1. CHAPTER TWO Marketing Strategy Planning For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin www.mhhe.com/fourps

4. The Management Job in Marketing Marketing Planning Implement Marketing Plan(s) and Program Control Marketing Plan(s) and Program Implement Marketing Plan(s) and Program Whole-Company Strategic Management Planning

5. What is Marketing Strategy Planning? (Exhibit 2-2) The marketing mix C

6. Selecting a Marketing-Oriented Strategy Is Target Marketing (Exhibit 2-3) Production-oriented manager sees everyone as basically similar and practices “mass marketing” Marketing-oriented manager sees everyone as different and practices “target marketing”

7. An Application of Target Marketing

8. Developing Marketing Mixes for Target Markets (Exhibit 2-4) Place Promotion Price Product C

9. The Product Element of the Marketing Mix

10. The Place Element of the Marketing Mix (Exhibit 2-6) Examples of Channels of Distribution Charles Schwab Toyota Sara Lee Nestle Wholesaler Wholesaler Retailer Consumer Wholesaler Retailer Retailer

11. The Promotion Element of the Marketing Mix Personal Selling Advertising Publicity Advertising Publicity Personal Selling Telling and Selling the Customer Sales Promotion

12. The Price Element of the Marketing Mix Pricing Objectives Legal Environment Cost and Demand Price Flexibility Price Changes Over the Life Cycle Price Flexibility Price Changes Over the Life Cycle Pricing Objectives Price Setting Discounts and Allowances Geographic Pricing Terms Legal Environment Cost and Demand Competition and Substitutes Price Sensitivity Price of Other Products In the Line Discounts and Allowances Geographic Pricing Terms Competition and Substitutes Price Sensitivity

13. All Four Ps Contribute to the Whole Understanding the Target Market Leads to Good Strategies! Selection of Target Market Product Place Promotion Price

16. The Marketing Plan Guides Implementation and Control Other Marketing Plans Target Market + Marketing Mix = Marketing Strategy + Other Marketing Plans + Time-Related Details Marketing Plan = Time-Related Details Marketing Plan Target Market Marketing Mix Marketing Strategy A Firm’s Marketing Program =

19. Customer Equity (Exhibit 2-9) As Customer Equity Grows, so do Earnings! time Business enters market Initial Customers C firm New Customers C C C $

21. Creative Strategy Planning Needed for Survival 2% 14% 14% 2% (Well below average) Poor Fair Good Exceptional (Below average) (Above average) (Well above average) Death-wish marketing Best-practices marketing 68% (Average Marketing Program) Failure

22. What Are Attractive Opportunities? Breakthrough Opportunities Breakthrough Opportunities Competitive Advantage Avoid Hit-or-Miss Marketing Competitive Advantage

23. Marketing Strategy Planning Process Highlights Opportunities (Exhibit 2-11)

25. Market Penetration Coffee so good You just can’t wait.

27. Product Development

28. International Opportunities Should Be Considered Smaller World Competitive Advantage Better Trends? Early Start Competitive Advantage Better Trends? Smaller World

29. Global Competitive Advantage