Strategic Marketing Management Process

1 StrategicStrategicMarketingMarketingMana gementManagementProcessProcessChapter 15 Chapter 15 Also includesAlso includesAppendix AAppendix AAccounting forAccounting formarketersmarketers 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-1 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-2 Strategic PlanningStrategic PlanningnnThe managerial Process of matching anThe managerial Process of matching anorganisationorganisation s resources with itss resources with itsmarketing opportunities over the longmarketing opportunities over the 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-3 Strategic PlanningStrategic PlanningnnThe Process :The Process : Define organisationDefine organisation s mission.

2 Set organisational organisational objectives. Evaluate organisationEvaluate organisation s Strategic businesss Strategic businessunits (units (SBUSBU ss).). Select strategy to achieve organisationSelect strategy to achieve organisation 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-4 The Marketing managementThe Marketing managementprocessprocessPLANNINGA nalyse situationSet goalsSelect strategiesand tacticsIMPLEMENTATIONO rganiseStaffDirectEVALUATIONC ompareperformancewith goalsFeedback, so Management can adapt future plans and theirimplementation to the changing environment 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing .

3 A Practical Approach 4th ed15-5 The Mission StatementThe Mission StatementnnA mission statement is a short clearA mission statement is a short clearstatement defining the central reasonstatement defining the central reasonfor an organisationfor an organisation s answers the questions:It answers the questions: What business are we in?What business are we in? What business should we be in?What business should we be in?nnIt is expressed in terms of is expressed in terms of benefits. 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-6 EvaluatingEvaluatingSStrategictrategicBB usinessusinessUUnitsnitsnnAn analysis of current products and theAn analysis of current products and themarkets in which they are in which they are SBU may be:An SBU may be: A major division in an organisationA major division in an organisation A group of related productsA group of related products A single product or brandA single product or brand 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing .

4 A Practical Approach 4th Product Portfolio Product Portfolio AnalysisStarsCash cowsDogsQuestion marksHighLowHighLowCOMPANY S MARKET SHAREINDUSTRYGROWTH RATE 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-8 THEBOSTONCONSULTINGGROUPMATRIX A Strategic business unit (SBU) model canbe classified according to two factors: its market share relative to competitors the growth rate of the industry in whichthe SBU operates These models, known as portfolioanalysis, assess the needs of particularSBUs. 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-9 THETHEBBOSTONOSTONCCONSULTINGONSULTINGGG ROUPROUPMATRIXMATRIXnnThey are divided into high and lowThey are divided into high and seek to reduce risk and optimiseThey seek to reduce risk and optimiseoutcomes and determine resourceoutcomes and determine company should seek a balancedA company should seek a balancedportfolio of SBUs with a mix of stars,portfolio of SBUs with a mix of stars,cash cows, and questions marks, butcash cows, and questions marks, buthopefully no no dogs.

5 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-10 HighLowHighLowBUSINESS POSITIONMARKET ATTRACTIVENESSM ediumMediumINVESTINVESTPROTECTINVESTPROT ECTHARVESTPROTECTHARVESTDIVEST 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-11 GENERALELECTRIC BUSINESS SCREEN Management can classify SBUs or major productsbased on two factors, market attractiveness andbusiness position. Each of these factors is rated according to severalcriteria. Each SBU is rated with respect to all criteria. Overall ratings (usually numerical scores) for bothfactors are calculated for each SBU.

6 Based on these ratings, each SBU is labelled ashigh, medium, or low with respect to: (a) marketattractiveness, and (b) business position. 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-12 PRESENT PRODUCTSPRESENTMARKETSNEW PRODUCTSNEWMARKETSM arketpenetrationMarketdevelopmentProduct developmentDiversificationThe Growth MatrixThe Growth Matrix 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-13 The Growth MatrixThe Growth MatrixnnMarket penetrationMarket penetration Marketing ofMarketing ofpresent products to present products to present developmentMarket development MarketMarketpresent products to new products to new developmentProduct development MarketingMarketingnew products to present products to present Market new productsMarket new productsto new new markets.

7 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-14 PorterPorter s Generic Strategics Generic StrategicModelModelnnOverall cost leadershipOverall cost leadership Producing standardised product at a lowProducing standardised product at a lowcostcostnnDifferentiationDifferentiat ion Market a USP (Unique Selling Proposition)Market a USP (Unique Selling Proposition)nnFocusFocus Concentration on a small specialty marketConcentration on a small specialty market 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-15 Marketing AuditMarketing AuditnnA Marketing audit is a comprehensiveA Marketing audit is a comprehensivereview and evaluation of the marketingreview and evaluation of the marketingfunction in an in an organisation.

8 An audit examines:An audit examines:nnMarketing strategyMarketing strategynnStructure of the Marketing divisionStructure of the Marketing divisionnnMarketing systemsMarketing systemsnnMarketing productivityMarketing productivitynnMarketing functionsMarketing functions 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th company planning1. Define org. mission2. Conduct situation analysis3. Set org. objectives4. Select appropriate strategiesStrategic Marketing planning1. Conduct situation Develop Marketing Determine positioning anddifferential advantage4. Select target markets,measure market demand5.

9 Design strategicmarketing mixAnnual Marketing planningPrepare annual Marketing planfor each major product andcompany divisionPLANNING SEQUENCEIMPLEMENTATION AND EVALUATIONA ccounting for MarketersAccounting for MarketersAppendix A, Chapter 15 Appendix A, Chapter 15 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-18 Accounting reportsAccounting reportsnnTwo typesTwo types Balance SheetBalance Sheet Profit and Loss StatementProfit and Loss StatementnnBalance SheetBalance Sheet a snapa snap--shot of theshot of thefinancial position of a business at afinancial position of a business at agiven point in point in time.

10 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-19 Balance sheetBalance sheetnnThree main elements:Three main elements: AssetsAssets What the company owns or isWhat the company owns or LiabilitiesLiabilities What the company owes toWhat the company owes OwnerOwner s equitys equity The net worth of a net worth of a firm. 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing : A Practical Approach 4th ed15-20 Profit and loss statementProfit and loss statementnnUsually structured as follows:Usually structured as follows: SalesSales$$ Less Cost of goods soldLess Cost of goods sold$____$____ EqualsEqualsGross profitGross profit$$ Less ExpensesLess Expenses$____$____ Equals Net profitEquals Net profit$____$____(See Table 15A(See Table 15A 1 in the text)1 in the text) 2001 McGraw-Hill AustraliaPPT slides t/a Rix, Marketing .