Marketing 2 Harcourt, Inc.

Strategic Planning and the Marketing Process Chapter 2 Strategic Planning and the Marketing Process

Strategic Planning Process Strategic Planning involves developing an overall company strategy for long-run survival and growth. This process involves: Defining a Mission: Statement of an organization’s purpose; should be market oriented. Setting Company Objectives: Supporting goals and objectives to guide the entire company. Designing a Business Portfolio: Collection of businesses and products that make up the company. Planning Functional Strategies: Detailed planning for each department designed to accomplish strategic objectives.

The Marketing Process Target Consumers Product Place Price Competitors This CTR corresponds to Figure 2-5 on p. 45 and to material on pp. 44-45. Teaching Tip: This material previews the focus on later chapters. You may wish to show this CTR as an introduction to the following discussion on target consumers. The lecture information below is provided if you wish to cover the strategic background information prior to coverage of details. The Marketing Process Target Consumers Product Place Price Promotion Implementation Marketing Planning Control Analysis Competitors Intermediaries Publics Suppliers Demographic- Economic Environment Technological- Natural Political- Legal Social- Cultural The Marketing Process This begins an extended discussion of planning, organization, and specific-actions that includes slide transparencies on the 4 Ps, factors affecting marketing strategy decisions, and a general outline of the contents of a marketing plan. These topics are covered in more detail on subsequent CTRs. Marketing Analysis (and Planning). Marketing must conduct a complete analysis of its situation and all relevant environmental influences. Further, marketing must provide each functional area of the company with the information from this analysis that affects their area-specific tasks. Selecting Target Markets. In evaluating analysis, it should become clear that the company cannot service each market opportunity equally well. Target market selection occurs by matching strengths and weaknesses identified in analysis to particular target markets. Marketing Implementation. Plans must be coordinated and launched with realistic logistical support if they are to succeed. Marketers must be able to translate plans into concrete action. Marketing Control. The need to measure, assess and evaluate performance all relate to control issues. These are discussed in more detail later.

Marketing’s Role in Strategic Planning Process of Selecting Target Consumers Market Segmentation: determining distinct groups of buyers (segments) with different needs. Market Targeting: evaluating and selecting which target segments to enter. Market Positioning: products distinctive and desirable place in the minds of target segments compared to competing products.

Marketing Mix- The Four P’s The Four Ps of Marketing This CTR corresponds to Figure 2-6 on p. 49 and the material on pp. 47-50. Product “Goods-and-service” combination that a company offers a target market Price Amount of money that consumers have to pay to obtain the product The Marketing Mix Product. In the contemporary mix, product is the term for the "goods and service" offering sold by the company. As technology makes everything from stereos to computers more accessible to the average buyer, service increasingly makes the competitive difference, especially in creating brand loyalty and generating repeat customers. Place. Place refers as much to how the product arrives to the final outlet as where the customer actually buys it. Later in the course, when students distinguish between convenience, shopping, and specialty goods the logistics of getting the product to the "place" of purchase can be emphasized again. Discussion Note: You may wish to discuss the role of infrastructure on placing decisions -- highway, rail, and waterway conditions and/or airfreight costs. Price. Price too is an excellent source of discussion content. Students will undoubtedly know about list and discount prices as many will have had shopping experiences in discount malls. The manipulation of price in the channel of distribution through allowances, credit, and payment arrangements may be new to them. Promotion. Promotion covers most of what students will stereotypically identify as "real marketing." While the role of promotion is important you may remind them the dangers of too much emphasis on a single component of the mix. Target Customers Activities that persuade target customers to buy the product Promotion Company activities that make the product available Place

The Global Marketing Environment

Marketing Environment All the actors and forces influencing the company’s ability to transact business effectively with it’s target market. Includes: Microenvironment - forces close to the company that affect its ability to serve its customers. Macroenvironment - larger societal forces that affect the whole microenvironment.

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The Marketing Environment Company Publics Demographic Economic Company Political Suppliers Cultural Competitors Natural Customers Intermediaries Technological

The Marketing Environment Demographic Company Economic Cultural Company Publics Suppliers Competitors Customers Natural Political Intermediaries Technological

The Microenvironment Company Publics Competitors Intermediaries Suppliers Forces Affecting a Company’s Ability to Serve Customers Microenvironmental Forces Suppliers. Suppliers are the firms and persons that provide the resources needed by the company and competitors to produce goods and services. Company. Marketing plans must accommodate the needs of other functional areas of the firm to coordinate product/service delivery effectively (See following CTR and notes. Competitors. Competitors are usually considered those companies also serving a target market with similar products and services, although broader definitions may apply. Publics. Publics consist of any group that perceives itself having an interest in the actions of the firm. Publics can have positive as well as negative influences on the company's objectives. Intermediaries. Intermediaries include various middlemen and distribution firms as well as marketing service agencies and financial institutions. Customers. Customers consist of consumer, industrial, reseller, government, and international markets. Competitors Intermediaries Customers

The Company’s Microenvironment Company’s Internal Environment- functional areas such as top management, finance, and manufacturing, etc. Suppliers - provide the resources needed to produce goods and services. Marketing Intermediaries - help the company to promote, sell, and distribute its goods to final buyers.

The Company’s Microenvironment Customers - those who purchase a company’s goods and services. Competitors - those who serve a target market with similar products and services. Publics - any group that perceives itself having an interest in a company’s ability to achieve its objectives.

The Macroenvironment Demographic Cultural Economic Political Natural This CTR corresponds to Figure 3-4 on p. 75 and relates to the material on pp. 74-92. Teaching Tip: This CTR overviews the major forces in the company’s macroenvironment. You might use it as an introduction before exploring each area in detail. Each of the six major forces is covered in greater detail on subsequent CTRs. Demographic Cultural Economic Forces that Shape Opportunities and Pose Threats to a Company Macroenvironmental Forces Demographic. The demographic environment monitors population characteristics on such items as size, density, age, location. Economic. The economic environment includes income and spending pattern concerns. Natural. The natural environment addresses pollution concerns, energy costs, raw materials availability, and growing government roles in resource management. Technological. The technological environment includes such issues as the fast pace of change, emerging product forms, and high R&D. Political. The political environment addresses the role of government and policy in the regulation of business. Cultural. The cultural environment recognizes the influence of values and beliefs of a society on purchase decisions and consumption patterns. Political Natural Technological

The Company’s Macroenvironment Demographic - monitors population in terms of age, sex, race, occupation, location and other statistics. Economic - factors that affect consumer buying power and patterns. Natural - natural resources needed as inputs by marketers or that are affected by marketing activities.

The Company’s Macroenvironment Technological - forces that create new product and market opportunities. Political - laws, agencies and groups that influence or limit marketing actions. Cultural - forces that affect a society’s basic values, perceptions, preferences, and behaviors.

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