Marketing Mgmt – Reflection, Discussion and Assignment

Discussion and Reflection – 600 Words

Chapter 16 – Marketing Strategy

Learning Objectives:

Understand what marketers can do to increase profitability.

Become familiar with some of the most popular strategic frameworks.

Recognize the significance of SWOT analysis.

Recognize the significance of marketing metrics in strategy.

Chapter 17 – Marketing Plans

Learning Objectives:

Understand how a marketing plan is developed.

Understand the role of the marketing framework in developing a marketing plan.

Understand the role of timeline and budget estimation in developing a marketing plan.

Reflect on the assigned readings for the week. Identify what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding. 

Also, provide a graduate-level response to each of the following questions:

Think of  a company you’d like to interview with, and list 1-2 specific factors for each of porter’s five forces. 

Pick your favorite brand and look at the 5Cs for that company. What is the brand’s “situation analysis”? Based on that assessment and what you know of the brand, what recommendations would you make to the company regarding that brand or its business? 

Assignmnet

This activity/assignment will help students understand strategies for market penetration, product development, market development, and diversification

Activity: Pick a product of your choice and use the Ansoff product-market growth matrix to design strategies for market penetration, product development, market development, and diversification for the said product.

The assignment is to answer the question provided above in essay form. This is to be in narrative form and should be as thorough as possible. Bullet points should not to be used. The paper should be at least 1.5 – 2 pages in length, Times New Roman 12-pt font, double-spaced, 1 inch margins and utilizing at least one outside scholarly or professional source related to marketing management. The textbook should also be utilized. Do not insert excess line spacing. APA formatting and citation should be used.

© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 

© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 

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Marketing Strategy
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16. 2

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Marketing Framework
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Discussion Question #1
How can companies become more profitable?
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16.
Marketing Goals
Profit = Sales Revenue – Costs  
Sales Revenue = Sales Volume  Price
Costs = Variable Costs + Fixed Costs
Thus, Profit = (Sales Volume  Price) – [Variable Costs (Unit Cost  Sales Volume) + Fixed Costs]
Growing profit is the ultimate marketing goal
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Increasing Profitability

To increase profitability, companies can
Increase sales volume
Change prices
Decrease costs
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Profitability: Growing Sales
(slide 1 of 2)
To grow sales volume, companies can
Grow the overall market or grow the company’s market share
Up-sell current customers to more expensive offerings
Get customers to buy more frequently
Steal customers from competitors
Pursue another segment
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Profitability: Growing Sales
(slide 2 of 2)
To grow sales volume, companies can, (continued)
Create new products
Reduce brand switching by enhancing brand
Raise customer satisfaction
Add value through a loyalty program
Raise switching costs so leaving brand is unattractive
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Profitability: Changing Prices
To change prices, companies can
Cut prices
May bring volume in short term, but may damage brand image/equity
May create price wars
Lower price necessitates higher volume
Raise prices
Yields greater margins
Cues high quality
May need to shift to a more upscale target

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Profitability: Decreasing Variable Costs
To decrease variable costs, companies can
Find less expensive suppliers
Outsource parts of the business to partners who are more efficient
Become a niche provider to keep units down and price higher for special customers
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Profitability: Decrease Fixed Costs
To decrease fixed costs, companies can
Spend less on R&D
Spend less on advertising
Be more creative and efficient with spending
Milk the brand
Don’t spend on continued development or maintenance
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Marketing Strategies
Ansoff’s product-market growth matrix
BCG matrix
General Electric model
Porter strategies
Treacy and Wiersema strategies
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Ansoff’s Growth Matrix
(slide 1 of 3)
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Ansoff’s Growth Matrix
(slide 2 of 3)
Market penetration: current products, current markets
e.g., Convincing our current users to drink Pepsi for breakfast
Market development: current products, new markets
e.g., Selling chalk not only to schools, but also to kids
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Ansoff’s Growth Matrix
(slide 3 of 3)
Product development: new products, current markets
e.g., Selling dry-erase boards to customers to whom you are currently selling dry-erase markers
Diversification: New products, new markets
e.g., A bookstore selling music
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Ansoff’s Growth Matrix Questions
Describe how Apple could implement a
Market penetration strategy
Product development strategy
Market development strategy
Diversification strategy
Which strategy do you think Apple primarily uses?
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BCG Matrix
Brands or products are classified according to whether each has a strong or weak market share and slow or growing market
Star: high share, high growth
Cash cow: high share, low growth
Question mark: low share, high growth
Dog: low share, low growth
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BCG Matrix Questions
Give examples of
A star
A cash cow
A question mark
A dog
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BCG Matrix Strategies
Stars: Optimize or hold
Cash cows: Milk
Question marks: Invest or divest
Dogs: Minimize or divest
If stars and cash cows are sufficiently profitable, companies can carry question marks and dogs
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General Electric Model
(slide 1 of 3)
Measures market attractiveness and business strength
Weights: How important dimension is
Constrain to 1.0
Rating: How the company is doing
1 = awful and 5 = outstanding
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General Electric Model
(slide 2 of 3)
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General Electric Model
(slide 3 of 3)
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Porter’s Strategies
Porter’s strategies
Companies can dominate in 1 of 3 ways
Cost leadership
Produce more efficiently than competition
Differentiation
Distinguish one’s products as unique
Focused
Do one thing very well
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Treacy and Wiersema’s Strategies
Operational excellence: Deliver products smoothly, reliably
e.g., IKEA, TurboTax
Product leadership: Excellent quality; innovation
e.g., Apple, BMW
Customer intimacy: Knowledge of customer needs
e.g., Amazon, Home Depot
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Doing Strategy
Company must know its 5 Cs and understand its identity
Reasons to revisit strategic planning
To revisit assumptions
To launch new initiatives
When contextual issues change
When financial performance changes
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SWOT

