Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 3 Developing Marketing Strategies and Plans - Coggle Diagram
Chapter 3 Developing Marketing Strategies
and Plans
Company-Wide Strategic Planning
Strategic Planning
is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities, and its changing marketing opportunities.
Defining a Market-Oriented Mission
The mission statement
is the organization’s purpose; what it wants to accomplish in the larger environment.
Forging a sound mission
begins with the following questions:
IBM:Lets build a smarter planet
• What is our business?
• Who is the customer?
• What do consumers value?
• What should our business be?
Setting Company Objectives and Goals
Heinz’s overall objective
is to build profitable
customer relationships
by developing foods “superior in quality, taste, nutrition, and convenience” that embrace its
nutrition and wellness mission
.
Designing the Business Portfolio
Definition
The business portfolio
is the collection of
businesses and products
that make up the company.
Portfolio analysis
is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company.
Analyzing the Current Business Portfolio
Growth-share matrix
is a portfolio-planning method that evaluates a company’s SBUs in terms of market growth rate and relative market share.
The BCG Growth-Share Matrix
Low Growth, High Share
. Companies should milk these “
cash cows
” for cash to reinvest.
High Growth, High Share
. Companies should significantly invest in these “
stars
” as they have high future potential.
High Growth, Low Share
. Companies should invest in or discard these “
question marks
,” depending on their chances of becoming stars.
Low Share, Low Growth
. Companies should liquidate, divest, or reposition these “
DOGs
.”
The Directional Policy Matrix (DPM)
clomn:
External Market Attractiveness
Long run growth rate/• Market size/Market profitability: entry barriers, exit barriers, supplier power, buyer power, threat of substitutes and available complements (use
Porter’s Five Forces
analysis to determine this)/• Market structure/diversity/Product life cycle/Changes in demand/Price trends/Macro environment factors (use
PEST or PESTEL
for this)/Human resources/Market segmentation
Porter’s Five Forces
Threat of substitutes
Rivalry among existing competitors
Bargaining power of buyers
Bargaining power of suppliers
Threat of new entrants
PEST or PESTEL
Political
Economy
Society
Technology
Environment
Legal
row:
Internal Capability of the Organisation
Market share/Market share growth compared to rivals/Brand strength/Profitability of the company/Customer loyalty/VRIO resources or capabilities (use
VRIO framework
to determine this)/Your business unit strength in meeting industry’s critical success factors (use
Competitive Profile Matrix
to determine this)/Strength of a value chain (use
Value Chain Analysis
and
Benchmarking
to determine this)/Level of product differentiation/ Production flexibility
VRIO
Valuable
? ------if no, competitive disadvantage
Rare
？-------if no, competitive parity
Costly to
imitate
? ------if no, temporary competitive advantage
Organized
to capture the value?------if no , temporary competitive advantage
if all yes, sustained competitive advantage
Competitive Profile Matrix(CPM)
Key success factor(KSF)
Weight
rating
score&total score
compare company +competitor 1+ competitor 2
Value Chain Analysis
Primary activity
inbound logistics/operations/outbound logistics/marketing&sales/service
fully understand the associated costs and areas of differentiation. easily identify those activities where you can quickly reduce cost, optimize effort, eliminate waste, and increase profitability.
Supportive activity
business organization infrastructure/Human Resources management/procurement process/technology aspects
Benchmarking
Benchmarking
is a process of measuring the performance of a company’s products, services, or processes against those of another business considered to be the best in the industry, aka “best in class.” The ultimate drive of benchmarking is to identify internal opportunities for improvement.
Process benchmarking
Strategic benchmarking
Performance benchmarking
External Resources for Benchmarking: American Productivity & Quality Center (APQC)/The Benchmarking Exchange/Best Practices, LLC & Global Benchmarking Council
To score the DPM you need to know the goal of your marketing strategy.
1, profit lift
2,market share lift
3,value for organization if it were for sale
Invest or not
invest/grow
-----definitely invest
selectivity/earnings
-----invest if there's money left and the situation of business unit could be improved
harvest/divest
------invest just enough to keep the business unit operating or divest
Developing Strategies for Growth and Downsizing
Product/market expansion grid
Product/market expansion grid looks at new products, existing products, new markets, and existing markets for company growth opportunities.
existing market,present product
: market penetration&growth in existing product&markets: market share+product usage+new applications
new market, present products
: market development: expand geography+new segments+new channels
existing market, new product
: product development: add new features+expand line+new generation+new products
new market, new products
: diversification new products&markets: related+unrelated
Downsizing
Downsizing is when a company must prune, harvest, or divest businesses (or markets) that are unprofitable or that no longer fit the strategy.
The Marketing Management
Planning Process
Strategic Business Planning
Marketing Management Planning Process
Gathering marketing information
market research
macro-environment
customer needs
competitive&market
strategy marketing
segmentation&targeting
product positioning
tactical marketing
marketing mix decisions
product
price
place
promotions
3 service P's
Marketing Metrics, Budgets, Evaluation & Accountability
Managing the Marketing Effort
SWOT Analysis
Strengths
----internal,postive: internal capabilities that may help a company reach its objectives
Weaknesses
---internal,negative:internal limitations that may interfere with a company's ability to achieve its objectives
Opportunities
---external, positive---external factors that the company may be able to exploit to its advantage
Threats
---external, negative: current and emerging external factors that may challenge the company's performance
Partial SWOT analysis
: which means that +so actions needed are
The SWOT cross-impact matrix
:
Market Planning—Parts of a Marketing Plan
Executive summary
Marketing situation
Threats and opportunities
Objectives and issues
Marketing strategy
Action programs
Budgets
Controls
Marketing Control
Evaluating results & Taking corrective action
Operating control
Strategic control
Measuring and Managing Return on Marketing Investment
Return on Marketing Investment (Marketing ROI)
A company can assess marketing ROI in terms of standard marketing performance measures, such as
brand awareness, sales, or market share.
Many companies are assembling such measures into marketing dashboards—meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance.
Increasingly, beyond standard performance measures, marketers are using c
ustomer-centered measures
of marketing impact, such as
customer acquisition, customer retention, customer lifetime value, and customer equity.
It is becoming crucial to view marketing expenditures as investments that produce returns in the form of more profitable customer relationships.