1. Mastering Marketing Mastering Marketing CHAPTER TWO CHAPTER TWO Marketing Strategy Planning

2. Mastering Marketing Mastering Marketing 1. 1.Understand what a marketing manager does. 2. 2.Know what marketing strategy planning is--and why it will be the focus of the book. 3. 3.Understand target marketing. 4. 4.Be familiar with the four Ps in a marketing mix. 5. 5.Know the difference between a marketing strategy, a marketing plan, and a marketing program. When we finish this lecture you should

3. Mastering Marketing Mastering Marketing 6.Be familiar with the text’s framework for marketing strategy planning—and why it involves a process of narrowing down from broad opportunities to the most attractive marketing strategy. 7.Know four broad types of marketing opportunities that help in identifying new strategies. 8.Understand why strategies for opportunities in international markets should be considered. When we finish this lecture you should

4. Mastering Marketing Mastering Marketing The Management Job in Marketing Implement Marketing Plan(s) and Program Control Marketing Plan(s) and Program Implement Marketing Plan(s) and Program Whole-Company Strategic Management Planning Marketing Planning

5. Mastering Marketing Mastering Marketing What is Marketing Strategy Planning? Exhibit 2-2 The marketing mix C

6. Mastering Marketing Mastering Marketing Selecting a Market-Oriented Strategy Is Target Marketing Exhibit 2-3 Production-oriented manager sees everyone as basically similar and practices “mass marketing” Marketing-oriented manager sees everyone as different and practices “target marketing”

7. Mastering Marketing Mastering Marketing An Application of Target Marketing

8. Mastering Marketing Mastering Marketing Developing Marketing Mixes for Target Markets Exhibit 2-4 Place Promotion Price Product C

9. Mastering Marketing Mastering Marketing The Product Element of the Marketing Mix

10. Mastering Marketing Mastering Marketing The Place Element of the Marketing Mix Exhibit 2-6 Examples of Channels of Distribution AOLNissan Del Monte Procter & Gamble Wholesaler Retailer Consumer Wholesaler Retailer

11. Mastering Marketing Mastering Marketing Advertising Publicity Personal Selling Personal Selling Telling and Selling the Customer Personal Selling Personal Selling Advertising Publicity The Promotion Element of the Marketing Mix Sales Promotion Sales Promotion

12. Mastering Marketing Mastering Marketing Price Flexibility Price Flexibility Price Changes Over the Life Cycle Price Changes Over the Life Cycle Price Flexibility Price Flexibility Price Changes Over the Life Cycle Price Changes Over the Life Cycle Pricing Objectives Pricing Objectives Price Setting Discounts and Allowances Discounts and Allowances Geographic Pricing Terms Geographic Pricing Terms Legal Environment Legal Environment Cost and Demand Cost and Demand Competition and Substitutes Competition and Substitutes Price Sensitivity Price Sensitivity Price of Other Products In the Line Price of Other Products In the Line Pricing Objectives Pricing Objectives Discounts and Allowances Discounts and Allowances Geographic Pricing Terms Geographic Pricing Terms Legal Environment Legal Environment Cost and Demand Cost and Demand Competition and Substitutes Competition and Substitutes Price Sensitivity Price Sensitivity The Price Element of the Marketing Mix

13. Mastering Marketing Mastering Marketing Interactive Exercise: Marketing Mix ProductPlace Promotion Price C

14. Mastering Marketing Mastering Marketing Selection of Target Market All Four Ps Contribute to the Whole Product Place Promotion Price Understanding the Target Market Leads to Good Strategies!

15. Mastering Marketing Mastering Marketing Target Market Target Market + Marketing Mix Marketing Mix = Marketing Strategy Marketing Strategy + Other Marketing Plans Other Marketing Plans + Time- Related Details Time- Related Details Marketing Plan Marketing Plan = Other Marketing Plans Other Marketing Plans Time- Related Details Time- Related Details Marketing Plan Marketing Plan Target Market Target Market Marketing Mix Marketing Mix Marketing Strategy Marketing Strategy The Marketing Plan Guides Implementation and Control A Firm’s Marketing Program A Firm’s Marketing Program =

16. Mastering Marketing Mastering Marketing The Importance of Marketing Strategy Planning Strategy Decisions Usually Determine Success and Failure Timex had captured a large market share Low price, dependability, good ads, unconventional channels Stiff competition arose New product refinements

17. Mastering Marketing Mastering Marketing Creative Strategy Planning Needed for Survival 2%14% 2% (Well below average) PoorFairGoodExceptional (Below average) (Above average) (Well above average) Death-wish marketing Best-practices marketing 68% (Average Marketing Program) Failure

18. Mastering Marketing Mastering Marketing Breakthrough Opportunities Avoid Hit-or-Miss Marketing Competitive Advantage What Are Attractive Opportunities?

19. Mastering Marketing Mastering Marketing Marketing Strategy Planning Process Highlights Opportunities Exhibit 2-10 External Market Environment

20. Mastering Marketing Mastering Marketing Diversification Market development Product development Market penetration Types of Opportunities to Pursue Exhibit 2-11 Present productsNew products Present markets New markets

21. Mastering Marketing Mastering Marketing Market Penetration

22. Mastering Marketing Mastering Marketing Product Development

23. Mastering Marketing Mastering Marketing Interactive Exercise: Marketing Strategy Diversification Market development Product development Market penetration Present productsNew products Present markets New markets

24. Mastering Marketing Mastering Marketing Early Start Competitive Advantage Better Trends? Smaller World Competitive Advantage Better Trends? International Opportunities Should Be Considered

25. Mastering Marketing Mastering Marketing Global Competitive Advantage

26. Mastering Marketing Mastering Marketing Marketing management process Strategic (management) planning Marketing strategy Target market Marketing mix Target marketing Mass marketing Channel of distribution Personal selling Mass selling Advertising Publicity Sales promotion Marketing plan Implementation Operational decisions Marketing program Breakthrough opportunities Competitive advantage Key Terms

27. Mastering Marketing Mastering Marketing Differentiation S.W.O.T. analysis Market penetration Market development Product development Diversification Key Terms