MKT305 Marketing Strategy Planning Chapter 2 John Weiss Learning Objectives By the end of this class session you should understand What is the marketing management process The elements of marketing strategy How to think of the marketing mix The 4 Ps The concepts of customer lifetime value CLV customer value and customer equity The Marketing Management Process Marketing Planning Marketing Plan Implementation Strategic Marketing Management Control Marketing Plans Relation of Strategy to Implementation The Baby Shoe Example Text Exhibit 2 7 Marketing Mix Variable Strategy Implementation Product Place Promotion Price Carry a limited line colors styles sizes to meet the needs of the target market Adjust lines as customer tastes dictate Distribute through retailers that focus on baby related products Add and drop retailers as needed to maintain market share Promote benefits of the special design of the line of shoes Sales training in stores use local media to support things like holiday sales Maintain premium pricing structure but offer retailers discounts for high volume purchases Special prices deals for new lines when they are introduced A Firms Marketi ng Program Step 1 Target Market Marketing Mix Step 2 Marketing Strategy Details and Control Procedures Leads to The Marketing Plan The Marketing Mix This is the cornerstone of basic marketing planning The elements Product Place Promotion Price Customer Lifetime Value CLV Is the total profits a single customer contributes to a firm over the length of the relationship Must consider Retention rates Acquisition costs Delivere d Custome r Value Is the total of Customer Values minus the total of Customers Costs Customer Values include 1 Product Value 2 Service Value 3 Personnel Value 4 Image Value Customer Costs include 5 Monetary Cost 6 Time Cost 7 Energy Cost 8 Psychic Cost Customer Equity is The expected earnings stream from a group of customers current or prospective based on 1 estimating the cost of acquiring new customers 2 the cost of retaining these customers 3 enhancing the value by increasing these customers purchases The S W O T Analysis an important way to assess the marketing environment S Strengths W Weaknesses O Opportunities T Threats What does the firm do well and what resources are available What does the firm not do well and where are resources lacking Looking at customers and competitors to see where new or existing markets can be approached with new ideas products Examining the external environment and competitors to see what might be challenges to face