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    Kotler Mktman 11ce Ch04

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    Murtaza Moiz
    How is strategic planning carried out at the corporate and division levels? what are the major steps in the marketing process? what does a marketing plan include?

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    Kotler Mktman 11ce Ch04

    Uploaded by

    Murtaza Moiz
    67 views34 pages
    How is strategic planning carried out at the corporate and division levels? what are the major steps in the marketing process? what does a marketing plan include?

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    © Attribution Non-Commercial (BY-NC)

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    How is strategic planning carried out at the corporate and division levels? what are the major steps in the marketing process? what does a marketing plan include?

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    67 views34 pages

    Kotler Mktman 11ce Ch04

    Uploaded by

    Murtaza Moiz
    How is strategic planning carried out at the corporate and division levels? what are the major steps in the marketing process? what does a marketing plan include?

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 34

    Chapter 4

    Winning Markets: Market-Oriented Strategic Planning

    4-1
    Copyright 2004 Pearson Education Canada, Inc.

    Kotler on Marketing
    It is more important to do what is strategically right than what is immediately profitable.

    4-2
    Copyright 2004 Pearson Education Canada, Inc.

    Chapter Objectives
    In this chapter, we examine the following questions:
    How is strategic planning carried out at the corporate and division levels? How is planning carried out at the business unit level? What are the major steps in the marketing process? How is planning carried out at the product level? What does a marketing plan include?
    4-3
    Copyright 2004 Pearson Education Canada, Inc.

    Strategic Planning: Three Key Areas and Four Organization Levels

    Strategic marketing plan Tactical marketing plan Marketing plan

    4-4
    Copyright 2004 Pearson Education Canada, Inc.

    Corporate and Division Strategic Planning


    All corporate headquarters undertake four planning activities
    Defining the Corporate Mission Establishing Strategic Business Units (SBUs) Assigning resources to each SBU Planning new businesses, downsizing, or terminating older businesses
    4-5
    Copyright 2004 Pearson Education Canada, Inc.

    Corporate and Division Strategic Planning


    Defining the Corporate Mission
    Mission statements define which competitive scopes the company will operate in
    Industry scope Products and applications scope Competence scope Market-segment scope Vertical scope Geographical scope
    4-6
    Copyright 2004 Pearson Education Canada, Inc.

    Can you name a company that has recently changed its product scope or market segment scope in a very public way? Was this an expansion or contraction of scope?

    4-7
    Copyright 2004 Pearson Education Canada, Inc.

    Corporate and Division Strategic Planning


    Establishing Strategic Business Units (SBUs)

    4-8
    Copyright 2004 Pearson Education Canada, Inc.

    Table 4.1: Product-Oriented versus Market-Oriented Definitions of a Business

    Company
    Canadian National Railway Xerox

    Product Definition
    We run a railroad We make copying equipment

    Market Definition
    We are a people-andgoods mover We help improve office productivity

    Imperial Oil
    Columbia Pictures Encyclopaedia Britannica Carrier

    We sell gasoline
    We make movies We sell encyclopedias We make air conditioners and furnaces

    We supply energy
    We market entertainment We distribute Information We provide climate control in the home

    4-9
    Copyright 2004 Pearson Education Canada, Inc.

    Corporate and Division Strategic Planning


    Three characteristics of SBUs
    Single business or collection of related businesses that can be planned for separately Has its own set of competitors Has a manager who is responsible for strategic planning and profit

    4-10
    Copyright 2004 Pearson Education Canada, Inc.

    The Growth-Share Matrix


    Relative market share Four Cells
    Question Marks Stars Cash Cows Dogs

    SBU Strategies SBU Lifecycle

    4-11
    Copyright 2004 Pearson Education Canada, Inc.

    Can you give an example of a Star that skipped Cash Cow, and went straight to Dog status?

    4-12
    Copyright 2004 Pearson Education Canada, Inc.

    Corporate and Division Strategic Planning The General Electric Model

    4-13
    Copyright 2004 Pearson Education Canada, Inc.

    Table 4.2: Factors underlying Market Attractiveness and Competitive Position in GE Multifactor Portfolio Model: Hydraulic-Pumps Market Rating = (1-5) 4 5 4 2 4 3 2 3

    Market Attractiveness

    Overall market size Annual market growth rate Historical profit margin Competitive intensity Technological requirements Inflationary vulnerability Energy requirements Environmental impact Social-political-legal

    Weight 0.20 0.20 0.15 0.15 0.15 0.05 0.05 0.05 Must be acceptable 1.0

    Value 0.80 1. 0.60 0.30 0.60 0.15 0.10 0.15

    3.70

    Business Strength

    Market share Share growth Product quality Brand reputation Distribution network

    0.10 0.15 0.10 0.10 0.05

    4 2 4 5 4

    0.40 0.30 0.40 0.50 0.20 4-14

    See text for complete table


    Copyright 2004 Pearson Education Canada, Inc.

