Essay About Key Requirements Of A Market And 2Overview Of Marketing Strategyswotstrategic Planninggame Plan

Markting Essentials
Essay Preview: Markting Essentials
Report this essay
Lecture 2Overview of Marketing StrategySWOTStrategic PlanningGame plan for long-run survival and growthHelps to maintain a strategic fit between its goals and capabilities and changing marketing opportunitiesDefine the company missionSetting company objective goalsDesigning the business portfolioPlanning marketing and other functional strategiesCompany StructureCompanySBUProduct LinesBrandsMarketing PlanA road map for the marketing activities of an organization for a specific future period of time, such as one year or five years.Situation Assessment (SWOT analysis) First Step Looking at these thingsOrganizations appraisalInternal strengths and weaknessesExternal opportunities and threats that are out thereInternal are the Strengths and WeaknessesExternal are Opportunities and Threats out thereSituation assessmentOrganizational AssessmentAnalyze the organization’s resources and capabilitiesIdentify strength and weaknessesWhat is the distinct thing a company does better than others?Environmental AssessmentMonitor the environmentas environment changes threats occur and opportunities occurOrganizational AssessmentCore CompetenciesThings a firm does extremely well (Strengths), which sometimes give it an advantage over its competitionSkills, what skills do we have that will lead to an advantageResources, Example- Patents or more assetsMatch the core competencies to opportunities in the marketStrategic windows – temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a firmHow to CompeteCreating Value (Leverage core competencies)Lower Price (Having the lowest price for a product)Differentiation (Having a different unique product)Marketing EnvironmentOutside forces (anything outside of the company) that affect marketing management’s ability to build and maintain successful relationships with target customersSteps in environmental assessmentEnvironmental Scanning: process of collecting information  about forces in the marketing environmentalEnvironmental Analysis: process of assessing and interpreting the information gathered through environmental scanningMarketing EnvironmentCompetitiveEconomicPoliticalLegalRegulatorySocio-culturalTechnologicalCompetition refers to alternative firms that could provide a product to satisfy a specific market’s needCompetitive structureMonopoly – one company that offers a specific product, many barriers of entry, almost no substitute products Ex. Water utilitiesOligopoly – Few competitors, some barriers of entry, homogenous or differentiated products, Ex. UPS, FedEx, Postal ServiceMonopolistic Competition – Many competitors, few barriers of entry, product differentiation with many substitutes, Wrangler and Levi JeansPure Competition – Unlimited competitors, no barriers of entry, Homogenous products, Ex. Vegetable farm (Sweet Corn)Levels of CompetitionBudget Competition – competition for customer dollars (car vs. trip around the world)Generic Competition – Substitutable product categories fulfilling same customer needs (Bikes vs. Cars) Something totally outside of your market that will wipe you out.Product Competition – compete in the same product class. (SUVs vs. Cars)Brand Competition – products that compete for the same segment (Viper vs. Corvette, Diet Coke vs. Diet Pepsi)EconomyPertains to the income, expenditures, and resources that affect the cost of running a business or householdBusiness CycleProsperity (Unemployment Rate goes down)Recession or Depression (Unemployment Rate goes up)Recovery Consumer IncomeGross Income – the total amount of money made in one year by a person, household, or family unitDisposable Income – the money a consumer has left after paying taxes (Buying Power)Political EnvironmentCreate and enforce laws of regulationsGovernments are potentially large customers (Guns)Political Officials can assist in securing foreign marketsLegal EnvironmentLaws on the book (pro competitive and consumer protection law)Lanham Act (1946) – Provides protection and regulations of brand name, trade marksRegulatory Agencies – have responsibility to oversee certain aspect of societyFTC, FDA, CPSC, EPASocioculturalDemography – is the study of human populations in terms of size, density, location, age, gender, race, occupation, etc.CultureChanging attitudes and roles of men and womenChanging valuesTechnologyApplication of knowledge and tools to solve problems and perform tasks more efficientlyBlue ray vs HDEthics and Social ResponsibilityDifference between ethics and social responsibilityEthics – judgement at the individual level to make a decision, moral principles and valuesSocial responsibility – deals with total effect of marketing decisions on societyCode of ConductConsists of formalized rules and standards that describe what the company expects of its employeesPromote ethical behavior by reducing opportunities for unethical behaviorEmployees know:What is expected of themWhat kind of punishment they face if they violate the rulesWhat factors influence unethical behaviorIndividual: personal values and moral philosophiesMoral idealism: considers certain individual rights or duties universal regardless of outcomeUtilitarianism- considers the :greatest good for the greatest number” by assessing the costs and benefits of the consequencesOrganization, company, coworkersOpportunity: reward/costS/R Organization- are a part of a larger society are accountable to that society for their actionResponsibilitiesEconomic – Be profitableLegal – Obey the LawEthical – Be ethicalPhilanthropic – Be a good corporate citizen – contribute resources to the community, improve quality of life.Social Responsibility Strategies (doing something wrong but knowing it was there)Reaction – keep quiet, hope no one finds outDefense – if they do find out, not our faultAccommodation – addressing issues because you have too not because you want tooPro-action – addressing conflict because you want too not because you have tooMarket – a group of individuals that have needs for a product and have the ability and willingness to buy products.Beer market is very heterogenous (not everyone likes the same beer)Are there submarkets? Yes. In heterogenous markets there are sub markets always.S-T-P Process Segmentation of  the Market – if market is heterogenous then segment the  marketIdentify segmentation variables and segment the marketDevelop Profiles of Resulting SegmentsMarket Targeting – Take all segments Evaluate the attractiveness of each segmentSelect the Target Segment(s).Product Positioning – What is the image that we want to create in the mind of the consumerIdentify possible positioning concept for each target segment (Value proposition)Market SegmentationMarket Segmentation – Process of dividing a heterogenous marketPut segments into smaller groups of people who like different thingsHaving certain relative homogenous problems that can be satisfied by the firmMarket segment – a group or individuals that share one or more similar characteristics which make them have relatively similar product needsAssumptions about market segmentationConsumer preferences varyTailoring offering to specific segment it will increase the value to the people in the segmentDivide and Conquer Strategy!!!TWO approaches to segmentationA-priori segmentation – segments are predefined and other characteristics are used to describe the segments.Post-hoc Segmentation  – Segments are developed by clustering respondents into homogenous groups based on several relative variables. The clusters are then described in terms of other characteristics.Segmentation Model