Ch2 Developing Market Strategies and a Marketing Plan

LO:

  1. Define a marketing strategy

  2. Describe the elements of a marketing plan

  3. Analyze a marketing situation using SWOT analyses

  4. Describe how a firm chooses which consumer group)s_ to pursue with its marketing efforts

  5. Outline the implementation of the marketing mix as a means to increase customer value

  6. Summarize portfolio analysis and its use to evaluate marketing performance

  7. Describe how firms grow their business

LO1 : Define a marketing strategy

  • Marketing strategy : a firm’s target market, marketing mix, and method of obtaining a sustainable competitive advantage

  • Sustainable competitive advantage : something the firm can persistently do better than its competitors

  • Four macro strategies for developing customer value

    1. Customer excellence : focuses on retaining loyal customers and excellent customer service

      • Retaining loyal customers : strong brand, unique merchandise, superior customer service help solidify loyal customer base; viewing customers with a lifetime value perspective rather than transaction-by-transaction

      • Loyalty more than simply preferring to purchase from one firm over another; means reluctance to patronize competing firms

      • Loyalty programs (part of CRM) creates emotional attachment

      • Providing outstanding customer service

    2. Locational excellence : having a good physical location and internet presence

    3. Product excellence : having products with high perceived value and effective branding and positioning

    4. Operational excellence : achieved through efficient operations and excellent supply chain and HR management

      • All marketers want efficient operations to get customers items they want, when that want it, with delivery cost lower than competitors; ensures good value to customers, earn profit, and satisfy customers’ needs

      • Achieve efficiencies by

        • Sophisticated distribution

        • Information systems

        • Strong relationships with vendors — developed over time

LO2 : Describe the elements of a marketing plan

  • Marketing plan : written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the 4 P’s, action programs, and project or pro forma income (and other financial) statements

  • Important that everyone involved in implementing the plan knows what the overall objectives for the firms are and how they are going to be met

    • Other stakeholders also want to know (investors and potential investors

  • The Marketing Plan

  • Planning phase : process where marketing executives and top managers define mission/vision of business and evaluate situation by assessing how various playing (inside and outside organization), affect firm’s potential for success

  • Implementation phase : process where marketing managers identify and evaluate different opportunities by engaging in segmentation , targeting, and positioning and implementing the 4 P’s

  • Control phase : where managers evaluate the performance of the marketing strategy and take any necessary corrective actions

  • Mission statement : broad description of firm’s objectives and scope of activities it plans to undertake; attempting to answer two main questions

    • What type of business

    • What does it need to do to accomplish goals and objectives

LO3 : Analyze a marketing situation using SWOT analyses

  • Situation analysis : second step in marketing plan; uses SWOT analysis to assess internal environment with regards to its Strengths and Weaknesses and external environment in terms of Opportunities and Threats

  • Ex :

    Example of SWOT

LO4 : Describe how a firm chooses which consumer group(s) to pursue with its marketing efforts

  • Segmentation, targeting, and positioning (STP)