MKT 442 Marketing Management Strategic Planning and Marketing Management Process. The Strategic Planning Process
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1 MKT 442 Marketing Management Strategic Planning and Marketing Management Process The Marketing Concept An organization should seek to make a profit by serving the needs of customers The purpose of the marketing concept is to rivet the attention of marketing managers on serving broad classes of customer needs The principal task of the marketing function operating under the marketing concept is to find effective and efficient means of making the business do what suits the interests of customers What is Strategic Planning? The objectives and strategies established at the top level provide the context for planning in each of the divisions and departments by divisional and departmental managers The Strategic Planning Process Mission statement In developing a mission statement, management must take into account three key elements The organization s history The organization s distinctive competitiveness The organization s environment Mission statement should be Achievable Motivational Specific Create marketing strategy Organizational growth strategies
2 Organizational strategies based on competitive advantage Competitive advantage is an ability to outperform competitors in providing something that the market values Porter suggests strategies based on cost leadership or a strategy based on differentiation Organizational strategies based on value To succeed firms must seek to build long-term relationships with their customers by offering unique value Choosing an appropriate strategy Management should select those strategies consistent with its mission and capitalize on the organization s distinctive competencies A sustainable competitive advantage can be based on either the assets or skills of the organization The Marketing Management Process The Marketing Management Process can be defined as the process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges with target groups that satisfy customer and organizational objectives. Strategic planning and marketing planning Situation analysis The cooperative environment The competitive environment
3 The economic environment The social environment The political environment The legal environment Marketing planning Establishing marketing objectives Selecting target market Developing marketing mix Implementa tion and control of marketing plan Implementing the marketing plan involves putting the plan into action and performing marketing tasks according to the predefined schedule. Controlling the marketing plan involves three basic steps The results of the implemented marketing plan are measured These results are compared with objectives Decisions are made on whether the plan is achieving objectives. The Marketing Management Process Strategic planning is a top-management responsibility All strategic planning has marketing implications Marketing objectives and strategies must be derived from the strategic plan Planning done in all functional areas of the organization should be derived fro m strategic plan Portfolio Model
4 Portfolio Model M arketing s Resources and Objectives of the Firm Direct Market Competitive Cultural and Social Economic Political and Legal External Market Technological T he Marketing : Internal It is about the company Company mission, structure and culture, financial situation, technology, production, quality control programs, R&D (research and development), relationship with suppliers/agents/customers. Objectives should set the course Should be socially and economically useful Should organize to innovate, implement strategies Should sustain profitability Helps to have a mission statement It is about strength and weaknesses It is usually controllable.
5 The Marketing : External It is about the macro-environment Competition; Macro-economy; Technology; Political and legal; Social and cultural. It is about opportunitie s and threats It affects the company, as well as its It is usually uncontrollable. suppliers and customers; S WOT Analysis An analytical framework that identifies and lists a firm s strengths and weakness as well as its opportunities and threats. Purpose: Distinctive Competencies + Strategic Opportunities Positive Internal Strengths Vulnerability Leverage External Opportunities Constraints Negative Weaknesses Problems Threats R esearch Limitations Test market areas do not represent the full marketplace Sample size and design have been formulated incorrectly Pretest measurements of competitive brand sales have been not made or made inaccurately
6 Test scores do not give complete support for the study Test market products are offered at unprofitable levels Researchers ignore factors that influence sales The test marketing ends before consumers repurchase the product E thical Responsibilities Responsibility to respondents Preserving respondent anonymity Avoiding mental stress for respondents Avoiding questions detrimental to respondents Avoiding use of dangerous equipment or techniques Avoiding deception of respondents Avoiding coercion of respondents
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