    Corporate and Division Strategic Planning


    Critique of Portfolio Models Planning New Businesses, Downsizing Older Businesses

    4-15
    Copyright 2004 Pearson Education Canada, Inc.

    Corporate and Division Strategic Planning


    Intensive Growth

    4-16
    Copyright 2004 Pearson Education Canada, Inc.

    Starbucks home page: Customers can request a catalog of Starbucks products, subscribe to a newsletter, and shop online

    4-17
    Copyright 2004 Pearson Education Canada, Inc.

    Corporate and Division Strategic Planning


    Integrative Growth Diversification Growth Downsizing Older Businesses

    4-18
    Copyright 2004 Pearson Education Canada, Inc.

    Give an example of a market segment where integrative growth would be preferable to growth through diversification. Explain why one approach is better than the other.

    4-19
    Copyright 2004 Pearson Education Canada, Inc.

    Business Unit Strategic Planning


    Business Mission SWOT Analysis
    External Environment Analysis (Opportunity and Threat Analysis)
    Marketing Opportunity
    Buying opportunity more convenient or efficient Meet the need for more information and advice Customize an offering that was previously only available in standard form
    4-20
    Copyright 2004 Pearson Education Canada, Inc.

    Give some examples of companies that have grown to dominate their market segment by using technology to make buying opportunities more convenient and efficient.

    4-21
    Copyright 2004 Pearson Education Canada, Inc.

    Business Unit Strategic Planning


    Marketing Opportunity Analysis (MOA)
    Can the benefits be articulated to a target market? Can the target market be reached with costeffective media and trade channels? Does the company have the critical capabilities to deliver the customer benefits? Can the company deliver these benefits better than any actual or potential competitors? Will the rate of return meet the required threshold of investment?
    4-22
    Copyright 2004 Pearson Education Canada, Inc.

    Figure 4.7: Opportunity and Threat Matrices

    4-23
    Copyright 2004 Pearson Education Canada, Inc.

    Business Unit Strategic Planning


    Internal Environmental Analysis (Strength/Weakness Analysis) Goal Formation Strategic Formulation
    Strategy

    4-24
    Copyright 2004 Pearson Education Canada, Inc.

    Business Unit Strategic Planning


    Porters Generic Strategies
    Overall cost leadership Differentiation Focus

    4-25
    Copyright 2004 Pearson Education Canada, Inc.

    Travelocitys Web site helps the consumer plan the whole vacation flights, lodging, and car rental.com

    4-26
    Copyright 2004 Pearson Education Canada, Inc.

    Business Unit Strategic Planning


    Operational Effectiveness and Strategy
    Strategic group Strategic alliances

    4-27
    Copyright 2004 Pearson Education Canada, Inc.

    Business Unit Strategic Planning


    Marketing Alliances
    Product or service alliances Promotional alliances Logistical alliances Pricing collaborations

    Partner Relationship Management, PRM Program Formulation and Implementation


    4-28
    Copyright 2004 Pearson Education Canada, Inc.

    Business Unit Strategic Planning


    Feedback and Control

    4-29
    Copyright 2004 Pearson Education Canada, Inc.

    The Marketing Process


    Steps in the Planning Process
    The marketing process

    Analyzing Market Opportunities Developing Marketing Strategies Planning Marketing Programs Managing the Marketing Effort
    Annual-plan control Profitability control Strategic control
    4-30
    Copyright 2004 Pearson Education Canada, Inc.

    Figure 4.10: Factors Influencing Company Marketing Strategy

    4-31
    Copyright 2004 Pearson Education Canada, Inc.

    Product Planning: The Nature and Contents of a Marketing Plan


    Contents of the Marketing Plan
    Executive Summary Current Marketing Situation Opportunity and issue analysis Objectives Marketing strategy Action programs Financial projections Implementation controls
    4-32
    Copyright 2004 Pearson Education Canada, Inc.

    Product Planning: The Nature and Contents of a Marketing Plan Sample Marketing Plan: Sonic Personal Digital Assistant
    Current Marketing Situation Opportunity and Issue Analysis Objectives Action Programs Financial Projections
    4-33
    Copyright 2004 Pearson Education Canada, Inc.

    Product Planning: The Nature and Contents of a Marketing Plan


    Implementation Controls Marketing Strategy
    Positioning Product Management Pricing Distribution Marketing Communications Marketing Research
    4-34
    Copyright 2004 Pearson Education Canada, Inc.

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