chapter 2 strategic planning in contemporary marketing principles of contemporary marketing kurtz...
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Chapter 2Strategic Planning in
Contemporary Marketing
Principles of
Contemporary MarketingKurtz & Boone
CHAPTER 2 Strategic Planning in Contemporary Marketing
Chapter Objectives
1. Distinguish between strategic planning and tactical planning.
2. Explain how marketing plans differ at various levels in an organization.
3. Identify the steps in the marketing planning process.
4. Describe successful planning tools and techniques, including Porter’s Five Forces model, first and second mover strategies, SWOT analysis, and the strategic window.
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 2 Strategic Planning in Contemporary Marketing
Chapter Objectives
5. Identify the basic elements of a marketing strategy.
6. Describe the environmental characteristics that influence strategic decisions.
7. Describe the methods for marketing planning, including business portfolio analysis and the BCG matrix.
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 2 Strategic Planning in Contemporary Marketing
o Planning - Anticipating future events and conditions and determining the best way to achieve organizational objectives
o Marketing planning - Implementing planning activities devoted to achieving marketing objectives
Marketing Planning: The Basis for Strategy and Tactics
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 2 Strategic Planning in Contemporary Marketing
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 2 Strategic Planning in Contemporary Marketing
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 2 Strategic Planning in Contemporary Marketing
o Defining the organization’s missiono Mission - Essential purpose that
differentiates one company from another
o Examples:
oMicrosoft Office: “Real life tools”
o Sephora: “The beauty authority”
o IBM: “Welcome to the decade of smart”
Steps in the Marketing Planning Process
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CHAPTER 2 Strategic Planning in Contemporary Marketing
o Defining the organization’s objectiveso Objectives - Guide the development of
marketing objectives and plans
oExamples:
oGenerate a 15 percent profit over the next 24 months
o Add 25 new outlets within the next year
o Cut manufacturing costs by 10 percent
Steps in the Marketing Planning Process
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CHAPTER 2 Strategic Planning in Contemporary Marketing
o Resources include: o Production
o Marketing
o Finance
o Technology
o Employees
Assessing Organizational Resources and Evaluating Environmental Risks and
Opportunities
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o Strengths help planners:o Set objectives
o Develop plans
o Take advantage of marketing opportunities
CHAPTER 2 Strategic Planning in Contemporary Marketing
oMarketing strategy - Selecting and satisfying target consumers through the marketing mix elements
o The final steps of the planning process:o Marketers put the marketing strategy into action
o Marketers monitor performance to ensure that objectives are achieved
Formulating, Implementing, and Monitoring a Marketing Strategy
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CHAPTER 2 Strategic Planning in Contemporary Marketing
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 2 Strategic Planning in Contemporary Marketing
o First mover strategy – The company first to offer a product in a marketplace will be the long-term market winner
o Second mover strategy – Observing the innovations of first movers and then improving on them to gain advantage in the marketplace
First Mover and Second Mover Strategies
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CHAPTER 2 Strategic Planning in Contemporary Marketing
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 2 Strategic Planning in Contemporary Marketing
o Limited periods when key requirements of a market and a firm’s particular competencies best fit together
o Requires a thorough analysis of:o Current and projected external
environmental conditions
o Current and projected internal company capabilities
o How, whether, and when the firm can reconcile environmental conditions and company capabilities
The Strategic Window
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CHAPTER 2 Strategic Planning in Contemporary Marketing
o The target market
o Marketing mix variables
Elements of a Marketing Strategy
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CHAPTER 2 Strategic Planning in Contemporary Marketing
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 2 Strategic Planning in Contemporary Marketing
o Five external dimensions that affect the marketing mix variables:o Competitive
o Political-legal
o Economic
o Technological
o Social-cultural
The Marketing Environment
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CHAPTER 2 Strategic Planning in Contemporary Marketing
o Business portfolio analysiso An evaluation of a company’s products and
divisions to determine the strongest and weakest
Methods for Marketing Planning
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CHAPTER 2 Strategic Planning in Contemporary Marketing
o Key business units within diversified firms
o Each strategic business unit (SBU):o Has its own managers, resources,
objectives, and competitors
o Pursues its own distinct mission and develops its own plans independently
o SBUs help focus the attention of company managers
Strategic Business Units
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CHAPTER 2 Strategic Planning in Contemporary Marketing
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.