Foundations of Strategic Marketing Management

Slides:



Advertisements
Similar presentations
Planning: Processes and Techniques
Advertisements

Building Customer Relationships Through Effective Marketing
Planning, Strategy and Competitive Advantage
Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Part 1: Designing Customer- Oriented Marketing Strategies.
Chapter 2 Copyright ©2010 Cengage Learning Inc. All rights reserved 1 MKTG 2 CHAPTER Strategic Planning for Competitive Advantage.
Planning and Strategic Management
Chapter 2Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1 Learning Outcomes – Chapter 2 1. Understand the importance.
Business Unit Strategic Planning
Marketing and corporate strategies
Developing and Enacting Strategic Marketing Plans
Slide 4-1 CHAPTER 4 Opportunity Analysis, Market Segmentation, and Market Targeting.
Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 1 Lamb, Hair, McDaniel CHAPTER 2 Strategic Planning for Competitive Advantage.
Copyright Cengage Learning 2013 All Rights Reserved 1 Chapter 2: Strategic Planning for Competitive Advantage Prepared & Designed by Laura Rush, B-Books,
Chapter 2 Planning, Implementing, and Controlling Marketing Strategies.
Planning and Strategic Management
McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved Marketing Concept, Customer Needs, American Marketing Association, Customers, Employees,
Essentials of Management Chapter 4
Chapter Objectives Strategic Planning and the Marketing Process CHAPTER Distinguish between strategic planning and tactical planning. Explain.
Foundations of Strategic Marketing Management “Marketing” Defined AMA Definition The process of planning and executing the conception, pricing, promotion,
Slide 2-1.
Chapter 2 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole.
Strategic Planning: Making Choices in a Dynamic Environment
1 Copyright ©2009 by Cengage Learning Inc. All rights reserved Designed by Eric Brengle B-books, Ltd. CHAPTER 2 Strategic Planning for Competitive Advantage.
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Planning and Strategic Management Chapter 04.
FOUNDATIONS OF STRATEGIC MARKETING MANAGEMENT Marketing 3349.
Strategic Planning and the Marketing Management Process.
Copyright © 2011 The McGraw-Hill Companies All Rights ReservedMcGraw-Hill/Irwin Chapter 1 Strategic Planning and the Marketing Management Process.
Strategic Marketing Management
The Marketing Management Process
Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 1 Lamb, Hair, McDaniel CHAPTER 2 Strategic Planning for Competitive Advantage.
Strategic Marketing Management
©2003 Prentice Hall, IncMarketing: Real People, Real Choices 3rd edition 2-0 Chapter 2 Strategic Planning: Making Choices in a Wired World.
Chapter 2 Strategic Planning Principles
Objectives Understand how strategic planning is carried out at the corporate, division, and business unit levels. Learn the major steps in the marketing.
Marketing Strategy and the Marketing Plan
Essentials of Health Care Marketing 2nd Ed. Eric Berkowitz
Strategic Planning: Developing and Implementing a Marketing Plan.
Concepts and Strategies. Strategic Planning The managerial process of creating and maintaining a fit between the organization’s objectives and resources.
Introduction to Management LECTURE 17: Introduction to Management MGT
© 2003 Pearson Education Canada Inc.
“Business has only two basic functions - marketing and innovation.” - Peter Drucker.
Copyright © 2006 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 2-1 Chapter 2 Strategic Planning and the Marketing Process.
Chapter 2 Copyright ©2010 Cengage Learning Inc. All rights reserved 1 MKTG 2 CHAPTER Strategic Planning for Competitive Advantage.
1 Marketing: Planning and Strategy. 2 Strategy: Definition A pattern of major objectives, goals, essential policies and plans that define the current.
1 Ch. 4 Outline Introduction to Planning 1.Planning Fundamentals 2.Levels of Planning 3.Strategic Planning.
Strategic Planning and the Marketing Management Process © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Marketing Management,
1 of 12 Defining the Organization’s Business, Mission, and Goals Business Definition (Who are we?)  scope of the organization’s operations  customers.
Assoc. Prof. Dr. Nik Maheran Nik Muhammad, (CFP, CITM, IBBM)
Chapter 8 STRATEGIC MANAGEMENT © Prentice Hall,
Strategic Planning and the Marketing Management Process © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Marketing Management,
Chapter 2 © 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in.
Chapter Nine Building Customer Relationships Through Effective Marketing.
©2005 Pearson Education Canada Inc.2-1 Chapter 2 Strategic Planning Principles.
CHAPTER 4 Opportunity Analysis, Market Segmentation, and Market Targeting.
Company and Marketing Strategy: Partnering to Build Customer Relationships 2 Principles of Marketing.
1 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 2 2 Strategic Planning for Competitive Advantage Canadian Adaptation prepared.
Strategic Marketing Foundations of strategic marketing Chapter one.
A Framework for Marketing Management International Edition 2 Developing Marketing Strategies and Plans 1.
Planning and Organizing Chapter 4. The Planning Function Business Plan – a written description of the nature of the business, its goals, and objectives,
Slide 1-1© 2013 Pearson Education, Inc. publishing as Prentice Hall CHAPTER 1 Foundations of Strategic Marketing Management.
STRATEGIC MARKETING Dr. Arivalan Ramaiyah B.Econs Hons. (UUM), MBA, (UK), DBA (Phil).
Strategy and strategic planning Lecture 5. Strategy and strategic planning Strategy is an element of the internal environment of the organization. It.
Strategic thinking Chapter 1.
Chapter 2 Planning, Implementing, and Controlling Marketing Strategies
4 Opportunity Analysis, Market Segmentation, and Market Targeting
Chapter 8 STRATEGIC MANAGEMENT © Prentice Hall,
Principles of Marketing - UNBSJ
Building Customer Relationships Through Effective Marketing
Strategy and Human Resources Planning
Strategic Marketing Planning
Presentation transcript:

