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This document discusses marketing strategy planning and key related concepts. It explains that marketing strategy planning involves analyzing opportunities, selecting target markets, developing marketing mixes, and creating marketing plans and programs. The goal is to increase customer equity and gain a competitive advantage through strategies like market penetration, product development, or international expansion. Key elements of the marketing mix like the four Ps are also introduced.
Chapter02web
- 1. CHAPTER TWO Marketing Strategy Planning For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin www.mhhe.com/fourps
- 2. When we finish this lecture you should Unfair trade practice acts Dumping Phony list prices Wheeler-Lea Amendment Price fixing Robinson-Patman Act Price discrimination © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Understand what a marketing manager does. Know what marketing strategy planning is — and why it will be the focus of the book. Understand target marketing. Be familiar with the four Ps in a marketing mix. Know the difference between a marketing strategy, a marketing plan, and a marketing program. Understand what customer equity is and why marketing strategy planners seek to increase it.
- 3. When we finish this lecture you should Unfair trade practice acts Dumping Phony list prices Wheeler-Lea Amendment Price fixing Robinson-Patman Act Price discrimination © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Be familiar with the text’s framework for marketing strategy planning—and why it involves a process of narrowing down from broad opportunities to the most attractive marketing strategy. Know four broad types of marketing opportunities that help in identifying new strategies. Understand why strategies for opportunities in international markets should be considered.
- 4. The Management Job in Marketing Marketing Planning Implement Marketing Plan(s) and Program Control Marketing Plan(s) and Program Implement Marketing Plan(s) and Program Whole-Company Strategic Management Planning
- 5. What is Marketing Strategy Planning? (Exhibit 2-2) The marketing mix C
- 6. Selecting a Marketing-Oriented Strategy Is Target Marketing (Exhibit 2-3) Production-oriented manager sees everyone as basically similar and practices “mass marketing” Marketing-oriented manager sees everyone as different and practices “target marketing”
- 7. An Application of Target Marketing
- 8. Developing Marketing Mixes for Target Markets (Exhibit 2-4) Place Promotion Price Product C
- 9. The Product Element of the Marketing Mix
- 10. The Place Element of the Marketing Mix (Exhibit 2-6) Examples of Channels of Distribution Charles Schwab Toyota Sara Lee Nestle Wholesaler Wholesaler Retailer Consumer Wholesaler Retailer Retailer
- 11. The Promotion Element of the Marketing Mix Personal Selling Advertising Publicity Advertising Publicity Personal Selling Telling and Selling the Customer Sales Promotion
- 12. The Price Element of the Marketing Mix Pricing Objectives Legal Environment Cost and Demand Price Flexibility Price Changes Over the Life Cycle Price Flexibility Price Changes Over the Life Cycle Pricing Objectives Price Setting Discounts and Allowances Geographic Pricing Terms Legal Environment Cost and Demand Competition and Substitutes Price Sensitivity Price of Other Products In the Line Discounts and Allowances Geographic Pricing Terms Competition and Substitutes Price Sensitivity
- 13. All Four Ps Contribute to the Whole Understanding the Target Market Leads to Good Strategies! Selection of Target Market Product Place Promotion Price
- 14. Checking your knowledge General Motors is considering increasing the length of its bumper-to- bumper warranty on new vehicles from 3 years to 5 years. The marketing mix variable being considered here is: product. personnel. place. promotion. price.
- 15. Checking your knowledge A television network is trying to generate interest in a new television show in advance of its premiere. The network sends out press releases and makes the star of the new show available for guest appearances on TV and radio talk shows. The marketing mix variable involved here is: product. personnel. place. promotion. price.
