Strategic marketing

Chapter 13

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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Strategic planning
Definition: The managerial process of matching an organisations resources with its marketing opportunities over the long run.

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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Strategic planning
The process: Define the organisations mission. Set the organisational objectives. Evaluate organisations strategic business units (SBUs). Select the strategy to achieve the organisations objectives.

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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The marketing management process

Planning
Analyse situation. Set goals. Select strategies and tactics.

Implementation
Organise. Staff. Direct.

Evaluation
Compare performance with goals.

Feedback so management can adapt future plans to the changing environment

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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The mission statement

Definition: A short, clear statement defining the central reason for an organisations existence. It answers the questions:

What business are we in? What business should we be in?

The mission statement is expressed

in terms of benefits.

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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Evaluating strategic business units (SBUs)

Analysis of current products and the

markets in which they are operating provides SBUs. SBUs may be:
A major division in an organisation.
A group of related products. A single product or brand.

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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BCG product portfolio analysis

Insert Fig 13.2 P 424

Fig 13.4, p 424 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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The Boston Consulting Group matrix

A strategic business unit (SBU) model can be classified according to 2 factors: Its market share relative to competitors. The growth rate of the industry in which the SBU operates. These models, known as portfolio analysis, assess the needs of particular SBUs.

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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The Boston Consulting Group matrix

SBUs are divided into high and low

categories. The analysis seeks to reduce risk and optimise outcomes and determine resource allocation. A company should seek a balanced portfolio of SBUs with a mix of stars, cash cows, and questions marks but, hopefully, no dogs.
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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Business position

Fig 13.3, p 426 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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General Electric business screen

Management can classify SBUs or major products based on 2 factors: Market attractiveness. Business position. The factors are rated according to several criteria.

Contd.
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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General Electric business screen

Each SBU is rated with respect to all

criteria. Overall ratings (usually numerical scores) are calculated for each SBU. From these ratings, each SBU is labelled high, medium, or low with respect to:

market attractiveness. business position.

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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The product-market growth matrix

Fig 13.5, p 431 Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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The growth matrix

Market penetration Marketing of

present products to present markets.

Market development Market present

products to new markets.

Product development Marketing new

products to present markets.

Diversification Market new products

to new markets.
Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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Porters generic strategic model

Overall cost leadership Produce

standardised product at a low cost.

Differentiation Market a USP (unique selling

proposition).
Focus Concentrate on a small specialty

market.

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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Competitive market position and marketing strategy

Market leader has the largest market share and widest market coverage. Market challenger has the second or third largest market share and widest market coverage. Market follower follows the innovations of the leader and challengers. Market specialist has the largest market share of a small segment within the market.

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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Strategic company planning

Planning sequence
1. Define organisational mission. 2. Conduct situation analysis. 3. Set organisational objectives. 4. Select appropriate strategies.

Strategic marketing planning

1. Conduct situation analysis. 2. Develop marketing objectives. 3. Determine positioning and differential advantage. 4. Select target markets, measure market demand. 5. Design strategic marketing mix.

Annual marketing planning

Prepare annual marketing plan for each major product and company division.

Implementation and evaluation

Copyright 2004 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix Slides prepared by Joe Rosagrata

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