Company & Marketing Strategy PDF

Company and Marketing Strategy: Partnering to Build Customer Relationships Chapter 2 Learning Goals 1. Explain strategic planning 2. Describe business portfolios and growth strategies 3. Detail marketing’s role in strategic planning 4. Describe elements of customer-d...

Company and Marketing Strategy: Partnering to Build Customer Relationships Chapter 2 Learning Goals 1. Explain strategic planning 2. Describe business portfolios and growth strategies 3. Detail marketing’s role in strategic planning 4. Describe elements of customer-driven marketing strategy and marketing mix 5. List the marketing management functions 2 What is Strategic Planning? Strategic Planning Defined: The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities 3 Goal 1: Explain strategic planning  Steps in Strategic Planning Business unit, Corporate Level product, and market level Planning Defining the Setting Designing marketing, Company Company the Business Objectives and other Mission Portfolio and Goals functional Strategies 4 Goal 1: Explain strategic planning Mission Statement  A statement of the organization’s purpose- what it wants to accomplish in the larger environment.  A mission statement asks.. What is our business? Who is the customer? What do consumers value? What should our business be? 5 Goal 1: Explain strategic planning Defining a market-oriented Mission Market MarketOriented Oriented Characteristics of Realistic Realistic a Good Mission Statement: Specific Fit FitMarket MarketEnvironment Environment Distinctive DistinctiveCompetencies Competencies Motivating Motivating 6 Goal 1: Explain strategic planning The Business Portfolio  A business portfolio is the collection of businesses and products that make up the company  Business portfolio planning involves two steps: 1. Analyzing the current business portfolio and decide which businesses should receive more, less or no investment. 2. Shaping the future portfolio by developing strategies for growth and downsizing. 7 Goal 2: Describe business portfolios and growth Analyzing Current SBU’s: Boston Consulting Group Approach 8 Goal 2: Describe business portfolios and growth  Analyzing current business portfolio  Build  Harvest  Increase market  Increases short- share term cash flow  Hold  Divest  Sell or liquidate  Preserve market share 9 Goal 2: Describe business portfolios and growth Developing Strategies for Growth Product/ Market Expansion Grid Existing New Products Products Existing 1. Market 3. Product Markets Penetration Development New 2. Market 4. Diversification Markets Development 10 Goal 2: Describe business portfolios and growth Product/ Market Expansion Grid  Market Penetration: making more sales to current customers without changing its products. How? Add new stores in current market areas, improve advertising, prices, service or store design.  Market Development: develop new markets for its current products How? Identify new demographic or geographic markets. 11 Goal 2: Describe business portfolios and growth Product/ Market Expansion Grid  Product Development: offering modified or new products to current markets. How? New styles, flavors, colors, or modified products.  Diversification: new products for new markets. How? Start up or buy new businesses. 12 Goal 2: Describe business portfolios and growth Marketing’s Role in Strategic Planning  Provide a guiding philosophy  Identify attractive opportunities  Design effective strategies  Build strong value chains  Form superior value delivery networks 13 Goal 3: Detail marketing's role in strategic planning Customer driven marketing strategy  Market segment A group of consumers who respond in a similar way to a given set of marketing effort  Targeting evaluating each segment’s attractiveness and selecting one or more segments to enter.  Positioning arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. 14 Goal 4: Describe elements of customer-driven  Marketing Mix  The marketing mix includes controllable and tactical marketing tools knows as the 4P’s  The 4P’s include  Product  Place  Promotion  Price 15 Goal Goal4:4: Describe Describeelements elementsof ofcustomer-driven customer-driven Developing the Marketing Mix Product Price Variety List price Quality Discounts Design Allowances Features Payment period Brand name Credit terms Packaging services Target Customers Place Intended Channels Positioning Promotion Coverage Advertising Assortments Personal selling Locations Sales promotion Inventory Public relations Transportation Logistics 16 Goal 4: Describe elements of customer-driven The 4 P’s & 4C’s of the Marketing Mix 17 Goal 4: Describe elements of customer-driven  Managing the Marketing Effort Marketing Functions Finding opportunities Avoiding threats Analysis Understanding Planning strengths Implementation Analyzing weaknesses Control 18 Goal 5: List the marketing management functions  Managing the Marketing Effort Marketing Functions Marketing plans include:  Executive summary  Current market situation Analysis  Threats and opportunities analysis Planning  Objectives and issues  Marketing strategy Implementation  Action programs  Budget Control  Controls 19 Goal 5: List the marketing management functions  Managing the Marketing Effort Marketing Functions Plans are turned into action with day-to- day activities Analysis Planning Good implementation is a Implementation challenge Control 20 Goal 5: List the marketing management functions  Managing the Marketing Effort Marketing Functions Evaluation of the results of marketing strategies and plans Analysis Planning Checks for differences between Implementation goals and Control performance Corrective actions 21 Goal 5: List the marketing management functions