chapter3-strategicmarketingplanningedited-220920111130-8cf90787.pptx

COOPERATIVE OWNERSHIP AND BUSINESS COMBINATIONS 3.1 Meanings, Types of Cooperatives, Advantages and Disadvantages. 3.2 Business Combination: Meaning, Types and Forms, Causes and Purposes, Advantages and Disadvantages. 4. ENTREPRENEURSHIP 4.1 Meanings/Definition, Nature, Features, Scope, Pros and Cons 4.2 Differences and Similarities between a Businessman and an Entrepreneur, Competitive Advantage of organizations having Entrepreneurial Edge 4.3 Real World Examples, Prospects for Entrepreneurs in Pakistan, Need for Entrepreneurial Education and Activities 5. INTERMEDIATION / MIDDLEMANSHIP 5.1 Meanings/Definition, Nature, Rationale/Theme, Features, Scope, Pros and Cons 5.2 Differences and Similarities between a Businessman and a Middleman 5.3 Real World Examples, Prospects for Intermediation in Pakistan, Need for Intermediation Education and Activities 6. FINANCE 6.1 Definition, Components, Importance, Kinds and Sources 6.2 Long Term and Short-Term Financing. 6.3 Some Important Financial Institutions and Regulatory Bodies. 6.4 Stock Exchange and Commodity Exchange: Nature, Role and Significance. 6.5 Risk and Risk Management: Insurance, Protection against Risks, Importance and Types of Insurance, Types of Risks. 7. MARKETING 7.1 Process of Marketing, Definition, Functions and Scope, Approaches to the Study of Marketing. 7.2 Marketing Mix for Physical Goods and Service Products, and Importance. 7.3 Channels of Distribution for Consumer Good and Organizational Goods.
Marketing Communication and Promotion, Advertising, Personal Selling, Sales Promotion, Public Relation, Packaging. 8. TRADE 8.1 Wholesale and Retail, Meaning, Importance, Functions, Advantages and Disadvantages. 8.2 Foreign Trade, Imports and Exports, Role in Economic Development of the Country. 9. PHYSICAL FACTORS 9.1 Selecting Business Location, Factors Influencing Locations, Small Business, VS Large Business 9.2 Purchasing and Inventory Control Coordination of Purchasing with Sales, Organization of Purchasing Department, Centralize vs. Decentralize Purchasing, Purchasing Policies and Procedure Inventory Control. 10. THE PERSONEL DEPARTMENT 10.1 Employment Division, Recovering, Placement Promotion. 10.2 Wages and Salary Section, Analysis & Job Classification, Pay Scales. 10.3 Training Program, Apprentice, Supervisory etc. 11. BUSINESS CYCLE, AND INFORMATION TECHNOLOGY 11.1 Definition/Meaning, and the Existence in the real world. 11.2 Wage Iterative Stages/Segments of Business Cycle. 11.3 Definition/Meaning, Scope & Role of IT in Business 11.4 E-Business, and E-Commerce, and their respective Scope & Role 11.5 Business IT Domains/Orientations including: B2C, C2C, C2B etc. 12. OPERATING IN INTERNATIONAL/GLOBAL ENVIRONMENT 12.1 Definition/Meaning of International / Global Operations / Business. 12.2 Reasons, and Scope of International/Global Operations/Business. 12.3 Environment and Challenges for International/Global Operations/Business
Scope, Importance and Functions, Entrepreneurial Qual

1. STRATEGIC MARKETING PLANNING

2. Strategic Planning The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan

3. Strategic Planning Process involves: Defining a Mission Setting Company Objectives Designing a Business Portfolio Planning Strategies

4. Establishing an Organizational Mission Mission Statement Statement of an organization’s purpose Reveal what an organization wants to be and whom it wants to serve Mission statement answers two questions: Who are our customers? What is our core competency? Mission

5. Mission Statements…Cont’d Enduring statement of purpose Distinguishes one firm from another Declares the firm’s reason for being Essential for effectively establishing objectives and formulating strategies

6. Mission & Customer Orientation An Effective Mission Statement -- Anticipates customer needs Identifies customer needs Provides product/service to satisfy needs

7. Designing the Business Portfolio Collection of business to be shown to potential customers The Best portfolio is the one that best fits the company’s strengths and weaknesses to the opportunities in the environment . The company must: Analyze its current business portfolio or strategic business units (SBU’s) Decide which SBU’s should receive more, less, or no investment Develop growth strategies for adding new products or businesses to the portfolio

8. Portfolio Analysis It is evaluation of each strategic business unit or product Portfolio Analysis techniques: BCG growth-share matrix GE nine-cell planning grid

