FOUNDATIONS OF STRATEGIC MARKETING MANAGEMENT Marketing 3349

Strategic Marketing Management n Defining: l A Company’s Business l A Company’s Mission A Company’s Goals A Company’s Goals

A Company’s Business nTypes of Customers nNeeds of Customers nMeans or Technology Customer Satisfaction Focused Customer Satisfaction Focused

A Company’s Mission nWritten Statement nScope of Operation nManagement’s Vision nGuidance for Market and Product Evaluation Inspire and Challenge Employees Inspire and Challenge Employees

A Company’s Business Goals nConverts Mission into Tangible Action nThree Types: l Production l Marketing l Financial nProblem Centered and Future Oriented Arise from Situation Analysis Arise from Situation Analysis

Converting Opportunities n What Might We Do? l Environmental Opportunity n What Do We Do Best? l Distinctive Competency n What Must We Do? l Success Requirements

S.W.O.T. Analysis n Strengths l Distinctive Competency n Weaknesses l Obstacles to Opportunities n Opportunities l Environmental Opportunity n Threats

Product-Market Strategies n Market-Penetration l Expand Market Share n Market-Development l Enter New Markets n Product-Development l New Product Offerings n Diversification l Create or Acquire New Products/Service l Offer to New Markets

Bases for Strategy Selection n Market Data l Size l Buying Behavior l Requirements n Environmental Forces Data l Social (women in workforce) l Legal (new legislation) l Political (deregulation) l Economic (shifts in income)

Bases for Strategy Selection n Competitive Activity l Evaluate Current Strategies l Consider Alternative Strategies n Cost/Benefit Analysis l Cost to Implement Strategy l Benefit of Strategy l Probability of Success

Strategy Selection n A.T. Kearney Probabilities n Decision Tree Analysis l Possible Actions l Competitive Reactions l Resultant Outcomes

Designing The Marketing Mix n Kind of Product n Marketing Communications n Channel Strategy n Pricing Strategy

Budgeting of Resources n Operating Budget l Pro-Forma Income Statement (In the Future) l Revenues, Expenses and Profits n Financial Budget l Impact on Corporate Cash l From Operations Capital Expenditures Capital Expenditures

Budgeting of Resources n Special Budgets l Sales Forecast l Marketing Communications n “What-If” Scenarios l Budget Variations tied to Different strategies l Demonstrate Varying Outcomes l Help Support Strategy Selection

Reformulation and Recovery Strategies n Strategies often Must Change in Mid- Course n The Marketing Audit l Comprehensive and systematic Review l Marketing Environment l Objectives and Strategies l Tactical Activities l Discovering Problem Areas and Opportunities

Reformulation and Recovery Strategies n The Marketing Audit n Recommend a Plan to Improve Performance n Strategic Fit and Operational Performance l Are we doing the right things? l Are we doing things right?

Reformulation and Recovery Strategies n Forces Consideration of “What-Ifs” l Impact on Strategy of Internal and External Changes l Relationship of Assumptions to Results n Leads to Contingency Plans l Speeds Reaction Time

Ethics and Social Responsibility n Just Because It’s Legal… n Executives Serve Many Stakeholders n All Marketing Strategy Has an Element of Moral Judgement