1. Slide 2-1 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

2. Slide 2-2 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. STARTING A BUSINESS BY GETTING AN “A” IN AN ICE CREAM-MAKING COURSE! Ben & Jerry’s

3. Slide 2-3 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Marketing Planning: The Basis for Strategy and Tactics Planning - Anticipating future events and conditions and determining the best way to achieve organizational objectives –Continuous process that includes: Identifying objectives Determining the actions through which a firm can attain those objectives –Creates a blueprint for everyone in the organization 3

4. Slide 2-4 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 2-1 FIGURE 2-1 The board of directors oversees the three levels of strategy in organizations: corporate, business unit, and functional

5. Slide 2-5 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Strategic Planning Versus Tactical Planning 5 Strategic Planning Determining an organization’s primary objectives Adopting courses of action that will achieve these objectives Provides long-term direction for its decision makers Tactical Planning Guides the implementation of activities specified in the strategic plan Addresses shorter-term actions

6. Slide 2-6 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Table 2.1 - Planning at Different Managerial Levels 6

7. Slide 2-7 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Prof. Roy Philip Systems Management

8. Slide 2-8 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Steps in the Marketing Planning Process Defining the organization’s mission and objectives –Mission - Essential purpose that differentiates one company from another Sephora: “The beauty authority” IBM: “Welcome to the decade of smart” 8

9. Slide 2-9 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Steps in the Marketing Planning Process Determine Organizational Objectives - Guide the development of marketing objectives and plans –For example: Generate a 15 percent profit over the next 24 months Add 25 new outlets within the next year 9

10. Slide 2-10 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Assessing Organizational Resources and Evaluating Environmental Risks and Opportunities 10 ▮ Resources include: Production Marketing Finance Technology Employees ▮ Strengths help planners: Set objectives Develop plans Take advantage of marketing opportunities

11. Slide 2-11 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Formulating, Implementing, and Monitoring a Marketing Strategy Marketing strategy - Selecting and satisfying target consumers through the marketing mix elements The final steps of the planning process: –Marketers put the marketing strategy into action – Marketers monitor performance to ensure that objectives are achieved 11

12. Slide 2-12 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Successful Strategies: Tools and Techniques Porter’s Five Forces model –The potential of new entrants –The bargaining power of buyers –The bargaining power of suppliers –The threat of substitute products –Rivalry among competitors 12

13. Slide 2-13 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Figure 2.2 - Porter’s Five Forces Model 13

14. Slide 2-14 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. First Mover and Second Mover Strategies First mover strategy - The company first to offer a product in a marketplace will be the long-term market winner Second mover strategy - Observing the innovations of first movers and then improving on them to gain advantage in the marketplace 14

15. Slide 2-15 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. SWOT Analysis Helps planners compare internal organizational strengths and weaknesses with external opportunities and threats –Provides managers with a critical view of the organization’s internal and external environments –Helps them evaluate the firm’s fulfillment of its basic mission 15

16. Slide 2-16 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Figure 2.3 - SWOT Analysis 16

17. Slide 2-17 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. SWOT Analysis Strengths Weaknesses Opportunities Threats Figure 2.2

18. Slide 2-18 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 2-7 FIGURE 2-7 Ben & Jerry’s SWOT analysis that serves as the basis for management actions regarding growth

19. Slide 2-19 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. The Strategic Window Limited periods when key requirements of a market and a firm’s particular competencies best fit together Requires a thorough analysis of: –Current and projected external environmental conditions –Current and projected internal company capabilities –How, whether, and when the firm can reconcile environmental conditions and company capabilities 19

20. Slide 2-20 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Elements of a Marketing Strategy The target market Marketing mix variables 20

21. Slide 2-21 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. The Target Market The group of people toward whom the firm directs its marketing efforts and merchandise –Example: Boeing markets most of their products to business buyers such as Delta Airlines Diversity plays a critical role –Example: Growing Hispanic population in United States 21

22. Slide 2-22 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. The Target Market Targeting consumers in specific global markets represents a challenge and an opportunity 22

23. Slide 2-23 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Marketing Mix Variables Marketing mix - Blending four strategy elements to fit the needs and preferences of a specific target market – Product – Distribution – Promotion – Pricing 23

24. Slide 2-24 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Figure 2.4 - Element of a Marketing Strategy and Its Environmental Framework 24

25. Slide 2-25 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Product Strategy Deciding what goods or services the firm should offer to a group of consumers –Customer service –Package design –Brand names, trademarks, patents, and warranties –Lifecycle of a product –Product positioning –New-product development 25

26. Slide 2-26 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Distribution Strategy Consumers find their products in the proper quantities at the right times and places Involves modes of transportation, warehousing, inventory control, order processing, and selection of marketing channels Technology has opened new channels of distribution in many industries 26

27. Slide 2-27 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Promotion Strategy Communication link between sellers and buyers Firms may communicate messages: – Directly through salespeople – Indirectly through advertisements and promotions Many companies use integrated marketing communications (IMC) 27

28. Slide 2-28 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Pricing Strategy Deals with methods of setting profitable and justifiable prices Subject to regulation and public scrutiny A good pricing strategy: – Creates value for customers – Builds and strengthens customer relationships with a firm and its products 28

29. Slide 2-29 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Methods for Marketing Planning Business portfolio analysis –An evaluation of a company’s products and divisions to determine the strongest and weakest 29

30. Slide 2-30 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Strategic Business Units Key business units within diversified firms –Each strategic business unit (SBU): Has its own managers, resources, objectives, and competitors Pursues its own distinct mission and develops its own plans independently Help focus the attention of company managers Companies may have to redefine their SBUs as market conditions dictate 30

31. Slide 2-31 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. The BCG Matrix Developed by the Boston Consulting Group A market share/market growth matrix that plots market share against market growth potential 31

32. Slide 2-32 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Figure 2.5 - BCG Market Share/Market Growth Matrix 32

33. Slide 2-33 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. SETTING STRATEGIC DIRECTIONS WHERE DO WE WANT TO GO? LO 2-4  Business Portfolio Analysis ( BCG Matrix ): Quantifies performance Business Portfolio Analysis ( BCG Matrix ): Quantifies performance Market Growth Rate Stars Cash Cows Dogs Question Marks Relative Market Share High Low Boston Consulting Group

34. Slide 2-34 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Apple Consumer-Related Products What SBU type in the BCG growth-share matrix? LO 2-4 Tablets Smartphones MP3 Players Desktop/Laptop PCs Apple.com

35. Slide 2-35 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 2-4 FIGURE 2-4 BCG business portfolio analysis for Apples consumer SBUs

36. Slide 2-36 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.  Diversification Analysis Diversification Analysis Market Penetration Market Development Product Development Diversification SETTING STRATEGIC DIRECTIONS WHERE DO WE WANT TO GO? LO 2-4 Ben & Jerry’s Bonnaroo Buzz Ad

37. Slide 2-37 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. FIGURE 2-5 FIGURE 2-5 Four alternative market-product strategies for Ben & Jerry’s to expand sales revenues using diversification analysis