Copyright © 2012 McGraw-Hill Ryerson Limited Ajax Persaud Shirley Lichti Dhruv Grewal Michael Levy Chapter 2 Developing Marketing Strategies

2-2 Chapter Objectives LO1 Describe how a firm develops and implements a marketing plan LO2 Conduct a SWOT analysis and explain its use in marketing planning LO3 Explain how a firm chooses what group(s) of people to pursue with its marketing efforts LO4 Describe how the marketing mix increases customer value LO5 Describe how firms grow their businesses LEARNING OBJECTIVES

2-3 Chapter Roadmap

2-4 Disney Goes Digital Global positioning satellites Smart sensors Wireless technology Mobile devices Pal Mickey LO1,02

2-5 The Strategic Marketing Planning Process LO1

2-6 Step 1: Defining the Mission and/or Vision Heart & Stroke Foundation mission statement: The Heart and Stroke Foundation, a volunteer-based health charity, leads in eliminating heart disease and stroke and reducing their impact through the advancement of research and its application, the promotion of healthy living and advocacy. LO1 Defining the Mission

2-7 Heart & Stroke Promotion LO1

2-8 Step 2: Conduct a Situation Analysis Using SWOT LO2

2-9 SegmentationTargetingPositioning LO3 Step 3: Identifying and Evaluating Opportunities Using STP

2-10 Hertz: Market Segmentation

2-11 Disney: Segmentation, Targeting, Positioning Families w/younger kids Singles and Couples Adults, families w/older kids Magic KingdomPleasure IslandEpcot LO3

2-12 Which of the following refers to a group that responds similarly to a firm’s marketing efforts? A)Segment B)Following the leader C)Targeting D)Positioning Test Your Knowledge

2-13 LO4 Step 4: Implement Marketing Mix and Allocate Resources

2-14 Product and Value Creation Discussion question How does satellite radio deliver value? LO4

2-15 Price and Value for Money LO4 Customer perception of value. Price is only a part of value.

2-16 Place and Value Delivery LO4 Product must be readily accessible Why is this retailer growing?

2-17 One of the keys in place and value delivery is to provide the consumer _______________. A)a wide product selection B)merchandise they want at the time they want it C)a variety of media communication methods D)accessible management personnel to handle complaints Test Your Knowledge

2-18 Promotion and Value Communication Television Radio Magazines Sales force New Media LO4

2-19 LO5 P&G Website Step 5: Evaluate Performance and Make Adjustments

2-20 Growth Strategies LO5

2-21 Which of the following is NOT considered a marketing growth strategy? A)Market penetration B)Diversification C)Product development D)Sequential planning Test Your Knowledge

2-22 Market Penetration Existing marketing mix Existing customers Discussion question In what way is a sale a market penetration strategy? LO5

2-23 Market Development Strategy What can a company do to continue to grow in a difficult retail environment? LO5

2-24 Case in Point: Tim HortonsTim Hortons Challenge Answer Results To continue to grow in a competitive retail environment. Continue an international expansion strategy while also expanding menu options Canadian outlets, 340 US outlets. Total 2006 Revenue of $1.66 Billion up 12% from LO5

2-25 Product Development LO5 New product or serviceCurrent target market

2-26 Diversification LO5 New product or serviceNew market segment

2-27 A diversification strategy introduces a new product or service to a market segment that _______________. A)is currently not served B)includes many ethnicities C)already exists D)does not traditionally respond to mixed media Test Your Knowledge

2-28 Entrepreneurial Marketing 2.1 Cupcakes by Heather and Lori Store vision to be a “magic cupcake factory” High quality cupcakes decorated in whimsical colours Now franchising this popular store concept LO5

2-29 Sustainable Competitive Advantage LO5

2-30 Sustainable Competitive Advantage Discussion question What do you think are the keys to McDonald’s sustainable advantage? LO5

2-31 What is sustainable competitive advantage? A)A broad description of the firms objectives and scope of its activities. B)Tool used to evaluate marketing performance. C)Something the firm can consistently do better than its competitors. D)Written document that discusses competitor strengths and weaknesses, and the firms advantages over them. Test Your Knowledge

2-32 Customer Excellence LO5 Retaining loyal customers Customer service

2-33 Operational Excellence LO5 Efficient operations Excellent supply chain management

2-34 Product Excellence Achieving effective branding and positioning Discussion question How are these two firms positioned in the market place? LO5

2-35 Locational Excellence The three most important things in retailing are location, location, location. Photo by Tim Boyle/Getty Images LO5