BUSI 406 PRINCIPLES OF MARKETING: MARKETING STRATEGY PLANNING CHAPTER 2Today’s AgendaLet’s ReviewToday’s GoalsWhat is Marketing Strategy Planning? Finding attractive opportunities, developing sustainable marketing strategies, and being rewarded financially for doing so.Selecting a Market-Oriented Strategy is Target MarketingA B2B Example of Target MarketingMarketing Strategy Planning Process – 3 C’s and SWOTSWOT AnalysisDeveloping Marketing Mixes for Target Markets – The 4 P’sProduct ElementsPlace Elements or Distribution and LogisticsPromotion and Marketing Communications ElementsPrice ElementsAll 4 P’s Contribute to the Whole Marketing MixThe Marketing Plan Guides Implementation and ControlWhy Do Businesses Care?Marketing Strategy Planning Process Identifies Opportunities to Serve Target Markets and to be Financially Rewarded for doing so WellWhat Are Attractive Opportunities?Types of Growth Opportunities to ConsiderMarket PenetrationProduct DevelopmentMarket DevelopmentDiversificationToday’s Take-AwaysFor Next Class…Wednesday, September 3BUSI 406PRINCIPLES OF MARKETING:MARKETING STRATEGY PLANNINGCHAPTER 2Today’s AgendaAnswer any questionsTeam AssignmentsLet’s ReviewDiscuss material you read in Chapter 2Let’s ReviewWhere did marketing come from?Micro vs. Macro MarketingRole of customer expectations, satisfaction, and valueMarketing conceptToday’s GoalsMarketing strategy planning3C’s, SWOT, target marketing, and 4 P’s in a marketing mixAttractive OpportunitiesWhat is Marketing Strategy Planning? Finding attractive opportunities, developing sustainable marketing strategies, and being rewarded financially for doing so.Marketing Strategy Planning involves:3C’s: Company, customers, competitors SWOT analysisMarketing Strategy: Specifying a target market and a related marketing mixTarget Market: a fairly homogenous group of customers to whom a company wishes to appealMarketing Mix: the controllable variables (4 P’s) the company puts together to serve this target groupProductPlacePricePromotion and communicationPro forma Budget: A plan without a budget is not a plan, show me the numbers, expected revenues against expected expenses, plus other outcome metricsSelecting a Market-Oriented Strategy is Target MarketingProduction-oriented manager sees everyone as basically similar and practices “mass marketing”Marketing-oriented manager sees everyone as different and practices “target marketing”A B2B Example of Target MarketingMarketing Strategy Planning Process – 3 C’s and SWOTStart with a broad look at the market - A group of consumers with broadlysimilar needs and different firmsofferings (substitute) ways of meetingthose needs.Think about opportunities in terms of “fit” •Fit with customer needs•Fit with the firm’s competencies•Fit with the competitive situationCustomersCompanySWOTCompetitorsThe “Market”SWOT AnalysisThreatsOpportunitiesWeaknessesStrengthsINTERNALEXTERNALDeveloping Marketing Mixes for Target Markets – The 4 P’sThemarketing mixTARGET TARGET MARKETMARKETProduct ElementsPlace Elements or Distribution and LogisticsManufacturer or producerGeicoWholesalerPromotion and Marketing Communications Elements Telling and Selling the Customer Telling and Selling the CustomerMass AdvSocial MediaMass AdvSocial MediaPersonal SellingPersonal SellingSalesPromotionSalesPromotionPrice ElementsPrice FlexibilityPrice FlexibilityPrice Changes Over the Life CyclePrice Changes Over the Life CyclePricing ObjectivesPricing ObjectivesDiscounts and AllowancesDiscounts and AllowancesGeographic Pricing TermsGeographic Pricing TermsCompetition Competition PriceSettingPriceSettingAll 4 P’s Contribute to the Whole Marketing MixProductProductPlacePlacePromotionPromotionPricePriceSelectionof TargetMarketSelectionof TargetMarketUnderstanding the Target Market Leads to Good Strategies!The Marketing Plan Guides Implementation and Control+Time-Related DetailsTime-Related DetailsMarketing PlanMarketing Plan=Target MarketTarget MarketMarketing MixMarketing MixMarketing StrategyMarketing StrategyA Firm’s Marketing ProgramA Firm’s Marketing Program==++Other Marketing PlansOther Marketing PlansWhy Do Businesses Care?Mass marketing no longer worksEffective positioning minimizes cost of ineffective marketing mixOptimizing for each segment leads to high profits and loyaltyNecessary to stay competitiveMarketing Strategy Planning Process Identifies Opportunities to Serve Target Markets and to be Financially Rewarded for doing so WellWhat Are Attractive Opportunities?Avoid Hit-or-Miss MarketingAvoid Hit-or-Miss MarketingCompetitive AdvantageCompetitive AdvantageBreakthrough OpportunitiesBreakthrough OpportunitiesTypes of Growth Opportunities to ConsiderDiversificationMarketdevelopmentProductdevelopmentMarketpenetrationPresent products New productsPresentmarketsNewmarketsGENERIC GROWTH STRATEGIESMarket PenetrationMarket PenetrationTrying to increase sales of a firm’s present products in its present markets.Product DevelopmentProduct DevelopmentOffering new or improved products to present marketsMarket DevelopmentMarket DevelopmentTrying to increase sales by selling present products in new marketsWhy international opportunities?The world is getting smaller!Competitive advantage at home and abroadBeing a first-mover in a new marketFinding better trendsDiversificationDiversificationMoving into new products in new marketsWhat do you think went wrong?Today’s Take-AwaysMarketing strategy planning is an important process for all marketing organizations Target marketing - Can’t develop one product for everyone!Organizations use the marketing mix (4 P’s) to respond to the needs and preferences of the target marketIdentifying attractive opportunities is important for growth and increasing organizational effectivenessFor Next Class…Wednesday, September 3No class on Monday, September 1For Wed, September 3, Read Chapter 3 – Evaluating Opportunities in the Changing Marketing EnvironmentWe’ll talk about how to prepare the first team case write-up in