MGT301 Principles of Marketing

Lecture-7

Summary of Lecture-6

Strategic Planning and Marketing Process

Corporate Level

Business unit, product, and market level Planning, marketing, and other functional Strategies

Defining the Company Mission

Setting Company Objectives and Goals

Designing the Business Portfolio

Corporate Marketing Plan

Strategy Formulation

Mission Goals External analysis Internal analysis Strategic choice

Todays Topics

Portfolio Analysis Marketing Process

Portfolio Analysis:

A tool by which management evaluates the various business making up the company

The Boston Consulting Groups GrowthShare Matrix

20%18%16%14%12%10%8%6%4%2%0 10x

Market growth rate

Stars

Question marks

5
Cash cow

?2
7

Dogs

6
4x 2x 1.5x 1x

.5x .4x .3x .2x .1x

Relative market share

Product/Market Expansion Grid

Current products Current markets

Marketpenetration strategy

New products
Productdevelopment strategy

New markets

Marketdevelopment strategy

(Diversification 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
Corporate planning Division planning Business planning Product planning

Implementation
Organizing

Control
Measuring results

Diagnosing results Implementing

Taking corrective action

Marketing Strategy Planning Process

Customers
Needs and other Segmenting Dimensions

Company
Mission, Objectives, & Resources

Competitors
Current & Prospective

Customers
Needs and other Segmenting Dimensions

Company
Mission, Objectives, & Resources

S. W. O. T.

Competitors
Current & Prospective

External Market Environment

Needs and other Segmenting Dimensions

Customers

Targeting & Segmentation

Company
Mission, Objectives, & Resources

S. W. O. 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

Company
Mission, Objectives, & Resources

S. W. O. 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%18%16%14%12%10%8%6%4%2%0 10x

Market growth rate

Stars

Question marks

5
Cash cow

?2
7

Dogs

8 6
4x 2x 1.5x 1x .5x .4x .3x .2x .1x

Relative market share

Product/Market Expansion Grid

Current products Current markets

Marketpenetration strategy

New products
Productdevelopment strategy

New markets

Marketdevelopment strategy

(Diversification strategy)

Marketing Process

Next.

Analyzing marketing opportunities Selecting target markets Developing the marketing Mix Managing the marketing effort

MGT301 Principles of Marketing

Lecture-7