Marketing Ch 2

• Strategic Planning


  helps maintain strategic fit b/t goals/capabilities and changing marketing opportunities (current state -> desired future state)
• Strategic Planning Steps

  1. Define company mission
  2. Set company objectives & goals
  3. Design business portfolio
  4. Planning marketing & other functional strategies
• Mission Statement

  statement of the organization's purpose - market-oriented, purposeful, aspirational, doesn't change
• Objectives vs Goals

  Obj: Long-term strategic state you want to achieve

  Goal: Short-term milestones that build towards objectives
• Business Portfolio


  collection of businesses & products that make up the company - purpose is to direct resources toward more profitable strategic business units (SBUs)
• BCG Growth-Share Matrix

  
• Product/Marketing Expansion Grid


  
• SWOT Analysis


  
• Contents of a Marketing Plan

  1. Executive Summary - summary of main goals/expectations
  2. Current Marketing Situation - description of product, competition, & distribution
  3. Threats & Opportunities - potential pos & neg forces
  4. Objectives & Issues - marketing objectives & key issues
  5. Marketing Strategy - outlines marketing logic & specifics of target markets, positioning & marketing mix (4 Ps)
  6. Action Programs - marketing strategies -> specific action programs
  7. Budgets - marketing budget & projected P&L statement
  8. Controls - outlines metrics to monitor progress/results
• Profit Margin


  net income/sales
• Net Marketing Contribution (NMC)


  sales - COGS - marketing expenses

  *sales - COGS = gross profit
• Marketing Return on Sales (ROS)


  NMC/sales
• Marketing Return on Investment (ROI)


  NMC/marketing expenses