Marketing Ch. 2 Developing Marketing Strategies and A Marketing Plan

(Step 2: Planning Phase) Situation analysis (SWOT)

Assesses how various players, both in and outside the organization, affect the firm's potential for success. assesses both the internal environment with regard to its Strengths and Weaknesses and the external environment in terms of its Opportunities and Threats. Should access the opportunities and uncertainties of the marketplace due to changes in Cultural, Demographic, Social, Technological, Economic, and Political forces. (CDSTEP)

Step 2

Conduct a Situation Analysis (SWOT)

Step 1

Define the Business Mission

After a firm has identified a group of market segments, it does all of the following EXCEPT:

Does: evaluating each segment's attractiveness, using a process known as targeting, and determining which segments to pursue. EXCEPT: re-assigning the segments.

Step 5

Evaluate Performance and Make Adjustments

What is Step 5 of marketing?

Evaluate Performance using marketing metrics. The final step in the planning process includes evaluating the results of the strategy and implementation program using marketing metrics.

Positioning (P of STP)

Finally, when the firm decides which segments to pursue, it must determine how it wants to be positioned within those segments. This involves the process of defining the marketing mix variables so hat target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

(Step 1: Planning Phase)Mission statement

a broad description of a firm's objectives and the scope of activities it plans to undertake, attempts to answer two main questions: What type of business are we? What do we need to do to accomplish our goals and objectives?

Marketing positioning involves the process of defining the marketing mix variables so that target customers:

clearly understand the product's unique benefits in comparison with competing products.

Market segment

consisting of consumers who respond similarly to a firm's marketing efforts.

Market penetration strategy

employs the existing marketing mix and focuses the firm's efforts on existing customers. Overall goal is to increase sales to current customers.

Market development strategy

employs the existing marketing offering to reach new market segments, whether domestic or international.

Control phase

entails evaluating the performance of the marketing strategy using marketing metrics and taking nay necessary corrective actions.

Marketing strategy

identifies (1) a firm's target market (2) a related marketing mix (its four Ps), and (3) the bases on which the firm plans to build a sustainable competitive advantage.

Product line

is a group of products that consumers may use together or perceive as similar in some way.

Metric

is a measuring system that quantifies a trend, dynamic, or characteristic. Common metrics: sales revenue, profits.

Marketing plan

is a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and objectives and strategy specified in term of the four Ps, action programs, and projected or pro-forma income statements.

Customer Excellence

is achieved when a firm develops value based strategies for retaining loyal customers and provides outstanding customer service. Focuses on retaining loyal customers and excellent customer service.

Sustainable competitive advantage

is an advantage over the competition that is not easily copied and can be maintained over a long period of time.

Locational excellence

is particularly important for retailers and service providers. "The three most important thing in retailing are location, location, location." having a good physical location and internet presence.

Market share

is the percentage of a market accounted for by a specific entity, and is used to establish the product' sstrength in a particular market.

Relative market share

is used in applications because it provides managers with a product's relative strength, compared with that of the largest firm in the industry.

Portfolio Analysis

management evaluates the firm's various products and businesses-its "portfolio"- and allocates resources according to which products are expected to be the most profitable.

Step 3

Identifying and evaluating opportunities using STP Segmentation, Targeting, and Positioning

Step 4

Implement Marketing Mix and Allocate Resources Product Value Creation, Price Value Capture, Place Value Delivery, Promotion Value Communication.

What is Step 4 of marketing?

Implement marketing mix and allocate resources.

Place and value delivery

The third P. The firm must be able, after it has created value through a product and/or service, to make the product or service readily accessible when and where the customer wants it.

Product excellence

The third way to achieve a sustainable competitive advantage, occurs by providing products with high perceived vale and effective branding and positioning. Having products with high perceived value and effective branding and positioning

Product and Value creation products

These products include services and constitute the first of the four Ps. Because the key to success of any marketing program is the creation of value, firms attempt to develop products and services that customers perceive as valuable enough to buy.

Planning phase

marketing executives, in conjunction with other top managers, defines the mission and/or vision of the business

Implementation phase

marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning (STP)

Market growth rate

or annual rate of growth of the specific market in which the product competes. Market growth rate thus measures how attractive a particular market is.

Integrated marketing communications (IMC)

represents the promotion P of the four Ps. It encompasses a variety of communication disciplines-advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media- incombination to provide clarity, consistency, and maximum communicative impact.

Related diversification

the current target market and/or marketing mix shares something in common with the new opportunity.

(Step 3: Identify Opportunities) Segmentation, targeting, and positing (STP)

the firm first divides the marketplace into subgroups or segments, determines which of those segments it should pursue or target, and finally decides how it should position its products and services to best meet the needs of those chosen targets.

Diversification strategy

the last of the growth strategies, introduces a new product or service to a market segment that currently is not served.

Unrelated diversification

the new business lack any common elements with the present business.

Operational excellence

the second way to achieve a sustainable competitive advantage, through their efficient operations, excellent supply chain management, and strong relationships with their suppliers. achieved through efficient operations and excellent supply chain and human resource management

Customer Value

1. Customer Excellence 2. Operational excellence 3. Product excellence 4. Locational excellence.

Price and Value capture

The second element of the marketing mix is price. Pricing is the only activity that actually brings in money and therefore influences revenues.

Strategic business unit (SBU) or product line

Is how portfolio analysis is typically performed. may have a different mission or objective from other divisions.

Growth Strategies

Market penetration, product development, market development, diversification.

Which phase of the five-step marketing planning process evaluates the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success?

The second phase.

What are the three phases of a Strategic Plan?

Planning, Implementing, and Controlling.

Price and Value Capture

Price must allow for customers to perceive good value for the product they receive.

Promotion and Value communication

Reminding the customer of the products value.

The Marketing Plan

Step 1: BUsiness mission and objectives Step 2: Situation analysis SWOT Step 1 and Step 2 fall into the Planning Phase Step 3: Identifying opportunities (segmentation, targeting, positioning) Step 4: Implement marketing mix (product, price, place, promotion) Step 3 and Step 4 fall into the Implementation Phase Step 5: Evaluate performance using marketing metrics. Step 5 falls into the control phase.

Product and Value Creation

Successful products and services are those that customers perceive as valuable enough to buy.

Promotion and Value Communication

Television, Radio, Magazines, Sales force, New Media.

What do "threats" represent in SWOT analysis?

The negative aspects of the company's external environment.

What do "opportunities" represent in SWOT analysis?

The positive aspects of the external environment

Market segmentation

The process of dividing the market into groups of customers with different needs, wants, or characteristics, who therefore might appreciate products or services geared especially for them.

Place and Value Delivery

The product must be readily accessible, why is this retailer growing.

Targeting (T of STP)

after a firm has identified the various market segments it might pursue, it evaluates each segment's attractiveness and decides which to pursue using a process known as target marketing or targeting.

SBU (strategic business unit)

an sbu is a division of the firm itself that can be managed and operated somewhat independently from other divisions and may have a different mission or objectives.

Question marks (upper right quadrant)

appear in high-growth markets but have relatively low market shares; thus, they are often the most magisterially intensive products in that they require significant resources to maintain and potentially increase their market share.

Cash cows (lower left quadrant)

are in low growth markets but are high market share products.

Dogs (lower right quadrant)

are in low-growth markets and have relatively low market shares. Dogs should be phased out unless they are needed to complement or boos the sales of another product or for competitive purposes.

Stars (Upper left quadrant)

occir in high-growth markets and are high market share products.

Product development strategy

offers a new product or service to a firm's current target market.