Lecture Basic Marketing: A global-managerial approach: Chapter 21 - William D. Perreault, E. Jerome McCarthy

Chapter 21:
  

Developing
Innovative
Marketing Plans

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Chapter 21 Objectives
When you finish this chapter, you should

1. Know the content of and 
differences among strategies, 
marketing plans, and a 
marketing program. 
2. Understand, in detail, all of the 
elements of the marketing 
strategy planning process and 
the strategy decisions for the 
four Ps.
3. Understand why the product 
classes and typical mixes should 
be considered when developing 
a marketing plan. 
4. Understand ways the marketing 
strategy and marketing plan is 
likely to need to change at 

different stages of the product 
life cycle.

21­2

5. Understand the basic forecasting 
approaches and why they are 
used to evaluate the profitability 
of potential strategies.  
6. Know what is involved in 
preparing a marketing plan, 
including estimates of costs and 
revenue and specification of 
other time­related details 
7. Understand the different ways a 
firm can plan to become 
involved in international 
marketing. 
8. Understand the important new 
terms.

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Strategies, Plans, and Programs
Strategy

Plan

Program
21­3

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


1

Overview of the marketing strategy planning process

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

Company
Objectives
 & Resources

S.
W.
O.
T.

Segmentation
& Targeting

Differentiation
& Positioning

Product Place
Target
Market

Price Promotion

Competitors
Current  &
Prospective

Technological 
   External Market Environment
Political & Legal
Social & Cultural    
Economic

Exhibit 21­1
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies,wdp
Inc., 1999
Irwin/McGraw-Hill


S.W.O.T. Analysis

Strengths

Internal
Factors

Weaknesses

21­5

Opportunities

Strategy
Planning

External
Factors

Threats

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Forecasting Market Potential and Sales
Factor Method

Time Series

Trend Extension

Sales Forecast

Leading Series

Key Terms
and Concepts
in
Forecasting

Market Potential
21­6

Indices

Jury of Executive
Opinion
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Straight Line Trend Projection

Dollars

Trend
Actual sales

0

Years

A trend extension simply extends past experience 
into the future.  When factors influencing sales are 
predictable, this can be useful.  A weakness in this 
method though is that conditions tend to change 
more often than they stay the same.

Exhibit 21­4
21­7

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Spreadsheet “What If” Questions

Exhibit 21­7
21­8

A spreadsheet can be used to compare estimated 
sales, costs, and profits for “reasonable” 
alternative marketing mixes.  Manipulation of any 
element of the mix allows for quick assessment of 
likely outcomes.
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Planning for International Marketing

Exporting

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21­9

Licensing

Contract Manufacturing

Management Contracting

Joint Venturing
Wholly-Owned
Subsidiaries
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill


Key Terms
S.W.O.T. Analysis
Market Potential
Sales Forecast
Trend Extension
Factor Method
Factor

Time Series
Leading Series
Indices

21­10

Jury of Executive
Opinion
Spreadsheet Analysis
Exporting
Licensing
Contract Manufacturing
Management Contracting
Joint Venturing
Wholly Owned Subsidiary
Multinational Corporations

For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill