MKT 305 Marketing Strategy Planning Chapter 3 John Weiss Learning Objectives By the end of this class session you should Understand the concept of Target Marketing Understand the impacts of the various Uncontrollable Elements of the Marketing Environment Know four broad types of marketing opportunities that help in identifying new strategies Production Oriented and Marketing Oriented Managers Have Different Views of the Market Marketing Strategy Planning Process The Marketing Environment Resources and Objectives of the Firm Customers Direct Marketing Environment Competitive Environment Cultural and Social Environment Target Economic Environment External Marketing External market Environment environment Political and Legal Environment Technological Environment Legal Foundations for Regulating Marketing 1890 The Sherman Act 1890 Restraint of trade through monopolies is outlawed 1936 The Robinson Patman Act 1936 Price discrimination in B2B transactions is outlawed The FTC Act 1914 Creates the Federal Trade Commission as an arbiter of commercial disputes and offers remedies to inappropriate business behavior Cease and Desist Order Consent Decree Restitution 1914 The Wheeler Lea Act 1938 Makes deceptive unfair acts primarily advertising unlawful 1938 Four Basic Types of Opportunities Present products New products Present markets New markets Market penetration Product development Market development Diversification Types of opportunities Market penetration means trying to increase sales of a firm s present products in its present markets probably through a more aggressive marketing mix Market development means trying to increase sales by selling present products in new markets Product development means offering new or improved products for present markets Diversification means moving into totally different lines of business perhaps entirely unfamiliar products markets or even levels in the production marketing system General Electric s Strategic Planning Grid Industry Attractiveness Low High Medium h g i sH h t g n e r t S s s e n i s u B m u d e M w o L i No Growth Borderline Growth Exam Example Scenario 1 For years McDonald s customers pleaded with the fast food provider to extend their breakfast menu to all day availability In 2015 McDonald s began offering their breakfast menu all day much to the delight of their customers and a certain marketing instructor However in 2020 McDonald s made the decision to remove their all day breakfast menu Customers had become very unhappy with the very slow drive thru times especially after the impact of COVID forced fast food chains to move to drive thru only operations According to a McDonald s spokesperson We removed All Day Breakfast from the menu to simplify operations in our kitchens which we saw provided better speed of service and order accuracy for our customers Exam Example 1 McDonald s difficult decision to remove their popular All Day Breakfast from their menu in order to improve customer service is an example of McDonald s a marketing orientation b sales orientation c production orientation d economic orientation e sales era approach Exam Exampl e 2 The change in McDonald s business operations brought on by U S customer s preference for fast drive through service is an example of which uncontrollable element of the Marketing Environment a economic b competitive c technological d political legal e cultural social