marketing principles unit 2 the role of marketing

Unit
U
i 2 - The
Th Role
R l off M
Marketing
k i
in a Modern Organisation
Planning and the Marketing Process

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Previewing the Concepts
Explain
E
l i companywide
id strategic
t t i planning
l
i and
d
its four steps.
Discuss how to design business portfolios
and growth strategies.
p
functional p
planning

g strategies
g
and
Explain
asses marketing’s role in strategic planning.
Describe the marketing process and the
f
forces
that
th t influence
i fl
it.
it
List the marketing management functions,
including the elements of a marketing plan.
plan
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Planning
Many companies operate without formal
plans, yet these plans can provide many
benefits such as:
encouraging management to think ahead
systematically,
y
y,

forcing managers to clarify objectives and
policies, and
p
helping the company to anticipate and respond
quickly to environmental changes and sudden
developments.
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Strategic Planning
Strategic
g Planning
g is the Process of
Developing and Maintaining a
g Fit Between the
Strategic
Organizations' Goals and
p
and Its Changing
g g
Capabilities
Marketing Opportunities.

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Steps in Strategic Planning

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3M
A mission statement
is a statement of an
organisation’s
i ti ’
purpose.
“ 3M solves
“…
sol es
people’s problems by
putting innovation to
work for them.”
 />6

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Setting Company Objectives
and Goals
Mission

Statement

Marketing
M
k i
Objective # 1

Marketing
Strategy

Marketing
Strategy

Marketing
M
k i
Objective # 2

Marketing
Strategy

Marketing
M
k i
Objective # 3

Marketing
Strategy

Marketing

Strategy

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Designing the Business Portfolio
The business portfolio is the collection of
businesses and products that make up the
company.
The company must:
analyse its current business portfolio or Strategic
Business Units (SBU’s),
decide which SBU
SBU’s
s should receive more
more, less
less, or no
investment,
pg
growth strategies
g
for adding
g new p
products or
develop
businesses to the portfolio.
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QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.

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The Marketing Process

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The Five Cs
Company
p y
Internal Resources, Capabilities

Customers
Needs, wants and characteristics of current &

potential Customers

Competitors
Strengths and Weaknesses of competitors

Collaborations
Co abo at o s
Opportunities and Threats

Context
Environment
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Macroenvironment
 PESTLE
 Political Issues
 Economic Forces
 Socio-cultural Changes
 Technological Changes
 Legal and Regulatory
Changes
 Environmental Forces

 PEST
 Political/Legal Factors
 Economic Factors

 Socio-cultural Factors
 Technological Changes

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Analyzing Current SBU’s:
BCG Growth-Share
G
h Sh
M
Matrix
i
Relative Market Share

Low

Markket Grow
wth Ratte

Hig
gh

High

Stars
• High growth & share

• Profit potential
• May need heavy
investment to grow

Cash Cows
• Low
L
growth,
th high
hi h share
h
• Established, successful
SBU’s
• Produce cash

Low

Question Marks

?

• High growth, low share
• Build into Stars or phase out
• Require cash to hold
market share

Dogs

• Low growth & share
• Low profit potential

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The GE Matrix
Business Strength
Strong

Average Weak

Industry High
Attractiveness Medium
Low
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Problems With Matrix Approaches
Can be Difficult, Time-Consuming, Costly to Implement

Difficult to Define SBU’s & Measure Market Share/Growth

Focus on Current Businesses
Businesses, But Not Future Planning

Can Lead to Unwise Expansion or Diversification
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Planning
g Cross-Functional
Strategies
Marketing’s Role in Strategic Planning

Guiding

Philosophy

Inputs to
g
Strategic
Planners

Design
Strategies

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Value Delivery Network
Company’s
Value
Chain
Customers

Suppliers

Distributors

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Porter’s
Porter
s 5 Forces Model

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SWOT Analysis
Draws Together strategic conclusions and their
implications based on the facts

Positive
Implications

Negative
g
Implications

Internal

Strengths

Weaknesses

External

Opportunities Threats

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Connecting With Customers
Market Segmentation: determining distinct groups
of buyers (segments) with different needs,
characteristics, or behavior.
Market Targeting: evaluating each segment’s
attractiveness and selecting
g one or more segments
g
to enter.
g arranging
g g for a p
product to
Market Positioning:
occupy a clear, distinctive, and desirable place
relative to competing products in the minds of
t
target
t consumers. i.e.
i Chevy
Ch
Bl

Blazer iis “lik
“like a rock.”
k”
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Whatt iis th
Wh
the diff
difference between
b t
a
market segment and a market target?

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Developing the Marketing Mix

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The 4 P’s
P s & 4 C’s
C s of the
Marketing Mix
4 P’s

4 C’s

Product
Price
Place
Promotion

Customer Solution
Customer Cost
Convenience
Communication

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Sometimes there are some
extra Ps
People
Physical Evidence
Process

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