MKT 3010 Lecture 3Current LectureChapter 2: Cont. Marketing PlanMarketing Plan: step 5- Evaluate performance using marketing metrics- Set benchmarks for successo Accountability- not all mistakes or short falls are of the fault of the marketing department, some lie outside controlo Objectives and metrics- did we meet our objectives? Hard to measure brand equityo Financial metric- this is used to tell how well products are doing- easy to measure, just financial proofo Portfolio analysis (pg. 39 in book)- shows how to best allocate resourcesThe Boston Consulting Group Matrix: type of portfolio analysis- looking at market growth rate vs. relative market share (comparing to market leader). There are four groups in this matrix:- Star-high market growth and share- Cash Cow- large share but lessening market growth, this means they need less investing and still making money- Question mark- “problem child” taking a risk with this market. Low market share but potential for high market growth, not the market leader. Can you put money from cash cow into this market to turn it into a star?- Dogs-low market growth a small market share. Not making money. Usually companies stop funding dogs and reinvest in their stars***hard to predict markets and how long they will continue to grow or fadeGrowth Strategy (pg. 43)- Market penetration- what can we do as a company to make people buy more product- ex. starbucks drivethrough window- Market Development- getting your product into further markets, geographically and demographically. Ex. Chick-fil-a across America, NFL marketing towards women- Product Development- offering new products to existing customers to get them to buy more. Ex. Starbucks selling breakfast sandwiches- Diversification- new product to new customers, Ex. Starbucks moving into the entertainment businessDownsizing- Eliminate products - Abandon marketso Reasons: company grew too quickly and weren’t ready to support, something in environment changes, lack of experience, lack of relevance (market slows)Chapter 5: Analyzing the Market EnvironmentThe Immediate Environment: Strengths and weaknesses- Company capabilitieso Internal resources Tangible resources- Financial, physical, technological Intangible resources- Brand reputation, culture, intellectual (brand rep has no tangible value unless company is sold) Human resources- skills and incentives Global resources- international labor, offices, and distribution***core competencies and company capabilities are the same thing- Competitorso Identify competitors Direct: competitors that have similar products in the same industry (delta vs. South West) Indirect: competitors that have different products in same industry (delta vs. AMTRAC)o Competitive intelligence: knowing about competitorso Proactive vs. Reactive: know other companies strengths and weaknesses yet always try to stay ahead and be inventive- Corporate Partnerso Firms are part of allianceso Align with competitors, suppliers, etc.- Sometimes firms are competitors in some areas and corporate partners in othersMacroenvironment: Overall market- Culture-shared meanings, beliefs, values, morals, customso Country cultureo Regional