Foundations of Strategic Marketing Management Chapter 1 Foundations of Strategic Marketing Management

In this chapter, you will learn about… Defining the Organization’s Business, Mission, and Goals Business Definition Business Mission Business Goals Identifying and Framing Organizational Growth Opportunities Converting Environmental Opportunities into Organizational Opportunities SWOT Analysis

In this chapter, you will learn about… Formulating Product-Market Strategies Market-Penetration Strategy Market-Development Strategy Product-Development Strategy Diversification Strategy Selection The Marketing Mix Budgeting Marketing, Financial, and Production Resources Developing Reformulation and Recovery Strategies Drafting a Marketing Plan Marketing Ethics and Social Responsibility

The Primary Purpose of Marketing To create long-term and mutually beneficial exchange relationships between an entity and the publics (individuals and organizations) with which it interacts.

Expanding Responsibilities of Marketing Managers They no longer function solely to direct day-to-day operations. They must make strategic decisions as well. Expanded responsibilities include: Charting the direction of the organization Contributing to decisions that will create and sustain a competitive advantage and affect long-term organizational performance

Evolution of the Marketing Manager From being only an implementer…. to being a maker of organization strategy. This has prompted the emergence of strategic marketing management as a course of study and practice.

Processes in Strategic Marketing Management Defining the organization’s business, mission, and goals Identifying and framing organizational growth opportunities Formulating product-market strategies Budgeting marketing, financial, and production resources Developing reformulation and recovery strategies

Organization’s Business, Mission, and Goals Process One Defining the Organization’s Business, Mission, and Goals

Business Definition not By defining a business from a customer or market perspective… an organization is appropriately viewed as: a customer - satisfying endeavor not a product-producing or service delivery enterprise.

“What business are we in?” An organization should define a business by: The type of customers it wishes to serve The particular needs of those customer groups it wishes to satisfy The means or technology by which the organization will satisfy the customer needs

Business Mission Underscores the scope of an organization’s operations apparent in its business definition Reflects management’s vision of what the organization seeks to do Most statements describe: the organization’s purpose customers, products/services, markets, philosophy, and technology

Benefits of Mission Statements Crystallizes management’s vision of the organization’s long-term direction and character Provides guidance in identifying, pursuing, and evaluating market and product opportunities Inspires and challenges employees to do those things that are valued by the organization and its customers Provides direction for setting business goals or objectives

Business Goals Goals or objectives convert the organization’s mission into tangible actions and results that are to be achieved, often within a specified time frame. Three major categories of goals: Production Financial Marketing

Production Goals Apply to the use of manufacturing and service capacity and to product and service quality. Financial Goals Focus on return on investment, return on sales, profit, cash flow, and shareholder wealth. Marketing Goals market share marketing productivity sales volume profit customer satisfaction customer value creation

Identifying and Framing Organizational Growth Opportunities Process Two Identifying and Framing Organizational Growth Opportunities

Converting Environmental Opportunities into Organizational Opportunities What might we do? Sources of environmental opportunity: Unmet or changing customer needs Unsatisfied buyer groups New means or technology for delivering value to prospective buyers

Converting Environmental Opportunities into Organizational Opportunities What do we do best? Distinctive Competency describes an organization’s unique strengths or qualities including: Skills Technologies Resources …that distinguish it from other organizations.

