CHAPTER TWO

Marketing Strategy Planning

www.mhhe.com/fourps

Questions Questions

Questions

Questions

What is Marketing Strategy Planning?

When we finish this lecture you should

1. Understand what a marketing manager Unfair trade practice does.

acts 2. Know what marketing strategy planning is Dumping it will be the focus of the book. and why 3.Phony list prices Understand target marketing. 4.Wheeler-Lea with the four Ps in a marketing Be familiar Amendment mix. 5.Price fixing difference between a marketing Know the Robinson-Patman Act plan, and a marketing strategy, a marketing program. Price discrimination 6. Understand what customer equity is and why marketing strategy planners seek to increase it.
2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

When we finish this lecture you should

7. Be familiar with the texts framework for Unfair trade practice

acts marketing strategy planningand why it Dumping a process of narrowing down from involves Phony list prices broad opportunities to the most attractive marketing Wheeler-Lea strategy. Amendment 8. Know four broad types of marketing opportunities that help in identifying new Price fixing strategies. Robinson-Patman Act 9. Understand why strategies for opportunities Price discrimination in international markets should be considered.

2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Management Job in Marketing

The marketing management process refers to the planning, implementation, and control of marketing activities.

Marketing Planning

Whole-Company Strategic Management Planning

Controlling
Marketing Plan(s) and Program

Implement Marketing Marketing Plan(s) and Plan(s) and Program Program

Implementing

What is Marketing Strategy Planning?

Marketing strategy planning means finding opportunities and developing profitable marketing strategies that the company can use to capitalize on the opportunities.

E.g. My Happy Pizza Company

The marketing mix C

Marketing mix--the controllable variables (4 Ps) the company puts together to satisfy the target market.

Selecting a Marketing-Oriented Strategy Is Target Marketing (Exhibit 2-3)

E.g. My Happy Pizza Company

Production-oriented manager sees everyone as basically similar and practices mass marketing

Marketing-oriented manager sees everyone as different and practices target marketing

An Application of Target Marketing

Target Market for my Diet Pizza: 1. Value seekers 2. Variety seekers 3. Weight Watchers

Developing Marketing Mixes for Target Markets

(Exhibit 2-4)
Marketers have to make many decisions in developing a marketing mix that will satisfy their target customers. All of these variables making up the marketing mix can be reduced to four basic categories.

Product C Price

Place

Promotion

E.g. My Happy Pizza Company

The Product Element of the Marketing Mix

Ensure products/services are developed to meet the needs of target customers

The Place Element of the Marketing Mix (Exhibit 2-6)

The objective for the place, or distribution, is to get the right product, to the right consumer, in the right place, at the right time, in the right quantity, and in the right condition.

Examples of Channels of Distribution

Charles Schwab
Toyota

Sara Lee

Nestle

Wholesaler

Wholesaler

Wholesaler

Retailer

Retailer

Retailer

Consumer

The Promotion Element of the Marketing Mix

telling the target market about the product and selling the product

Personal Selling

Advertising

Telling and Selling

the Customer

YouTube: Evian Ad

Sales Promotion

Publicity

The Price Element of the Marketing Mix

Price is the revenue-generating function of the marketing mix
Price of Other Products In the Line Competition and Substitutes Price Sensitivity Pricing Objectives Price Flexibility
Price Changes Over the Life Cycle

Price Setting

Discounts and Allowances Geographic Pricing Terms

Cost and Demand

Legal Environment

All Four Ps Contribute to the Whole

E.g. In your course project

Product Place Promotion Price

Understanding the Target Market Leads to Good Strategies!

Selection of Target Market

The Marketing Plan Guides Implementation and Control

Target Market

+
Marketing Mix

Marketing Strategy

+
TimeRelated Details

Marketing Plan

+
Other Marketing Plans

A Firms Marketing Program

Customer Equity Business enters market C

is the expected earnings stream over time

time

Current Customers

firm
C

New Customers

As Customer Equity Grows, so do Earnings!

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

Creative Strategy Planning Needed for Survival

Death-wish marketing

Best-practices marketing

(Below average) (Well below average)

(Above average)

68% (Average Marketing Program) 14% Poor 14% Good

(Well above average)

2% Failure

Fair

2% Exceptional

What Are Attractive Opportunities?

Breakthrough Opportunities

Avoid Hit-or-Miss Marketing

Competitive Advantage

Marketing Strategy Planning Process Highlights Opportunities (Exhibit 2-11)

1. Market Penetration

T
High Promotion and/or Low Pricing
Coffee so good You just cant wait.

2. Product Development

Offer new or improved products

International Opportunities Should Be Considered 3. Market Development

Moving to new markets geographically OR Moving into new businesses YouTube: McCafe Ad

Smaller World

Early Start

Competitive Advantage

Better Trends?

Global Competitive Advantage

You now

1. Understand what a marketing manager Unfair trade practice

does. acts 2. Know what marketing strategy planning is Dumping and why it will be the focus of the book. Phony list prices 3. Understand target marketing. Wheeler-Lea 4. Are familiar with the four Ps in a marketing Amendment mix. Price fixing 5. Know the difference between a marketing Robinson-Patman Act plan, and a marketing strategy, a marketing Price discrimination program.

6.

Understand what customer equity is and why marketing strategy planners seek to increase it.
2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

You now

7. Be familiar with the texts framework for Unfair trade practice

acts marketing strategy planningand why it Dumping a process of narrowing down from involves Phony list prices broad opportunities to the most attractive marketing Wheeler-Lea strategy. Amendment 8. Know four broad types of marketing opportunities that help in identifying new Price fixing strategies. Robinson-Patman Act 9. Understand why strategies for opportunities Price discrimination in international markets should be considered.

2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Key Terms
Marketing management process Strategic (management) planning Marketing strategy Target market Marketing mix Target marketing Mass marketing Channel of distribution Personal selling Customer service Mass selling Advertising Publicity Sales promotion Marketing plan Implementation Operational decisions Marketing program Customer equity Breakthrough opportunities

Key Terms

Competitive advantage Differentiation S.W.O.T. analysis Market penetration Market development Product development Diversification