basic02_ppt.ppt 210KB Oct 11 2010 07:39:14 PM

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Chapter Two

Company and Marketing Strategy:

Partnering to Build

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Roadmap:

Previewing the Concepts

1. Explain companywide strategic planning and its four steps.

2. Discuss how to design business portfolios and growth strategies.

3. Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value.

4. Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence it.

5. List the marketing management functions, including the elements of a marketing plan.

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Early Days

 _{Characterized by “seat of}

the pants” management.

 _{Innovative sneaker tread}

drove early success.

 _{Technological product}

superiority, big-name

endorsements and “Just Do It” ads revolutionized sport marketing.

 _{1980s – 1990s: Nike}

leverages brand strength

NIKE – Strategy: Then & Now

Case Study

Late 1990s - Present

 _{Changes in consumer}

shoe preference, declining product innovation, and negative PR plague Nike.

 _{Anti-establishment image}

no longer works: brand backlash occurs.

 _{Strategic planning is}

embraced and Nike

focuses on innovation and exploring new market

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Strategic Planning

 _{The process of developing and}

maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing

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Steps in Strategic Planning

1. Defining the company mission. 2. Setting company objectives and

goals.

3. Designing the business portfolio. 4. Planning marketing and other

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The Mission Statement

 _{A statement of the organization’s}

purpose.

– What it wants to accomplish in the larger environment.

 _{Should be market oriented and defined}

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The Mission Statement

 _{Questions the mission statement}

should answer include:

– What is our business? – Who is our customer?

– What do consumers value?

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The Mission Statement:

 _{Should be realistic.}  _{Should be specific.}

 _{Should fit the market environment.}  _{Should be based on distinctive}

competencies.

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Designing the Business Portfolio

 _{The business portfolio is the collection of}

businesses and products that make up the company.

 _{The company must:}

– analyze its current business portfolio or Strategic Business Units (SBUs),

– decide which SBUs should receive more, less, or no investment,

– develop growth strategies for growth or downsizing.

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Portfolio Analysis

 _{An evaluation of the products and}

business making up the company.

 _{Resources are directed to more}

profitable businesses and weaker ones are phased down or dropped.

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Strategic Business Unit (SBU)

 _{A unit of the company that has a}

separate mission and objectives and that can be planned independently from other company businesses.

 _{Can be a company division, a product}

line within a division, or sometimes a single product or brand.

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BCG Growth-Share Matrix

 _Stars

– High share of low growth market.

– _{Build into cash cow via investment.}

 _{Cash Cows}

– High share of low growth market.

– Maintain or harvest for cash to build STARS.  _{Question Marks}

– Low share of high growth market.

– Build into STAR via investment if warranted, or reallocate financing and let slip into DOG status.  _Dogs

– Low share of low growth market. Maintain or divest.

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Problems with Matrix Approaches

 _{Can be difficult, time consuming, and costly}

to implement.

 _{Difficult to define SBUs and measure market}

share and growth rate.

 _{Focus is on current businesses; gives little}

help with future planning.

 _{Can place too much emphasis on growth.}  _{Can lead to poorly planned diversification.}

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Product/Market Expansion Grid

 _{Market Penetration}

– Existing markets, existing products  _{Market Development}

– New markets, existing products  _{Product Development}

– _{Existing markets, new products}  _{Diversification}

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Planning Marketing

 _{Marketing plays a key role in strategic}

planning:

– Provides a guiding philosophy.

• The Marketing Concept

– Provides inputs to strategic planners. – Designs strategies to reach objectives.

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Value Delivery Network

 _{Components include:} – Company’s value chain

• Each department is a link

– Distributors – Suppliers – Customers

 _{Improved performance in delivery value}

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Market Segmentation

 _{The process of dividing a market into}

distinct groups of buyers with different needs, characteristics, or behavior who might require separate products of

marketing programs.

 _{A market segment consists of}

consumers who respond in a similar way to a given set of marketing efforts.

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Target Marketing

 _{Involves evaluating each market}

segment’s attractiveness and selecting one or more segments to enter.

 _{Target segments that can sustain}

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Market Positioning

 _{Arranging for a product to occupy a}

clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

 _{Begins with differentiating the}

company’s marketing offer so it gives consumers more value.