9. The BCG Matrix ( Boston Consultancy Group ) It is also called growth share matrix Is a portfolio planning method that evaluates a company’s products in terms of their market growth rate and relative share . Market share The percentage of a market that actually buys a specific product from a particular company Products are classified as: stars, cash cows, question marks and dogs Marketing efforts, or investments, will change, depending on the product’s classification

10. The BCG Matrix

11. Question Marks High growth, low share Build into Stars/ phase out Requires cash to hold market share Represents a high-risk Stars High growth & dominant market share Profit potential May need heavy investment to grow Cash Cows Low growth, high share Established, successful SBU’s Produces cash Generates surplus resources for allocation to other SBUs Dogs Low growth & share Low profit potential Has diminished prospects and represents a drain on the portfolio Relative Market Share High Low Market Growth Rate Low High

12. The BCG Matrix Problems with Matrix Approaches Difficulty in defining SBUs and measuring market share and growth Time consuming Expensive Focus on current businesses, not future planning

13. GE Matrix A more advanced model developed by General Electric and expansion of the BCG matrix It evaluate SBU by measuring market attractiveness and business strength Market attractiveness is a composite measure of the potential for sales and profits in a particular market segment Business strength is the strength of companies’ offering relative to other companies’ products

14. GE Matrix It consider a number of factors in assessing the industry attractiveness and business strength. Market Attractiveness Growth Diversity Competitive Structure Change Technology Change Social Environment Business Strength Size of Market & Share Company Growth Rate Profit Margins Technology Platform Image People

15. GE NINE-CELL PLANNING GRID GE grid considers three degrees of a dimensions- high, medium and lo w for attractive and business strength It has nine cells w/c can be grouped in to three broad cells Green -Insert/ Expand Yellow -Select/ Earn Light Green-Harvest/ Divest Attractiveness

16. Invest/ Expand- Green In the extreme left both high and this is an ideal situation in growth. In high attractiveness and average strength, an organization may grow At medium attractiveness and strong strength business can generate competitive advantage Attractiveness

17. Select/Earn- Yellow Cell with high attractiveness and weak business strength shows scope to earn in future, Cell with medium strength and average attractiveness shows earn profits with present level capacity. While strong strength and low attractiveness leaves no or very low scope of earnings.

18. Harvest/ Divest- Light Green Cells with average strength and low attractiveness & weak strength and low attractiveness are fit for harvesting/reduction or termination of investment while cell with medium attractiveness and weak strength suggests slow divesting/sell off or withdraw

19. Planning Strategies Planning growth strategies Planning competitive strategies

20. Planning growth strategies

21. Planning the Growth of Business Commonly used growth strategies include Intensive Growth Strategies Integrative Growth Strategies and Diversification Strategies

22. A) Intensive Growth Strategies A business that wants to increase sales to its target customers might use intensive growth strategies strategies that take advantage of an opportunity within a current market using: Market penetration Market development Product development

23. Intensive strategies … Cont’d . 1. Market Penetration Existing Markets New Markets 2. Market Development 3. Product Development 4. Diversification Existing Products New Products

24. Market Penetration Market penetration Involves getting customers to use products more frequently, attracting competitors’ customers, and finding people in present market not using your products. Market penetration An attempt to increase sales in a business’s current market Market share expansion

25. Market Development Franchising is one way to grow a business through market development . Market development An attempt by a business to reach new locations for its products

26. Product Development Product development is the introduction of new or improved products to the marketplace.   In most industries, companies must continually develop new products to keep customers interested.

27. New product development process Idea generation Screening of ideas Initial concept testing Business analysis Prototype design Market testing Commercialization Monitoring reaction

28. B) Integrative Growth Strategies When a product manufacturer opens retail stores it is employing integrative growth strategies . Integrative growth strategies Growth strategies that allow a company to expand within the industry by growing Vertically or Horizontally

29. Vertical Integration A business can use vertical integration suppliers or distributors of its products. Merging of companies that are in the same distribution chain of a product, either by Acquiring suppliers upstream in the distribution channel or Acquiring distribution outlets downstream in the channel

30. Horizontal Integration Horizontal integration is buying competitors . Horizontal integration Increasing a business’s market share and expanding by buying up competitors

31. C) Diversification Growth Strategies Businesses often use diversification growth strategies when they have exhausted opportunities within their present industry. A growth strategy that involves investing in products/businesses that are different from a company’s own products using Concentric Horizontal or Conglomerate diversification

32. Concentric Diversification A bakery owner who purchases a restaurant to showcase his or her baked goods is using a concentric diversification growth strategy Concentric diversification a diversification growth strategy that involves finding new products or businesses that are technologically compatible with a company’s products or business

