Marketing Management

Strategic Marketing
Strategic marketing management is concerned with how we will create value for the customer Asks two main questions
What is the organizations main activity at a

particular time? Customer Value

What are its primary goals and how will these be

achieved? how will this value be delivered

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The Strategic-Planning, Implementation, and Control Process

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Marketing Planning
Marketing Planning is the Central Function of Marketing A marketing plan is a broad set of guidelines as to how the

firm is going to accomplish its strategic goals, a living document that guides the company throughout the year, a blueprint for future activity

What will be done, who will do it, when they will do it, why it

will be done , how it will be done, and how much it will cost, and perhaps where it will be done

Key Elements of a Marketing Plan

Situational Analysis Marketing Objectives Strategy and Tactics Monitoring and Evaluation

Benefits of Planning

Consistency Consistency

Responsibility Responsibility

Benefits Benefits of of Planning Planning

Commitment Commitment Communication Communication

Three Approaches to Planning

#1:
Top Down

#2:
Bottom Up

#3:
Goals Down, Plans Up

Corporate Planning

Specificity

Vision Mission Goals Objectives Plans Number

Components of a Corporate Plan

#1: Where the organization is now

#2: Where the organization intends to go in the future

#3: How the organization will organize its resources

Corporate Plan Objectives

Objectives Address Two Questions: #1: Where de we want to be? #2: When do we expect to get there?

Corporate Objectives
Characteristics of good objectives:
Measurable Acceptable and agreeable Consistent Realistic

Objective Example
Walt Disney Companys Strategic Objectives:
Sustain Disney as a premier entertainment company Achieve a 20% earnings growth annually over any rolling

five-year period Achieve 20% or greater return on stockholders equity Maintain and build the integrity of the Disney name and franchise Preserve basic Disney values

Objectives for Non-Profit Organizations

Surplus maximization Revenue maximization Usage maximization Usage targeting Full cost recovery Partial cost recovery Budget maximization Producer satisfaction

maximization

Corporate Mission
Our business is . . . Corporate mission should cover: Customer groups Customer needs Technologies to be used

Strategic Alternatives

Status Quo Concentration Vertical Integration

Stability Single Product Line Transform Cost Center to Broadening of Product Line Complementary Benefits Reduction of Operations Removal of Entity that Removal of Entity that

Horizontal Integration Ownership of Competitors

Profit Center Diversification Joint Ventures Retrenchment

Divestiture

Does Not Fit Liquidation Does Not Fit

Mission Statements
Whirlpool Corporation:

We create the worlds best home appliances, designed to make life easier and more enjoyable for all people. Our goal is a Whirlpool product in every home, everywhere

Anderson Corporation:

We provide light, beauty and performance solutions of unparalleled value for openings in homes and commercial buildings

Marketing Audit
A comprehensive, systematic, independent and periodic

examination of an organizations marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the organizations marketing performance

Aim: Only to identify those existing (internal and external)

factors that will have a significant impact on the future plans of the organization

Marketing Audit

Marketing environment A marketing audit should contain a review of: Detailed marketing activity Marketing system

Market Analysis
Positioning Where is the organization in the marketplace Customer focus Segmentation Portfolio Planning Coordinated planning

services Segments plotted with market attractiveness plotted on vertical axis and strength of firm in that segment on horizontal axis (see Figure 2.2) 80/20 Rule Focus on 20% of products and 20% of customers that will account for 80% of volume and 80% of profit Four Ps

of individual products and

Trend Spotting
Herman Miller, manufacturer of office furniture, has one

employee surfing the Web full-time to collect breaking information about the business world, design, retailing, and other issues, then summarizes the results in a daily e-mail to management

The president carries a digital camera to photograph

images that may prove helpful in identifying new design trends

Trends vs. Fads

A trend is a direction or sequence of events that have some

momentum and durability. It has longevity, is observable across several market areas and consumer activities, and is consistent with other significant indicators that occur or emerge at the same time

A fad is unpredictable, short-lived, and without social,

economic, and political significance

SWOT Analysis

Positive factors: Internal factors:

Negative factors:

Strengths

Weaknesses

External factors:

Opportunities

Threats

Marketing Strategies

P P

roduct

New products Packaging Skim or penetrate Competitive pricing Platform & media Sales force Channels Customer service

rice

P P

romotion

lace

Business Strategic-Planning Process

External environment (Opportunity & Threat analysis)

Business Mission

Goal Formulation

Internal Environment (Strength/ Weakness analysis)

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Detailed Plans and Programs

Most Important, Practical Outcome of Planning Process and Should Be: Clear Quantified Focused Realistic Agreed Upon

Successful Planning
Successful marketing planning requires:

Commitment

Time

Understanding

Strategy Formulation
Environmental Analysis Competitor Customer Supplier Regulatory Social/ Political Internal Analysis Technology Know-How Manufacturing Know-How Marketing Know-How Distribution Know-How Logistics Opportunities & Threats Strength & Weaknesses Identity Core Competencies

Identify opportunity

Fit internal Competencies with external opportunities

Firm Strategies

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CONTENTS of MARKETING PLAN

Business Mission Statement Objectives Situation Analysis (SWOT) Marketing Strategy Target Market Strategy Marketing Mix
Positioning Product Promotion Price Place Distribution People Process

Implementation, Evaluation and Control

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Marketing Plan Elements

Mission statement Summary of performance Summary of financial projections Market overview SWOT analysis Portfolio summary Assumptions Setting objectives Financial projections

Budgeting Approaches

Affordability

Percentage of revenue

Budget

Competitive parity

Zero-based budgeting

Measuring Performance
Important elements of performance: Sales analysis Market share analysis Expense analysis Financial analysis Relationship analysis

Question
What single question could you ask

customers that would best assess loyalty and correlate with company growth?

Question
What single question could you ask customers that would

best assess loyalty and correlate with company growth?

In most industries, the percentage of customers who were

enthusiastic enough to refer a friend or colleagueperhaps the strongest sign of customer loyaltycorrelated directly with differences in growth rates among competitors

The Marketing Process

Business Mission Statement Objectives

Situation or SWOT Analysis

Marketing Strategy
Target Market Strategy

Marketing Mix
Product Promotion Place/Distribution Price

Implementation Evaluation, Control

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Why a product like radio declined and now once again emerging as an entertainment medium ?

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What Were the Drivers of This Change ? Technology ? Government policy ? Other media substitutes ?

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Why Market Leaders Suffered ?

HMT vs. Titan HLL vs. Nirma Bajaj vs. Honda Dot.com boom, then bust and now resurgence Market leadership today cannot be taken for granted.New and more efficient companies are able to upstage leaders in a much shorter period

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Factors Influencing Companys Marketing Strategy

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The macro-environment

is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities

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