marketing management chapter 2 by angelita ong-serrano

marketing management chapter 2

1. MARKETING STRATEGIES AND PLANS CHAPTER 2

2. Chapter Objectives: Internalize the nature of strategy including its meaning, components, and hierarchy; Develop corporate strategies in relation to marketing; Critique business strategies in relation to marketing; Diagnose the nature of marketing strategy; Illustrate the implementation and control of marketing strategy; and Design a marketing plan. 01 06 05 04 03 02

3. MARKETING STRATEGY Is an explanation of the goals needed by a company to accomplish its marketing efforts. It is shaped by the company’s business goals and objectives. Business goals and objectives plus marketing strategy should go hand-in-hand.

4. MARKETING PLAN Is how the company is going to attain those marketing goals and objectives. It is the application of strategy, serving as a roadmap that will guide a company from one point to another.

5. STRATEGY Is derived from the ancient Greek word “ strategos ”. Its plain translation meant “the general’s art”. Is fundamental pattern of present and planned objectives, resource deployments, and interactions of an organization with markets, competitors, and other environmental factors. It says that a strategy should always be able to specify: What Where How

6. F ive components or sets of issues within a well-developed strategy: Scope Goals and objectives Resource deployments Identification of a sustainable competitive advantage Synergy

7. THREE MAJOR LEVELS OF STRATEGIES The corporate startegies are managed by the corporate level, which is the top level in any organization. CORPORATE STRATEGY The business level consists of smaller units within the whole organization that are commonly administered as self-contained business. BUSINESS LEVEL STRATEGY The functional level comprises all the different functional areas within a business unit. FUNCTIONAL STRATEGIES 01 02 03

8. CORPORATE STRATEGIES Focuses primarily on profitability. Include creating an organizational structure, debt reduction to improve the company’s balance sheet, diversifying the product , merging with or buying another business to create economies of scale, accessing new technology and increasing sales volume, reducing overhead costs to increase profit margin , retooling to decrease production costs and reducing overall operating expenses.

9. CORPORATE MISSION Traditionally acted as a way to tell potential shareholders and investors more about a company and it’s purpose. It is also used by the leaders throughout the organization. Mission should be concrete and include goal-oriented language. It should include measurable objectives.

10. MISSION STATEMENT A statement of organization’s reason for being, it’s purpose or what it wants to achieve in the larger environment. It explains why the organization does what it does.

11. GOOD MISSION STATEMENT HAVE THREE MAJOR CHARACTERISTICS M ission statements focus on a limited number of goals. Mission statements highlight the company’s major policies and values. Mission statements define the major competitive spheres within which the company will operate. 01 02 03

12. ELEMENTS OF THE MISSION STATEMENT A Purpose A Strategy and Strategic Scope Policies and Standards of Behavior Values and Culture

13. CHARACTERISTICS OF A MISSION It should be feasible It should be precise It should be clear It should be motivating It should be distinctive It should indicate major components of strategy It should indicate how objectives are to be accomplishes

14. CORPORATE VISION A company vision seeks to outline where the company is headed and what values are guiding that journey. It tells the company’s purpose by focusing on the future and what the organization exists to accomplish.

15. VISION STATEMENT The vision statement should not exceed revising often. It is the foundation of the company and is based on the company’s core beliefs. A vision statement can be written as simple as a single sentence or can lengthy as a short paragraph.

16. CORPORATE OBJECTIVES Setting up the objective is the first task done by the marketing managers. Marketing objectives set out what a business wants to achieve from its marketing activities. They need to be consistent with overall aims and objectives of the business. They also need to be consistent with the purpose of marketing. An effective marketing objective meets the SMART criteria: S PECIFIC M EASURABLE A CHIEVABLE R EALISTIC T IMED

17. BENEFITS OF SETTING MARKETING OBJECTIVES Marketing objectives are vital to marketing success Enable a company to control its marketing plan Provide a way to measure company’s progress Set out what a company wants to achieve from its marketing activities Help a company to develop products and services that meet the needs of target market.

