Company and Marketing Strategy

Company and Marketing Strategy

• Involves companywide strategic planning to define marketing's role
• Includes designing a business portfolio
• Requires marketing planning to build customer relationships
• Encompasses marketing strategy and marketing mix management
• Entails managing marketing efforts
• Includes measuring and managing return on marketing investment

Companywide Strategic Planning

Strategic Planning

• Focuses on creating and maintaining a strategic fit between an organization's objectives, capabilities, and evolving marketing possibilities

Steps in Strategic Planning

• Defining the company mission
• Setting company objectives and goals
• Designing the business portfolio
• Planning marketing to achieve other functional strategies at the business unit, product, and market levels

Market-Oriented Mission

• A mission statement defines an organization's purpose for its larger environment
• A market-oriented mission statement outlines a business in terms of meeting customers’ core needs

Companywide Strategic Planning example companies

• Amazon's product-oriented definition is that they sell books, videos, CDs, toys, consumer electronics and other products online
• Amazon's market-oriented definition is that they make the Internet buying experience fast, easy, and enjoyable, where you can find anything you want to buy online
• Disney's product-oriented definition is that they run theme parks
• Disney's market-oriented definition is that they create fantasies, where dreams come true and America works as it should
• Nike's product-oriented definition is that they sell athletic shoes and apparel
• Nike's market-oriented definition is that they bring inspiration and innovation to every athlete

Setting Company Objectives and Goals

Business Objectives:

• Building profitable customer relationships
• Investing in research
• Improving profits

Marketing Objectives:

• Increasing market share
• Creating local partnerships
• Increasing promotion

Business Portfolio

• It is the group of businesses and products of a company
• Portfolio analysis by management helps evaluates the products and bussinesses

Analyzing the Current Business Portfolio

• A strategic business unit (SBU) is a company unit having a distinct mission and goals that may be planned independently
• SBUs can be a company division, a product line within a division or a single product or brand

Analyzing the Current Business Portfolio Process

• Identify key businesses (SBUs) within the company
• Assess the attractiveness of each SBU
• Decide how much support each SBU will receive

Problems with Matrix Approaches

• Difficulty in defining SBUs, measuring market share, and estimating growth
• Time-consuming
• Expensive
• Focus on current businesses and not future planning

Product/Market Expansion Grid

• A tool for finding opportunities of growth, including market penetration to diversification

Product/Market Expansion Grid Strategies

• Market penetration involves boosting sales of existing products without altering them in current market segments
• Market development is a growth strategy involving the identification and development of new market segments for current company products
• Product development is a growth strategy of offering new or modified products to current market segments
• Diversification is growth through starting up or acquiring businesses outside the company’s current products and markets

Downsizing

• Downsizing is the reduction of the business portfolio by eliminating products or business units that are not profitable or no longer fit the company’s overall strategy

Value Chain

• Value chain is the alignment of departments conducting value activities to design, produce, market, deliver, and support a business' products

Value Delivery Network

• Value delivery network includes the company, vendors, distributors, and customer who improve overall system performance by their partnership

Marketing Strategy

• Marketing Mix focuses on Customer-Driven Marketing Strategy

Market Segmentation

• Market segmentation splits the market into separate groups of buyers with distincts needs, features, or behaviours, who might require separate products or marketing mixes
• A market segment is one group of consumers responding similarly to a given set of marketing efforts

Customer-Centered Marketing Strategy

• Market targeting involves the process of assessing each market segment’s attractiveness, and choosing one or more that the company might enter

Market positioning

• Market positioning arranges for a product to hold a visible, unique, and desirable position relative to competitor's in the target consumer's mind

Integrated Marketing Mix

• Marketing mix includes using Product, Price, Place, and Promotion

Managing the Marketing Effort

• Analysis
• Plannning
• Implementation
• Control

Internal Environment

• Strengths and Weaknesses

External Environment

• Opportunities and Threats

Market Planning

• Parts of a Marketing Plan include: Executive summary, Marketing situation, Objective and issues, Marketing strategy, Action programs, Budgets, Controls, Threats and opportunities

Marketing Implementation

• Implementation is the plan to turn market plans into marketing actions to support company strategies
• Successful implementation blends: people, organization, decision and reward system, and company culture

Marketing Department Organization types

• Functional
• Geographic
• Product management
• Market or customer management

Marketing Control

• Controlling manages the evaluation of results to take corrective action when needed
• Operating control
• Strategic control

Measuring and Managing

• Return on marketing investment (Marketing ROI) is the financial return on a marketing investment divided by its costs, measuring profits generated by investments