1. Correction of Final Exam Day
Final Exam is on 12/9 (Friday): 9:10-11:10.

2. Company and Marketing Strategy
Partnering to Build Customer Relationships

3. Chapter Outline
Corporate level planning: Business missions vs. marketing objectives
Analyze business portfolio: BCG Approach
Marketing Strategy and the Marketing Mix
STP Process
Marketing Mix
Managing the Marketing Effort
Measuring and Managing Return on Marketing Investment

4. Organizational capabilities and goals Marketing opportunities
Strategic Planning
Organizational capabilities and goals
Marketing opportunities
A fit between marketing opportunities and organizational goals and capabilities
Notes to Accompany Slide:
Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing
marketing opportunities.

5. Companywide Strategic Planning
Notes to Accompany Slide:
This figure provides steps in strategic planning and how it must start with the company goals which then leads to marketing planning.

6. Defining a Market-Oriented Mission
Mission Statement
Market oriented and based on satisfying customer needs
Meaningful and specific yet motivating
Emphasize company’s strengths in the market
Should NOT be stated in sales or profits
Notes to Accompany Slide:
A mission statement is a statement of the organization’s purposes, what it wants to accomplish in the larger environment.

7. Market-oriented business definitions
Company
Product-oriented
Market-oriented
Charles Schwab
We are a brokerage firm.
Nike
We sell athletic shoes and apparel
Revlon
We make cosmetics

8. Market-oriented business definitions
Company
Product-oriented
Market-oriented
Charles Schwab
We are a brokerage firm.
We are the guardian of our customers’ financial dreams.
Nike
We sell athletic shoes and apparel
We bring inspiration and innovation to every athelete in the world. (f you have a body, you are an athlete.)
Revlon
We make cosmetics
We sell lifestyle and self-expression; success and status; memories, hopes and dreams.

9. Which of the following mission statements is market-oriented?
Revlon: We sell cosmetics
Disney: We run theme parks
Wal-Mart: We deliver value through low prices
Xerox: We make copy, fax, and other office machines
©2011 Pearson Education, Inc. publishing as Prentice Hall

10. Which of the following mission statements is market-oriented?
Disney: We run theme parks
Revlon: We sell cosmetics
Wal-Mart: We deliver value through low prices
Xerox: We make copy, fax, and other office machines
Market-oriented mission statements are defined in terms of customer needs, rather than products or technologies.
©2011 Pearson Education, Inc. publishing as Prentice Hall

11. Business Mission of Ebay
What does e-bay offer?
Comparing with other selling’s website, what makes ebay more competitive?

12. Business Missions: Ebay
eBay – We help people trade practically anything on earth. We will continue to enhance the online trading experiences of all-collectors, dealers, small business, unique item seekers, bargain hunters, opportunity sellers, and browsers.
Eay: What kind of business is Ebay in? Based on the business missions, what services can/should ebay provide besides the online auction?

13. Setting Company Objectives and Goals What Marketing Objectives?
Build profitable business relationships
Marketing Objective?
Notes to Accompany Slide:
This slide demonstrates a company moving from a business objective to a marketing objective. Given this company’s objectives what might be the marketing objectives?

14. Marketing Objective
A statement of what is to be accomplished through marketing activities
Realistic, measurable, and time specific
Examples of marketing objective statements

15. Example of Marketing Objective
Our objective is to be a leader in the industry in terms of new-product development.
Our objective is to spend 12 percent of sales revenue between 2007 and 2008 on research and development in an effort to introduce at least five new products in 2008
Add animation

16. Designing the Business Portfolio
The Business Portfolio is the collection of businesses and products that make up the company

17. The Boston Consulting Group Approach
Marketing growth rate provides a measure of market attractiveness. On the horizontal axis, relative market shares serves as a measure of company strength in the market.

