1. The Strategic Marketing Process

2. Four market-product strategies: Alternative ways to expand marketing opportunities, using Coca-Cola Company products as examples
Market Penetration
Selling more Coca-Cola to Americans
Product Development
Selling a new product like PowerAde to Americans
Market Development
Selling Coca-Cola to the Chinese for the first time
Diversification
Selling a new product like movies and home videos to Europeans

3. Present New Diversification Markets Market Penetration
+: Know products & market segments well
-: Growth limited to this segment
Product Development
+: Can gain marketing economies of scale
-: Need new R&D and mfg., can cannibalize sales
Market Development
+: Can gain R&D and manufacturing economies
-: Need new sales training and distribution
Diversification
+: Can mitigate swings in core business by products in new markets
-: No economies of scale in R&D, mfg., or mktg

4. SWOT Internal Management Marketing Manufacturing Research & Dev
SWOT Internal Management Marketing Manufacturing Research & Dev. Finance Product Mix Personnel External Economy Competition Consumer Trends Technology Industry/ Market Legal/Regulatory Channels S W O T

5. STRATEGIC PLANNING TOOLS (O’s &T’s)
Opportunities:
a) How Attractive?
b) Do we have the right business strength?
Threats:
a) How serious?
b) How probable?

6. SWOT ANATOMY Selected Factors A. Internal

7. SWOT ANATOMY Selected Factors B. External

8. Generic Marketing Strategies for Increasing a Firm’s Profits
Present Markets, present products
(market penetration)
Increase
Revenues
Present markets, new products
(product development)
New markets, present products
(market development)
Goal
Increase
Profits
New markets, new products
(diversification)
Decrease
Expenses
Scale or experience curve economies
through larger unit volume
Non-scale economies

9. Three Generic Growth Strategies
I. Intensive MP MD PD
II. Integrative
Backward
Forward
Horizontal
III. Diversification
Concentric
Conglomerate

10. GE MULTIFACTOR MATRIX Market Attractiveness Business Strength
Market Size
Growth Rate
Profit Margins
Number of Competitors and Their Strength
Technological Conditions
Seasonality and Cyclicality
Business Strength
Market Share
Marketing Enterprise
R&D Skills
Manufacturing Efficiency
Quality of Products
New Product Planning
Unit Costs

11. Profit Impact of Marketing Strategy (PIMS)
DATA:
3,000+ SBUs from 450+ member business firms contributing 100+ data items – characteristics of market environment, competitor’s environment, strategies used by SBUs.
Best Predictors of ROI and Cash Flow
Market Share
Industry Growth Rate
PLC Position
Ratio of Marketing Expenses to Sales