CHAPTER 2 – STRATEGY PLANNING
Target Marketing vs. Mass Marketing
TARGET MARKETINGMarketing mix is tailored to fit
specific target customer(s) MASS MARKETING
Vaguely aims at "everyone" with the same marketing mix
The Four Ps and Marketing Mix Planning
PRODUCTPROMOTIONPLACE (DISTRIBUTION)PRICE
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing
Strategy Decision Areas Organized by the 4 Ps
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing
Market Strategy = Target Market + Marketing Mix
The Marketing Plan Marketing plan: a written statement of a marketing
strategy and the time related details for carrying out the strategy.
Spells out, in detail:What marketing mix is to be offeredTo what target marketFor how longWhat resources (costs) are needed at what rateWhat results are expectedWhat control procedures will be used.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing
Elements of a Firm’s Marketing Program
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing
The Marketing Plan
• Marketing plan: • Marketing Mix
Target Market
Time
Resources
Measurable Results
Control Procedures
Overview of Strategy – Planning Process
Marketing Strategy Planning Process
Narrowing down from broad market opportunities that a firm might pursue to a specific strategy Marketing strategy specifies a specific target
market and a specific marketing mix Not just “some” strategy, but one that will offer
target customers superior value
Segmentation helps pinpoint a specific target market
Marketing Strategy Planning Process cont’d Differentiation helps pinpoint a marketing mix that is
different from and better than what is available from a competitor
Screening criteria make it clear why you select a specific strategy (and why others are “screened out”)
S.W.O.T. analysis identifies and lists a firm’s strengths and weaknesses and its opportunities and threats S.W.O.T helps identify relevant screening criteria (what is
needed to get a competitive advantage)
Competitive Advantage
Superior Customer
Value
Total Company Effort to Satisfy
Customers
Customer SatisfactionCustomer
Retention
Profitable Relationships with
Customers
Customer Acquisition
Competitive Advantage
Requires that the firm:understand current competitors' offeringsanticipate competitors' likely plansmonitor effects of changes in competitionREALLY understand the target customers'
needs
Examples of Different Types of Opportunities Market Penetration
Arm & Hammer promotes new uses of its baking soda
Market Development Marriott Hotels target families for weekend "get-aways" to rent rooms
filled by business travelers during the week
Product Development Microsoft develops a new version of its Windows operating system to
appeal to the people who bought an earlier version but now want more features
Diversification RJR, the cigarette producer, adds baked goods to its product line to
appeal to new customers
Four Basic Types of Opportunities