sheets avdzwart strategic marketing planning inholland 4 oct. 2011
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P R E P A R E D B YA L E X V A N D E R Z W A R T M S C B A
C O U R S E : T H I N K I N G A B O U T Y O U R B U S I N E S S O FT O M O R R O W ( Y E A R 3 )
G R E E N P O R T B U S I N E S S & R E T A I L
H O G E S C H O O L I N H O L L A N D D E L F T
0 4 - 1 0 - 2 0 1 1
STRATEGIC
MARKETING PLAN(NING)FOR HORTICULTURAL FIRMS
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COMPANY VISIT LAST WEEK?
Did you get answers to the targetmarket questions and positioning
questions?
and the other questions?
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RECAP LAST WEEK
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Today......
Internal and external analysis
Buying behaviour
2.6
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BIG PICTURE
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External and internal analysis
Internal analysis
Strengths, Weaknesses
External analysis
Opportunities, Threats
Confrontation analysis
Organizational structureOrganizational culture
Internal processes eninnovative skills
Financial aspects
Analysis marketenvironment
Analysis generalenvironment
Competitor analysis
MarketingCustomers & Markets
Vision
Mission statement
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Strategy development
Internal analysis
Strengths, Weaknesses
External analysis
Opportunities, Threats Confrontation analysis
Strategic optionsJudgment criteria
(FOETSJE)And selection
Strategy and determinecompany goals
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SOURCE OF COMPETITIVEADVANTAGE
3. Cost focus 4. Differentiation
focus
NARROW
TARGET
Co
mpetitive
Scope
BROAD
TARGET
1. Cost
leadership
DIFFERENTIATION
2. Differentiation
LOWER COST
Porters four generic business strategies
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BIG PICTURE
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THE MARKETINGENVIRONMENT
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What environmental forces can affect thecompanys ability to serve its customers?
Explain how changes in the demographic and
economic environments affect marketingdecisions.
What kind of major trends in the firmsenvironment occur?
How can your company react to themarketing environment?
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Challenges
Faces shifting consumer
lifestyles and preferences
for healthier foods.
Low ratings of food and
service quality.
Atmosphere not upscale.
Image is perceived asbeing uncultured, uncool,
and unclassy by younger
target markets.
McDONALDS Facing New Challenges
CASE STUDY
Marketing Initiatives Focus on core
competency of consistent
products and reliableservice.
Offers upscale alternatives
including McCafe and
Bistro Gourmet. Eliminates supersize,
offers healthier food
options, and introduces
Go Active! Adult Happy
Meal.
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MARKETING ENVIRONMENT
Consists of actors and forces outside the
organization that affect managements
ability to build and maintain relationships
with target customers. Studying the environment allows marketers to
take advantage of opportunities as well as tocombat threats (external analysis!).
Market(ing) intelligence and research are usedto collect information about the environment.
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MARKETING ENVIRONMENT
Actors in the microenvironment include:
The company itself
Suppliers Marketing intermediaries
Customers
Competitors
Publics
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THE MICROENVIRONMENT
Companys Internal Environment:
1. Areas inside your company.
2. Affects the (marketing departments)planning strategies.
3. All departments must think
consumer and work together toprovide superior customer value andsatisfaction.
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THE MICROENVIRONMENT
Suppliers:
Provide resources needed to
produce goods and services. Important link in the value delivery
system.
Most marketers treat suppliers likepartners.
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THE MICROENVIRONMENT
Marketing intermediaries:
Help the company to promote, sell, and distribute its goodsto final buyers
Resellers
Wholesalers
Physical distribution firms
Marketing services agencies
Financial intermediaries
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THE MICROENVIRONMENT
Customers:
Five types of markets that purchase a companys goodsand services.
Consumer
Business
Reseller (in your case)
Government
International
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THE MICROENVIRONMENT
Competitors:
Those who serve a target market with products and services
that are viewed by consumers as being reasonablesubstitutes.
Company must gain strategic advantage against theseorganizations.
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Publics:
Any group that has an interest in or impacton an organization's ability to achieve its
objectives. Financial public
Media public
Government public
Citizen-action public
Local public
General public
Internal public
The Microenvironment
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THE MACROENVIRONMENT
Your project company and all of theother actors operate in a larger
macroenvironmentof forces that shapeopportunities and pose threats to yourflower company.
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THE MACROENVIRONMENT
Forces in the macroevironment can becategorized as:
Demographic Economic
Ecological/Natural
Technological
Political
Social/Cultural
= DESTEP
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DEMOGRAPHIC ENVIRONMENT
Demographics:The study of human populations in terms of size,density, location, age, gender, race, occupation,
and other statistics.
Marketers track changing age and family structures,geographic population shifts, educational characteristics,and population diversity.
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NATURAL ENVIRONMENT
Involves natural resources that are needed as inputsby marketers or that are affected by marketingactivities.
Factors include:
Shortages of raw materials.
Increased pollution.
Increased government intervention. Environmentally sustainable strategies.
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TECHNOLOGICALENVIRONMENT
Most dramatic force shaping our destiny.
Changes rapidly.
Creates new markets and opportunities.
Challenge is to make practical, affordable
products.
Safety regulations result in higher research
costs and longer time betweenconceptualization and introduction of
product.
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POLITICAL ENVIRONMENT
Includes laws, government agencies, and
pressure groups that influence or limit various
organizations and individuals in a given
society. Areas of concern:
Increasing legislation.
Changing government agency enforcement. Increased emphasis on ethics and socially
responsible behavior.
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CULTURAL ENVIRONMENT
The institutions and other forces that affect a
societys basic values, perceptions,
preference, and behaviors.
Core beliefs and values are passed on fromparents to children and are reinforced by schools,churches, business, and government.