33. Horizontal Diversification If a business chooses horizontal diversification , it looks for a product or service that it can sell to its present customers. Horizontal diversification a diversification growth strategy that involves seeking products that are technologically unrelated to a company’s own products or business

34. Conglomerate Diversification A company may use conglomerate diversification to try to cut costs or provide convenience for its customers. conglomerate diversification a diversification growth strategy in which a business seeks products or businesses that are totally unrelated to its own products or business

35. Planning Competitive Strategy

36. Competitive Strategy Marketing Strategies for Competitive Advantage Market-Leader Market Challenger Market-Follower Market- Nicher

37. Competitive Strategy Market Leader Expanding the total demand Finding new users Discovering and promoting new product uses Encouraging greater product usage Protecting market share Continuous innovation Expanding market share Profitability rises with market share

38. Competitive Strategy…. con.d Market Challenger Option 1 : challenge the market leader High-risk but high-gain Option 2 : challenge firms of the same size, smaller size or challenge regional or local firms Full frontal vs. indirect attacks

39. Competitive Strategy…cont’d Market Follower Follow the market leader Focus is on improving profit instead of market share Many advantages: Learn from the market leader’s experience Copy or improve on the leader’s offerings Strong profitability

40. Competitive Strategy…cont’d Market Nicher Serving market niches means targeting subsegments Good strategy for small firms with limited resources Specialization is key By market, customer, product, or marketing mix lines

41. Porter competitive Strategies Overall cost leadership Lowest production and distribution costs Differentiation Creating a highly differentiated product line and marketing program Focus Effort is focused on serving a few market segments

42. Marketing Plan A written document that specifies the activities to be performed to implement and control the organization’s marketing activities.

43. Key components of marketing plan Mission Statement Executive Summary Situation or S.W.O.T. Analysis Marketing Goals / Objectives Market Research / Marketing Strategies Implementation Evaluation and Control

44. The Mission Statement .

45. The Executive Summary . Executive Summary: Provides an overview of the complete plan The executive summary highlights key information within the document

46. The Situation Analysis The situation analysis (referred to as SWOT) Provides information that is helpful in matching the organization’s resources and capabilities to the competitive environment

47. SWOT analysis . Strengths Internal capabilities that can help the organization achieve its objectives Weaknesses Internal factors that can prevent the organization from achieving its objectives Opportunities External circumstances that may be exploited for higher performance Threats External circumstances that might hinder performance

48. The Internal factors Mission Resources Offerings Previous results Keys to success, warning signs Business relationships

49. The External factors Demographic trends Economic trends Ecological trends Technological trends Political-legal trends Social-cultural trends Competitors

50. Four-Cell SWOT Matrix .

51. Marketing Goals & Objectives Goals and objectives identify what the company hopes to achieve with the marketing plan and a timeline for which the plan is to be carried out Effective objectives follow the S.M.A.R.T criteria S pecific M easurable A ction-oriented R ealistic T ime bound

52. Types of marketing plan objectives Marketing objectives To manage key relationships/activities Financial objectives To attain certain financial results Societal objectives To achieve social responsibility results

53. Marketing strategies A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market. It involves analyzing Market segmentation Market targeting and Positioning

54. Applying market segmentation Market segmentation This is the process of dividing the total market for a good or service into several smaller, internally similar (or homogeneous) groups. All members in a group have similar factors that influence their demand for the particular product.

55. Variables for consumer market segmentation . Demographic Age, gender, household size, family status, income, race, occupation, religion, class, nationality Geographic Location (country, region, state, city, neighborhood, postal code), distance, climate Psychographic Lifestyle, activities, interests , personality characteristics Behavioral/Attitudinal Benefits perceived/expected, loyalty, usage occasion/rate, user status, price sensitivity, product or brand attitude

56. No Market Segmentation .

57. Segmented by Gender .

58. Segmented by Age .

59. Market Segmentation Why Segment?: Meet consumer needs more precisely Increase profits Segment leadership Retain customers Focus marketing communications

60. Segment Coverage strategies Concentrated marketing- Target only one segment Undifferentiated marketing- Target all segments with same strategy Differentiated marketing- Use a separate strategy to target each segment

61. Positioning Customers’ image or perception of a particular brand or company, relative to others in the same category H ow a business wants its products or services to be perceived by the consumer Positioning is assessed: In relation to a competitor. According to a product class or attribute. By price and quality.

62. Implementation Implementation refers to the process of putting the marketing plan into action

63. Evaluation and Control The evaluation phase determines whether the plan achieved the desired results The controlling process refers to the adjustments required to achieve desired results where initial efforts did not already succeed

64. Thank for your Attention!