Marketing Strategy

& Environment
May 5th
Last Class
What is marketing

The objective (tasks) of marketing

needs/wants; market/marketplace, customer

satisfaction,

4Ps;

What is good marketing

Today’s Topics

Steps for marketing plan

Situational analysis (SWOT)

Marketing environment scan

Organization’s Mission driven by strategic
planning….

Strategic Planning is the process of

developing and maintaining a strategic fit
between the organization’s goals and
capabilities and its changing marketing
opportunities.
Before Planning

Why we need a marketing plan?

Sets the common goals for team

Draws the roadmap toward common goals

Provides a basis for evaluate the performance

But wait…
Before the planning, let’s hear what “boss” says
Before Planning

Levels of strategy in organizations

Strategic Issues

Higher level strategy issues that

influences Marketing Plan:
Business Mission Statement

Goals set for marketing activities

The attention and resources allocation within a

company (Future development direction)
Setting Goals & Directions
Corporate level strategy issues that
influences Marketing Plan:

Business Mission Statement—states the

organization’s purpose, and provides directions
of development.

Focus on the markets instead of products

Not too broad not too narrow(e.g.,Frito_Lay,Telus)
Avoid marketing myopia
 Example
McDonald's vision is to be the world's best quick service
restaurant experience. Being the best means providing
outstanding quality, service, cleanliness and value, so that
we make every customer in every restaurant smile. To
achieve our vision, we are focused on three worldwide
strategies:
Be the best employer for our people in each community
around the world,
Deliver operational excellence to our customers in each of
our restaurants, and
Achieve enduring profitable growth by expanding the
brand and leveraging the strengths of the McDonald's
system through innovation and technology.
 Example
Dell's mission is to be the most successful computer
company in the world at delivering the best customer
experience in markets we serve. In doing so, Dell will
meet customer expectations of:
Highest quality
Leading technology
Competitive pricing
Individual and company accountability
Best-in-class service and support
Flexible customization capability
Superior corporate citizenship
Financial stability
Setting Strategic Goals
 Goals set for marketing activities

Profit, Sales Revenue, Unit Sales

Market Share

Quality, Customer Satisfaction

Employee welfare, Social responsibility

Setting Strategic Goals
Goals set for marketing activities

Statements of what is to be accomplished through

marketing activities.
Realistic, measurable, and time specific

Consistent, indicating the priorities of the organization.

Goal Statement
Strategic Planning involves optimizing the returns from
the Business Portfolio….

A company could have more than one

product (or lines of product)
The business portfolio is the collection of
businesses and products that make up the
company.
Not every product gets same attention and
resources
How to decide…
 The company must:

 Analyze its current business portfolio or Strategic

Business Units (SBUs).

 Definition: an organization (or a part of an organization)

that markets a set of related products to clearly defined
group of customers.

Canon: http://www.canon.ca/inetCA/marketHome?msegid=5
3M: http://www.3m.com/Product/opunits.html#top
Business Portfolio Analysis (BCG Matrix)
BCG: Boston Consulting Group

What strategic decisions the company is faced with?

Business Portfolio Analysis (BCG Matrix)
BCG: Boston Consulting Group

Use
High
Defend cash to
Market position make
Growth
into
rate
star

Low Nurture
to feed
cash to Fix or abandon

High Low
Relative Market share
 Example

A large Computer Manufacturer

Laptop and personal computers
Subnotebooks / Handheld computers
Integrated phone
Mainframe computer
 Example

High
Integrated phone
Subnotebooks

Marke
t ?
Growt Laptop and personal Mainframe computer
h computers
rate
Low

High Low
Market share
 Example

High
Integrated phone
Subnotebooks

Marke
t ?
Growt Laptop and personal Mainframe computer
h computers Hold
rate
Low

High Low
Market share
 Example

High
Integrated phone
Subnotebooks

Marke
t ?
Growt Laptop and personal Mainframe computer
h computers Build
rate
Low

High Low
Market share
 Example

High
Integrated phone
Subnotebooks

Marke
t ?
Growt Laptop and personal Mainframe computer
h computers
rate Harvest
Low

High Low
Market share
 Example

High
Integrated phone
Subnotebooks
LD
S O
Marke
t
Divest
?
Growt Laptop and personal Mainframe computer
h computers
rate
Low

High Low
Market share
Before Planning

Market-Product Analysis
Examples
“One glass of milk is good, but two is
better”
 Example

ARM & HAMMER® Fridge Fresh®

Refrigerator Air Filter

ARM & HAMMER® Clear Balance™ Pool

Maintenance Tablets
Example
Example
Before Planning (summary)

If you are going to make a marketing plan

for a business unit, now we are clear
about:
The business mission - Fit
The goal set for marketing plan - Achieve
The possible resource you can get from your
company (or direction) - Adapt
Marketing Plan

For any kind of planning, we need to

figure out:

Where are we now?

