1. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 21: Developing Innovative Marketing Plans

2. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill When you finish this chapter, you should 21-2 Chapter 21 Objectives 1. Know the content of and differences among strategies, marketing plans, and a marketing program. 2. Understand, in detail, all of the elements of the marketing strategy planning process and the strategy decisions for the four Ps. 3. Understand why the product classes and typical mixes should be considered when developing a marketing plan. 4. Understand ways the marketing strategy and marketing plan is likely to need to change at different stages of the product life cycle. 5. Understand the basic forecasting approaches and why they are used to evaluate the profitability of potential strategies. 6. Know what is involved in preparing a marketing plan, including estimates of costs and revenue and specification of other time-related details 7. Understand the different ways a firm can plan to become involved in international marketing. 8. Understand the important new terms.

3. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill 21-3 Strategy Plan Program Strategies, Plans, and Programs

4. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill 1 1 Overview of the marketing strategy planning process Customers Needs and other Segmenting Dimensions Company Objectives & Resources Competitors Current & Prospective S.W.O.T. wdp TargetMarket Product Place Promotion Price External Market Environment Technological Political & Legal Social & Cultural Economic Segmentation & Targeting Differentiation & Positioning Narrowing down to focused strategy with quantitative and qualitative screening criteria Exhibit 21-1 21-4

5. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill External Factors Strategy Planning Internal Factors StrengthsOpportunities Weaknesses Threats 21-5 S.W.O.T. Analysis

6. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Trend ExtensionLeading Series IndicesSales Forecast Key Terms and Concepts in Forecasting Factor MethodTime Series Market Potential Jury of Executive Opinion 21-6 Forecasting Market Potential and Sales

7. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill A trend extension simply extends past experience into the future. When factors influencing sales are predictable, this can be useful. A weakness in this method though is that conditions tend to change more often than they stay the same. Exhibit 21-4 Years Dollars 0 Actual sales Trend 21-7 Straight Line Trend Projection

8. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill A spreadsheet can be used to compare estimated sales, costs, and profits for “reasonable” alternative marketing mixes. Manipulation of any element of the mix allows for quick assessment of likely outcomes. Exhibit 21-7 21-8 Spreadsheet “What If” Questions

9. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Exporting Licensing Contract Manufacturing Management Contracting Joint Venturing Wholly-Owned Subsidiaries 21-9 Planning for International Marketing

10. For use only with Perreault and McCarthy texts. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill S.W.O.T. Analysis Market Potential Sales Forecast Trend Extension Factor Method Factor Time Series Leading Series Indices Jury of Executive Opinion Spreadsheet Analysis Exporting Licensing Contract Manufacturing Management Contracting Joint Venturing Wholly Owned Subsidiary Multinational Corporations 21-10 Key Terms