Strategic Marketing Planning - Chapter 15 Flashcards

Chapter Overview - Focuses on planning marketing strategies and how to structure them effectively.

Recap of Chapter 10 (Distribution) - Marketing Channel: This is the method used to deliver products to customers.

• Differentiate between Single Channel vs. Multichannel strategies, where single channel uses one method and multichannel uses various methods to reach customers.

• Role of Websites: Websites can be used for either transactional purposes (to sell products) or promotional purposes (to advertise).

• Coverage Options for products:

  • Intensive: Products are sold everywhere possible.

  • Selective: Products are sold in some locations only.

  • Exclusive: Products are sold in very few, specific locations.

• Importance of Supply Chain: This includes logistics and intermediaries that add value to the product delivery process.

Learning Objectives - Understand how strategies are developed at different levels: corporate, business unit, and functional.

• Define key business concepts such as mission and goals, and understand why they matter.

• Use marketing metrics and dashboards to track progress and performance.

• Outline the overall strategic marketing process.

Key Factors for Company Success - Important factors include visionary leadership, superior products, good timing, and strong teams.

• Historical examples: VHS vs. Betamax illustrates how timing and product choice can influence success; Microsoft vs. Novell shows the importance of market strategy.

Organizational Structure - Marketing strategies should align with an organization's social goals and mission statement.

• There are two primary types of organizations:

  • Business Firms: These aim to make money and increase their customer base. They create marketing strategies designed to attract customers and boost sales.

  • Not-for-Profit Organizations: These focus on aiding the community or supporting a specific cause rather than generating profit. Their marketing strategies aim at raising awareness and garnering support, often leaning on donations and community involvement.

Strategy Development - The development of a strategy combines long-term direction with resource allocation to create a unique customer experience. This forms the backbone of the business plan.

Mission Statement - A mission statement defines the scope of a business, including its customers, markets, products, and core values.

• Examples include:

  • Nordstrom: "To provide a compelling shopping experience."

  • IKEA: "To create a better everyday life for the many people."

  • Patagonia: "To offer environmental solutions."

Goals Examples - Common goals can include profit, sales, market share, quality, and customer satisfaction.

• It is essential to translate mission statements into measurable goals to assess progress.

Marketing Budgets - Sales forecasts are crucial for managing cash flow effectively.

• Forecasts should consider both optimistic and pessimistic scenarios based on historical data.

Tracking Performance - Marketing plans should be evaluated after implementation using dashboards to review results.

• The goal is to adjust strategies based on performance outcomes.

Strategic Marketing Process 1. Situational Analysis: Conduct SWOT analysis (strengths, weaknesses, opportunities, threats), environmental scans, and customer analysis.

2. Market-Product Focus: Determine specific goals, select target markets, and identify competitive advantages.

3. Marketing Program: Allocate necessary resources and develop schedules for executing the marketing plan.

Growth Strategies for Sales Revenue - Market Penetration: Increasing sales for existing products in current markets.

• Product Development: Launching new products while remaining in existing markets.

• Market Development: Expanding the reach of existing products into new markets.

• Diversification: Introducing new products into new markets.

Implementation Phase - In this phase, it involves getting the needed resources, setting up the organization, and executing the marketing program with clear timelines.

Evaluation Phase - This stage requires identifying any deviations from planned outcomes and adapting strategies accordingly.

• Marketing strategies should align with the organization’s social goals and mission. - Business Firms: These organizations focus on earning profit and expanding their customer base through targeted marketing strategies.

  • Not-for-Profit Organizations: They concentrate on uplifting communities or causes and implementing marketing strategies to create awareness and seek support.