No single marketing mix can satisfy everyone. Therefore.The Role of Market Segmentation Market Segmentation Division of the total market into smaller.
No Market Segmentation 9-35 .
Segmented by Sex 9-36 .
Segmented by Age 9-37 .
and willingness to buy Target market: specific segment of consumers most likely to purchase a particular product . Market: people or institutions with sufficient purchasing power. authority. and select a target market. the marketer must identify.Selecting a Target Market Before a marketing mix strategy can be implemented. evaluate.
Positioning Positioning: a marketing strategy 939 that emphasizes serving a specific market segment by achieving a certain position in buyers’ minds Attributes Price/quality Competitors Application Product user Product class .
Developing the Marketing Mix Product “Goods-and-service” combination that a company offers a target market Target Customers Intended Positioning Company activities that make the product available Price Amount of money that consumers have to pay to Obtain the produc Activities that persuade target customers to buy the product 40 Promotion Place .
The Marketing Process 41 .
42 . 2. The purpose of the marketing process is to help the firm plan how to capitalize on these opportunities.Analyzing marketing opportunities The strategic planning and business portfolio analysis processes help to identify and evaluate marketing opportunities.
Target marketing determines which segment(s) are pursued. The market positioning for the product is then determined. 2.Selecting target markets The segmentation process divides the total market into market segments.43 .
44 .Developing the marketing mix Competitor analysis guides competitive marketing strategy development. price. promotion (seller viewpoint) The “Four Cs” – customer solution. Strategy leads to tactics by way of the marketing mix: The “Four Ps” – product. place. cost. and communication (customer viewpoint) 2. convenience.
45 . implementation. and control Marketing planning Strategies and tactics Marketing implementation Turns plans into action Marketing control Operating control Strategic control Marketing audit 2.Managing the marketing effort Marketing analysis Provides information helpful in planning.
The Marketing Plan Executive Summary & Table of Contents Current Marketing Situation Threat & Opportunity Analysis Objectives & Issues Marketing Strategy Action Programs Budgets Controls .
and Control Process Planning Corporate planning Division planning Business planning Product planning Implementation Control Measuring results Diagnosing results Taking corrective action .Strategic-Planning. Implementation.
Marketing Implementation Marketing Strategy Decision and Organizational Reward Human Structure Resources Action Climate and Programs Culture Implementation 48 Marketing Performance .
Marketing Control Process Set Goals Measure Performanc e Evaluate Performanc e Take Corrective Action 49 .
50 WE ARE VERY GRATEFUL FOR YOUR PATIENCE AND COOPERATION DURING OUR PRESENTATION…… .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.