Chapter 2:

Strategic Market Planning

and the Evaluation of
Marketing Opportunities

For use with Shapiro, Wong, Perreault, and McCarthy texts.

Copyright © 2002 McGraw-Hill Ryerson Limited.
 The Marketing Management Process

Whole-Company
Whole-Company
Strategic
Strategic
Management
Management
Planning
Planning

Adjust Plans Marketing

as Needed Marketing
Planning
Planning

Control
ControlMarketing
Marketing Implement
ImplementMarketing
Marketing
Plan(s)
Plan(s)and
and Program
Program Plan(s)
Plan(s) and
and Program
Program

Exhibit 2-1
2-2 For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
 A Marketing Strategy

The
Marketing
Mix

Exhibit 2-2
2-3 For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
 The Four Ps of the Marketing Mix

Product Place

C
Price Promotion

Exhibit 2-3
2-4 For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
 Strategy Decision Areas
Organized by the Four Ps
Product Place Promotion Price
Physical Goods Objectives Objectives Objectives
Service Channel Type Blend Flexibility
Features Market Exposure Salespeople Level over
Quality Level Kinds of Kind Product Life
Accessories Middleman Number Cycle
Installation Kinds and Selection Geographic
Instructions Locations of Training Terms
Warranty Stores Motivation Discounts
Product Lines How to Handle Advertising Allowances
Packaging Transporting Targets
Branding and Storing Kinds of Ads
Service Levels Media Type
Recruiting Copy Thrust
Middlemen Who Prepares?
Managing Sales Promotion
Channels Publicity

Exhibit 2-4
2-5 For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
 Four Examples of Basic Channels of
Distribution for Consumer Products
Manufacturer or Producer

Del Procter &

CIBC Nissan
Monte Gamble

Wholesaler Wholesaler

Wholesaler

Retailer Retailer Retailer

Consumer
Exhibit 2-5
2-6 For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
Elements of a Firm’s Marketing Program

Target
Market
Marketing
+ = Strategy
Marketing Marketing
Mix + = Plan
A Firm’s
Time-Related
Details and Control
+ = Marketing
Program
Procedures Other
Marketing
Plans

Exhibit 2-7
2-7 For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
 Distribution of Different Firms
Based on Marketing Performance
Death-wish Best-practices
marketing marketing

68%
(Below (Above
average)
(Average average)
Marketing
(Well below Program) (Well above
average) average)

2% 14% 14% 2%
Total Poor Fair Good Exceptional
Failure

Exhibit 2-9
2-8 For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
 Types of Opportunities
Four Basic Types of Opportunities
Present Products New Products

Present Markets
Market Product
Penetration Development

New Markets
Market
Development Diversification

Exhibit 2-10
2-9 For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
 Sales and Cost Curves of
Two Strategies

Product A
Sales

In this graphic, a
Dollars

Total cost too-narrow focus on the

first year’s results might
cause the marketing
manager to abandon this
product as too costly.
0 1 2 3 4 5

Years

2-10 For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
 Evaluating Opportunities
Industry Attractiveness
High Medium Low
High
Business Strength
Medium

No Growth
Low

Borderline

Growth

Exhibit 2-13
2-11 For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
 Considering International Opportunities

ld

Co va
or

Ad
m n ta
W

pe g
ler

t it e
al

iv e
Sm

s ?
Ea n d
rl re
y T
St r
ar tte
t Be
2-12 For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
 Continuum of Environmental Sensitivity

Insensitive Sensitive

Industrial Basic Consumer

products commodity-type products that
consumer are linked to
products cultural
variables

Exhibit 2-14
2-13 For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.