MKTG 2101, Week 2 Notes
MKTG 2101, Week 2 Notes MKTG 2101
Popular in marketing management
Popular in Marketing
This 4 page Class Notes was uploaded by haemily on Friday January 22, 2016. The Class Notes belongs to MKTG 2101 at Temple University taught by Craig Atwater in Fall 2015. Since its upload, it has received 151 views. For similar materials see marketing management in Marketing at Temple University.
Reviews for MKTG 2101, Week 2 Notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 01/22/16
Chapter 3: Strategic Market Planning Objective #1 Biz Planning + the Three Levels Business Planning: Compose the Big Picture ★ good planning enables a firm to speak clearly so that customers understand what the firm is and what sets it apart from competitors ★ a marketing plan is the most important step, it describes ○ where you want the firm to go ○ how it will get there ○ and if the biz is on track ★ market plan = road map ★ business planning : ongoing long + short term decision making ★ planning ↑ your chances of success biz plan marketing plan specifies the decisions that guide the org. describes the environment outlines the objectives + strategies identifies who will be responsible for the carrying out the strategies Three Levels of Biz Planning ★ all three levels work together to achieve the organization’s mission and objectives, planners need to keep big picture in mind 1) Strategic 2) Functional 3) Operational 1) define mission 1) perform situation anal. 1) plan to implement marketing 2) eval. internal + external 2) set marketing objectives plan environment 3) devel. marketing strategies 2) monitor marketing plan w/ 3) strategic biz units (SBUs) 4) implement marketing marketing metrics 4) biz portfolio (if applicable) strategies 5) develop growth strategies 5) monitor + control marketing strategies ★ toplevel planning: strategic ○ top management (CEO, president, etc.) ■ define purpose + specify goals ■ match resources + capabilities to market opportunities for longterm growth ○ strategic biz units (SBUs): associated w/ large firms // separateunits within a firm that have their own mission, objectives, resources, managers, and competitors ★ secondlevel planning: functional planning aka market planning ○ involves marketing, finance + HR // done by VPs and functional directors ■ create 1) detailed annual plan and 2) broad 35 year plan to support longterm strategic plan ★ thirdlevel planning: operational planning ○ third level managers (sales managers, marketing comm managers, brand managers, market research managers) ○ develop plans fordaytoday activitie that achieve functional plans Objective #2 Steps in Strategic Planning Strategic Planning: Frame the Picture ★ bc it is risky to rely on only one product, large firms turn into multiproduct companies with SBUs focused on specific products or brands ○ ex: Disney ○ small firms w/o SBUs do strategic planning at a firmwide level ★ Step 1: Define the Mission ○ mission statement: statement found in org’s strat. plan that describes the org’s overall purpose andwhat it wants to d in terms of 1) customers 2) products and 3) resources ○ good mission statement = clear (not too broad, not too narrow) ★ Step 2: Eval. Internal + External Environment ○ situation analysi (aka environmental analysis or biz. review): looks at internal + external environments internal environment external environment (strengths + weaknesses) (opportunities + threats) controllableelements inside an org that uncontrollable elements outside an org that management can directly respon to managers respond to through planning strengths + weaknesses of a org = employees ex: economy, competition, technology, law, ex: culture, assets, structure ethics, sociocultural trends ○ SWOT analysis : document that summarizes situation analysis ★ Step 3: Set Org/SBU Objectives ○ goals inspired by the mission statement achievable within the timeframe of the longterm biz plan ○ goals should be 1) specific 2) measurable 3) attainable 4) sustainable ★ Step 4: Establish Biz Portfolio ○ SBUs (strat. biz. units) = independent biz within the bigger biz // have their own 1) plan 2) target market and 3) strategies and are responsible for their own 1) costs 2) revenues and 3) profits ○ biz portfoli: the diff. businesses/products/brands a firm owns described by incomegenerating and growth capabilities ■ diverse biz portfolio ↓ risk ○ portfolio analys: used by management to assess biz portfolio ■ BCG growthmarket share matrix : determines cash generating potential of SBUs for investment purposes // tells managers which SBUs to invest in ● star: dominate, high growth // generates large revenues, but require large amounts of funding to maintain growth ● cash cows: dominate, low growth // requires minimal funding ○ Apple iPhone ● question marks: low market share, high growth // has potential to be turned into a star with more investment + marketing ● dogs: low market share, low growth // no one wants it, large firms can sell to small firms ★ Step 5: Develop Growth Strategies ○ how to make growth happen ○ Product Market Growth Matrix: analyze growth strategies Market Penetration Market Development Product Development Diversification ↑ sale ofexisting intro.xisting products sellnew products to new products tonew products toexisting tonew markets existing markets markets markets new variations of existing market = users, existing products // nonusers, users of adjustments to ↑ competing products performance Objective #3 Steps in Market Planning Market Planning: Develop + Execute Marketing Strategy ★ strategic plan = broad, big picture ★ market planning = detailed way to achieve org/SBU objectives ★ marketing mix = product, promo, price, place ★ Step 1: Perform a Situation Analysis ○ build on SWOT ○ understand the marketing environment, not just the target market ○ know how competitors market to customers ★ Step 2: Set Marketing Objectives Marketing Objectives Biz Objectives specific to a firm, states the marketing function, broad, guides all the firm’s orgs helps achieve the biz objectives ★ Step 3: Develop Marketing Strategies: Target Markets + the Marketing Mix ○ use marketing mix to decidhow to position produ in comparison to competitors ■ product strategies ● design, packaging, branding, support (ex: AppleCare) ■ pricing strategies ● price charged to customers, wholesalers + retailers ● based on cost, demand and competing products ■ promo strategies ● communicate value ● ads, sales, PR, publicity ■ distribution strategies ● direct to consumers or through retailers and wholesalers ● how, when, where ★ Step 4: Implement and Control the Marketing Plan ○ Control: actual performance vs marketing objectives + adjustments ■ marketing plans need to be flexible ○ metrics determine how successful the marketing strategy is whether or not it needs to be changed ■ focused onwhy ○ marketing control and performancshould be sustainab, keeping in mind ethics, the environment, and social responsibility, not just profitability ○ return on marketing investment (ROMI: how marketing contributed to the firm’s success/bottom line ■ ROMI = revenue created by investment in marketing / cost ○ marketing is an investment, not an expense ROMI example a marketing campaign costing $30,000 generated $150,000 in rev. ROMI = rev / cost ROMI = $150,000 / $30,000 ROMI = 5 if the marketing budget was $250,000 and the objective was $1M in revenue ROMI = rev / cost ROMI = $1,000,000 / $250,000 ROMI = 4 minimum goal = $4.00 in rev for every $1 in marketing expenditure ROMI benchmark/hurdle rate = $4 each marketing campaign should have a ROMI >4 the $30,000 marketing campaign that generated $150,00 in rev. had a ROMI of 5, which exceeds the ROMI hurdle rate of 4 and is therefore, a sound investment
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'