Strategic planning, Marketing Planning and Marketing Process

Assessing growth opportunities.......

Ansoff’sProduct/Market Expansion Grid
Strategies for company growth
Existing Products New Products

Existing Markets

Market Penetration Increasing sales of current products to current market segments without changing the product. Market Development Identifying and developing new market segments for current products.

Product Development Offering modified or new products to current market segments.

New Markets

Diversification Starting up or acquiring businesses outside the company’s current products and markets.

Maruti Suzuki India Limited

Tata plan home furniture retail with Steinhoff International

Changing a corporate culture is often the key to successfully implementing a new strategy • Nokia....................:Culture of innovation at all levels

2

Strategic Business Units (SBUs)
Characteristics

1.

A distinct mission and specific target market Control over their resources Their own competitors Plans independent of other SBUs
Chapter 2 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson

2. 3. 4.
8

BCG Market Share/Market Growth Matrix

6

BCG Portfolio Matrix Example
MARKET SHARE DOMINANCE HIGH MARKET GROWTH RATE SubNotebooks and Hand-Held Computer STAR Laptop and Personal Computers CASH COW
Chapter 2 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson

LOW Integrated phone/Palm devices PROBLEM CHILD Mainframe Computer DOG

10

LOW

HIGH

6

Strategies for Resource Allocation
Build Hold Harvest Divest
Provide financial resources if SBU (Problem Child) has potential to be a Star. Preserve market share if SBU is a successful Cash Cow. Use cash flow for other SBUs. Increase short-term cash return. Appropriate for all SBUs except Stars. Get rid of SBUs with low shares in low-growth markets.
Chapter 2 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson

11

Three Basic Strategies for any Business Old classification (Porter)
O v e ra ll C o s t L e a d e rs h i p Focus D iffe re n tia tio n

O p e ra tio n a l E x c e l e n c e

Three Basic Strategies for any Business New classification (Treacy-Wiersema)
P ro d u c t L e a d e r s h i p C u s to m e r In tim a c y

3

Marketing Objectives
Marketing Objectives Must Be:

● Realistic ● Measurable ● Time specific ● Consistent with Organization’s Priorities
14

“Our objective is to increase market share by 40% and to obtain customer satisfaction ratings of at least 90% in 2008.”

Chapter 2 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson

3

Marketing Plan Objectives

Communicate marketing management philosophies Provide direction Serve as motivators Clarify thinking Provide basis for control
Chapter 2 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson

● ● ● ●
15

9

Following Up the Marketing Plan
● Implementation ● Evaluation ● Control ● Marketing Audit

−Comprehensive −Systematic −Independent −Periodic
Chapter 2 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson

16

Elements of a Marketing Plan Executive Summary Current Marketing Situation Threats and Opportunities Objectives and Issues Marketing Strategy Action Programs Budgets Controls

Elements in typical marketing and business plans targeted at different audiences

1

Marketing Plan Business Mission Statement Process
Objectives

Situation or SWOT Analysis Marketing Strategy Target Market Strategy

Marketing Mix
Product Promotion Distributi on (Place) Price

Implementation Evaluation Chapter 2 Marketing 7e Lamb Hair Control
19 McDaniel ©2004 South-Western/Thomson

9

Task for Today……….
● Consider any product you want to introduce in the market and prepare a marketing plan for the same ● www.esnips.com/web/defmm

20

Chapter 2 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson

“Know your enemy, know yourself, and your victory will not be threatened. Know the terrain, know the weather, and your victory will be complete.”

Sign up to vote on this title
UsefulNot useful