- 16. The Marketing Plan Guides Implementation and Control Other Marketing Plans Target Market + Marketing Mix = Marketing Strategy + Other Marketing Plans + Time-Related Details Marketing Plan = Time-Related Details Marketing Plan Target Market Marketing Mix Marketing Strategy A Firm’s Marketing Program =
- 17. Checking your knowledge An entrepreneurial teenager decides to start a new dog-walking business aimed at dog owners who have to leave their pets at home alone during regular working hours. The teenage develops a thorough description of the people in her target market and their needs. She then comes up with a general outline of the services she will offer, some price ranges, the geographic area she will serve, and some low-cost promotion ideas. What has she developed so far? A marketing program A marketing plan A SWOT analysis A marketing strategy Differentiation and segmentation
- 18. Checking your knowledge A large consumer products company markets several different lines of products, with many individual products in each line. Each product has its own marketing plan. The company president wants to bring together all of the different marketing plans into a single integrated document that can become part of the company’s strategic plan. It appears that the company president needs a: marketing super-plan. marketing program. marketing strategy. operational plan. mass-marketing approach.
- 19. Customer Equity (Exhibit 2-9) As Customer Equity Grows, so do Earnings! time Business enters market Initial Customers C firm New Customers C C C $
- 20. The Importance of Marketing Strategy Planning Strategy Decisions Usually Determine Success and Failure Low price, dependability, good ads, unconventional channels Stiff competition arose New product refinements Timex had captured a large market share
- 21. Creative Strategy Planning Needed for Survival 2% 14% 14% 2% (Well below average) Poor Fair Good Exceptional (Below average) (Above average) (Well above average) Death-wish marketing Best-practices marketing 68% (Average Marketing Program) Failure
- 22. What Are Attractive Opportunities? Breakthrough Opportunities Breakthrough Opportunities Competitive Advantage Avoid Hit-or-Miss Marketing Competitive Advantage
- 23. Marketing Strategy Planning Process Highlights Opportunities (Exhibit 2-11)
- 24. Checking your knowledge A large metropolitan university has an established summer-school program that offers a wide variety of classes to its current students. To expand enrollment, the school started promoting its summer school to students who live in the area and are home for the summer, even though they attend other universities during the regular school year. This effort is an example of: market penetration. market development. product development. diversification. a breakthrough opportunity.
- 25. Market Penetration Coffee so good You just can’t wait.
- 26. Checking your knowledge An electronics superstore sends a special coupon to its current customers offering them a special discount for purchases made during an upcoming week that occurs during a traditionally slow sales period. This is an example of: market penetration. market development. product development. diversification. a breakthrough opportunity
- 28. International Opportunities Should Be Considered Smaller World Competitive Advantage Better Trends? Early Start Competitive Advantage Better Trends? Smaller World
- 30. You now Unfair trade practice acts Dumping Phony list prices Wheeler-Lea Amendment Price fixing Robinson-Patman Act Price discrimination © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Understand what a marketing manager does. Know what marketing strategy planning is — and why it will be the focus of the book. Understand target marketing. Are familiar with the four Ps in a marketing mix. Know the difference between a marketing strategy, a marketing plan, and a marketing program. Understand what customer equity is and why marketing strategy planners seek to increase it.
- 31. You now Unfair trade practice acts Dumping Phony list prices Wheeler-Lea Amendment Price fixing Robinson-Patman Act Price discrimination © 2005 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Be familiar with the text’s framework for marketing strategy planning—and why it involves a process of narrowing down from broad opportunities to the most attractive marketing strategy. Know four broad types of marketing opportunities that help in identifying new strategies. Understand why strategies for opportunities in international markets should be considered.
- 32. Key Terms Marketing management process Strategic (management) planning Marketing strategy Target market Marketing mix Target marketing Mass marketing Channel of distribution Personal selling Customer service Mass selling Advertising Publicity Sales promotion Marketing plan Implementation Operational decisions Marketing program Customer equity Breakthrough opportunities
- 33. Key Terms Competitive advantage Differentiation S.W.O.T. analysis Market penetration Market development Product development Diversification
Editor's Notes
- #2: Chapter Two Marketing Strategy Planning For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin