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11 views32 pages

Chap 2

study

Uploaded by

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© © All Rights Reserved
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BASIC MARKETING

Chapter 2
Marketing Strategy
Planning
At the end of this presentation, you should
be able to:
1. Understand what a marketing manager does.
2. Know what marketing strategy planning is—and why it
is the focus of this book.
3. Understand target marketing.
4. Be familiar with the four Ps in a marketing mix.
5. Know the difference between a marketing strategy, a
marketing plan, and a marketing program.
At the end of this presentation, you should
be able to:
6. 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.
7. Know four broad types of marketing opportunities that
help in identifying new strategies.
The Management Job in Marketing
What is a Marketing Strategy?

Marketing strategy: specifies a target


market and a The
related marketing mix; provides
a “big picture” of what the firm will do.

Target market: a fairly homogeneous (similar)


group of customers to whom a company wishes to
appeal.

Marketing mix: the controllable variables the


company puts together to satisfy the target market.
The customer is surrounded by the controllable
variables that we call the “marketing mix”
Selecting a Marketing-Oriented Strategy Is
Target Marketing
2-7

Target Marketing vs. Mass Marketing

§ TARGET MARKETING
§ Marketing mix is tailored to fit specific target
customer(s)
§ MASS MARKETING
§ Vaguely aims at everyone with the same marketing mix
Developing Marketing Mixes for Target
Markets

C
2-9

Exhibit 2-5: Strategy Decision Areas Organized


by the 4 Ps
2-10
Exhibit 2-6: Four Basic Channels of Distribution for
Consumer Products
The Promotion Element of the Marketing Mix

Personal
Advertising
Selling

Telling and
Selling
the Customer

Sales
Publicity
Promotion
The Price Element of the Marketing Mix

Price of Other Pricing


Objectives Price
Products In
Flexibility
the Line
Competition Price Changes
and Over the Life
Substitutes Price Cycle

Setting Discounts
Price
and
Sensitivity
Allowances

Cost and Geographic


Legal
Demand Pricing Terms
Environment
All Four Ps Contribute to the Whole

Product

Place Selection
of Target
Market
Promotion

Price

Understanding the Target Market Leads to Good Strategies!


2-14

The Marketing Plan

§ Marketing plan: a written statement of a marketing


strategy and the time related details for carrying out
the strategy.
§ Spells out, in detail:
§ What marketing mix is to be offered
§ To what target market
§ For how long
§ What resources (costs) are needed at what rate
§ What results are expected
§ What control procedures will be used.
2-15

Marketing Program

§ Marketing program: blends all of the firm's marketing plans


into one big plan—which is an integrated part of the whole-
company strategic plan
§ Program requires an effective building up process
§ A good program must be based on good plans
§ Each plan must be carefully developed
§ Each plan is based on a marketing strategy
§ Each strategy is based on a marketing mix and a target market

§ Plans in overall program should work together to enhance a


competitive advantage
Elements of a
Firm’s Marketing
Program
(Figure 2-8)
2-17

Exhibit 2-9: Overview of Marketing Strategy


Planning Process
2-18

Marketing Strategy Planning Process

§ Narrowing down from broad market opportunities that a firm might


pursue to a specific strategy
§ Marketing strategy specifies a specific target market and a specific
marketing mix
§ Not just some strategy, but one that will offer target customers superior
value
§ Segmentation helps pinpoint a specific target market
§ Differentiation helps pinpoint a marketing mix that is different from and
better than what is available from a competitor
§ Screening criteria make it clear why you select a specific strategy (and
why others are screened out)
§ S.W.O.T. analysis identifies and lists a firm’s strengths and weaknesses
and its opportunities and threats
§ S.W.O.T helps identify relevant screening criteria (what is needed to get
a competitive advantage)
2-19

Exhibit 2-11: Four Basic Types of


Opportunities
Study Question 1
Which of the following is NOT considered a
product?

