Chapter 2: Company and Marketing Strategy PDF

CHAPTER : 2 COMPANY AND MARKETING STRATEGY: PARTNERING TO BUILD CUSTOMER RELATIONSHIPS  PARTNERING TO BUILD RELASHIONSHIP 4. Describe elements of customer-driven marketing 1. Explain strategic pla...

CHAPTER : 2 COMPANY AND MARKETING STRATEGY: PARTNERING TO BUILD CUSTOMER RELATIONSHIPS  PARTNERING TO BUILD RELASHIONSHIP 4. Describe elements of customer-driven marketing 1. Explain strategic planning strategy and marketing mix LEARNING GOALS 2. Describe business portfolios and growth strategies 5. List the marketing management functions 3. Detail marketing’s role in strategic planning WHAT IS STRATEGIC PLANNING? The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities STEPS IN STRATEGIC PLANNING: STEP 1 STEP 2 STEP 3 STEP 4 BUSINESS UNIT, CORPORATE LEVEL PRODUCT AND MARKET LEVEL Defining the Setting Designing Planning Company company the business marketing, Mission objectives portfolio and other and goals functional Strategies 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?  DEFINING A MARKET-ORIENTED MISSION: MARKET ORIENTED Characteristics of a Good Mission REALISTIC Statement: SPECIFIC FIT MARKET ENVIRONMENT DISTINCTIVE COMPETENCES MOTIVATING 1 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: STEP 1 STEP 2 Analyzing the current Shaping the future business portfolio and portfolio by decide which businesses developing strategies should receive more, less for growth and or no investment. downsizing. 2 GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES  BOSTON CONSULTING GROUP APPROACH: 2 GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES  ANALYZING CURRENT BUSINESS PORTFOLIO: 1▪ Build 2▪ Harvest ▪ Increase market share ▪ Increases short-term cash flow ▪ Divest 3▪ Hold 4 ▪ Sell or liquidate ▪ Preserve market share 2 GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES  DEVELOPING STRATEGIES FOR GROWTH: PRODUCT/ MARKET EXPANSION GRID Current Product New Product Current MARKET PRODUCT Market PENETRATION DEVELOPMENT New MARKET Market DIVERSIFICATION DEVELOPMENT 2 GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES  PRODUCT/ MARKET EXPANSION GRID: MARKET PENETRATION Making more sales to current customers without changing its MARKET products. DEVELOPMENT How? Add new stores in PRODUCT DEVELOPMENT current market areas, improve advertising, prices, service or store design. DIVERSIFICATION 2 GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES  PRODUCT/ MARKET EXPANSION GRID: MARKET PENETRATION Develop new markets for its MARKET DEVELOPMENT current products PRODUCT How? Identify new DEVELOPMENT demographic or geographic markets. DIVERSIFICATION 2 GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES  PRODUCT/ MARKET EXPANSION GRID: MARKET PENETRATION offering modified or new products MARKET to current markets. DEVELOPMENT PRODUCT How? New styles, flavors, DEVELOPMENT colors, or modified products. DIVERSIFICATION 2 GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES  PRODUCT/ MARKET EXPANSION GRID: MARKET PENETRATION MARKET DEVELOPMENT PRODUCT DEVELOPMENT New products for new markets. DIVERSIFICATION How? Start up or buy new businesses. 2 GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES  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 3 GOAL 3: DETAIL MARKETING’s ROLE IN STRATEGIC PLANNING  CUSTOMER DRIVEN MARKETING STRATEGY: MARKET SEGMENT (S) A group of consumers who respond in a similar way to a given set of marketing effort TARGETING (T) Evaluating each segment’s attractiveness and selecting one or more segments to enter. POSITIONING(P) Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. 3 GOAL 3: DETAIL MARKETING’s ROLE IN STRATEGIC PLANNING  MARKETING MIX: ❑ The marketing mix includes controllable and tactical marketing tools knows as the 4P’s ❑ The 4P’s include ▪ Product ▪ Place ▪ Promotion ▪ Price 4 GOAL 4: DESCRIBE ELEMENTS OF CUSTOMER-DRIVEN STRATEGY  DEVELOPING THE: MARKETING MIX: PRODUCT PRICE Variety List price Quality Discounts Design Allowances Features Payment Brand name TARGET period Packaging CUSTOMERS Credit terms services INTENDED POSITIONING PLACE PROMOTION Channels Advertising Coverage Personal selling Assortments Sales Promotion Locations Public relations Inventory Transportation Logistics 4 GOAL 4: DESCRIBE ELEMENTS OF CUSTOMER-DRIVEN STRATEGY  THE 4P’s & 4C’s OF THE MARKETING MIX: 4 GOAL 4: DESCRIBE ELEMENTS OF CUSTOMER-DRIVEN STRATEGY  MANAGING THE MARKETING EFFORT: Marketing Functions ANALYSIS SWOT Analysis PLANNING Finding opportunities Avoiding threats IMPLEMENTATION Understanding strengths Analyzing weaknesses CONTROL 5 GOAL 5: LIST THE MARKETING MANAGEMENT FUNCTIONS  MANAGING THE MARKETING EFFORT: Marketing Functions ANALYSIS Marketing plans include: Executive summary Current market situation PLANNING Threats and opportunities analysis Objectives and issues IMPLEMENTATION Marketing strategy Action programs Budget CONTROL Controls 5 GOAL 5: LIST THE MARKETING MANAGEMENT FUNCTIONS  MANAGING THE MARKETING EFFORT: Marketing Functions ANALYSIS PLANNING Plans are turned into action with day-to-day activities IMPLEMENTATION Good implementation is a challenge CONTROL 5 GOAL 5: LIST THE MARKETING MANAGEMENT FUNCTIONS  MANAGING THE MARKETING EFFORT: Marketing Functions ANALYSIS Evaluation of the results of PLANNING marketing strategies and plans IMPLEMENTATION Checks for differences between goals and performance CONTROL Corrective actions 5 GOAL 5: LIST THE MARKETING MANAGEMENT FUNCTIONS