1. Principles of Marketing - UNBSJ
BA 2303
Principles of Marketing - UNBSJ
Pulling It All Together: The Strategic Marketing Process
Instructor – Terry Conrod

2. Learning Objectives BA 2303
Explain how marketing managers allocate their limited resources.
Describe three marketing planning frameworks: Porter’s generic strategies, profit enhancement options, and market–product synergies.
Explain what makes an effective marketing plan and some problems that often exist with it.
Describe the alternatives for organizing a marketing department and the role of a product manager.
Explain how sales and profitability analyses and ROI marketing are used to evaluate and control marketing programs.

3. MARKETING BASICS: DOING WHAT WORKS AND ALLOCATING RESOURCES
Finding and using what really works
Strategy
Execution
Culture
Structure

4. MARKETING BASICS: DOING WHAT WORKS AND ALLOCATING RESOURCES
Allocating Marketing Resources Using Sales Response Functions
Maximizing Incremental Revenue Minus Incremental Cost
A Numerical Example of Resource Allocation

5. Sales response function showing the situation for two different years
BA 2303
Sales response function showing the situation for two different years
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.

6. MARKETING BASICS: DOING WHAT WORKS AND ALLOCATING RESOURCES
Allocating Marketing Resources in Practice
Share points
Resource Allocation and the Strategic Marketing Process

7. The strategic marketing process: actions and information
BA 2303

8. THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS
BA 2303
THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS
The Variety of Marketing Plans
Long-Range Marketing Plans
Annual Marketing Plans

9. BA 2303
Steps a large consumer package goods firm takes in developing its annual marketing plan

10. BA 2303
Concept Check
What is the significance of the S-shape of the sales response function in Figure 19-1?
Answer:
Figure 19-1 illustrates the resource allocation principle which is inherent in the sales response function. As the annual marketing effort increases, so does the resulting annual sales revenue. The relationship is assumed to be "S- shaped."

11. BA 2303
Concept Check
What are the main output reports from each phase of the strategic marketing process?
Answer:
The main output reports for each phase of the strategic marketing process are: (1) Planning - Marketing plans or programs, (2) Implementation - Memos or computer outputs, and (3) Control - Corrective action memos

12. What are two kinds of marketing plans?
BA 2303
Concept Check
What are two kinds of marketing plans?
Answer:
The two kinds of marketing plans are: (1) Long- range and (2) Annual.

13. THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS
BA 2303
THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS
Marketing Planning Frameworks: The Search for Growth
Porter’s Generic Business Strategies
Cost leadership strategy
Differentiation strategy
Cost focus strategy
Differentiation-focus strategy

14. Porter’s four generic business strategies
BA 2303

15. THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS
BA 2303
THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS
Marketing Planning Frameworks: The Search for Growth (cont.)
Profit Enhancement Options

16. Profit enhancement options for increasing a firm’s profits
BA 2303
Profit enhancement options for increasing a firm’s profits
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.

17. THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS
BA 2303
THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS
Marketing Planning Frameworks: The Search for Growth (cont.)
Market-Product Synergies
Market-product concentration
Market specialization
Product specialization
Selective specialization
Full coverage

18. © 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
BA 2303
Market-product grid of alternative strategies for a lawnmower manufacturer
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.

19. An ideal merger for Great Lawns to obtain full market-product coverage
BA 2303
An ideal merger for Great Lawns to obtain full market-product coverage
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.

20. Describe Porter’s four generic business strategies.
BA 2303
Concept Check
Describe Porter’s four generic business strategies.
Answer:
Porter's four generic business strategies are: (1) Cost leadership, (2) Differentiation, (3) Cost focus, and (4) Differentiation focus

21. BA 2303
Concept Check
What are four alternative ways to increase a firm’s profit when considering profit enhancement options and strategies?
Answer:
They are: (1) market penetration; (2) product development; (3) market development, and (4) diversification.

22. BA 2303
Concept Check
Where do (a) marketing synergies and (b) R&D- manufacturing synergies appear in a market-product grid framework?
Answer:
Marketing synergies (a) run horizontally on the market-product grid framework and R&D- manufacturing synergies and (b) run vertically.

23. THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS
BA 2303
THE PLANNING PHASE OF THE STRATEGIC MARKETING PROCESS
Some Planning and Strategy Lessons
Guidelines for an Effective Marketing Plan
Set measurable, achievable goals
Use a base of facts and valid assumptions
Utilize simple but clear and specific plans
Have complete and feasible plans
Make plans controllable and flexible
Balancing Value and Values in Strategic Marketing Plans

24. THE IMPLEMENTATION PHASE OF THE STRATEGIC MARKETING PROCESS
BA 2303
THE IMPLEMENTATION PHASE OF THE STRATEGIC MARKETING PROCESS
Is Planning or Implementation the Problem?
Shift Emphasis to Marketing Implementation
Improving Implementation of Marketing Programs
Communicate Goals and the Means of Achieving Them
Have a Responsible Program Champion Willing to Act
Reward Successful Program Implementation

25. Results of good and bad marketing planning and implementation

26. THE IMPLEMENTATION PHASE OF THE STRATEGIC MARKETING PROCESS
BA 2303
THE IMPLEMENTATION PHASE OF THE STRATEGIC MARKETING PROCESS
Improving Implementation of Marketing Programs (cont.)
Foster Open Communication to Surface the Problems
Schedule Precise Tasks, Responsibilities, and Deadlines
Action item list

27. BA 2303
Concept Check
Why is it important to include line operating managers in the planning process?
Answer:
People at all levels in the firm, including line operating managers, need to understand what, when, and how they are to accomplish their tasks. This is required for effective execution of marketing plans.

