Part One
Understanding marketing and the marketing process
Lecture Two
Strategic planning and the marketing process
At a glance
Explain the strategic planning and its four steps
Discuss how to design business portfolios and growth strategies
Describe the marketing process and the forces that influence it
What is strategic planning?
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
Steps in strategic planning
defining a clear company mission
Setting supporting objectives
Designing a sound business portfolio
Coordinating functional strategies
Business unit, product, and market level
Company level
Remember marketing plan contains:
Mission statement
Financial summary of what it seeks to achieve
Market overview
SWOT analysis
Assumptions
Marketing objectives
Marketing strategies
Programmes (with forecasts and budgets)
Vision
Mission
Objectives
Strategies
Operational plans
The logical sequence underlying plans:from vision to operational plans
Contents of marketing plan
Defining the company’s business and mission
Mission statement: a statement of the organization’s purpose---what it wants to accomplish in the larger environment.
Market oriented
Realistic
Specific
motivating
Company
Product-orientation
Market-orientation
Poppy
We make lipsticks
We sell lifestyle and self-expression; success and status; memories, hops and dreams
Sea World
We run a theme park
We provide fantasies and entertainment
Kmart
We run discount stores
We offer products and services that deliver value to middle-Chinese
Xerox
We make copying, fax and other office machines
We make businesses more productive by helping them scan, store, retrieve, revise, distribute, print and publish documents
Market-orientation business definitions
Setting company objectives and goals
Mission: “Food, health, hope” --- of helping to feed the world’s exploding population while at the same time sustaining the environment.
Overall objective: to create environmentally better products and get them to market faster at lower costs.
The agricultural division’s objective: increase agricultural productivity and reduce chemical pollution by …
Setting company objectives and goals
Improve profits
Increase sales
Reduce costs
Increase market share in existing market
Enter new market
Increase product availability and promotion
Establish distribution channels and sales programs
Hierarchy,
Specific
Designing the business portfolio
Business portfolio: the collection of businesses and products that make up the company.
Analyzing the current business portfolio
Boston consulting group approach
The General Electric approach
Developing growth strategies in the age of connectedness
Product-market expansion grid
What is strategic business unit (SBU)?
A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses.
SBU can be a company division, a product line with a division, or sometimes a single product or brand.
COW
Relative Market Share
Rate of market growth
1
3
2
7
8
4
5
6
10X
1X
0
10%
22%
BCG Approach
Strong
Average
Weak
High
Medium
Low
Industry attractiveness
Business strength
B
A
C
D
F
G
E
GE Approach
Market Penetration
Product
Development
Market Development
Diversification
New
New
Existing
Existing
Market
Product
Growth Directions for a Given Product-market combination
Planning cross-functional strategies
Marketing’s role in strategic planning
Company
Strategic planner
SBU
Operation
Marketing and other business functions
Marketing process
Analyzing marketing opportunities
Selecting target markets
Developing the marketing mix
Managing the marketing effort
S-T-P 战 略
市场细分
Segmenting
市场定位
Positioning
目标市场选择
Targeting
Target customers
Intended positioning
Product/services
Variety
Quality
Design
Features
Brand name
Package
Size
Add-ons
Warranties
returns
Price
list price
Discounts
Allowances
Settlement terms
Credit terms
Promotion
Advertising
Personal selling
direct marketing
Synchronous marketing
Placement
demand chain management
logistics management
Channel management
Marketing mix
Managing the marketing effort
Marketing analysis
Marketing planning
Marketing implementation
Marketing department organization
Marketing control
Analysis
Planning
Develop strategic plans
Develop marketing plans
Implementation
Carry out the plans
Control
Measure results
Evaluate result
Take corrective action
The relationship between analysis, planning, implementation and control
The components of the marketing plan
1. Executive summary
2. Current marketing situation
3. Opportunity and issue analysis
4. Objectives
5. Marketing strategy
6. Action programs
7. Projected profit-and-loss statement
8. Controls
Marketing department organization
Five structures
functional organization
geographical organization
product management organization
market management organization
product management/ market management organization
Marketing
director/manager
Sales
manager
Advertising
manager
Marketing
research
manager
Customer
service
manager
New-
product
manager
Functional organization
Marketing
director/manager
Sales
manager
Advertising
manager
Marketing
research
manager
Customer
service
manager
New-
product
manager
Geographical organization
Regional sales manager(4)
District sales manager(20)
Salespersons (200)
Marketing
director/manager
Sales
manager
Advertising
manager
Marketing
research
manager
Customer
service
manager
New-
product
manager
Product management organization
Product management
Including:
Market research; marketing research; product evaluation; environmental studies; other research actives
Organization development policy
Control and measurement
Objectives and strategies
Marketing operations
Input and adjustment
Such as:
Sales force management
Distribution cost analysis
Evaluation of advertising
Test marketing
Service audit
Inventory control
For:
Marketing
Products
Price
Distribution
Selling
Advertising
promotion
Total sub-activities of the marketing organization
The control process
Set goals
What do we want to achieve?
Measure performance
What is happening?
Evaluate performance
Why is it happening?
Take corrective action
What should we do about it?
Next week
Marketing environment
Assignment:
Reviewing the lecture 2
Text book (chapter 2)/ P44-77
Orgnizing discussion of case on page 81.
getting information and writing the outlet on the marketing Environment
Text book (chapter 3)
