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2-11
PRINCIPLES OF MARKETING
Philip Kotler and Gary Armstrong
Chapter
Chapter 22
Strategic Planning
and the
Marketing Process
Copyright 1999 Prentice Hall
Strategic
Strategic Planning
Planning Process
Process
2-
2-22
Market
Market
Oriented
Oriented
Motivating
Motivating Realistic
Realistic
Characteristics
Characteristics
of
of Good
Good Mission
Mission
Statements
Statements
Distinctive
Distinctive Specific
Specific
Competencies
Competencies
Fit
Fit Market
Market
Environment
Environment
share
••Established, ••Low
Lowprofit
profitpotential
Established,successful
successful potential
SBU’s
SBU’s
••Produces
Producescash
cash
GE
GE Strategic
Strategic Business-Planning
Business-Planning
Grid
Grid
Business Strength
Industry Attractiveness
Medium
B D
Low
Existing New
Products Products
Existing 1. Market 3. Product
Markets Penetration Development
New 2. Market
4. Diversification
Markets Development
• Market Penetration:
Penetration increase sales to present customers
with current products. How? Cut prices, increase
advertising, get products into more stores.
• Market Development:
Development develop new markets with current
products. How? Identify new demographic or
geographic markets.
• Product Development:
Development offering modified or new products
to current customers. How? New styles, flavors, colors,
or modified products.
• Diversification:
Diversification new products for new markets. How?
Start up or buy new businesses.
Planning
Planning
• Process of Selecting Target Consumers
– Market Segmentation:
Segmentation determining distinct groups of
buyers (segments) with different needs.
– Market Targeting:
Targeting evaluating and selecting which target
segments to enter.
– Market Positioning:
Positioning products distinctive and desirable
place in the minds of target segments compared to
competing products.
• Marketing Strategies for Competitive Advantage
– Market-Leader
– Market Challenger
– Market-Follower
– Market-Nicher
M lan
ys n g
ar n
al eti
P
is
ke in
An ark
Product
tin g
M
g
Target
Suppliers Place Price Publics
Consumers
n
ti o
en ing
M Con
Promotion
ar tr
ta
em et
ke ol
p l rk
tin
Im Ma
g
Political- Social-
Legal Competitors Cultural
Environment Environment
Price
Product
“Goods-and-service” Amount of money
combination that a that consumers
company offers a have to pay to obtain
target market the product
Target
Customers
Intended
Positioning
Marketing
Marketing Analysis
Analysis of
of Company’s
Company’s Situation
Situation
Control
Marketing
Marketing Planning
Planning Marketing
Marketing
Implementation
Implementation Measure
Develop
DevelopMarketing
Marketing Results
Strategies
Strategiesto
to Turn
Turn Marketing
Marketing Plans
Plans
Achieve
Achieve Marketing
Marketing into
into Evaluate
Objectives
Objectives Action
Action Plans
Plans Results
to
to Achieve
Achieve
Develop
Develop Marketing
Marketing
Marketing Objectives Take
Marketing Objectives Corrective
Plans
Plans&&Budget
Budget Action
Executive Summary
Current Marketing Situation
Threats and Opportunities
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls
Marketing
Marketing Strategy
Strategy
Decision
and Human
Organizational Reward
Resources
Structure
Implementation
Marketing
Marketing Performance
Performance
Copyright 1999 Prentice Hall
Marketing
Marketing Control
2-
2-15
Control
15
Set
Set Marketing
Marketing Goals
Goals
Measure
Measure
Performance
Performance
Evaluate
Evaluate
Performance
Performance
Take
Take Corrective
Corrective
Action
Action
Environment
Function Strategy
Types
Types
of
of Marketing
Marketing
Audits
Audits
Productivity Organization
Systems