1. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-1 Chapter 13 Strategic marketing

2. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-2 Strategic planning Definition: The managerial process of matching an organisation’s resources with its marketing opportunities over the long run.

3. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-3 Strategic planning The process: Define the organisation’s mission. Set the organisational objectives. Evaluate organisation’s strategic business units (SBUs). Select the strategy to achieve the organisation’s objectives.

4. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-4 The marketing management process Planning Analyse situation. Set goals. Select strategies and tactics. Implementation Organise. Staff. Direct. Evaluation Compare performance with goals. Feedback so management can adapt future plans to the changing environment

5. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-5 The mission statement Definition: A short, clear statement defining the central reason for an organisation’s existence. It answers the questions: – What business are we in? – What business should we be in? The mission statement is expressed in terms of benefits.

6. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-6 Evaluating strategic business units (SBUs) Analysis of current products and the markets in which they are operating provides SBUs. SBUs may be: A major division in an organisation. A group of related products. A single product or brand.

7. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-7 BCG product portfolio analysis Insert Fig 13.2 P 424 Fig 13.4, p 424

8. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-8 The Boston Consulting Group matrix A strategic business unit (SBU) model can be classified according to 2 factors: –Its market share relative to competitors. –The growth rate of the industry in which the SBU operates. These models, known as portfolio analysis, assess the needs of particular SBUs.

9. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-9 SBUs are divided into high and low categories. The analysis seeks to reduce risk and optimise outcomes and determine resource allocation. A company should seek a balanced portfolio of SBUs with a mix of stars, cash cows, and questions marks but, hopefully, no dogs. The Boston Consulting Group matrix

10. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-10 Business position Fig 13.3, p 426

11. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-11 General Electric business screen Management can classify SBUs or major products based on 2 factors: Market attractiveness. Business position. The factors are rated according to several criteria. Contd.

12. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-12 Each SBU is rated with respect to all criteria. Overall ratings (usually numerical scores) are calculated for each SBU. From these ratings, each SBU is labelled high, medium, or low with respect to: – market attractiveness. – business position. General Electric business screen

13. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-13 The product-market growth matrix Fig 13.5, p 431

14. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-14 The growth matrix Market penetration – Marketing of present products to present markets. Market development – Market present products to new markets. Product development – Marketing new products to present markets. Diversification – Market new products to new markets.

15. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-15 Porter’s generic strategic model Overall cost leadership – Produce standardised product at a low cost. Differentiation – Market a USP (unique selling proposition). Focus – Concentrate on a small specialty market.

16. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-16 Competitive market position and marketing strategy Market leader – has the largest market share and widest market coverage. Market challenger – has the second or third largest market share and widest market coverage. Market follower – follows the innovations of the leader and challengers. Market specialist – has the largest market share of a small segment within the market.

17. Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata 13-17 Strategic company planning 1. Define organisational mission. 2. Conduct situation analysis. 3. Set organisational objectives. 4. Select appropriate strategies. Strategic marketing planning 1. Conduct situation analysis. 2. Develop marketing objectives. 3. Determine positioning and differential advantage. 4. Select target markets, measure market demand. 5. Design strategic marketing mix. Annual marketing planning Prepare annual marketing plan for each major product and company division. Planning sequence Implementation and evaluation