Marketing 303 Chapter 2 Strategic and Marketing Planning

Thought for the day Japanese firms were too confident about our technology and mfg prowess…We lost sight of products from the customers point of view. Kazuhiro Tsuga, President, Panasonic Corp.

What is management?

Planning Est. objectives Developing strategies Implementation Control

What is marketing management? Management of the marketing function…….the business function which creates and delivers value to customers and meets the organization’s objectives.

Managing the marketing function What are the basic business functions? Operations Management, Financial Management, Human Resources Management Information Systems Management, Supply Chain Management and marketing management. Marketing can be managed just as any of the business functions, or anything else for that matter.

What is planning? Anticipating future events and designing strategies to achieve objectives….. Making decisions today about future events.

Strategic vs. marketing plans Strategic planning is Organization wide….all areas Visionary or wholistic Long term Matches changes in the world with the organization’s strengths.

SWOT Analysis Strengths Weaknesses Matches These Opportunities Threats

Competitive Advantage Unique Superiority Examples Cost Experience Curve Product Differentiation Niche or focus

Ansoff’s Strategic Alternatives Market Penetration Product Development Market Development Diversification The product market growth alternatives matrix

Portfolio Planning: The BCG Model Provides strategic direction in resource allocation considering factors of: Market Share Market Growth Cash Cows, Dogs, Stars and ?

BCG or Portfolio Planning Model

THE MARKETING PLAN What to do about marketing? Situation Analysis Objectives A Marketing Strategy A Marketing Strategy Target Market Target Market Marketing Mix Marketing Mix Product Decisions Plqce Decisions Promotioin Decisions Price Decisions Implementation Control

Target Market A group which is similar in that they share a common a need for the product you offer…… They have a higher probability of responding to your offering than the population at large.

The Mar keting Mix Product Price Promotion Place/Distribution