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Ch._2 - 2 Company and Marketing Strategy Partnering to...

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Unformatted text preview: 2 Company and Marketing Strategy: Partnering to Build Customer Relationships Strategic Planning Strategic Planning is the Process of Developing and Maintaining a Strategic Fit Between the Organization's Goals and Capabilities and Its Changing Marketing Opportunities. 2-2 Steps in Strategic Planning 2-3 Questions a Mission Statement Should Answer What is our Business? Who is the Customer? What do Consumers Value? What Should our Business Be? 2-4 Mission Statements Should: Be Realistic Be Specific Fit the Market Environment Be Based on Distinctive Competencies Be Motivating 2-5 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. 2-6 Analyzing Current SBU's: BCG GrowthShare Matrix Relative Market Share High Low Question Marks Stars Market Growth Rate Low High High growth & share May need heavy investment to grow Eventually, growth will slow Cash Cows Low growth, high share Established, successful SBU's Produce cash Low share SBUs in high growth markets Require cash to hold market share Build into Stars or phase out ? Dogs Low growth & share Generate cash to sustain self Do not promise to be cash sources 2-7 Problems With Matrix Approaches Can be Difficult, Time Consuming, Costly to Implement Difficult to Define SBUs & Measure Market Share/Growth Focus on Current Businesses, Not Future Planning Can Place too Much Emphasis on Growth Can Lead to Poorly Planned Diversification 2-8 Product/Market Expansion Grid PRODUCT Existing MARKET New Product Development Existing Market Penetration Market Development New Diversification 2-9 Product/Market Expansion Grid Based on Starbucks Market Penetration: make more sales to current customers without changing products. How? Add new stores in current market areas; improve advertising, prices, menu, service. Market Development: identify and develop new markets for current products. How? Review new demographic (seniors/ethnic consumers) or geographic (Asian, European, Australian, & South American) markets. 2-10 Product/Market Expansion Grid Based on Starbucks Product Development: offering modified or new products to current markets. How? Add food offerings, sell coffee in supermarkets, cobrand products. Diversification: start up or buy businesses outside current products and markets. How? Making and selling CDs, testing restaurant concepts, or branding casual clothing. 2-11 Marketing's Role in Strategic Planning Provide a Guiding Philosophy Provide Inputs to Strategic Planners Design Strategies to Reach Objectives 2-12 Value Delivery Network Company's Value Chain Distributors Suppliers Customers 2-13 Managing Marketing Strategy and Marketing Mix 2-14 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. 2-15 Target Marketing Involves evaluating each market segment's attractiveness and selecting one or more segments to enter. Target segments that can sustain profitability. Example: Arm & Hammer's baking soda. Click to See Arm & Hammer's Website 2-16 Market Positioning Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers (e.g., Chevy Blazer: "Like a rock") company's marketing offer so it gives consumers more value. Process begins with differentiating the 2-17 The 4 P's of the Marketing Mix 2-18 The 4 P's & 4 C's of the Marketing Mix 4 P's Seller's View Product Price Place Promotion 4 C's Buyer's View Customer Solution Customer Cost Convenience Communication 2-19 Managing the Marketing Effort 2-20 Major Sections of Product/Brand Plan Executive Summary Current Marketing Situation Analysis of Threats and Opportunities Objectives for the Brand Marketing Strategy Action Programs Marketing Budget Controls 2-21 Marketing Department Organization Functional Organization Market or Customer Organization Product Management Organization Geographic Organization 2-22 Marketing Control Process 2-23 ...
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