2. Marketing Strategy
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Transcript of 2. Marketing Strategy
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8/7/2019 2. Marketing Strategy
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Company and MarketingStrategy: Partnering to Build
Customer Relationships
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Principles of Marketing
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Companywide Strategic Planning:
Defining Marketings Role
Defining a Market-Oriented Mission
Mission statement: The organizationspurpose, what it wants to accomplish in thelarger environment
Market-oriented mission statement:Defines the business in terms of satisfyingbasic customer needs
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Companywide Strategic Planning:
Defining Marketings Role
Setting Company Objectives and Goals
Business objectives
Marketing objectives
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Companywide Strategic Planning:
Defining Marketings Role
Designing the Business Portfolio
The business portfolio is the collection ofbusinesses and products that make up thecompany
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Companywide Strategic Planning:
Defining Marketings Role
Analyzing the Current Business Portfolio
Analyzing the current business portfolio isthe process by which managementevaluates the products and businesses
making up the company
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Companywide Strategic Planning:
Defining Marketings Role
Steps in Analyzing the Current Business Portfolio
1. Identify key businesses making up thecompany
2. Assess the attractiveness of its various SBUs
3. Decide how much support each SBUdeserves
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Companywide Strategic Planning:
Defining Marketings Role
Analyzing the Current Business PortfolioThe Boston Group Approach
Growth share matrix is a portfolio planning method thatevaluates a companys strategic business units in terms oftheir market growth rate and relative share
Strategic business units are classified as:
Stars Cash Cows
Question marks
Dogs
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Companywide Strategic Planning:
Defining Marketings Role
Analyzing the Current Business Portfolio
The Boston Group Approach
Stars are high-growth, high-share businesses or productsrequiring heavy investment to finance rapid growth. Theywill eventually turn into cash cows.
Cash cows are low-growth, high-share businesses or productsthat are established and successful SBUs requiring lessinvestment to maintain market share
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Companywide Strategic Planning:
Defining Marketings Role
Analyzing the Current Business Portfolio
The Boston Group Approach
Question marks are low-share business units in high-growthmarkets requiring a lot of cash to hold their share
Dogs are low-growth, low-share businesses and products thatmay generate enough cash to maintain themselves but donot promise to be large sources of cash
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Companywide Strategic Planning:
Defining Marketings Role
Analyzing the Current Business Portfolio
Problems with MatrixApproaches
Difficulty in defining SBUs and measuringmarket share and growth
Time consuming
Expensive
Focus on current businesses, not futureplanning
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Companywide Strategic Planning:
Defining Marketings Role
Product/market expansion grid strategies Market penetration
Market development
Product development
Diversification
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Developing Strategies for Growth andDownsizing
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Companywide Strategic Planning:
Defining Marketings Role
Developing Strategies for Growth andDownsizing
Market penetration is a growth strategyincreasing sales to current market segmentswithout changing the product
Market development is a growth strategythat identifies and develops new marketsegments for current products
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Companywide Strategic Planning
Defining Marketings Role
Developing Strategies for Growth andDownsizing
Product development is a growth strategythat offers new or modified products toexisting market segments
Diversification is a growth strategy throughstarting up or acquiring businesses outsidethe companys current products and markets
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Companywide Strategic Planning
Defining Marketings Role
Developing Strategies for Growth andDownsizing
Downsizing is the reduction of the businessportfolio by eliminating products or businessunits that are not profitable or that nolonger fit the companys overall strategy
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Planning Marketing: Partnering
to Build Customer Relationships
Partner Relationship Management
Partner relationship management is theprocess of working closely with partners inother company departments to form aneffective value chain that serves the
customer, as well as partnering effectivelywith other companies in the marketingsystem to form a competitively superiorvalue-delivery network
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Planning Marketing: Partnering
to Build Customer Relationships
Value chain is a series of departments thatcarry out value-creating activities todesign, produce, market, deliver, andsupport a firms products
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Partnering with Other Company Departments
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Planning Marketing: Partnering
