Principles of marketing: Lecture 7

MGT301
Principles of Marketing
Lecture­7


Summary
of  
Lecture­6


Strategic Planning and Marketing 
Process


Corporate Level

Defining
the
Company
Mission

Setting
Company
Objectives
and Goals

Designing
the Business
Portfolio

Business unit,

product,
and market
level
Planning,
marketing,
and other
functional
Strategies


Corporat
e
Marketin
g
Plan


Strategy Formulation






Mission
Goals
External analysis
Internal analysis
Strategic choice

Today’s Topics




Portfolio Analysis
Marketing Process


Portfolio Analysis: A tool by which management 

evaluates the various business making up the company


The Boston Consulting Group’s Growth­
Share Matrix


Stars

Question marks

4

5

3

?

?2

?

Market growth rate

20%18%16%14%12%10%8%6%4%2%0
10x

?

1

Dogs

Cash cow

8
6
4x

7
2x 1.5x

1x

.5x .4x .3x .2x .1x

Relative market share

Product/Market Expansion Grid


Current
products
Current
markets

New
markets

Marketpenetration
strategy
Marketdevelopment
strategy

New
products
Productdevelopment
strategy

(Diversification
strategy)


Product/ Market Expansion Grid



Market Penetration: 
Making more sales to current customers without changing its 
products. 
 How? Add new stores in current market areas,   improve 
advertising, adjust prices, service or store design.


Market Development: 
develop new markets for its current products.  
–  How?  Identify new demographic or geographic markets.





Product Development: 
Offering modified or new products to current markets. 
 How?  New styles, flavors, colors, or modified products.





Diversification: 
New products for new markets. 
 How?  Start up or buy new businesses. 


Strategic Planning, Implementation, and 

Control Process


Planning
Corporate
planning

Implementation
Organizing

Division
planning
Business
planning
Product
planning

Control
Measuring
results
Diagnosing
results

Implementing
Taking
corrective
action


Marketing Strategy Planning Process

Customers
Needs and other
Segmenting
Dimensions

Company
Mission, Objectives,
& Resources

Competitors
Current &
Prospective


Customers
Needs and other
Segmenting
Dimensions

Company
Mission, Objectives,
& Resources

S.
W
.
O.
T.

Competitors
Current &
Prospective

External Market Environment


Customers

Needs and other
Segmenting
Dimensions

Targeting &
Segmentation

Company
Mission, Objectives,
& Resources

S.
W.
O.
T.

Competitors
Current &
Prospective

External Market Environment

Positioning &
Differentiation


Narrowing down to focused strategy with quantitative
and qualitative screening criteria
Customers
Needs and other
Segmenting
Dimensions

Targeting &
Segmentation

Company
Mission, Objectives,
& Resources

S.
W.
O.
T.

Positioning &
Differentiation

Competitors
Current &

Prospective

External Market Environment


Marketing Process





 Analyzing marketing opportunities
 Selecting target markets
 Developing the marketing Mix
 Managing the marketing effort


Enough for today. . .