Secondary beliefs and values are more open to
change. Marketers may be able to change secondary
beliefs, but NOT core beliefs.
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CULTURAL ENVIRONMENT
Societys major cultural views are expressed inpeoples views of:
Themselves Others
Organizations
Society
Nature
The universe
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Responding to theMarketing Environment
Environmental Management Perspective
Taking a proactive approach to managing the environmentby taking aggressive (rather than reactive) actions to affectthe publics and forces in the marketing environment.
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Responding to theMarketing Environment
Manage the environment by:
Hiring lobbyists
Running advertorials Pressing law suits
Filing complaints
Forming agreements to control channels
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Buying behaviour:
Is your project companysupplying to b or c?
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CONSUMER BUYING BEHAVIOR
Refers to the buying behavior of people who buygoods (like flowers)and services for personal use.
These people make up the consumer market.
The central question for horticulture marketers is: How do consumers respond to various marketing efforts
the company might use?
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MODEL OF BUYING BEHAVIOR
Marketing factors and other stimuli are inputs intothe buyers black box.
Here, stimuli are evaluated in light of the buyer
decision process and the buyers characteristics. Buyer responses influence choice of the product,
brand, vendor, as well as the timing and amount ofpurchase.
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CULTURE
Culture is the most basic cause of a person's wantsand behavior.
Culture is learned from family, church, school, peers,colleagues.
Culture reflects basic values, perceptions, wants, andbehaviors.
Cultural shifts create opportunities for new products or mayotherwise influence consumer behavior.
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CONSUMER BUYING BEHAVIOR
Factors influencing consumer behavior: Cultural factors:
Culture, subculture, social class
Social factors: Reference groups, family, roles and status
Personal factors:
Age/life-cycle, occupation, economic situation,
lifestyle, personality and self-concept Psychological factors:
Motivation, perception, learning, beliefs, andattitudes
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CULTURE
Subculture Groups of people with shared value systems based on
common life experiences.
Major Groups US in China???? Hispanic Consumers African-American Consumers
Asian-American Consumers
Mature Consumers
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SOCIAL CLASS
Societys relatively permanent and ordered divisionswhose members share similar values, interests, andbehaviors.
Measured by a combination of: occupation,income, education, wealth, and other variables.
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SOCIAL FACTORS
Groups: Membership, Reference (Opinion Leaders), Aspirational
Family: Most important consumer buying organization
Roles and Status: Role = Expected activities
Status = Esteem given to role by society
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PERSONAL FACTORS
Age and Life-Cycle Stage People change the goods they buy over their lifetimes.
Occupation Occupation influences the purchase of clothing and other
goods.
Economic Situation Some goods and services are especially income-sensitive.
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PERSONAL FACTORS
Lifestyle:
Pattern of living as expressed in psychographics
Activities
Interests
Opinions
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MOTIVES AND NEEDS
Maslows hierarchyof needs impliesthat lower level
needs must besatisfied prior tohigher level needs. Physiological needs
Safety needs Social needs
Esteem needs
Self-Actualization
A motive (or drive)is a need that issufficiently pressingto direct the personto seek satisfaction.
Maslows hierarchy
of needs explainswhy people aredriven by needs atparticular times.
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PERCEPTION
Process by which people select, organize, andinterpret information to form a meaningful picture ofthe world.
Selective attention (aandacht)
Selective distortion (vertekend)
Selective retention (geheugen)
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LEARNING
A relatively permanent change in behaviordue to experience.
Interplay of drives, stimuli, cues, responses,
and reinforcement. Strongly influenced by the consequences of
an individuals behavior Behaviors with satisfying results tend to be
repeated. Behaviors with unsatisfying results tend not to be
repeated.
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BELIEFS & ATTITUDES
A beliefis a descriptive thought that a person holdsabout something.
An attitudeis a persons consistently favorable or
unfavorable evaluations, feelings, and tendenciestoward an object or idea.
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BUYING DECISION PROCESS
Need recognition
Information search
Evaluation of alternatives
Purchase decision Postpurchase behavior
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SOURCES OF INFORMATION
Personal
Commercial
Public
Experiential
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BUYING DECISION PROCESS
Factors that influence purchase decision:
Attitudes of others
Unexpected situational factors
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BUYING DECISION PROCESS
Consumer satisfaction is a function of consumerexpectations and perceived product performance.
Performance < Expectations ----- Disappointment Performance = Expectations ----- Satisfaction
Performance > Expectations ----- Delight
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BUYING DECISION PROCESS
Cognitive dissonance:a buyers doubts shortly after apurchase about whether it was the right decision.
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STAGES IN THEADOPTION PROCESS
1. Awareness: Consumer becomes aware of thenew product, but lacks information about it.
2. Interest: Consumer seeks information about new
product.3. Evaluation: Consumer considers whether tryingthe new product makes sense.
4. Trial: Consumer tries new product on a small scaleto improve his or her estimate of its value.
5. Adoption:Consumer decides to make full andregular use of the new product.
O C O
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PRODUCT ADOPTERCATEGORIES
(Sheets Hans Ligtenberg as well..)
Innovators
Early adopters Early majority
Late majority
Laggards
PRODUCT CHARACTERISTICS THAT
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PRODUCT CHARACTERISTICS THATINFLUENCE THE RATE OF
ADOPTION
Relative Advantage: Is the innovationsuperior to existing products?
Compatibility: Does the innovation fit thevalues and experience of the targetmarket?
Complexity: Is the innovation difficult tounderstand or use?
Divisibility: Can the innovation be used on a
limited basis? Communicability: Can results be easily
observed or described to others?
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NEXT WEEK (11-10-2011)
Strategy formulation
Confrontation matrix
Option(and guestlecture)