Chapter 2 Strategic Planning in Contemporary Marketing
CHAPTER 2 Strategic Planning in Contemporary Marketing
Chapter Objectives 1. Distinguish between strategic planning and tactical planning. 2. Explain how marketing plans differ at various levels in an organization. 3. Identify the steps in the marketing planning process. 4. Describe successful planning tools and techniques, including Porter’s Five Forces model, first and second mover strategies, SWOT analysis, and the strategic window.
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CHAPTER 2 Strategic Planning in Contemporary Marketing
Chapter Objectives 5. Identify the basic elements of a marketing strategy. 6. Describe the environmental characteristics that influence strategic decisions. 7. Describe the methods for marketing planning, including business portfolio analysis and the BCG matrix.
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CHAPTER 2 Strategic Planning in Contemporary Marketing
Marketing Planning: The Basis for Strategy and Tactics o Planning - Anticipating future events and conditions and determining the best way to achieve organizational objectives o Marketing planning - Implementing planning activities devoted to achieving marketing objectives
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CHAPTER 2 Strategic Planning in Contemporary Marketing
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CHAPTER 2 Strategic Planning in Contemporary Marketing
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2012
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Cengage
Learning.
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CHAPTER 2 Strategic Planning in Contemporary Marketing
Steps in the Marketing Planning Process o Defining the organization’s mission o Mission - Essential purpose that differentiates one company from another o Examples: o Microsoft Office: “Real life tools” o Sephora: “The beauty authority” o IBM: “Welcome to the decade of smart”
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CHAPTER 2 Strategic Planning in Contemporary Marketing
Steps in the Marketing Planning Process o Defining the organization’s objectives o Objectives - Guide the development of marketing objectives and plans o Examples: o Generate a 15 percent profit over the next 24 months o Add 25 new outlets within the next year o Cut manufacturing costs by 10 percent
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CHAPTER 2 Strategic Planning in Contemporary Marketing
Assessing Organizational Resources and Evaluating Environmental Risks and Opportunities o Resources include:
o Strengths help planners:
o Production
o Set objectives
o Marketing
o Develop plans
o Finance
o Take advantage of marketing opportunities
o Technology o Employees
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CHAPTER 2 Strategic Planning in Contemporary Marketing
Formulating, Implementing, and Monitoring a Marketing Strategy o Marketing strategy - Selecting and satisfying target consumers through the marketing mix elements o The final steps of the planning process: o Marketers put the marketing strategy into action o Marketers monitor performance to ensure that objectives are achieved
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CHAPTER 2 Strategic Planning in Contemporary Marketing
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CHAPTER 2 Strategic Planning in Contemporary Marketing
First Mover and Second Mover Strategies o First mover strategy – The company first to offer a product in a marketplace will be the long-term market winner o Second mover strategy – Observing the innovations of first movers and then improving on them to gain advantage in the marketplace
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CHAPTER 2 Strategic Planning in Contemporary Marketing
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CHAPTER 2 Strategic Planning in Contemporary Marketing
The Strategic Window o Limited periods when key requirements of a market and a firm’s particular competencies best fit together o Requires a thorough analysis of: o Current and projected external environmental conditions o Current and projected internal company capabilities o How, whether, and when the firm can reconcile environmental conditions and company capabilities
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CHAPTER 2 Strategic Planning in Contemporary Marketing
Elements of a Marketing Strategy o The target market o Marketing mix variables
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CHAPTER 2 Strategic Planning in Contemporary Marketing
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CHAPTER 2 Strategic Planning in Contemporary Marketing
The Marketing Environment o Five external dimensions that affect the marketing mix variables: o Competitive o Political-legal o Economic o Technological o Social-cultural
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CHAPTER 2 Strategic Planning in Contemporary Marketing
Methods for Marketing Planning o Business portfolio analysis o An evaluation of a company’s products and divisions to determine the strongest and weakest
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CHAPTER 2 Strategic Planning in Contemporary Marketing
Strategic Business Units o Key business units within diversified firms o Each strategic business unit (SBU): o Has its own managers, resources, objectives, and competitors o Pursues its own distinct mission and develops its own plans independently
o SBUs help focus the attention of company managers
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CHAPTER 2 Strategic Planning in Contemporary Marketing
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