to Build Customer Relationships
Value delivery network is made up of the
company, suppliers, distributors, andultimately customers who partner witheach other to improve performance of theentire system
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Partnering with Others in the Marketing System
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Marketing Strategy and the
Marketing Mix
Customer-Driven Marketing Strategy
Market segmentation is the division of amarket into distinct groups of buyers whohave distinct needs, characteristics, orbehavior and who might require separate
products or marketing mixes
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Marketing Strategy and the
Marketing Mix
Customer-Driven Marketing Strategy
Market segment is a group of consumers whorespond in a similar way to a given set ofmarketing efforts
Target marketing is the process of evaluatingeach market segments attractiveness andselecting one or more segments to enter
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Marketing Strategy and the
Marketing Mix
Customer-Driven Marketing Strategy
Market positioning is the arranging for aproduct to occupy a clear, distinctive, anddesirable place relative to competingproducts in the minds of the targetconsumer
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Marketing Strategy and the
Marketing Mix
Developing an Integrated Marketing Mix
Marketing mix is the set of controllabletactical marketing toolsproduct, price,place, and promotionthat the firm blendsto produce the response it wants in thetarget market
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Marketing Strategy and the
Marketing Mix
Developing an Integrated Marketing Mix
The four Ps
Product is the goods and services incombination that the company offers to thetarget market
Price is the amount of money customers haveto pay to obtain the product
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Marketing Strategy and the
Marketing Mix
Developing an Integrated Marketing MixThe four Ps
Place is the company activities that make theproduct available to target customers
Promotion is the activities that communicatethe merits of the product and persuadetarget customers to buy it
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Marketing Strategy and the
Marketing Mix
Developing an Integrated Marketing Mix
The 4 Ps versus The 4 Cs
Product Customer solution
Price Customer cost
Place Convenience
Promotion Communication
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Managing the Marketing Effort
MarketingAnalysis
Analysis is the complete analysis of thecompanys situation in a SWOT analysis thatevaluates the companys:
Strengths
Weaknesses Opportunities
Threats
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Managing the Marketing Effort
MarketingAnalysis
Strengths include internal capabilities,resources, and positive situational factorsthat may help to serve company customersand achieve company objectives
Weaknesses include internal limitations andnegative situational factors that mayinterfere with company performance
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Managing the Marketing Effort
MarketingAnalysis
Opportunities are favorable factors or trends inthe external environment that the companymay be able to exploit to its advantage
Threats are unfavorable factors or trends thatmay present challenges to performance
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Managing the Marketing Effort
Market Planning
Planning is the development of strategic andmarketing plans to achieve companyobjectives
Marketing strategy consists of the specificstrategies for target markets, positioning,the marketing mix, and marketingexpenditure levels
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Managing the Marketing Effort
Sections of a marketing plan include:
Executive summary
Current marketing situation
Threats and opportunities
Objective and issues
Action programs
Budgets
Controls
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Market Planning
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Managing the Marketing Effort
MarketingDepartment Organization
Geographic organizations: Useful for companies thatsell across the country or internationally.Managersare responsible for developing strategies and plansfor a specific region.
Product Management: Useful for companies with
different products or brands.Managers areresponsible for developing strategies and plans for aspecific product or band.
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Managing the Marketing Effort
MarketingDepartment Organization
Market or customer managementorganization: Useful for companies withone product line sold to many differentmarkets and customers.Managers areresponsible for developing strategies andplans for their specific markets orcustomers.
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Managing the Marketing Effort
MarketingDepartment Organization
Customer management involves a customerfocus and not a product focus for managingcustomer profitability and customer equity
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Managing the Marketing Effort
Marketing Control
Controlling is measuring and evaluatingresults and taking corrective action asneeded
Operating control
Strategic control
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Managing the Marketing Effort
Marketing Control
Marketing audit is a comprehensive,systematic, independent, and periodicexamination of a companys environment,objectives, strategies, and activities todetermine problem areas and opportunities
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