18. Analyze Apple’s Product Portfolio
Star
(iphone,ipad) ?
Apple TV
Cashcow
(ipod)
Mac
High
Market Growth Rate
low
Marketing growth rate provides a measure of market attractiveness. On the horizontal axis, relative market shares serves as a measure of company strength in the market.
High
low
Relative Market Share

19. Strategies for Growth and Downsizing

20. Market-Product Strategies: Ben and Jerry

21. Video case: Live Nation
What is Live Nation’s mission?
Based on the product/market expansion grid, what strategy is Live Nation pursuing

22. Outline Course Id to access mymktlab: CRSCDD5-258730
IE web browser preferred
Marketing strategy
STP Process
Return on marketing investment
Class activity 1

23. Marketing Strategy and the Marketing Mix
Notes to Accompany Slide:
This is a useful diagram to cover a roadmap of the book and of a marketing plan.

24. ©2011 Pearson Education, Inc. publishing as Prentice Hall
Schwinn Bicycle Company wants to grow by diversification. To accomplish this, Schwinn will:
Introduce new bicycle models
Introduce modifications to its existing bicycle products
Identify new market segments for its current products
Start up or acquire businesses outside of its current products and markets
©2011 Pearson Education, Inc. publishing as Prentice Hall

25. ©2011 Pearson Education, Inc. publishing as Prentice Hall
Schwinn Bicycle Company wants to grow by diversification. To accomplish this, Schwinn will:
Introduce new bicycle models
Introduce modifications to its existing bicycle products
Identify new market segments for its current products
Start up or acquire businesses outside of its current products and markets
Diversification is the riskiest strategy as it requires that businesses develop new products in new markets.
©2011 Pearson Education, Inc. publishing as Prentice Hall

26. ©2011 Pearson Education, Inc. publishing as Prentice Hall
Procter & Gamble once had more that ten different brands of laundry detergent but now markets only six. This is an example of:
Downsizing
Diversification
Market contraction
Market penetration
©2011 Pearson Education, Inc. publishing as Prentice Hall

27. ©2011 Pearson Education, Inc. publishing as Prentice Hall
Procter & Gamble once had more that ten different brands of laundry detergent but now markets only six. This is an example of:
Downsizing
Diversification
Market contraction
Market penetration
Downsizing is reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company’s overall strategy.
©2011 Pearson Education, Inc. publishing as Prentice Hall

28. Marketing Strategy
Segmentation Targeting Positioning

29. Customer Driven Marketing Strategy
Market segmentation is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
Notes to Accompany Slide:
Here we have two segments of women who exercise – you can ask students how they are different when purchasing an athletic shoe.

30. Segmentation

31. Customer Driven Marketing Strategy
Market targeting involves evaluating each market segment’s attractiveness and selecting one or more to enter
Notes to Accompany Slide:
The instructor can ask students what makes a market attractive and worth targeting.

32. Customer Driven Marketing Strategy
Positioning is arranging for a product to occupy a clear distinctive, and desirable place relative to competing products in the minds of the customer.
Notes to Accompany Slide:
Some products are positioned very clearly. Volvo, for instance, is positioned on safety.

33. Discussion: Mapping SUVs
Position these brands on a 2-dimension map (Price vs. performance)
Range Rover
Hummer H1
Hummer H2
Lexus LX 470
Lincoln Navigator
Land Cruiser
Escalade

34. Discussion: Mapping SUVs

35. The Gap Example What is Gap’s STP strategy?
How do they segment the market?
What are their target markets
How do they position the brand?
Summary
How do they segment the market? By gender and age.
What are their target market?
What are their positionning?

36. Developing an Integrated Marketing Mix
Notes to Accompany Slide:
The marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.

37. Managing the Marketing Effort Marketing Analysis
Notes to Accompany Slide:
Each of these steps will be described in the following slides

38. Marketing Analysis Notes to Accompany Slide:
The goal with a SWOT analysis is to match the company’s strengths to attractive opportunities and to eliminate weakness and minimize the threats.

39. Marketing Control Set marketing goals Measures performance
Evaluates causes of differences
Take corrective actions
Notes to Accompany Slide:
Control is important because so many surprises can occur during the implementation of marketing plans.

40. Measuring and Managing Return on Marketing Investment
Return on marketing investment (marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment.
Notes to Accompany Slide:
ROI measures the profits generated by investments in marketing activities.

41. Class activity one
Product Portfolio Analyze