Lecture Basic Marketing: A global managerial approach - Chapter 2: Strategic market planning and the evaluation of marketing opportunities

Chapter 2:
  

Strategic Market Planning
and the Evaluation of
Marketing Opportunities

For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.


The Marketing Management Process
Whole-Company
Whole-Company
Strategic
Strategic
Management
Management
Planning
Planning
Adjust Plans
as Needed

Control
Control Marketing
Marketing
Plan(s)
Plan(s)and
andProgram
Program

Marketing
Marketing
Planning
Planning

Implement
ImplementMarketing
Marketing
Plan(s)
Plan(s) and
and Program
Program

Exhibit 2­1
2­2

For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.


A Marketing Strategy
The
Marketing
Mix

C
Exhibit 2­2
2­3

For use with Shapiro, Wong, Perreault, and McCarthy texts.

Copyright © 2002 McGraw-Hill Ryerson Limited.


The Four Ps of the Marketing Mix

Product

Place

C
Price

Promotion

Exhibit 2­3
2­4

For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.


Strategy Decision Areas
Organized by the Four Ps
Product

Physical Goods
Service
Features
Quality Level
Accessories

Installation
Instructions
Warranty
Product Lines
Packaging
Branding

Place

Objectives
Channel Type
Market Exposure
Kinds of  
Middleman
Kinds and      
Locations of 
Stores
How to Handle 
Transporting 
and Storing
Service Levels
Recruiting 
Middlemen
Managing 
Channels

Promotion

Objectives
Blend

Salespeople
   Kind
   Number
   Selection
   Training
   Motivation
Advertising
   Targets
   Kinds of Ads
   Media Type
   Copy Thrust
   Who Prepares?
Sales Promotion
Publicity

Price

Objectives
Flexibility
Level over 
Product Life 
Cycle
Geographic 
Terms
Discounts
Allowances

Exhibit 2­4
2­5

For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.


Four Examples of Basic Channels of
Distribution for Consumer Products
Manufacturer or Producer
CIBC

Del
Monte

Procter &
Gamble

Wholesaler

Wholesaler

Nissan

Wholesaler
Retailer

Retailer

Retailer

Consumer
Exhibit 2­5

2­6

For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.


Elements of a Firm’s Marketing Program

Target
Market

+
Marketing
Mix

=

Marketing
Strategy

+

=

Time-Related
Details and Control
Procedures

Marketing
Plan

+

=

Other
Marketing
Plans

A Firm’s
Marketing
Program

Exhibit 2­7
2­7

For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.


Distribution of Different Firms
Based on Marketing Performance
Death-wish
marketing

Best-practices
marketing

(Below
average)

(Well below
average)

2%
Total
Failure

14%
Poor

68%
(Average
Marketing
Program)

Fair

(Above
average)
(Well above
average)

14%
Good

2%
Exceptional

Exhibit 2­9
2­8

For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.


Types of Opportunities
Four Basic Types of Opportunities
Present Products

Present Markets

New Markets

New Products

Market
Penetration

Product
Development

Market
Development

Diversification

Exhibit 2­10
2­9

For use with Shapiro, Wong, Perreault, and McCarthy texts.

Copyright © 2002 McGraw-Hill Ryerson Limited.


Sales and Cost Curves of
Two Strategies
Product A

Dollars

Sales

0

Total cost

1

2

3

4

5

In this graphic,  a 
too­narrow focus on the 
first year’s results might 
cause the marketing 
manager to abandon this 

product as too costly.

Years

2­10

For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.


Evaluating Opportunities
Industry Attractiveness
Low

Medium

High

Medium

No Growth
Low

Business Strength

High

Borderline
Growth

Exhibit 2­13
2­11

For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.


ler
Sm
al

Ea
rl
y 
St
ar
t
2­12

ive
ti t e
pe g
m n ta
Co va
Ad

 W
or
ld

Considering International Opportunities

n
e
r
 T
r
te
t
Be

?
s
d

For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.


Continuum of Environmental Sensitivity

Insensitive
Industrial
products

Sensitive
Basic
commodity­type
consumer
products

Consumer
products that
are linked to
cultural
variables

Exhibit 2­14
2­13

For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.