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Company and Marketing STRATEGY
Transcript of Company and Marketing STRATEGY
Explain company wide strategic planning and its four steps.
Discuss how to design business portfolios and develop growth strategies.
Explain marketing´s role strategic planning and how marketing works with its partners to to create and deliver customer value.
Describe the elements of a customer driven marketing strategy and mix and the forces that influence it
List the marketing management functions, including the elements of a marketing plan, and discuss the importance f measuring and managing return on marketing investment.
Like Nike, outstanding marketing organizations employ strongly customer driven marketing strategies and progrmas that create customer value and relationships. These marketing strategies and programs, however , are guided by broader company wide strategic plansand programs, wich ust also be customer focused. Thus, to understand the role of marketing, we must first understand the role of marketing , we must firts understand the organization´s overall strategic planning process.
Steps in Strategic Planning
The process of developing and maintaining a strategic fit between the organization´s goals and capabilities and its changing marketing opportunities
Companywide strategic planning defining marketing´s role
Each company must find the game plan for long-run survival and growth that makes the most sense given its specific situation, opportunities, objectives, and resources .
Sets the stage for the rest of the planning in the firm.
At the corporate level, the company starts the strategic planning process by deffining its overal porpuse and mision.
Next headquarters decides what portfolio of business and products is best for the company and how much support to give each one.
A statement of the organozation´s purpose - waht it wants to accomplish in the larger enviroment
An organization exists to acomplish someting, and this purpose should be clearly stated.
Forging a sound mission begins with the following questions?
What is our business ?
Who is the customer?
What do customer value?
What should our business be?
Defining a Market - Oriented Mission
Market oriented Business Definitions
The collection of business and products that make up the company
The process by wich management evaluates the products and business that make up the company
Designing The business portfolio
Guided by the company´s mission statement and objectives, management now must plan its BUSINESS PORTFOLIO.
The best BP is the one that best fits the company´s strengths and weaknesses to opportunities in the environment , two steps:
Analyze the current business portfolio and decides which business should receive, more, less, or no investment .
Second must shape the future portfolio by developing strategies for growth and downsizing.
Analyzing the Current Business Portfolio
Management´s first step is to identify the key business that make up the company, called strategic business unit (SBUs)
Can be a company division , or sometimes a single product or brand.
The company next assesses the attractiveness of its various SBUs and decides how much support each deserves.
When designing a business portfolio,its a good idea to add and support products and business that fit closely with the firm´s core philosophy and competences.
The Boston Consulting Group Approach
Using the now-classic (BCG) a company classifies all its SBUs according to the GROWTH SHARE MATRIX
Are high-growth, high-share business or products.They often need heavy investment to finance their rapid growth.Eventually their growth will slow down, and they will turn into cash cows
are low-growth, high share business or products.
These established and successful SBUs need less investment to hold their market share. They produce a lot of cash that the company uses to pay its bills and to support other SBUs that need investment.
are low-share business units in high-growth markets. They require a lot of cash to hold their share, let alone increase it. Management has to think hard about which question marks it should try to build into stars and which should be phased out .
are low growth, low share business and products. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.
Product Market Expansion Grid
A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
Strategy growth by identifying and developing new market segments for current company products
Strategy for company growth by offering modified or new products to current market segments .
A strategy for company growth through starting up or acquiring businesses outside the company´s
current products or markets
Reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company´s overall strategy.
Marketing Strategy and the marketing mix
The marketing strategy logic by which the company hopes to create customer value and achieve profitable customer relationships.
Marketing Strategies and The Market Mix
Dividing a market into distinct groups of buyers who have different needs, Characteristics, or behaviors and who might require separate products or marketing programs
A group of consumers who respond in a similar way to a given of marketing efforts
The process of evaluating each market segment´s attractiveness and selecting one or more segments to enter
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Developing an Integrated Marketing Mix
The set of of controllable, tactical tools, that the Firm Blends to produce the response it wants in "the target MARKET".The MARKETING MIX consists in everything the firm can do to influence the demand for its products .
Means the goods-and-services combination the company offers to the target markets.
Example: Ford Escape consist of nuts and bolts, sparks plugs, pistons, headlines, and dozens of optional features. The car comes fully serviced and with a comprehensive warranty that is much a part of the product as the Tailpipe.
Is the amount of money customers must pay to obtain the product.
Ford calculates suggested retail prices that its dealers might charge for each Escape.
But Ford dealers rarely charge the full sticker price. Instead, they negotiate the price with each customer, offering discounts, trade-in allowances and credit terms. These actions adjust for the current competitive and economic situation and bring them into line with buyers perception of the cars value .
Includes company activities that make the product available to target consumers. Ford partners with a large body of independently owned dealers ships that sells the company´s many different models. Ford selects its dealers carefully and supports them strongly. The dealers keep an inventory of ford automobiles, demonstrate them to potential buyers, negotiate prices,close sales, and service the cars after sales.
Means activities that communicate the merits of the product and persuade target customers to buy it. Ford Motor Company spends more than $2 billion each year on U.S advertising to sell consumers about the company and its many products. Dealership sales people assist potential buyers and persuade them that Ford is the best car for them. Ford and its dealers offer special promotions-sales, cash rebates, low-financing rates-as added purchase incentives.
The perfect Mix
An effective marketing program blends all the marketing mix elements into an integrated marketing program designed to achieve the marketing objectives by delivering value to customers.
The marketing mix constitutes the company´s tactical tool kid for establish strong positioning in target markets.
Some critics think that the four P´S may omit or under -emphasize certain important activities:
Where are the services? Just because they don´t start with a "P" doesn´t justify omitting them.
The answer is that services, such as banking, airline, and retailing services, are products too.(We might call them
Where is packaging ?
The critics might ask...
Marketers would answer that they include packaging as just one of many product decisions.
All said as figure 2.5 suggests, many marketing activities that might appear to be left out of the marketing mix are subsumed under one of the four P´s.
The issue is not whether there should be four, six or ten P´s so much as a frame work is most helpful in designing integrated marketing programs.
But wait... there is another concern
It holds that the four P´s concept takes the sellers view of the market, not the buyer´s view.
From buyers point , in this age of customer value and relationships, the four P´s might be better described as the four C´s
Marketers see themselves as selling products, customers seem themselves as buying value or solution their problems. And customers are interested in more than just price, their are interested in the total cost of obtain, using and disposing of a product. Finally they want two way communication Marketers would do well to think through The four C´s first and the build the four P´s on that platform