Principles of Marketing - MGT301 Power Point Slides Lecture 7

Lecture-7Lecture-7

MGT301MGT301Principles of MarketingPrinciples of Marketing

SummarySummaryof of

Lecture-6Lecture-6

Strategic Planning and Marketing Strategic Planning and Marketing ProcessProcess

Defining the

CompanyMission

Setting CompanyObjectivesand Goals

Designingthe Business

Portfolio

Planning, marketing,and other functionalStrategies

Corporate Corporate LevelLevel

Business unit, product,

and marketlevel

Corporate

Marketing

Plan

Strategy FormulationStrategy Formulation

MissionMission GoalsGoals External analysisExternal analysis Internal analysisInternal analysis Strategic choiceStrategic choice

Today’s TopicsToday’s Topics

Portfolio AnalysisPortfolio Analysis Marketing ProcessMarketing Process

Portfolio Analysis:Portfolio Analysis: A tool by which A tool by which management evaluates the various business making management evaluates the various business making up the companyup the company

The Boston Consulting Group’s The Boston Consulting Group’s Growth-Share MatrixGrowth-Share Matrix

3 ?

10x 4x 2x 1.5x 1x 10x 4x 2x 1.5x 1x

20%-20%-18%-18%-16%-16%-14%-14%-12%-12%-10%-10%- 8%-8%- 6%-6%- 4%-4%- 2%-2%- 00

Mar

ket

gro

wth

rat

e

Relative market share

Stars

Cash cow

Question marks

Dogs

? ??5

4

2

1

68

7.5x .4x .3x .2x .1x .5x .4x .3x .2x .1x

Product/Market Expansion GridProduct/Market Expansion Grid

Market-penetrationstrategy

(Diversificationstrategy)

Product-developmentstrategy

Market-developmentstrategy

CurrentCurrentmarketsmarkets

NewNewmarketsmarkets

CurrentCurrentproductsproducts

NewNewproductsproducts

Product/ Market Expansion GridProduct/ Market Expansion Grid

Market Penetration: Market Penetration: Making more sales to current customers without Making more sales to current customers without

changing its products. changing its products. How? Add new stores in current market areas, How? Add new stores in current market areas,

improve advertising, adjust prices, service or store improve advertising, adjust prices, service or store design.design.

Market Development:Market Development:

develop new markets for its current products. develop new markets for its current products.

– How? Identify new demographic or geographic How? Identify new demographic or geographic markets.markets.

Product Development:Product Development: Offering modified or new products to current Offering modified or new products to current

markets. markets. How? New styles, flavors, colors, or modified How? New styles, flavors, colors, or modified

products.products.

Diversification:Diversification: New products for new markets. New products for new markets.

How? Start up or buy new businesses. How? Start up or buy new businesses.

Strategic Planning, Strategic Planning, Implementation, and Control Implementation, and Control

ProcessProcess

Corporateplanning

Divisionplanning

Businessplanning

Productplanning

Organizing

Implementing

Measuringresults

Diagnosingresults

Takingcorrective

action

PlanningPlanning ImplementationImplementation ControlControl

Marketing Strategy Planning Marketing Strategy Planning ProcessProcess

CustomersCustomersNeeds and otherNeeds and other

SegmentingSegmentingDimensionsDimensions

CompanyMission, Objectives,

& Resources

CompetitorsCurrent &

Prospective

CustomersCustomersNeeds and otherNeeds and other

SegmentingSegmentingDimensionsDimensions

CompanyMission, Objectives,

& Resources

CompetitorsCurrent &

Prospective

S.W.

O.T.

External Market EnvironmentExternal Market Environment

CustomersCustomersNeeds and otherNeeds and other

SegmentingSegmentingDimensionsDimensions

CompanyMission, Objectives,

& Resources

CompetitorsCurrent &

Prospective

S.W.O.T.

External Market EnvironmentExternal Market Environment

Targeting &Segmentation

Positioning &DifferentiationPositioning &Differentiation

CustomersCustomersNeeds and otherNeeds and other

SegmentingSegmentingDimensionsDimensions

CompetitorsCurrent &

Prospective

S.W.O.T.

External Market EnvironmentExternal Market Environment

Targeting &Segmentation

Positioning &DifferentiationPositioning &Differentiation

Narrowing down to focused strategy with quantitative and qualitative screening criteria

CompanyMission, Objectives,

& Resources

Marketing ProcessMarketing Process

Analyzing marketing opportunitiesAnalyzing marketing opportunities Selecting target marketsSelecting target markets Developing the marketing MixDeveloping the marketing Mix Managing the marketing effortManaging the marketing effort

Enough for today. . Enough for today. . ..

SummarySummary

3 ?

10x 4x 2x 1.5x 1x 10x 4x 2x 1.5x 1x

20%-20%-18%-18%-16%-16%-14%-14%-12%-12%-10%-10%- 8%-8%- 6%-6%- 4%-4%- 2%-2%- 00

Mar

ket

gro

wth

rat

e

Relative market share

Stars

Cash cow

Question marks

Dogs

? ??5

4

2

1

68

7.5x .4x .3x .2x .1x .5x .4x .3x .2x .1x

Product/Market Expansion GridProduct/Market Expansion Grid

Market-penetrationstrategy

(Diversificationstrategy)

Product-developmentstrategy

Market-developmentstrategy

CurrentCurrentmarketsmarkets

NewNewmarketsmarkets

CurrentCurrentproductsproducts

NewNewproductsproducts

Marketing ProcessMarketing Process

Next….Next….

Analyzing marketing opportunitiesAnalyzing marketing opportunities Selecting target marketsSelecting target markets Developing the marketing MixDeveloping the marketing Mix Managing the marketing effortManaging the marketing effort

Lecture-7Lecture-7

MGT301MGT301Principles of MarketingPrinciples of Marketing