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The Marketing Mix

 _{The set of controllable, tactical}

marketing tools that the firm blends to produce the response it wants in the target market.

– _Product – _Price

– _{Place (distribution)} – _Promotion

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The Marketing Mix

 _Product:

– Variety, quality, design, features, brand name,

packaging and services.

 _Promotion:

– Advertising, sales promotion, public relations and

 _Place:

– Channels, coverage, logistics, locations, transportation,

assortments and inventory.

 _Price:

– List price, discounts, allowances, payment period and credit

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The 4 Ps & the 4 Cs

of the Marketing Mix

 _{4 Ps –}

Seller’s View

– Product – Price

– Place

– Promotion

 _{4 Cs –}

Buyer’s View

– Customer Solution – Customer Cost

– Convenience

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Managing the Marketing Effort

 _{Four marketing management functions:} – Marketing Analysis

• SWOT analysis is key.

– _{Marketing Planning}

• _{Create brand marketing plan.}

– _{Marketing Implementation}

• _{Determine who, where, when, and how.}

– _{Marketing Control}

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SWOT Analysis

 _Strengths:

Internal capabilities that may help a company reach its objectives.

 _Weaknesses:

Internal limitations that may interfere with a company’s ability to achieve its objectives.

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SWOT Analysis

 _{Opportunities:}

External factors that the company may be able to exploit to its advantage.

 _Threats:

Current and emerging external factors that may challenge the company’s

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Brand / Product Marketing Plan

1. Executive summary

2. Current marketing situation

3. Analysis of threats and opportunities 4. Objectives for the brand

5. Marketing strategy 6. Action programs 7. Marketing budget 8. Controls

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Marketing Department

Organization

 _{Functional Organization:}

Each marketing activity is headed by a functional specialist.

– _{Sales Manager}

– Advertising Manager

– _{Director of Marketing Research} – _{Customer Service Manager}

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Marketing Department

Organization

 _{Geographic Organization:}

Sales and marketing people are

assigned to specific countries, regions, and districts.

 _{Product Management Organization:}

One person given responsibility for

complete strategy and marketing program for a single product.

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Marketing Department

Organization

 _{Market or Customer Organization:}

Manager responsible for particular market or customer.

 _{Combination Organization:}

Use some combination of the previous four approaches.

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Marketing Control Process

 _{Set Goals}

 _{Measure Performance}  _{Evaluate Performance}  _{Take Corrective Action}

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Marketing Control Process

 _{Operating Control}

– Evaluates performance against the plan and takes corrective action.

 _{Strategic control}

– Evaluates whether strategies match opportunities.

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Return on Marketing

 _{Assessed using one or more methods:} – Standard marketing performance

measures

• _{Brand awareness, sales, market share}

– _{Customer-centered measures}

• _{Customer acquisition, customer}

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Rest Stop:

Reviewing the Concepts

1. Explain companywide strategic planning and its four steps.

2. Discuss how to design business portfolios and growth strategies.

3. Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value.

4. Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence it.

(1)

Marketing Department

Organization



_{Geographic Organization:}

Sales and marketing people are

assigned to specific countries, regions,

and districts.



_{Product Management Organization:}

One person given responsibility for

complete strategy and marketing program

for a single product.

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2-29

Marketing Department

Organization



_{Market or Customer Organization:}

Manager responsible for particular

market or customer.



_{Combination Organization:}

Use some combination of the previous

four approaches.

– _{This is especially true in large companies}

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Marketing Control Process



_{Set Goals}



_{Measure Performance}



_{Evaluate Performance}



_{Take Corrective Action}

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Marketing Control Process



_{Operating Control}

– Evaluates performance against the plan and takes corrective action.



_{Strategic control}

– Evaluates whether strategies match opportunities.

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Return on Marketing



_{Assessed using one or more methods:}

– Standard marketing performance measures

• _{Brand awareness, sales, market share}

– _{Customer-centered measures}

• _{Customer acquisition, customer}

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Rest Stop:

Reviewing the Concepts

1. Explain companywide strategic planning and its four steps.

2. Discuss how to design business portfolios and growth strategies.

3. Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value.

4. Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence it.

5. List the marketing management functions, including the elements of a marketing plan.