18. COMPETITIVE ADVANTAGE A competitive advantage is a gain over competitors achieved by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices. Types of competitive advantages: Cost competitive advantage Product Design Reengineering New Delivery Method Product/Service Differentiation

19. CORPORATE GROWTH STRATEGIES All companies have plans to grow their business and increase sales and profits. Some common growth strategies in business include the following: Intensive Growth Strategies Market Penetration Market Development Alternative Channels Product Development Diversification Integrative Growth Strategies Horizontal Backward Forward Complete Of Balanced

20. STRATEGIC CORPORATE RESOURCES These are the corporate resources that a business needs to put in place to pursue its chosen strategy. Business resources can usefully be grouped under several categories. Financial Resources Existing Finance Funds Ability to Raise New Funds Human Resources Existing Staffing Resources Changes Required to Resources Physical Resources Production Facilities Marketing Facilities Information Technology

21. BUSINESS STRATEGIES AND MARKETING The objective is to become the lowest-cost producer in the industry. The business targets much larger markets and aims to attain competitive advantage across the whole of an industry. Exploits differences in cost behavior segments. A business aims to differentiate within just one or small number of target segments. COST LEADERSHIP COST FOCUS DIFFERENTIATION LEADERSHIP DIFFERENTIATION FOCUS

22. ADAPTIVE STRATEGIES AND THE ENVIRONMENT Organizations applying a defender strategy endeavor to shield their market from new competitors. Organizations implementing a prospector strategy are innovative, seek out new opportunities, take risks and grow. Organizations implementing analyzer strategies attempt to maintain their current businesses and to be somewhat innovative in new businesses. The strategies used by reactors are characterized by inconsistencies and a reactionary response to environmental change. DEFENDER STRATEGIES ANALYZER STRATEGY PROSPECTOR STRATEGY REACTOR STRATEGY

23. THE MARKETING STRATEGY A marketing strategy can serve as the foundation of a marketing plan. Developing a marketing strategy is vital for any business. The focus of the strategy should be making sure that products and services meet customer needs and developing long-term and profitable relationship with those customers.

24. IMPLEMENTATION PROCESS A good implementation process spell out the- Activities to be implemented; Who is in – for implementation; The time and place of implementation; and How implementation will be completed.

25. BARRIERS TO EFFECTIVE IMPLMENTATION OF A MARKETING STRATEGY There are many barriers that stand in the way of successful implementation of marketing strategy, some obvious, some not. The barriers fall generally into three independent categories. External pressures of the company Internal pressures on the marketing function Leadership Organization culture Organizational processes Functional policies Resources Evaluation and control procedures Pressures contained in the marketing functions itself Marketing interface with other functions The role of market ers Marketing feedback

26. BUILDING IMPLEMENTATION EFFECTIVENESS Desirable implementation skills consist of: The ability to understand how others feel and good bargaining skills. Effectiveness in focusing on the vital aspects of performance in managing marketing activities. On top to skillful implementers, some factors make easy implementation process. These comprise: organizational structure Incentives Communications

27. STRATEGY CONTROL Control means attempting to make certain that behavior and systems match and support predetermined corporate objectives and policies. The foundation of control is the ability to evaluate. The control process entails the following steps: Set targets Predetermining the method of measurement Measured results are contrasted Problems of control The system can be expensive Control system repress effort and creativity Control promotes an outlook of inspection as opposed to developments

28. THE MARKETING PLAN A marketing plan is a business document outlining the marketing strategy and tactics. A marketing plan is not a static document. It needs to change and evolve as the business grows, and as new and changing marketing trends develop. A marketing plan: Gives precision to who the market is. Helps a company crafts marketing messages that will generate results. Provides focus and direction.

29. MARKETING PLAN OUTLINE The information below details the 15 key sections that must be included in a marketing plan: Executive Summary Target Customers Unique selling proposition (USP) Pricing and positioning strategy Distribution plan Offers of the company Marketing materials Promotion strategy Online marketing strategy Conversion strategy Joint ventures and partnership Referral strategy Strategy for increasing transaction prices Retention strategy Financial projections

30. Thank you! Do you have any questions? MA’AM RENZIE P. MENDOZA [email protected]