customers, or they can create programs to cross-sell and up-sell in order to market more products and services to existing customers o Building customer equity Customer equity: the total combined customer lifetime values of all the company’s current and potential customers
o Building the right relationships with the right customers LO5: Describe the major trends and forces that are changing the marketing landscape in this age of relationships 1. The digital age: online, mobile, and social media marketing a. Digital and social media marketing: using digital marketing tools such as websites, social media, mobile ads and apps, online video, email, blogs, and other digital platforms that engage consumers anywhere, any time via their computers, smartphones, tablets, Internet-ready TVs, and other digital devices 2. The changing economic environment a. Luxury is again on the to-do list, but people are taking a more mindful approach to where, how and on what they spend 3. The growth of not-for-profit marketing a. The nation’s not-for-profits face stiff competition for support and membership – sound marketing can help them attract membership, funds, and support 4. Rapid globalization 5. The call for more ethics and social responsibility
Lesson 2, Chapter 2: Company and Marketing Strategy: Partnering to Build Customer Relationships LO1: Explain company-wide strategic planning and its four steps Strategic planning: the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities 1. A mission statement is the organization’s purpose – what it wants to accomplish in the larger environment a. Acts as an invisible hand that guides people in the organization b. Should be: i. Market oriented and defined in terms of satisfying basic customer needs ii. Be meaningful and specific, yet motivating at the same time iii. Focused on customers and the experience the company seeks to create 2. The company needs to turn its mission into detailed supporting objectives for each level of management a. Marketing strategies and programs must be developed to support these marketing objectives LO2: Discuss how to design business portfolios and develop growth strategies Business portfolio: the collection of businesses and products that make up the company Whether the company’s business portfolio consists of only one or two operations or dozens, the strategic planning process is the same: 1. The company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment a. Steps in portfolio analysis: i. Identify key businesses that make up the company (strategic business units) 1. Can be a division, product line within a division or a single product 2. Evaluated on 2 important dimensions: a. Attractiveness of the SBU’s market or industry b. Strength of the SBU’s position in that market or industry
One of four strategies can be pursued for each SBU: o Build: invest more in the business unit o
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