Marketing 451: Strategi Marketing Planning – Flashcards
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Levels of Strategy
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Corporate Business Unit Functional
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Corporate
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Top management makes overall strategy for entire firm
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Business Unit
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Mangers set direction for products and market opportunities
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Functional
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Group of specialists (HR, Finance, R&D, Marketing mangers) set strategic direction for their departments
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Business unit within an organization that markets a set of related products. EX: American Express, one business unit would be the consumer credit cards, whereas another business unit would be their travel services, and another would be their corporate memberships Functional: Also called department, where the action takes plea Marketing plays a part in each of these three levels
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The Strategic Planning Process
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Slide Three
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The Strategic Planning Process: SItuation Analysis
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An in-depth analysis of the organization's environment -->Summarizes information about three key environments: -Internal environment -Customer environment -Firm's external environment -Competitive trends -Technological Trends -Social Trends -Regulatory Trends -Economic Trends
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Marketing Plan Structure
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I. Situation Analysis II. SWOT Analysis III. Marketing Goals and Objectives IV. Marketing Strategy V. Marketing Implementation VI. Evaluation and Control
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Situation Analysis: Changes in:
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Social Forces Economic Forces Technological Forces Competitive Forces Regulatory Forces
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Social Forces
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Demographics Culture
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Demographics
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Characteristics used to describe a population such as age, gender, ethnicity, incomes and occupation EX: Blended family, Cohabitation, Single Parents, Diversity (Slide 12, 13)
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Culture
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Values, ideas and attitudes learned and shared among the members of a group Values -Family -Health and Fitness -Concern for environment EX: price premium for honest, healthy things? Then the value argument
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Economic Forces
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Macroeconomic Microeconomic
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Macroeconomic
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Inflation? Recession? Unemployment rate Interest rates-Cost of borrowing money
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Microeconomic
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Income: Gross, Disposable, Discretionary Consumer expectations
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During recession there is a slow down in the economy. Firms stop hiring people and lay off people, leading to a high interest rate...The government tries to counter this by lowering the interest rates (thus encouraging people to spend more)... Consumer confidence & expectations vary depending on the macroeconomic conditions...During periods of recession as now, consumer confidence is low...people save more because they're not sure whether they will be laid off..All these factors affect or should affect marketers in the sense that marketers may need to adapt their marketing startegies Price, Place, Product Promotion accordingly.
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Technological Forces
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Inventions or innovations from applied science or engineering research
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Technology influences
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-What new products may enter the market -How consumers would shop, what products they'd like to purchase, what media consumers would view
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One of the major technological innovations in the last 15 years or so is the birth of the internet and the world wide web which has completely revamped the way consumers behave, the kind of products they buy, and how they buy them. Now consumers specially young consumers spend significantly less time on media such as TV and more time on blogs, social networking sites and so on...What does this mean for marketers? Marketers need to adapt themselves..they need to develop products that incorporate the technologies that consumers now want? So magazines now have to produce online versions for subscriptions..they also have to change their promotional strategies and invest more on such media as social media.
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Competitive Forces
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Marketers need to ask questions such as: Who are my competitors? What is their position? Where do we fit in? Are my competitors improving? Is the perception of my competitors' brands changing? Do I need to prepare my response to new competitor entry?
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Regulatory Forces
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Competition Related Product Related Legislation Pricing Related Legislation Distribution Related Legislation Advertising and Promotion Related
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Competition Related
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Sherman Antitrust Act (1980) Clayton Act (1914) Robinson-Patman Act (1936)
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Product Related Legislation
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Patent Copyright Trademark FDA Labeling Guidelines
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Pricing Related Legislation
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Price fixing Price Discounts
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Distribution Related Legislation
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Exclusivity Reciprocal Tying Arrangments
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Advertising and Promotion Related
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Deceptive advertising: false or misleading Promotion: sweepstakes
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What does this mean for marketing
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TSA Airline restrictions on what you can take on board etc. e.g. mascara was not allowed but cake mascara was allowed.
