marketing management

3. - The marketing manager is the most
significant functional contributor to the
strategic planning. He/she has a leadership
role in:
- Defining the business mission
- Environment Analysis
- Competitive and business situations
- Developing objectives, goals, and strategies
- Defining the product, market, distribution, and
quality plans

4. Stakeholders
Resources
Processes
Organization
Set strategies to
satisfy key
stakeholders
…by improving
business processes
…and aligning
Resources and
organization

5.  Stakeholders –define stakeholders and their
needs.
› Stockholders – increase in stock prices
› Employees – job security
› Suppliers – maintain/increase order volume
› Distributors – marketing programs
› Customers – high-quality products and services

6.  Processes – you satisfy the needs of your
stakeholders by improving business
processes
 Resources and Organization – to carry out
process improvements, you a company
needs resources and a flexible organization

7. Continuous
improvement
Breakthrough
Innovations
Growth
Profits
Dynamic
Relationships
among
Stakeholder
Groups in a High
Performance
Business

8. - A managerial process of developing and
maintaining a viable fit between the
organization’s objectives, skills, and
resources, and its changing market
opportunities to yield target profit and
growth.

9. Strategic Planning, Implementation, and Control Process
Corporate
Planning
Division
Planning
Business
Planning
Product
Planning
Organizing
Implementing
Measuring
Results
Diagnosing
Results
Taking
Corrective
Action
Planning Implementing Control

10. Corporate Planning
- prepare mission statement, policies,
strategies, goals, and framework
that will be the basis of plans of all business
units.

11.  Define Corporate Mission
 Establish Strategic Business Units
 Assign Resources to SBU’s
 Plan New Businesses

12. - Fundamental Questions
1. What is our business?
2. Who is our customer?
3. What is the value to the customer?
4. What will our business be?
5. What should our business be?

13. Elements of Company Mission
1. History – history of aims, policies, and
achievements
2. Current Preferences – business direction
3. Market Environment – external influences to
the business
4. Resources – corporate capabilities
5. Distinctive Competencies – Competitive
Advantages

14. Significance:
 Provides employees with a shared sense of
purpose
 Acts as the “invisible hand” that guides
employees to work independently towards a
common goal
 Embody what the company is all about

15. Consider:
1. Define major competitive scopes:
- Industry scope – what industry you want to belong to
- Products and Applications scope – range of products the
company will participate in
- Competencies Scope – range of competencies the
company will master and leverage
- Market-Segment Scope – Type of market the company
will serve
- Vertical Scope – number of channel levels the company
will engage
- Geographical Scope – range of regions, countries or
country groups the company will operate in

16. Should be:
1. Motivating
2. Guided by a Vision
3. Stress major policies
4. Provide direction for the company in the
next five to ten years

17. - Defining what you are as a business
Dimensions:
› Customer groups
› Customer needs
› Technology
COMPANY PRODUCT DEFINITION
Revlon We Make Cosmetics We Sell Hope
Xerox We Make Copying Equipment We help improve Office Productivity
Columbia Pictures We make movies We sell entertainment
Carrier We make air-conditioners We provide climate control in the home

18.  Companies define Strategic Business Units
for appropriate funding
 HQ will then decide which SBU will
› Build – increase market share
› Maintain – preserve market share
› Harvest – increase short term cash flow
› Divest – sell or liquidate business

19. Boston Consulting Group’s Growth Share Matrix
 Cash cows - is where a company has high market share in a slow-
growing industry. These units typically generate cash in excess of the
amount of cash needed to maintain the business. They are regarded
as staid and boring, in a "mature" market, yet corporations value
owning them due to their cash generating qualities.
 Stars - are units with a high market share in a fast-growing industry.
They are graduated question marks with a market or niche leading
trajectory. The hope is that stars become next cash cows.
 Dogs - units with low market share in a mature, slow-growing industry.
These units typically "break even", generating barely enough cash to
maintain the business's market share.
 Question marks - (also known as problem children) are business
operating in a high market growth, but having a low market share.
They are a starting point for most businesses. Question marks have a
potential to gain market share and become stars, and eventually cash
cows when market growth slows.

20. Boston Consulting Group’s Growth Share Matrix

21. - Existing SBUs will project sales
- HQ will have target sales for the year
- Divested businesses will result to a sales
gap which will need replacement
- New businesses will fill the gap of divested
businesses

22. 0
1
2
3
4
5
6
7
8
9
10
0 5 10 15
Desired Sales
Strat Plan Gap
Projected Sales

23.  Companies can fill the gap in 3 ways:
1. INTENSIVE GROWTH: Identify opportunities to
achieve growth within the company’s current
businesses
2. INTEGRATIVE GROWTH: Identify
opportunities to build or acquire businesses
that are related to the company’s current
businesses
3. DIVERSIFICATION GROWTH: Identify
opportunities to add attractive businesses that
are unrelated to current businesses.

24.  INTENSIVE GROWTH OPPORTUNITIES
› Market Penetration Strategy – increase the
market share of its current portfolio in their
current markets
› Market Development Strategy – look for new
markets whose need might be met by its current
products
› Product Development Strategy – new product
posibilities

25.  INTEGRATIVE GROWTH Backward
Integration – acquiring suppliers or service
providers
› Forward Integration – acquiring distributors
› Horizontal Integration – acquiring competitors

26.  DIVERSIFICATION GROWTH
› Concentric Diversification – new products that
have technological marketing synergies with
existing product line
› Horizontal Diversification – new products that
might appeal to existing customers
› Conglomerate Diversification – no relationship
with products or customers

28.  Define Specific Mission of the Business
within the broader company mission
› More specific scopes
 Product applications
 Competencies
 Market segments
 Vertical positioning
 geography

29.  Strength and Weakness Analysis
› Asses which business activities your business
unit is very good at and very bad at on the
department level
› Examine resource utilization
› Define needed process improvements
› Must be done periodically by management

30.  Opportunities and Threats Analysis
› Made up of the actors and
forces that affect the
company’s ability to
develop and maintain
successful transactions
and relationships with its
target customers
Macro and Micro Environment Forces

31.  Purpose:
› Look for Market Opportunities – an area of need
which a company can perform profitably
› Look for developments in the environment that
may pose as a threat to your operations Market
Threat – is a challenge posed by an
unfavourable trend that would lead to a decrease
in sales in the absence of marketing action

32. Goals are specific objectives set by
management for the planning period
S -
M -
A -
R -
T -

33. Goals are specific objectives set by
management as to what they want to happen
to the company for the period
S - pecific
M - easurable
A - ttainable
R - eallistic
T - imebound

34. Purpose is to set objectives for:
› Profitability
› Sales growth
› Market share improvement
› reputation

35. - Goals indicate where they want the business to
go, Strategies are ways how to get there
- Types of Strategies
- Overall Cost Leadership – focus is to lower costs in
critical business processes
- Differentiation – achieve superior performance in a
benefit valued by customers
- Focus – focuses on narrow market segments
rather than going for the larger markets

36. Programs or Tactics are detailed specific
activities based on set Strategies for the Goals.
› Purpose:
 Set activities that support the strategies
 Set programs that ensure the goals that were
formulated by the management will be met

38.  Implementation of set plans according to a
Business Calendar – set schedules of
activities according to priority and feasibility
› Calendar must be followed strictly not to hamper
attainment of set goals

39.  During implementation, management should
monitor activities and new developments in
the environment.
› Purpose:
 Track if Business Calendar is being followed
 Check for process improvements when
developments in the environment arise.