Unit 2 - The Role of Marketing U i 2 Th R l f M k i in a - PowerPoint PPT Presentation

Unit 2 - The Role of Marketing U i 2 Th R l f M k i in a Modern Organisation in a Modern Organisation Planning and the Marketing Process Planning and the Marketing Process 1 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Previewing the Concepts Previewing the Concepts  E  Explain companywide strategic planning and l i id t t i l i d its four steps.  Discuss how to design business portfolios  Discuss how to design business portfolios and growth strategies.  Explain functional planning strategies and p p g g asses marketing’s role in strategic planning.  Describe the marketing process and the f forces that influence it. th t i fl it  List the marketing management functions, including the elements of a marketing plan including the elements of a marketing plan. 2 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Planning Planning  Many companies operate without formal  Many companies operate without formal plans, yet these plans can provide many benefits such as: benefits such as:  encouraging management to think ahead systematically, y y,  forcing managers to clarify objectives and policies, and p  helping the company to anticipate and respond quickly to environmental changes and sudden developments. 3 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Strategic Planning Strategic Planning Strategic Planning is the Process of g g Developing and Maintaining a Strategic Fit Between the g Organizations' Goals and Capabilities and Its Changing p g g Marketing Opportunities. 4 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Steps in Strategic Planning 5 CuuDuongThanCong.com https://fb.com/tailieudientucntt

3M 3M  A mission statement mission statement is a statement of an organisation’s i ti ’ purpose.  “… 3M solves  “ 3M sol es people’s problems by putting innovation to putting innovation to work for them.”  http://www.3m.com/  http://www.3m.com/ 6 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Setting Company Objectives Setting Company Objectives and Goals Mission Statement M Marketing k i Marketing M k i M Marketing k i Objective # 1 Objective # 2 Objective # 3 Marketing Marketing Marketing Marketing Marketing Strategy Strategy Strategy Strategy Strategy 7 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Designing the Business Portfolio  The business portfolio is the collection of businesses and products that make up the company.  The company must:  analyse its current business portfolio or Strategic Business Units (SBU’s),  decide which SBU’s should receive more less or no  decide which SBU s should receive more, less, or no investment,  develop growth strategies for adding new products or p g g g p businesses to the portfolio. 8 CuuDuongThanCong.com https://fb.com/tailieudientucntt

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The Marketing Process The Marketing Process 10 CuuDuongThanCong.com https://fb.com/tailieudientucntt

The Five Cs The Five Cs  Company p y  Internal Resources, Capabilities  Customers  Needs, wants and characteristics of current & potential Customers  Competitors  Competitors  Strengths and Weaknesses of competitors  Collaborations Co abo at o s  Opportunities and Threats  Context  Environment 11 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Macroenvironment Macroenvironment  PESTLE  PEST  Political Issues  Political/Legal Factors  Economic Forces  Economic Forces  Economic Factors  Economic Factors  Socio-cultural Changes  Socio-cultural Factors  Technological Changes  Technological Changes  Legal and Regulatory Changes  Environmental Forces 12 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Analyzing Current SBU’s: BCG Growth-Share Matrix BCG G h Sh M i Relative Market Share Relative Market Share High Low Stars Question Marks ? ? gh te Hig wth Rat • High growth & share • High growth, low share • Profit potential • Build into Stars or phase out ket Grow • May need heavy May need heavy • Require cash to hold Require cash to hold investment to grow market share Dogs Cash Cows Mark Low • Low growth, high share L th hi h h • Low growth & share • Established, successful • Low profit potential SBU’s • Produce cash 13 CuuDuongThanCong.com https://fb.com/tailieudientucntt

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The GE Matrix The GE Matrix Business Strength Strong Average Weak Industry High Industry High Attract- Medium iveness Low 15 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Problems With Matrix Approaches Can be Difficult, Time-Consuming, Costly to Implement Difficult to Define SBU’s & Measure Market Share/Growth Focus on Current Businesses But Not Future Planning Focus on Current Businesses, But Not Future Planning Can Lead to Unwise Expansion or Diversification 16 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Planning Cross-Functional g Strategies Marketing’s Role in Strategic Planning Inputs to Guiding Design Strategic g Philosophy Philosophy Strategies Strategies Planners 17 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Value Delivery Network Value Delivery Network Company’s Value Chain Chain Customers Customers Suppliers Suppliers Distributors 18 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Porter’s 5 Forces Model Porter s 5 Forces Model 19 CuuDuongThanCong.com https://fb.com/tailieudientucntt

SWOT Analysis SWOT Analysis Draws Together strategic conclusions and their implications based on the facts implications based on the facts Positive Negative g Implications Implications Internal Internal Strengths Strengths Weaknesses Weaknesses Opportunities Threats External 20 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Connecting With Customers Connecting With Customers  Market Segmentation: determining distinct groups  Market Segmentation: determining distinct groups of buyers (segments) with different needs, characteristics, or behavior. characteristics, or behavior.  Market Targeting: evaluating each segment’s attractiveness and selecting one or more segments g g to enter.  Market Positioning: arranging for a product to g g g p occupy a clear, distinctive, and desirable place relative to competing products in the minds of t target consumers. i.e. Chevy Blazer is “like a rock.” t i Ch Bl i “lik k ” 21 CuuDuongThanCong.com https://fb.com/tailieudientucntt

 Wh t i th  What is the difference between a diff b t market segment and a market target? 22 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Developing the Marketing Mix Developing the Marketing Mix 23 CuuDuongThanCong.com https://fb.com/tailieudientucntt

The 4 P’s & 4 C’s of the The 4 P s & 4 C s of the Marketing Mix  4 P’s  4 C’s  Product  Customer Solution  Price  Customer Cost  Place  Convenience  Promotion  Communication 24 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Sometimes there are some Sometimes there are some extra Ps  People  Physical Evidence  Process 25 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Managing the Marketing Effort 26 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Product/Market Expansion Product/Market Expansion Grid Existing New Products Products Products Products Existing 1. Market 3. Product Markets Markets Penetration Penetration Development Development 2. Market New 4. Diversification 4. Diversification M Markets k D Development l t 27 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Product/Market Expansion Grid Product/Market Expansion Grid Based on Starbucks  Market Penetration: making more sales to current customers without changing its products. t t ith t h i it d t  How? Add new stores in current market areas, improvements in advertising prices etc improvements in advertising, prices, etc.  Market Development: identify and develop new markets for its current products. p  How? Review new demographic (senior consumers) or geographic (Asian, European & Australian) markets. k t 28 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Product/Market Expansion Grid Product/Market Expansion Grid Based on Starbucks  Product Development: offering modified or new products to current markets new products to current markets.  How? Increasing food offerings, sell coffee in supermarkets extend to Frappuccino drinks supermarkets, extend to Frappuccino drinks.  Diversification: start up or buy businesses outside current products and markets outside current products and markets.  How? Currently testing two new restaurant concepts concepts – Cafe Starbucks and Circadia, or Cafe Starbucks and Circadia or branded casual clothing. 29 CuuDuongThanCong.com https://fb.com/tailieudientucntt