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