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Situation Analysis
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An in depth analysis of the organizations internal and external environments
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Marketing Plan
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A written document that provides the blueprint or outline of the organization's marketing activities, including the implementation, evaluation and control of those activities
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Organizational Mission vs. Organizational Vision
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Mission Statement Vision Statement
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Mission Statement
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Answers: What business are we in? Clear and concise Explains the organization's reason for existence
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Vision Statement
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Answers: What do we want to become? Tends to be future oriented Represents where the organization is headed
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How to write a good mission statement
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Neither too short, nor too wide Avoid buzzwords Make it operative
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II. SWOT Analysis
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Strengths Weaknesses Opportunities Threats
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Strengths: strong well established brand name, global brand awareness. Opportunities: Population in developing countries is growing rapidly, presenting Coke an opportunity to increase sales. Threat: In many countries people are becoming health conscious...Maybe ppl will start shifting to non-carbonated drinks Weaknesses Being a global company, is not as rapid in its marketing activities than local carbonated countries.
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EXAMPLE: SWOT of Nike-Stregths
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-Strong global brand -Creative workforce -Innovation-driven culture -Effective market research -Lean organization -Outsource manufacturing to wherever they can get good quality at cheapest
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Weaknesses
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-Income heavily dependent on its share of the footwear market -Making sales vulnerable
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Opportunities
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-Strong projected growth in number of people aged between 15-30 in many developing countries -People's interest in sports growing
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Threats
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-People becoming more price conscious due to global recession -Shifting to cheaper sneakers/apparel
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III. Marketing Goals and Objectives
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-Formal statements of desired and expected outcomes of the marketing plan
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Goals:
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Broad, simple statements of what is to be accomplished
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Objectives
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Translation of goals in concrete marketing terms -->Market Share, Sales, Customer Awareness, Product usage, etc -More specific and essential to planning -Should be clear, measurable and time bound
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Example of Marketing Goals
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To become one of the top three players in the category of 'trendy jeans' To consolidate our number 1 position in the detergent market Attain market leadership in the all natural snack segment of the salty snacks category To grow the overall coffee market in Sri Lanka To help grow the membership revenue of Turner Center
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Examples of Marketing Objectives
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Increase product awareness of our Jeans Brand X among college-going women aged 18-22 by 30 % in one year. Increase average usage per customer per month of our detergent brand Y by ½ lb leading to a 10 percent increase in sales in one year. Create awareness of our baby care lotion brand Z to 10% among mothers of newborn within 6 months of launch. Grow the share of coffee in the hot beverage share of throat in Sri Lanka to 2% within 2 years. To increase new memberships in Turner Center by 10% in Fall 2012 versus Fall 2011.
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IV.Marketing Strategy
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Selecting target market and positioning Marketing Mix -Pricing Strategy -Product -Place -Promotion
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Market Segmentation
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Aggregates buyers into groups that: -Have common needs -Will respond similarly to a marketing action
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Positioning
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How you would like your product to stand out in the consumer;s mind: Our brand ______ stands out versus _____ because ________.
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Marketing Mix: Product Strategy
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Features of the product
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Marketing Mix: Price Strategy
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Premium pricing Discount pricing
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Marketing Mix: Promotion Strategy
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Advertisements Sales Promotions PR
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Place (distribution) Strategy
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Retail Wholesale Online
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V. Marketing Implementation
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What specific marketing actives will be undertaken? How will these activities be performed? When will these activities be performed? Who is responsible for the completion of these activities? How will the completion of planned activities be monitored? How much will these activities cost?
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Increase average usage per customer per month of our detergent brand Y by ½ lb leading to a 10 percent increase in sales in one year. Introduce family-size pack (5 lb) in addition to the current 1 lb pack. Create awareness of our baby care lotion brand Z to 10% among mothers of newborn within 6 months of launch. Send free samples to women who buy the 'baby book' Grow the share of coffee in the hot beverage share of throat in Sri Lanka to 2% within 2 years. Free sampling in high school/University cafeterias Endorsements of film starts
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VI. Evaluation and Control
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How will we gauge the performance of the plan? What corrective action will we take if performance is not up to the mark? When will be take this corrective action? Performance usually benchmarked against -Marketing Objectives (sales, market share, brand name recognition) -Financial Objectives (return on investment, cash flows, profitability)