Where do we want to go?
How can we get there?
Marketing Plan

Steps for Marketing Plan

Marketing Plan
Situational analysis

Segmentation &
Positioning

Marketing Mix

Product Distribution

Promotion Price
Marketing Plan

Step-1 Situational (SWOT) analysis

 Favourable  Unfavourable
Internal Strengths Weaknesses

External Opportunities Threats

Marketing Plan
Step-2 Segmentation and positioning

Segmentation: separate consumers into groups

Targeting: find a specific group to concentrate

your marketing effort

Positioning: differentiate your product from

competitors
Marketing Plan
Step-3 Marketing Program
Marketing Plan

Steps for Marketing Plan

Marketing Plan
Situational analysis

Segmentation &
Positioning

Marketing Mix

Product Distribution

Promotion Price
Marketing Plan

Step-1 Situational (SWOT) analysis

 Favourable  Unfavourable
Internal Strengths Weaknesses

External Opportunities Threats

 SWOT analysis

S Things the company does well.

Internal

W Things the company does not do well.

Conditions in the external

O environment that favour
External

strengths.

T
Conditions in the external environment
that do not relate to existing strengths
or favor areas of current weakness.
How to Do SWOT Analysis?
Identifying trends in the firm’s industry

Analyzing the firm’s competitors

Assessing the firm itself

Researching the firm’s present and

prospective customers
SWOT analysis

Strengths Company/Brand Image

and
Weaknesses Customer resources
INTERNAL Production Costs
Marketing Skills
Employee Capabilities
Financial Resources
Available Technology
SWOT analysis

Opportunities
Socio-cultural
and
Threats Demographic
EXTERNAL Economic
Technological
Political/Legal
Competitive
 Wal-Mart Exercise
S W
-Powerful retail brand -Huge span of control
-Value for money -Less flexibility
-Global growth -Few countries worldwide (14 countries)
-IT management Advantage
-Good strategy for HR management

O T
-Merge with global retailers -Target of competition
-Expanding global markets -Political problems
-Diversify store types -Price competition
 Exercise
McGill Bookstore
 Favourable  Unfavourable
Internal Strengths Weaknesses

External Opportunities Threats

  Company/Brand Image
Strengths
and  Customer resource
Weaknesses  Production Costs
INTERNAL  Marketing Skills
 Employee Capabilities
 Financial Resources
 Available Technology

Opportunities  Socio-cultural
and  Demographic
Threats  Economic
EXTERNAL  Technological
 Political/Legal
 Competitive
McGill Bookstore Exercise
 Favourable  Unfavourable
Internal Strengths Weaknesses
1. 1.

External Opportunities Threats

1. 1.
  Favourable  Unfavourable
Internal Build a Strengths Correct a
Weaknesses

External Exploit an Avoid a Threats

Opportunities
Environmental Scan
Business Organization
Social
Economic
Something
Technological to Exchange
Value

Competitive (Profit)

Regulatory
Consumers

Trend !
Environmental Scan

Microenvironment
Actors close to the company that affect its
ability to serve its customers

Unique to the company

Environmental Scan

Microenvironment
Environmental Scan

Macro-environment
Larger societal forces that affect the
microenvironment

Considered to be beyond the control of the

organization
Environmental Scan

Macro-environment
Case: GoodLife Fitness
Environmental Scan for Canada
as a Market
Text Book Chapter 3
Environmental Scan (social)
Demographic Environment:

Canada: population is expected to exceed 33
million by 2011
Changing age structure within Canada
The three largest age groups are: the baby
boomers, Generation X, and Generation Y.
Better Educated People
Environmental Scan (social)

The Changing Canadian Household

Delayed marriages
Fewer children
High divorce rate
Single-parent families
Working women: 48% of work force
Environmental Scan (social)
Increasing cultural diversity
 Canada is more of a cultural mosaic, than the melting
pot of the U.S.
 Ethnic markets are not easily targeted and served
 Diversity includes more than just ethnicity: gay/lesbian
population
 Respecting diversity may be the key to economic
survival for many companies
Environmental Scan (Economic)

Factors that affect consumer buying

power and spending patterns
Changes in Income
Changes in income distribution
Changing Consumer Spending Patterns

Types of economy will influence

resources to work with
Environmental Scan (Technological)

The most dramatic force shaping our

destiny
Rapidly changing force which creates
many new marketing opportunities but
also turns many existing products extinct
Uncontrollable?
Research and development is a key element
Environmental Scan (Regulatory)
Consists of laws, government agencies, and
pressure groups that influence organizations
and individuals

Protect competition

Protect consumers and the interests of society

Protect the interests of society

Environmental Scan (Others)

Trends in natural environment changes

Shortages of raw materials
Increased pollution
Increased government intervention
Canadian federal law: Environmental
Protection Act (1989)
Green movement
Focus on environmental sustainability
strategies
Environmental Scan

Being and good environmental scanner,

you need to be:

Constantly monitoring
Thorough, but keep relevant information
Find trend, but trend is something not
happened yet
Build on O and avoid T, but sometimes it is
hard to tell O and T
Summary

Marketing activities
Plan, Implement, Control
Marketing Plan:
Situational analysis (SWOT)
Segmentation, targeting, and positioning
Marketing mix (program)
Situational analysis:
SWOT: environmental scan
Next Class

Librarian Presentation
Forming Group
Attendance Mandatory

Consumer Behavior
Quantitative Analysis
Important: Quantitative
Materials on the WebCT.
Please Download and Study!
Next Class

Come on time
Bring quantitative materials and calculator
Prepare for your “new product” idea
And prepare for your first group meeting