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2-11
PRINCIPLES OF MARKETING
Philip Kotler and Gary Armstrong
Chapter
Chapter 22
Strategic Planning
and the
Marketing Process
Copyright 1999 Prentice Hall
Strategic
Strategic Planning
Planning Process
Process
2-
2-22
Market
Market
Oriented
Oriented
Motivating
Motivating Realistic
Realistic
Characteristics
Characteristics
of
of Good
Good Mission
Mission
Statements
Statements
Distinctive
Distinctive Specific
Specific
Competencies
Competencies
Fit
Fit Market
Market
Environment
Environment
Boston
Boston Consulting
Consulting Group
Group Approach
Approach
Marks
High
share share
Established, Low
Lowprofit
profitpotential
Established,successful
successful potential
SBUs
SBUs
Produces
Producescash
cash
GE
GE Strategic
Strategic Business-Planning
Business-Planning
Grid
Grid
Business Strength
Industry Attractiveness
Medium
B D
Low
Existing New
Products Products
Existing 1. Market 3. Product
Markets Penetration Development
New 2. Market
4. Diversification
Markets Development
Market Penetration:
Penetration increase sales to present customers
with current products. How? Cut prices, increase
advertising, get products into more stores.
Market Development:
Development develop new markets with current
products. How? Identify new demographic or
geographic markets.
Product Development:
Development offering modified or new products
to current customers. How? New styles, flavors, colors,
or modified products.
Diversification:
Diversification new products for new markets. How?
Start up or buy new businesses.
Planning
Planning
Process of Selecting Target Consumers
Market Segmentation:
Segmentation determining distinct groups of
buyers (segments) with different needs.
Market Targeting:
Targeting evaluating and selecting which target
segments to enter.
Market Positioning:
Positioning products distinctive and desirable
place in the minds of target segments compared to
competing products.
Marketing Strategies for Competitive Advantage
Market-Leader
Market Challenger
Market-Follower
Market-Nicher
M lan
ys n g
ar n
P
al eti
is
ke in
An ark
Product
tin g
M
g
Target
Suppliers Place Consumers Price Publics
n
tio
en i n g
M Con
ar tr
Promotion
ta
em et
ke ol
p l rk
tin
Im Ma
g
Political- Social-
Legal Competitors Cultural
Environment Environment
Price
Product
Goods-and-service Amount of money
combination that a that consumers
company offers a have to pay to obtain
target market the product
Target
Customers
Intended
Positioning
Marketing
Marketing Analysis
Analysis of
of Companys
Companys Situation
Situation
Executive Summary
Current Marketing Situation
Threats and Opportunities
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls
Marketing
Marketing Strategy
Strategy
Decision
and Human
Organizational Reward
Resources
Structure
Implementation
Marketing
Marketing Performance
Performance
Copyright 1999 Prentice Hall
Marketing
Marketing Control
Control
2-
2-15
15
Set
Set Marketing
Marketing Goals
Goals
Measure
Measure
Performance
Performance
Evaluate
Evaluate
Performance
Performance
Take
Take Corrective
Corrective
Action
Action
Environment
Function Strategy
Types
Types
of
of Marketing
Marketing
Audits
Audits
Productivity Organization
Systems