kotler02_exs - Company and Marketing Strategy: Partnering...

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Unformatted text preview: Company and Marketing Strategy: Partnering to Build Customer Relationships Chapter 2 Objectives • Understand company­wide strategic planning and its four steps. • Learn how to design business portfolios and develop strategies for growth and downsizing. • Understand marketing’s role in strategic planning and how marketers partner with others. 2­ 2 Objectives • Be able to describe the marketing process and the forces that influence it. • Learn the marketing management functions, including the elements of the marketing plan. 2­ 3 Case Study Walt Disney Company • Known for films, animation, theme parks and customer orientation • Parks offer a variety of attractions as well as cleanliness, order, and warmth • Satisfying the customer is everyone’s job • Disney has grown via diversification • Sales and net income have fallen 2­ 4 Discussion: How Can Disney Recover? Strategic Planning • Strategic planning is defined as: “The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.” 2­ 5 Strategic Planning • Planning activities occur at the business unit, product, and market levels, and include: Defining the purpose and mission Setting objectives and goals Designing the business portfolio Developing detailed marketing and departmental plans 2­ 6 Strategic Planning • Mission statements should . . . serve as a guide for what the organization wants to accomplish. be “market­oriented” rather than “product­oriented”. be neither too narrow, nor too broad. fit with the market environment. be motivating. 2­ 7 Strategic Planning • Mission statements guide the development of objectives and goals. Objectives are developed at each level in the organization hierarchy. Strategies are developed to accomplish these objectives. 2­ 8 Strategic Planning • Business portfolio: “the collection of businesses and products that make up the company.” • Designing the business portfolio is a key element of the strategic planning process. 2­ 9 Strategic Planning Portfolio Design • Step 1: Analyze the current business portfolio • Step 2: Shape the future business portfolio • Identify strategic business units (SBUs) • Assess each SBU: The BCG growth­ share matrix classifies SBUs into one of four categories using the: Market growth rate SBU’s relative market share within the market. 2­ 10 Strategic Planning BCG Growth­Share Matrix High Market Growth Low Market Growth Stars Cash Cows High Relative Market Share Question Marks Dogs Low Relative Market Share 2­ 11 Strategic Planning Portfolio Design • Step 1: Analyze the current business portfolio • Step 2: Shape the future business portfolio • Determine the future role of each SBU and choose the appropriate resource allocation strategy: Build Hold Harvest Divest • SBUs change positions over time 2­ 12 Strategic Planning • Matrix approaches to formal planning share many problems: Difficult, time­consuming, and costly to implement. Focus only on current businesses. Too strongly emphasize market share growth or growth via diversification. 2­ 13 Strategic Planning • Designing the business portfolio also involves: Developing strategies for growth by identifying, evaluating, and selecting promising new market opportunities. Developing strategies for downsizing the business portfolio. Product/market expansion grid 2­ 14 Strategic Planning Product/Market Expansion Grid Existing Products Existing Markets New Markets Market Penetration Market Development New Products Product Development Diversification 2­ 15 Planning Marketing • Marketing plays a key role in the strategic planning process. • Marketers must practice CRM and Partner Relationship Management. Partnering with other departments in the company as well as other firms in the marketing system helps to build a superior value delivery­network. 2­ 16 The Marketing Process Key Elements • Analyzing marketing opportunities • Selecting target markets • Developing the marketing mix • Managing the marketing effort • The strategic planning and business portfolio analysis processes help to identify and evaluate marketing opportunities. • The purpose of the marketing process is to help the firm plan how to capitalize on these opportunities. 2­ 17 The Marketing Process Key Elements • Analyzing marketing opportunities • Selecting target markets • Developing the marketing mix • Managing the marketing effort • The segmentation process divides the total market into market segments. • Target marketing determines which segment(s) are pursued. • The market positioning for the product is then determined. 2­ 18 The Marketing Process Key Elements • Analyzing marketing opportunities • Selecting target markets • Developing the marketing mix • Managing the marketing effort • Competitor analysis guides competitive marketing strategy development. • Strategy leads to tactics by way of the marketing mix: The “Four Ps” – product, price, place, promotion (seller viewpoint) The “Four Cs” – customer solution, cost, convenience, and communication (customer viewpoint) 2­ 19 The Marketing Process Key Elements • Analyzing marketing opportunities • Selecting target markets • Developing the marketing mix • Managing the marketing effort • Marketing analysis Provides information helpful in planning, implementation, and control Strategies and tactics Turns plans into action Operating control Strategic control • Marketing planning • Marketing implementation • Marketing control Marketing audit 2­ 20 ...
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