MGT301

Principles of Marketing
Lecture-7
Summary
of
Lecture-6
Strategic Planning and Marketing
Process
 Business unit,
Corporate product,
Level and market
level

Defining Setting Planning,

Designing marketing,
the Company
the Business
Company Objectives and other
Portfolio
Mission and Goals functional
Strategies
Corporat
e
Marketin
g
Plan
 Strategy Formulation

 Mission
 Goals
 External analysis
 Internal analysis
 Strategic choice
 Today’s Topics

 Portfolio Analysis
 Marketing Process
Portfolio Analysis: A tool by which
management evaluates the various business making
up the company
The Boston Consulting Group’s
Growth-Share Matrix
 20%- Stars Question marks

?2
Market growth rate

4
?
18%-
1
?
16%- 3
14%-
12%- 5

?
10%-
8%- Cash cow Dogs
6%- 8
4%-
2%- 6 7
0
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x
Relative market share
Product/Market Expansion Grid
 Current New
products products

Market- Product-
Current penetration development
markets strategy strategy

New Market- (Diversification

markets development
strategy strategy)
 Product/ Market Expansion Grid

 Market Penetration:
 Making more sales to current customers without
changing its products.
 How? Add new stores in current market areas,
improve advertising, adjust prices, service or store
design.
Market Development:
develop new markets for its current products.

– How? Identify new demographic or geographic

markets.
 Product Development:
 Offering modified or new products to current
markets.
 How? New styles, flavors, colors, or modified

products.
 Diversification:
 New products for new markets.
 How? Start up or buy new businesses.
 Strategic Planning,
Implementation, and Control
Process
Planning Implementation Control
Corporate Measuring
planning Organizing results
Division
planning Diagnosing
results
Business Implementing
planning
Taking
Product corrective
planning action
Marketing Strategy Planning
Process
 Customers
Needs and other
Segmenting
Dimensions

Company
Mission, Objectives,
& Resources

Competitors
Current &
Prospective
 Customers
Needs and other
Segmenting
Dimensions

S.
W.
Company O.
Mission, Objectives, T.
& Resources

Competitors
Current &
Prospective

External Market Environment

 Customers
Needs and other
Segmenting
Dimensions

Targeting &
Segmentation
S.
Company W.
Mission, Objectives,
O.
& Resources
T. Positioning &
Differentiation

Competitors
Current &
Prospective

External Market Environment

Narrowing down to focused strategy with quantitative
and qualitative screening criteria

Customers
Needs and other
Segmenting
Dimensions

Targeting &
Segmentation
S.
Company W.
Mission, Objectives, O.
& Resources T. Positioning &
Differentiation

Competitors
Current &
Prospective

External Market Environment

 Marketing Process
 Analyzing marketing opportunities
 Selecting target markets
 Developing the marketing Mix
 Managing the marketing effort
Enough for today. .
.
Summary
 20%- Stars Question marks

?2
Market growth rate

4
?
18%-
1
?
16%- 3
14%-
12%- 5

?
10%-
8%- Cash cow Dogs
6%- 8
4%-
2%- 6 7
0
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x
Relative market share
Product/Market Expansion Grid
 Current New
products products

Market- Product-
Current penetration development
markets strategy strategy

New Market- (Diversification

markets development
strategy strategy)
Marketing Process
 Next….

 Analyzing marketing opportunities

 Selecting target markets
 Developing the marketing Mix
 Managing the marketing effort
 MGT301
Principles of Marketing
Lecture-7