POM - Chapter 02-Finale

8/8/2019 POM - Chapter 02-Finale

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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

Strategic Planning

Strategic planning is the process ofdeveloping and maintaining a strategic fitbetween the organizations goals and

capabilities and its changing marketingopportunities

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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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Setting Company Objectives and Goals

Business objectives

Marketing objectives

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The Business Portfolio

A business portfolio is the collectionof businesses and products thatmake up the company

Business portfolio planning involvestwo steps:

1. Analyzing the current business portfolio

2. Shaping the future portfolio bydeveloping strategies

Goal 2: Describe business portfolios and growth strategies


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BCG GrowthBCG Growth--Share MatrixShare Matrix

Strategic Planning

High RelativeHigh Relative

Market ShareMarket Share

HighHigh

MarketMarket

GrowthGrowth

LowLowMarketMarket

GrowthGrowth

StarsStars

CashCashCowsCows

QuestionQuestion

MarksMarks

DogsDogs

Low RelativeLow Relative

Market ShareMarket Share


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Marketing Management

Build

Increase marketshare

Works well forquestion marks

Hold

Preserve marketshare

Good for cash cow

Harvest Increases short-

term cash flow

Good for weakcash cows,question marksand dogs

Divest Sell or liquidate

Good for dogs andquestion marks

Analyzing the Current

Business Portfolio

Goal 2: Describe business portfolios and growth strategies


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Strategic Planning

Matrix approaches to formalMatrix approaches to formal

planning share many problems:planning share many problems: Difficult, timeDifficult, time--consuming, andconsuming, and

costly to implement.costly to implement.

Focus only on current businesses.Focus only on current businesses. Too strongly emphasize marketToo strongly emphasize market

share growth or growth viashare growth or growth via

diversification.diversification.


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Strategic Planning Designing the business portfolioDesigning the business portfolio

also involves:also involves: Developing strategies for growth byDeveloping strategies for growth by

identifying, evaluating, andidentifying, evaluating, andselecting promising new marketselecting promising new market

opportunities.opportunities. Product/market expansion gridProduct/market expansion grid

Developing strategies forDeveloping strategies for

downsizing the business portfolio.downsizing the business portfolio.


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Marketings Role

in Strategic Planning Provide a guiding philosophy

Identify attractive opportunities

Design effective strategies

Build strong value chains

Form superior value delivery

networks

Goal 3: Detail marketing's role in strategic planning


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The Marketing Process The strategic planningThe strategic planning

and business portfolioand business portfolioanalysis processesanalysis processes

help to identify andhelp to identify andevaluate marketingevaluate marketingopportunities.opportunities.

The purpose of theThe purpose of the

marketing process is tomarketing process is tohelp the firm plan howhelp the firm plan howto capitalize on theseto capitalize on these

opportunities.opportunities.

Analyzing marketingAnalyzing marketingopportunitiesopportunities

Selecting targetSelecting targetmarketsmarkets

Developing theDeveloping themarketing mixmarketing mix

Managing theManaging themarketing effortmarketing effort

Key ElementsKey Elements


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The Marketing Process The segmentationThe segmentation

process divides theprocess divides thetotal market intototal market into

market segments.market segments. Target marketingTarget marketing

determines whichdetermines whichsegment(s) aresegment(s) are

pursued.pursued. TheThe market positioningmarket positioning

for the product is thenfor the product is thendetermined. (readdetermined. (readdifferentiation)differentiation)







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Customers groupedby: Geographic

Demographic Psychographic Behavioral

Market segment is agroups of consumers

who respond insimilar ways tomarketing efforts.

1. MarketSegmentation

2. Target marketing

3. Market

Positioning

Marketing Strategy

StrategyStrategy

Goal 4: Describe elements of customer-driven strategy


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Evaluation of eachsegmentsattractiveness

Selection ofsegments withgreatest long-termprofitability

A company canchoose one orseveral segments totarget

Marketing Strategy

StrategyStrategy



2. Target marketing

3. Market

Positioning


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The place theproduct occupies inthe consumers mind

Products arepositioned relativeto competingproducts

Marketers look forclear, distinctive anddesirable place inpositioning

Marketing Strategy

StrategyStrategy



2. Target marketing

3. Market

Positioning


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The Marketing Process Competitor analysis guidesCompetitor analysis guides

competitive marketingcompetitive marketing

strategy development.strategy development.

Strategy leads to tactics byStrategy leads to tactics byway of the marketing mix:way of the marketing mix:

The Four PsThe Four Ps product,product,

price, place, promotionprice, place, promotion

(seller viewpoint)(seller viewpoint)

The FourCsThe FourCs customercustomersolution, cost,solution, cost,

convenience, andconvenience, and

communication (customercommunication (customer

viewpoint)viewpoint)







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Marketing Today 4 Ps or 4Cs?

Marketing is about building relationshipsMarketing is about building relationships

Hence, the development of relationshipHence, the development of relationship

marketingmarketing

PricePrice Cost to CustomerCost to Customer

PlacePlace ConvenienceConvenience

ProductProduct Customers needs andCustomers needs and

wantswants

PromotionPromotion CommunicationCommunication


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The Marketing Process Marketing analysisMarketing analysis

Provides informationProvides information

helpful in planning,helpful in planning,

implementation, andimplementation, andcontrolcontrol

Marketing planningMarketing planning

Strategies and tacticsStrategies and tactics

Marketing implementationMarketing implementation

Turns plans into actionTurns plans into action

Marketing controlMarketing control

Operating controlOperating control

Strategic controlStrategic control

Marketing auditMarketing audit







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Managing the Marketing Effort

Analysis

PlanningDevelop

strategic

plans

Develop

marketing

plans

ImplementationCarry out

the plans

ControlMeasure results

Evaluate results

Take correctiveaction


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Findingopportunities

Avoiding threats Understanding

strengthsAnalyzing

weaknesses

Goal 5: List the marketing management functions

Analysis Planning

Implementation

Control

Managingthe

MarketingEffortMarketing FunctionsMarketing Functions


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Managing the Marketing Effort

Marketing Analysis

Strengths include internal capabilities,resources, and positive situationalfactors that may help to serve companycustomers and achieve companyobjectives

Weaknesses include internal limitationsand negative situational factors thatmay interfere with companyperformance

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Managing the Marketing EffortMarketing Analysis

Opportunities are favorable factors ortrends in the external environment that

the company may be able to exploit to

its advantage

Threats are unfavorable factors or trends

that may present challenges to

performance2-36


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Marketing plans include: Executive summary Analysis of current situation

Objectives Targets and positioning Marketing mix Budget Controls

Managing the

Marketing Effort


Marketing FunctionsMarketing Functions

Analysis Planning

Implementation

Control


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Evaluation of theresults of

marketingstrategies

Checks fordifferencesbetween goals andperformance

Managing the

Marketing Effort


Marketing FunctionsMarketing Functions

Analysis Planning

Implementation

Control


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Measuring Effectiveness

Return on marketing (marketing ROI)

The net return from a marketing

investment divided by the costs of the

investments


POM - Chapter 02-Finale

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