EXAM 1 – Strategic Marketing Planning
It defines the SCOPE of the firm’s activities and identifies its strategic FOCUS. When the mission statement is constructed correctly it not only spells out the organization’s scope and focus, but it sets the DIRECTION for everyone’s efforts.
External Environment: OT
A SWOT enables a firm to develop strategies that make use of what the firm does best in seizing opportunities for growth, while at the same time avoiding external threats that might hurt the firm’s sales and profits.
Q1: Stars – hi growth, hi share
Q2: ?mrk – hi growth, lo share
Q3: $cow – lo growth, hi share
Q4: Dog – lo growth, lo share
Stars: are business units with products that have a dominant market share in high-growth markets. INVEST.
Cash Cows: have a dominant market share in a low-growth potential market. HOLD.
Question Marks: (sometimes called problem children) are products with low market shares in fast-growing markets. RISKY.
Dogs: are products that nobody wants. They have a small share of a slow-growth market. DIVEST.
These strategies seek to increase sales of existing products to current customers, nonusers, and users of competing brands.
These strategies introduce existing products to new markets. This can mean reaching new customer segments within an existing geographic market or it may mean expanding into new geographic areas.
These strategies create growth by selling new products in existing markets. Product development may mean that the firm improves a product’s performance, or it may mean extending the firm’s product line by developing new variations of the item.
These strategies emphasize both new products and new markets to achieve growth.
OBJECTIVES: What to achieve.
STRATEGIES: How to achieve it.
IMPLEMENT: Do it.
MONITOR & CONTROL: How’s it doin?
Perform a Situation Analysis:
SWOT analysis by searching out information about the environment that specifically affects the marketing plan.
Set Marketing Objectives:
Brands, sizes, product features, and other marketing-mix related elements. State what the marketing function must accomplish if the firm is to achieve its overall objectives.
Develop Marketing Strategies:
What activities they must accomplish to achieve the marketing objectives (target mkt, mkt mix, brand image)
Implement Marketing Strategies: Marketing managers now spend time managing the various elements of the marketing plan.
Monitor and Control:
Compare actual performance with the objectives, and adjust accordingly.
The business cycle is especially important to marketers because of its effect on customer purchase behavior. During times of prosperity, consumers buy more goods and services. Marketers are busy trying to grow the business and maintain inventory levels and even to develop new products to meet consumers’ willingness to spend. During periods of recession, consumers simply buy less and marketers try to maintain their level of sales.