28. What is the meaning and importance of a product champion?
BA 2303
Concept Check
What is the meaning and importance of a product champion?
Answer:
A program (or product) champion is a person who is able and willing to cut red tape and move the program forward. These people have the interesting ability to move between big-picture strategy questions and specific details when the situation calls for it.

29. BA 2303
Concept Check
Explain the difference between sequential and concurrent tasks in a Gantt chart.
Answer:
The difference between sequential and concurrent tasks in a Gantt chart is, the key to all scheduling techniques is to distinguish tasks that must be done sequentially from those that can be done concurrently.

30. THE IMPLEMENTATION PHASE OF THE STRATEGIC MARKETING PROCESS
BA 2303
THE IMPLEMENTATION PHASE OF THE STRATEGIC MARKETING PROCESS
Organizing for Marketing
Line versus Staff and Divisional Groupings
Line positions
Staff positions
Product line groupings
Functional groupings
Geographical groupings
Market-based groupings

31. Organization of a Pillsbury business unit, showing product or brand groups
BA 2303

32. Units with which the product manager and product group work
BA 2303

33. THE CONTROL PHASE OF THE STRATEGIC MARKETING PROCESS
BA 2303
THE CONTROL PHASE OF THE STRATEGIC MARKETING PROCESS
The Marketing Control Process
Measuring Results
Taking Marketing Actions
Sales Analysis
Sales component analysis
Profitability Analysis
ROI marketing

34. The control phase of the strategic marketing process
BA 2303

35. BA 2303
Concept Check
What is the difference between a line and a staff position in a marketing organization?
Answer:
People in line positions, such as senior marketing manager for biscuits, have the authority and responsibility to advise people in line position but cannot issue direct orders to them. Those in staff positions have the authority and responsibility to advise people in line positions but cannot issue direct orders to them.

36. What are four groupings used within a typical marketing organization?
BA 2303
Concept Check
What are four groupings used within a typical marketing organization?
Answer:
The four groupings used within a typical marketing organization are: (1) Product line groupings, (2) Functional groupings, (3) Geographical groupings, and (4) Market-based groupings

37. BA 2303
Concept Check
What two components of the strategic marketing process are compared to control a marketing program?
Answer:
Sales analysis and sales component analysis are compared to control a marketing program.

38. BA 2303
Action Item List
An aid to implementing a market plan, consisting of three columns: (1) the task, (2) the name of the person responsible for completing that task, and (3) the date by which the task is to be finished.

39. Cost Leadership Strategy
BA 2303
Cost Leadership Strategy
Using a serious commitment to reducing expenses that, in turn, lowers the price of the items sold in a relatively broad array of market segments.

40. BA 2303
Cost-Focus Strategy
Involves controlling expenses and, in turn, lowering prices, in a narrow range of market segments.

41. Differentiation Strategy
BA 2303
Differentiation Strategy
Requires innovation and significant points of difference in product offerings, brand image, higher quality, advanced technology, or superior service in a relatively broad array of market segments.

42. Differentiation-Focus Strategy
BA 2303
Differentiation-Focus Strategy
Using significant points of difference in the firm’s offerings to reach one or only a few market segments.

43. BA 2303
Functional Groupings
Organizational groupings, such as manufacturing, marketing, and finance, which are the different business activities within a firm.

44. Generic Business Strategy
BA 2303
Generic Business Strategy
Strategy that can be adopted by any firm, regardless of the product or industry involved, to achieve a competitive advantage.

45. Geographical Groupings
BA 2303
Geographical Groupings
Organizational groupings in which a unit is subdivided according to geographical location.

46. BA 2303
Line Positions
People in line positions, such as senior marketing managers, have the authority and responsibility to issue orders to the people who report to them, such as product managers.

47. Market-Based Groupings
Organizational groupings that utilize specific customer segments.

48. Product Line Groupings
BA 2303
Product Line Groupings
Organizational groupings in which a unit is responsible for specific product offerings.

49. Product (or program) Champion
BA 2303
Product (or program) Champion
A person who is able and willing to cut red tape and move the program forward.

50. Profitability Analysis
BA 2303
Profitability Analysis
A means of measuring the profitability of the firm’s products, customer groups, sales territories, channels of distribution, and order sizes.

51. BA 2303
ROI Marketing
The application of modern measurement technologies and contemporary organizational design to understand, quantify, and optimize marketing spending.

52. BA 2303
Sales Analysis
A tool for controlling marketing programs using sales records to compare actual results with sales goals and to identify strengths and weaknesses.

53. Sales Component Analysis
BA 2303
Sales Component Analysis
A tool for controlling marketing programs that traces sales revenues to their sources, such as specific products, sales territories, or customers. Also called microsales analysis.

54. Sales Response Function
BA 2303
Sales Response Function
Relates the expense of marketing effort to the marketing results obtained. Measures of marketing results include sales revenue, profit, units sold, and level of awareness.

55. BA 2303
Share Points
Percentage points of market share; often used as the common basis of comparison to allocate marketing resources effectively.

56. BA 2303
Staff Positions
People in staff positions have the authority and responsibility to advise people in the line positions but cannot issue direct orders to them.