MKTG Exam 2 10 21 2013 1 Strategic Planning developing and maintaining the strategic fit between the organization s goals and capabilities and its changing marketing opportunities a Steps in strategic planning 1 Defining the mission statement a statement of the organization s purpose acts as an invisible hand that guides people in the organization Characteristics market oriented realistic specific motivating illustrative of distinctive competencies 2 Setting company goals and objectives turning the mission statement into detailed objectives for each level of management to guide the entire company has to be measurable and attainable 3 Designing the business portfolio determining the collection of businesses and products that make up the company 4 Planning marketing and other functioning strategies 2 Product Market Expansion Grid Portfolio planning tool for identifying company growth opportunities through market penetration market development product development or diversification a Market Penetration to increase sales to current customers without changing the products being sold achieved by price place and promotion ex Gold card free on birthday comfy atmosphere b Market Development identify and develop new markets for current products ex Expanding internationally c Product Development offering modified or new products to current markets ex Coke offers new flavors to its soda line d Diversification start up or buy businesses outside of current products and markets 3 Intermediate Market Segmentation 4 SWOT Analysis objective strengths internal capabilities that help company reach objective weaknesses internal limitations that may interfere with a company s ability to achieve its opportunities external factors that a company may be able to exploit to its advantage threats current and emerging external factors that may challenge the company s performance 5 Marketing Implementation the execution of a plan is usually the hardest part often ends up being more about personal relationships and or luck than plans took into account 6 Marketing Control evaluate the results of marketing strategies and plans set marketing goals measure actual vs expected take corrective action 7 Steps in Segmenting Targeting and Positioning STP a market segmentation identify bases for segmenting the market develop segment profiles dividing a market into smaller groups that 1 have distinctive needs characteristics or behaviors 2 respond differently to marketing efforts and therefore 3 might require their own products and marketing 4 Ps Geographic Segmentation dividing a market into different geographic units country city size etc Demographic Segmentation dividing a market based on demographic variables age gender family size race etc which is easier to measure than most variables Psychographic segmentation dividing a market based on social class lifestyle personality Behavioral segmentation based on behaviors such as benefits sought usage occasion user status usage rate loyalty status Intermarket segmentation segments of consumers who have similar needs and buying behavior even though they are located in different countries ex Ikea H M b target marketing develop measure of segment attractiveness select target segments c market positioning develop positioning for market segments develop market mix 8 Requirements for effective segmentation measurable can be identified and measured accessible can be reached and served substantial large and profitable enough differentiable separate from other segments actionable can be marketed to by our company 9 Targeting choosing the segment that is most attractive to your organization a Evaluating Marketing Segments Internal does the segment fit with objectives and resources External how big is segment What s growth potential What are the substitutes 10 Differentiated segmented marketing targets several market segments and designs separate offers for each 11 Concentrated niche marketing targets a large share of one or a few small segments or niches tailoring products and marketing programs to suit the tastes of specific locales and or 12 Micromarketing individuals local marketing individual marketing 13 Positioning the key concept to be communicated to the target consumer the place the product occupies in the consumers mind relative to competing products a Positioning Statement a statement that summarizes a company or brand positioning to target segment need our brand is concept that point of interest 14 Competitive Advantage 15 Differentiation differentiate brand based on product services channels people images differentiating the market offering to create superior customer value a Vertical one product is clearly better b Horizontial better is a matter of opinion 16 Maslow s Hierarchy Individual product decisions quality features branding packaging labeling Product line decisions length or product line Product mix decisions set of all product lines and items that a particular seller offers for sale identifies the product or brand supports the brand positioning adds personality to brand 17 Types of consumer products Convenience laundry detergent toothpaste Shopping clothes shoes jewelry furniture Specialty expensive cars new technological devices Unsought insurances donations 18 Three levels of product decisions 19 Labeling 20 Product Line length number of items in a product line 21 Product mix 22 Product mix dimensions length number of items in line all the product lines and items that a particular seller offers width number of different product lines carried depth number of versions offered of a product in a line consistency how closely related various lines are 23 What is a brand 24 Brand Equity marker of identification for a product trust the positive effect that knowing the brand name has on a customer response to a product 25 High brand equity provides greater awareness loyalty strong profitable customer relationships willingness to buy pay 26 Brand positioning based on product attributes benefits beliefs and values 27 Brand name selection desirable qualities suggests benefits easy to pronounce remember distinctive extendable translatable capable of being registered protected 28 Law of Shape the ideal shape for a logo is horizontal 29 Line extension name same as product development 30 Brand extension faster acceptance 31 Multibranding 32 New brands introduction of additional items within the current product category under the same brand using a successful brand name to