Marketing Audit

A thorough, systematic, periodic, evaluation of the objectives, strategies structure, adn performance of the marketing organization

4 characteristics:

1) Comprehensive  2) Systematic

3) Independent      4) Periodic

Four common reascon for failing to achieve the marketing objective

1) Unrealistic marketing objective

2) Inappropriate marketing strategies in the plan

3) Poor implementation

4) Changes in teh environment after the objective was specified and the strategy was implemented.

Marketing Plan Implementation

"turns marketing plan into action"

- detailed job assignments

- activity descriptions

- timeslines

- budgets

- lots of communication

Marketing Mix

A unique blend of products, place, promotion, and pricing strategies.

The four Ps

The market opporunity analysis (MOA)

Description and estimation of the size and sales potential of market segements that are of interest to the firm and the assessment of key competitors in those market segments.

Marketing Strategy

Selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.

Strategic Alternatives

 *Market development

Attracting new customers to existing products.

ex. Mcdonald opened in Russia

Strategic Alternatives

*market penetration

Increase market share among existing customers.

ex. aggressive advertising of beanie babies happy meals

Selecting a strategic alternatives

either pursue profits right away or first seek to increase market share and then pursue profits.  In the long run, market share and profitability are compatible goals.

Strategic Alternatives

*product development

creation of new products for present markets.

ex. printers were added to Dell's computer lineup.

Strategic Alternatives

*Diversification

Increasing sales by introducing new products into new markets.

ex. steel manufactorer enters monorail business.

Sustainable competative andvantage.

An advantage that connot be copied by the competition.

Niche Competative Advantage

To target and effectively serve a single segment of the market.

Product/Service differentiation 

competative advantage

Firm provides something unique that is valuable to buyers beyond simply offering a low price.

Cost competative

*methods

1) experience curves

2) efficient labor

3) no-frills goods & services

4) government subsidies

5) product design

6) reengineering

7) product innovations

8) new methods of services delivery

Environmental Scanning

Collection and interpretation of info about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.

Cost competative advantage

being the low cost competitor in an industry while maintaining satisfactory profit margins.

S.W.O.T. Analysis

Situational Analysis

(s) trengths

(w) eaknesses

(o) pportunities

(t) hreats

a marketing objective

1. objectives should be realistic, measurable, and time specific.

2. objective should be consistent with and indicate the priorities of the organization.

Marketing Myopia

Defining a business in terms of goods and services rather than in terms of the benefits that customer's seek.

Marketing Plan

Involves designing activities relating to marketing objectives and the changing marketing environment.

Mission Statement

A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and analysis of existing and anticipated environmental conditions.

Marketing Plan Elements

- defining the business mission & objectives

- performing a situation analysis

- delineating a target market

- establishing components of a marketing mix.