SWOT: Strengths, weaknesses, opportunities, threats
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SWOT: Strengths and Weaknesses
Understand identity in marketplace
Is the company
Innovative or conservative?
Offensive or defensive?
Leaders, followers, quick followers, also-rans, or barely-in-the-games?
Companies may behave differently in different industries
Company approach may vary with product lifecycle, 5 Cs, etc.
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SWOT: Opportunities and Threats
Consider opportunities and threats in marketplace
e.g., New competitors, economy decline, changes in regulations
Strategies
Do nothing
Do nothing differently
Do something different
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Do Something Differently
(slide 1 of 2)
Let’s make more money
State sales objectives in terms of currency, market share, units, change from last year or quarter, region, growth, ROI, ROE, ROM, etc.
Let’s delight our customers
Enhance customer satisfaction, create loyalty program, reward customers, offer personalization, etc.
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Do Something Differently
(slide 2 of 2)
Let’s reposition our brand
Must integrate all 4Ps
Change product, place, price, and/or promotion
Goals beyond marketing
Charitable or community contributions
Boosting stability of local employment
Demonstrating leadership in environmentally friendly business practices, etc.

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Marketing Metrics
(slide 1 of 3)
Measure what matters
e.g., Profitability, sales, share, average prices, levels of awareness, customer satisfaction, employee satisfaction
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Marketing Metrics
(slide 2 of 3)
Dashboard
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Marketing Metrics
(slide 3 of 3)
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Managerial Recap
Before making strategy changes, conduct a self-assessment
Consider what to change: target segments, product, price, place, or promotion
There are many ways to increase profitability, and some may fit corporate culture and strengths; there are goals beyond profitability
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© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 

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Marketing Plans
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 
17. 2

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2

Marketing Framework
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Discussion Question #1
What do you think goes into a marketing plan?
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Marketing Plan Overview #1
The sections of a marketing plan follow the marketing framework
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Situational Analysis
Situation analysis: 5Cs

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5Cs: Company Example
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5Cs: Customer Example
Begin with secondary research, then primary research
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5Cs: Context Example
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5Cs: Collaborators Example
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5Cs: Competitors Example
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Marketing Plan Overview #2

Market analysis and strategies (STP)
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Segmentation Example

Identify segmentation variables that are relevant to the product
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Targeting Example

Find targets that
Fit well with company
Are profitable
Are actionable
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Positioning Example

Positioning is executed via the 4Ps
Write a positioning statement
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Discussion Questions #2
Assume you are marketing a new designer clothing line
List appropriate segmentation variables.
Choose one target market.
Write a positioning statement.
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Marketing Plan Overview #3
Tactical plans: 4Ps
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Product Example
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Pricing Example
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Promotion Example
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Place Example
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4P Considerations
Make sure that your 4Ps are consistent with one another
e.g., Exclusive distribution with heavy promotion is inconsistent
Make sure that your 4Ps are what your target desires
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Discussion Questions #3
For a new designer clothing line, what would be your
Product mix decisions?
Price decisions?
Promotion decisions?
Distribution decisions?
What factors would you utilize to justify your decisions above?
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Spending Time and Money
Establish a time line for actions
Establish cost estimates
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Appendices
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Better Marketing Plans
Better marketing plans
Have more refined detail
Have precise estimates
Shed light on weaknesses of the plan
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Managerial Recap
(slide 1 of 2)
When completing a marketing plan, remember the 5Cs, STP, and the 4Ps
The marketing plan reminds the company of its goals and serves as a guide to achieve those goals
Marketing strategy/planning is iterative
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Managerial Recap
(slide 2 of 2)
Marketing plans are works in progress
As situations change, plans change
More detailed plans are better
Massage the plan to be readable
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