A. tax advice from a financial consultant.


B. a computer.
C. a haircut.
D. a chair.
E. All of the above are considered products.
Study Question 2
Suzuki's 3 year/36,000 mile new car
warranty is part of which marketing mix
decision area?

A. price
B. target market
C. place
D. product
E. promotion
Study Question 3
Hewlett-Packard sells personal computers
through specialty computer stores, electronics
superstores, and its own Internet site. The
marketing mix variable that is being considered
here is:

A. Pricing.
B. Promotional.
C. Personnel.
D. Product.
E. Placement.
Study Question 4
Lipton has increased sales by developing ads
that encourage it current customers to drink
Lipton tea instead of coffee at morning "coffee
breaks." This effort focuses on

A. diversification.
B. market penetration.
C. product development.
D. mass marketing.
E. market development.
Study Question 5
Converse started selling its "high-top" canvas
basketball shoes in colors such as hot pink, lime
green, and purple, to accompany their traditional
colors of black and white. Converse seems to be
pursuing a _____________ opportunity.

A. Market penetration.
B. Market development.
C. Product development.
D. Diversification.
E. Breakthrough.
The difference between “Production Orientation” and
“Marketing orientation” is best explained as follows:

A) There are no separate functional departments in a marketing-


oriented firm.

B) In a marketing-oriented firm, the total system's effort is


guided by what individual departments would like to do.

C) Production-oriented firms usually do not have a marketing


manager.
D) In a marketing-oriented firm, every department's activities are
guided by what customers need and what the firm can deliver
at a profit.
When a firm tries to increase sales by
offering new or improved products to its
present markets, this is called:
A) Product development.
B) Market penetration.
C) Diversification.
D) Market development.
The most important variable in a firm's
marketing mix is:
A) Product.

B) Price.

C) Place.

D) None of these since all contribute to one


whole.
Which of the following is true?
A) The product "P" in the marketing mix stands for only physical
goods.
B) The product "P" in the marketing mix stands for both physical
goods and services.

C) The product "P" in the marketing mix stands for only tangible
merchandise.
D) The product "P" in the marketing mix stands for both physical
goods and tangible
merchandise
The marketing management process:
A) Includes the on-going job of planning marketing activities.
B) Is mainly concerned with obtaining continuous customer
feedback.
C) Involves finding opportunities and planning marketing
strategies, but does not include the management tasks of
implementing and control.
D) Is called “strategic planning”.
A marketing strategy consists of two interrelated parts. These
are:
A) Selection of a target market and implementing the plan.
B) Selection of a target market and development of a marketing
mix.
C) Selection and development of a marketing mix.
D) Finding attractive opportunities and developing a marketing
mix.
Marketing strategy planners should recognize that:
A) Target markets should not be large and spread out.
B) Mass marketing is often very effective and desirable.
C) Large firms like General Electric, Target, and Procter & Gamble
are too large to aim at clearly defined markets.

D) Target marketing is not limited to small market segments.


A “Marketing program”:
A) Is another name for a particular marketing mix.
B) Blends several different marketing plans.
C) Consists of a target market and the marketing mix.
D) Is primarily concerned with all of the details of implementing a
marketing plan.
To improve its profits, Delta Tool Corp. Has redesigned its entire
line of rechargeable power drills—adding several new or improved
features and three new models. Apparently, Delta Tool is pursuing
a ______________ opportunity.

A) Market penetration
B) Product development
C) Market development
D) Diversification
An intermediary:
A) Is a wholesaler—not a retailer.
B) Usually increases the number of transactions required.
C) Tends to make the exchange process more difficult and costly.
D) Is someone who specializes in trade rather than production.
The process of marketing strategy planning is about:
A) Identifying as many market opportunities as can be imagined.
B) Figuring out how to offer products at the lowest possible price.
C) Narrowing down possible market opportunities to the most attractive
ones.
D) Choosing the most profitable market opportunity, regardless of the
firm's current abilities and resources.

Both market penetration strategies and market development strategies


primarily involve ________.

A) selling a company's current products

B) modifying the company's product line

C) selling in new as well as existing markets

D) developing a new product

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