Final Exam Review II Chapters 5-7, 9 Objectives and Examples.
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Transcript of 2 -1 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Correction of Final Exam...
2 - 1
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Correction of Final Exam Day
• Final Exam is on 12/9 (Friday): 9:10-11:10.
MARKETING AN INTRODUCTION
Armstrong/Kotler2
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Company and Marketing
StrategyPartnering to Build Customer Relationships
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Chapter Outline
• Corporate level planning: Business missions vs. marketing objectives
• Analyze business portfolio: BCG Approach• Marketing Strategy and the Marketing Mix
– STP Process– Marketing Mix
• Managing the Marketing Effort• Measuring and Managing Return on Marketing
Investment
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Strategic Planning
A fit between marketing opportunities and organizational goals and capabilities
Organizational capabilities and
goals
Marketing opportunities
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Companywide Strategic Planning
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Defining a Market-Oriented Mission
Market oriented and based
on satisfyi
ng custom
er needs
Meaningful and specific yet motivating
Emphasize company’s strengths in the
market
Should NOT be stated in sales
or profitsMission
Statement
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Market-oriented business definitions
Company Product-oriented Market-oriented
Charles Schwab We are a brokerage firm.
Nike We sell athletic shoes and apparel
Revlon We make cosmetics
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Market-oriented business definitions
Company Product-oriented Market-oriented
Charles Schwab We are a brokerage firm. We are the guardian of our customers’ financial dreams.
Nike We sell athletic shoes and apparel
We bring inspiration and innovation to every athelete in the world. (f you have a body, you are an athlete.)
Revlon We make cosmetics We sell lifestyle and self-expression; success and status; memories, hopes and dreams.
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Which of the following mission statements is market-oriented?
1.Revlon: We sell cosmetics
2.Disney: We run theme parks
3.Wal-Mart: We deliver value through low prices
4.Xerox: We make copy, fax, and other office machines
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Which of the following mission statements is market-oriented?
1.Disney: We run theme parks
2.Revlon: We sell cosmetics
3.Wal-Mart: We deliver value through low prices
4.Xerox: We make copy, fax, and other office machines
Market-oriented mission statements are defined in terms of customer needs, rather than products or technologies.
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Business Mission of Ebay
• What does e-bay offer?
• Comparing with other selling’s website, what makes ebay more competitive?
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Business Missions: Ebay
• eBay – We help people trade practically anything on earth. We will continue to enhance the online trading experiences of all-collectors, dealers, small business, unique item seekers, bargain hunters, opportunity sellers, and browsers.
• www.ebay.com
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Setting Company Objectives and GoalsWhat Marketing Objectives?
Build profitable business
relationships
Marketing Objective?
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Marketing Objective
• A statement of what is to be accomplished through marketing activities
• Realistic, measurable, and time specific
• Examples of marketing objective statements
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Example of Marketing Objective
• Our objective is to be a leader in the industry in terms of new-product development.
• Our objective is to spend 12 percent of sales revenue between 2007 and 2008 on research and development in an effort to introduce at least five new products in 2008
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Designing the Business Portfolio
The Business Portfolio is the collection of businesses andproducts that make up the company
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The Boston Consulting Group Approach
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Analyze Apple’s Product Portfolio
Star(iphone,ipad)
?Apple TV
Cashcow(ipod)
Mac
Mar
ket
Gro
wth
Rat
e
Relative Market Share
High
low
High low
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Strategies for Growth and Downsizing
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Market-Product Strategies: Ben and Jerry
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Video case: Live Nation
• What is Live Nation’s mission?
• Based on the product/market expansion grid, what strategy is Live Nation pursuing
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Outline
• Course Id to access mymktlab: CRSCDD5-258730– IE web browser preferred
• Marketing strategy– STP Process
– Return on marketing investment
• Class activity 1
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Marketing Strategy and the Marketing Mix
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1.Introduce new bicycle models2.Introduce modifications to its existing
bicycle products3.Identify new market segments for its
current products 4.Start up or acquire businesses outside of
its current products and markets
Schwinn Bicycle Company wants to grow by diversification. To accomplish this, Schwinn will:
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Schwinn Bicycle Company wants to grow by diversification. To accomplish this, Schwinn will:
1. Introduce new bicycle models2.Introduce modifications to its existing
bicycle products3.Identify new market segments for its
current products 4.Start up or acquire businesses outside
of its current products and markets
Diversification is the riskiest strategy as it requires that businesses develop new products in new markets.
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Procter & Gamble once had more that ten different brands of laundry detergent but now markets only six. This is an example of:• Downsizing • Diversification• Market contraction• Market penetration
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Procter & Gamble once had more that ten different brands of laundry detergent but now markets only six. This is an example of:1.Downsizing 2.Diversification3.Market contraction4.Market penetration
Downsizing is reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company’s overall strategy.
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Marketing Strategy
Segmentation
Targeting
Positioning
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Customer Driven Marketing Strategy
Market segmentation is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors,
and who might require separate products or
marketing programs
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Segmentation
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Customer Driven Marketing Strategy
Market targeting involves evaluating eachmarket segment’sattractiveness and selecting one or moreto enter
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Customer Driven Marketing Strategy
Positioning is arranging for a product to occupy a clear distinctive,and desirable place relative to competing products in the minds of the customer.
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Discussion: Mapping SUVs
• Position these brands on a 2-dimension map (Price vs. performance)– Range Rover– Hummer H1– Hummer H2– Lexus LX 470– Lincoln Navigator– Land Cruiser– Escalade
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Discussion: Mapping SUVs
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The Gap Example
What is Gap’s STP strategy?•How do they segment the market?
•What are their target markets
•How do they position the brand?
Summary
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Developing an Integrated Marketing Mix
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Managing the Marketing EffortMarketing Analysis
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Marketing Analysis
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Marketing Control
Set marketing goals
Measures performance
Evaluates causes of
differences
Take corrective
actions
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Measuring and Managing Return on Marketing Investment
Return on marketing investment (marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment.
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Class activity one
Product Portfolio Analyze