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1、Marketing Strategy and Situation Analysis,Strategic Planning,The process of developing and maintaining a fit between a companys goals and capabilities and its changing marketing opportunitiesIt involves:Defining company vision/missionSpecifying objectivesDesigning portfolio of products/businessesCoo
2、rdinating functional strategies,Strategic Planning,Strategic planning flows from Mission and ValuesImplementation follows StrategyMonitors and Controls follow Implementation,The Strategic Marketing Process:The Planning Phase,1.Situation and SWOT analysis2.Market-product focus&goal setting3.Marketing
3、 programs,Three Levels of Strategy in an Organization,Corporate strategyVisionCorporate goalsPhilosophy and culture,Market Oriented Vision/Missions,We sell lifestyle and self expression;success and status;memories,hopes and dreams.,We provide fantasies andentertainment-a place where America still wo
4、rks the way it is supposed to.,We offer products and services that deliver value to middle Americans.,THE MARKETING PROCESS,Step 1a:Situation Analysis:The Three Cs,Company,Customers,Competitors,Market Potential(size,growth rate)Customer Behavior(wants and needs,segmentation,price sensitivity),Indust
5、ry Structure Analysis(entry/exit barriers,buyers,sellers,substitutes)Competitor Response Profiles(capabilities,current and future actions),Economic Analysis(costs,break-even,profitability)Company Fit(strengths,weaknesses,resources,culture,goals),Company considerations,History/CultureResourcesExistin
6、g portfolioExisting customer basecharacteristics,esp.vis a vis future marketloyaltyExperiencewith marketswith marketing,International Marketing Strategy,Strategic AlliancesGlobal CompaniesInternational Firm Take our domestic practices overseasMultinational firmCustomize strategies to each marketGlob
7、al firmStandardize strategy globally,Business Objectives,Maximize profitsMaximize shareholder returnsMaximize market shareSurvivalSocial responsibility,1b:SWOT Analysis,Strengths:,Opportunities:,Threats:,Weaknesses:,Favorable,Unfavorable,Internal,External,Designing the Business Portfolio,Fit company
8、 strengths and weaknesses to the opportunities in the environmentAnalyze current SBUs,Strategic Issue Analysis,Designing the Business Portfolio,Fit company strengths and weaknesses to the opportunities in the environmentAnalyze current SBUsWhich SBUs should receive more,less,or no investment?,Boston
9、 Consulting Group growth-share matrix,Market growth rate,10 xHigh1xLow0.1x,Relative market share(share relative to largest competitor),?,Cashcow,Star,Dog,Questionmark,B,C,D,A,20%High10%Low0%,Strategies Associated with the BCG Matrix,Business unit strategy:Manage your portfolioMarketing/product strat
10、egy:BuildHoldHarvestDivest,Limitations of the BCG,Beyond growth rate:Barriers to entryLong term,stable consumer demandHigh ROI relative to other optionsBeyond market share:Technological leadershipRelated competenciesDistribution strengthSupplier relationshipsManagement skillsLeverage/extend brand eq
11、uity,General Electrics stoplight strategy chart,Designing the Business Portfolio,Fit company strengths and weaknesses to the opportunities in the environmentAnalyze current SBUsWhich SBUs should receive more,less,or no investment?Develop growth strategies,Ansoff Product-Market Expansion Grid,Market
12、Penetration,Market Development,Product Development,Diversification,ExistingMarkets,NewMarkets,Existing Products,New Products,Sources of New Sales,Increase the Market Size(primary demand)Steal from Competitors(selective demand)Increase Usage of Current Customers,Porters 4 Generic Business Strategies,
13、Source of Competitive Advantage,Broad Target,NarrowTarget,Lower Cost,Differentiation,DifferentiationFocus,Competitive Scope,Cost Leadership,Differentiation,Cost Focus,Global Market Entry Strategies,ExportingLicensingJoint VentureDirect Investment,Competitive Analysis,Market structureLeaderFollowerNi
14、cherDefining competitionIndustry Based Definition(e.g.SIC)Market Based DefinitionSubstitutes,Product Life Cycle:Implications for Business Strategy,+0,Porters Five Forces,But whats missing?,External environment(PRESTO),Political trends-“politically correct,”partisanRegulatory trends whats(il)legalFTC
15、,FDA,Fed,state,local lawsEconomic trends:macro,microSocial and Cultural trendsChanging family,women in workforce,immigrationTechnological trendsOther:Demographic trends:Aging America,Baby BoomletNatural resources,Tracking Environmental Trends,Example from text:Coffee salesTrend:“%of adults who drink
16、 coffee has declined from 75%(1962)to 47%(1988)”Observation:Coffee consumption is popularResolution/Interpretation/IssuesConsume less,pay moreHow is“coffee”defined?(e.g.Frappucino)Ideal vs.actual behaviorNote:pg 75“supermarkets have added coffee boutiques and gourmet brands to reverse the trend”,Int
17、ernational Environment Trends,Political:stability,sentimentRegulatory:trade regulations,tariffs,quotasEconomic:exchange ratesSocial and Cultural:ethnocentrism,Step 2:Market-product focus&goal setting,1.Set market&product objectives2.Select target markets3.Find points of difference4.Position the prod
18、uct,Step 3:Marketing Programs,Marketing Mix,Target Market,ProductProduct VarietyQualityDesignFeaturesBrand NamePackagingSizesServicesWarrantiesReturns,PlaceChannelsCoverageAssortmentsLocationsInventoryTransport,PriceList PriceDiscountsAllowancesPayment PeriodCredit Terms,PromotionSales PromotionAdvertisingSales ForcePublic RelationsDirect Marketing,
