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CHAPTER

MARKETING 301: MARKETING PRINCIPLES

Developing Marketing Strategies and a Marketing Plan

Julianne Cabusas jcabusas@jcu.edu SB 216
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Inc. All rights reserved.

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Three Levels of Organizational Strategy: Corporate, Strategic Business Units (SBUs), and Functional
Corporate Strategy

The Corporate Level The Strategic SBU 1 Business Strategy Unit Level The Functional Level

Defining Mission, Objectives & Strategies Establish SBUs Assign Resources to SBUs Manage the Business (SBU) Portfolio

SBU 2 Strategy Business definition Objectives Product market portfolio Competitive strategy Resource allocation and mgt.

SBU 3 Strategy

SBU n Strategy

Marketing Strategy

R&D Strategy

Production Strategy

Finance and Administration Strategy

Human Resources Strategy

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Defining a Market-Oriented Mission

Business Definition Asks What Business Are We In? What Business Should We Be In? Distinctive Competencies? Competitive Advantage?
Company Facebook Product-oriented Definition We are an online social networks Market-oriented Definition We connect people around the world and help them share important moments in their lives

Home Depot

We sell tools and home repair We empower consumers to achieve the and improvement items homes of their dreams We rent rooms We create the Ritz-Carlton experience--a memorable stay that far exceeds guests' already high expectations We deliver low prices every day and give ordinary folks the chance "Save Money. Live Better." We sell lifestyle and self-expression; success and status; memories, hopes, and dreams

Ritz- Carlton Hotel and Resorts Walmart

We run discount stores

Revlon

We make cosmetics

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Mission Statement
The mission of Southwest Ben & Jerrys Airlines is dedication to the Social Mission: To operate the Company in a highest quality of Customer way that actively recognizes the central role that business plays in society by initiating innovative Service delivered with a sense ways to improve the quality of life locally, of warmth, friendliness, nationally and internationally. individual pride, and Company Product Mission: To make, distribute and sell the Spirit American Red Cross prevents and alleviates human suffering in the face of emergencies by mobilizing the Economic Mission: To operate the Company on power of volunteers and the a sustainable financial basis of profitable growth, generosity of donor increasing value for our stakeholders and
expanding opportunities for development and career growth for our employees. 2-4
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finest quality all natural ice cream and euphoric concoctions with a continued commitment to incorporating wholesome, natural ingredients and promoting business practices that respect the Earth and the Environment.

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Sustainable Competitive Advantage

Customer excellence

Locational excellence

Customer value

Operational excellence

Product excellence

2012 Global Innovation 1000: http://bit.ly/V55E39 http://bit.ly/15Y7UcK

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Setting Company Objectives and Goals

HEINZ Mission Statement: As the trusted leader in nutrition and wellness, Heinz the original Pure Food Company is dedicated to the sustainable health of people, the planet and our Company. Overall goals: To build profitable customer relationships by developing foods superior in quality, taste, nutrition, and convenience

Improving profits in a challenging global environment

Marketing objectives Increasing sales by improving companys share of domestic and international markets Strategies: To increase market share, Heinz: (1) broadens its product lines, (2) increase product availability and promotion in existing markets, and (3) expand into new markets 2-6
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Designing the Business Portfolio

HIGH HIGH Relative market share LOW

A*
Market growth rate

B C

LOW

P&G Website
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Growth Strategies
PRODUCTS AND SERVICES Current New

Current

Market Penetration add

new stores in current market areas, improvements in 4Ps

Product Development- offer

modified or new product to current markets

MARKETS

New

Market Development
review new demographic/geographic markets

Diversification- start
up or buy businesses beyond current products and markets

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The Marketing Plan

Step 1: Business mission & objectives Planning Phase Step 2: Situation analysis SWOT

Step 3: Identify opportunities

Segmentation Targeting Positioning

Implementation Phase Step 4: Implement marketing mix

Product Price Place Promotion

Marketing strategy

Control Phase

Step 5: Evaluate performance using marketing metrics

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Step 1: Define the Business Mission

MADD mission statement: MADD strives to stop drunk driving, support the victims of this violent crime and prevent underage drinking.

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Step 2: Conduct a Situation Analysis

Strengths Strong brand Strong celebrity endorsers Innovative products Opportunity Emerging countries Other fashion segments

Weakness Overreliance on footwear

Threats Cheaper imports Imitation products Retail becoming price competitive Weakness Management of numerous brands

Strengths Strong brand Portfolio of brands Strong global presence Opportunity Emerging countries

Threats Cheaper imports Imitation products Recessionary forces

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Conducting a Situation Analysis

Look At:

1. Companys Strengths & Weaknesses 2. Environmental Opportunities & Threats

Situation Analysis

Internal Analysis
Strengths Weaknesses

External Analysis Opportunities Threats

SWOT Profile
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Step 3: Identifying and Evaluating Opportunities Using STP

Segmentation

Targeting

Positioning
Courtesy The Hertz Corporation

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Hertz: Market Segmentation

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Step 4: Implement Marketing Mix and Allocate Resources

Product Value Creation

Price Value Capture

Place Value Delivery

Promotion Value Communication

Courtesy Bel Brands USA

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Step 5: Evaluate Performance and Make Adjustments

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Business-Level Strategic Planning Process

Establish Business Mission Perform SWOT analysis of SBU & Environment (Strengths, Weaknesses, Opportunities, Threats) Formulate Goals & ID Target Markets for the SBUs Formulate Marketing Strategies to Meet the Goals Develop a Marketing Plan to Achieve Strategies 4-Ps of Marketing Product, Price, Place & Promotion Implement Plans Monitor Feedback and Correct Where Needed
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