Strategic Marketing Management

1
Strategic Marketing Management

• Chapter 1
• Foundations and Overview

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Defining the Organizations Business, Mission,
and Goals

• The practice of strategic marketing management
  begins with a clearly stated business definition,
  mission statement, and goals/objectives to
  fulfill the mission
• A business definition outlines the scope of a
  particular organizations operations
• The mission statement defines the organizations
  purpose.
• Goals/objectives specify what an organization
  intends to achieve.
• What business are we in? What basic consumer
  needs/wants do we fulfill?

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ExampleThe Hallmark Company

• What needs/wants do they fulfill?
• Generic versus product markets
• The search for growth opportunities
• Greeting cards versus the personal expression
  market.

4
Business Mission

• An organizations business mission complements
  its business definition.
• It reflects managements vision of what the
  organization seeks to do.
• Some are general statements, others may be very
  specific.
• Clearly stated mission statements add focus to
  the organizations efforts.

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ExampleThe Saturn CorporationsMission
Statement

• Market vehicles developed and manufactured in
  the United States that are world leaders in
  quality, cost, and customer satisfaction through
  the integration of people, technology, and
  business systems and to transfer knowledge,
  technology, and experience throughout General
  Motors

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Business Goals

• Goals/objectives convert the organizations
  mission into tangible actions that are to be
  achieved within a specific time frame.
• Includes production, financial, and marketing
  goals.

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Examples of Business Goals

• Achieve a 10 annual growth rate in sales.
• Introduce new products at the rate of 3 per year.
• Pursue only new product ventures that will have a
  payback period of 5 years or less.
• Engage in research and development that
  complements existing product lines.

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Identifying Growth Opportunities

• Environmental (market) opportunitiesboundless.
  Which are opportunities for us?
• What are our distinctive competencies as an
  organization?
• What are the success requirements in the market
  under consideration?
• A matching process

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SWOT Analysis

• Formal framework for identifying growth
  opportunities.
• Helps focus the matching process.
• Goes beyond just developing lists.

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Examples of Strengths

• Reputation/brand image
• Distribution channels
• Research and development skills
• Experienced management talent
• Experienced sales force
• Note that all of the above are sustainable
  strengths.

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Examples of Weaknesses

• Includes the lack of the previous
• High debt
• Lack of manufacturing capacity/capability

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Examples of Opportunities

• Upturn in consumer confidence
• Trends in consumer needs/wants
• Demographic trends
• Changes in distribution patterns/consumer
  shopping behavior

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Formulating Product/Market Strategies

• MARKETS
• Existing
  New Existing Market
  penetration Market development
  
• OFFERINGS
• New New offering development
  Diversification

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Selecting Product/Market Strategies

• Is the strategy consistent with organization
  mission, goal, and capabilities.
• What are the costs and benefits of alternative
  strategies and their probabilities of success?
• Includes an analysis of competitive structure,
  market growth or decline factors, and opportunity
  costs.

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Developing Product/Market Strategies

• Selecting Target Markets
• Determining the Marketing Mix
• Product/Service
• Price
• Promotion/Communication
• Place/Distribution

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Budgeting for the Strategy

• Formal, quantitative expression of the
  organizations plan in financial terms. What will
  it cost???
• Important so that organization goals are
  attained.

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Developing Reformulation and Recovery Strategies

• Plans seldom go exactly as expected since they
  are based on assumptions regarding consumer
  response, competitive reaction, and environmental
  factors.
• Important to periodically conduct marketing
  audits to determine problem areas.
• Preplanning of reformulation/recovery strategies
  allows faster response times in determining
  remedial action (contingency plans).