Converting Environmental Opportunities into Organizational Opportunities What must we do? Success Requirements are basic tasks that an organization must perform in a market or industry to compete successfully. If what must be done is inconsistent with what can be done to capitalize on an environmental opportunity, an organizational growth opportunity will fail to materialize.

SWOT Analysis Strengths Weaknesses internal Opportunities Threats A formal framework for identifying and framing organizational growth opportunities Strengths Weaknesses Opportunities Threats internal external

(Strengths & Weaknesses) SWOT Analysis Framework for focusing attention on the fact that an organizational growth opportunity results from… a good fit between an organization’s INTERNAL CAPABILITIES (Strengths & Weaknesses) and its EXTERNAL ENVIRONMENT (Opportunities & Threats)

SWOT Analysis What the organization is good at doing or a characteristic that gives it an important capability Strength What an organization lacks or does poorly relative to competitors Weakness Developments or conditions in the environment that have favorable implications for the organization Opportunities Pose dangers to the welfare of the organization Threats

Questions to be asked once SWOT has been identified Which internal strengths represent distinctive competencies? Do these strengths compare favorably with what are believed to be market or industry success requirements? Which internal weaknesses disqualify the organization from pursuing certain opportunities? Does a pattern emerge from the SWOT?

Product-Market Strategies Process Three Formulating Product-Market Strategies

Product-Market Strategies Existing products New products Market Penetration Product Development Existing markets Market Development Diversification New markets

Market Penetration Strategy Seeking a larger market share in a market in which organization already has an offering This strategy involves: Attempts to increase present buyer’s usage or consumption rates of the offering Attracting buyers of competing offerings Stimulating product trial among potential consumers

Market Development Strategy Introducing its existing offerings to markets other than those that the organization is currently serving. Reaching new markets requires: Carefully considering competitor strengths and weaknesses and competitor retaliation potential Modification of the basic offering Different distribution outlets Change in sales effort and advertising

Market Development in the International Arena Exporting Licensing Joint Venture or Strategic Alliance Direct Investment

Product Development Strategy Creating new offerings for existing markets. This approach may be taken for: Product Innovation – develop totally new offerings Product Augmentation – enhance the value to customers of existing offerings Product line extension – broaden the existing line of offerings by adding different sizes, forms, flavors, etc.

Diversification Strategy Development or acquisition of offerings new to the organization and introducing those offerings to publics not previously served by the organization. Growing trend in recent years High-risk strategy because both the offering and market served are new to the organization

Strategy Selection – Sample Decision Tree Action Response Outcome Aggressive competition Passive Estimated profit of $2 million $3 million Market-penetration strategy Aggressive competition Passive Estimated profit of $1 million $4 million Market-development strategy

Communications Strategy The Marketing Mix Product Strategy Communications Strategy Price Strategy Customer Channel Strategy

Budgeting Marketing, Financial, and Production Resources Process Four Budgeting Marketing, Financial, and Production Resources

The Budget A formal, quantitative expression of an organization’s planning and strategy initiatives expressed in financial terms A well-prepared budget meshes and balances an organization’s Financial, Production, and Marketing Resources so that overall organizational goals or objectives are attained.

Components of a Budget Operating Budget Financial Budget Also referred to as a pro forma Income Statement Focuses on an organization’s income statement Financial Budget Focuses on the effect that the operating budget and other initiatives will have on the organization’s cash position

Developing Reformulation and Recovery Strategies Process Five Developing Reformulation and Recovery Strategies

The Marketing Audit Helps answer the questions: Comprehensive, systematic, independent, and periodic examination of a company’s marketing environment, objectives, strategies, and activities to recommend a plan of action to improve the company’s marketing performance. Helps answer the questions: Are we doing the right things? Are we doing things right?

The Marketing Plan A formal written document that describes the context and scope of an organization’s marketing effort to achieve defined goals or objectives within a specified future time period. Focus can be on a business, product, or brand Time Dimension can be short-run (typically one year) or long-run (multi-year)

Marketing Ethics and Social Responsibility Marketing decisions reflect an organization’s orientation toward the publics with which it interacts The marketplace is populated by individuals with diverse value systems Their actions will be judged publicly by others with different values