Presentation on theme: "Professor Marshall Queens College"— Presentation transcript:
1 Professor Marshall Queens College Chapter 2 Company & Marketing Strategy Partnering to Build Customer RelationshipsProfessor MarshallQueens College
2 Strategic PlanningThe process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
3 Steps in Strategic Planning Defining the company missionSetting company objectives and goalsDesigning the business portfolioPlanning marketing and other functional strategies
4 Mission StatementA statement representing the organization’s purpose – what it wants to accomplish.Note: you can usually find a company’s mission statement on their website under ‘Investor Relations’ or ‘Corporate information’.ebay’s Mission:
5 Mission Statement Guidelines Should be market oriented and defined in terms of customer needs. Example: Charles Schwab – ‘guardian of its customers’ financial dreams’Should be realisticShould be specific (not too narrow or broad)Should fit the market environment. Example: Girl Scouts old: ‘to prepare young girls for motherhood and wifely duties’ – new: ‘where girls grow strong’.Should be motivating. Example: Walt Disney aims to ‘make people happy’.
6 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.An SBU can be a company division, a product line, or a single product or brand. It has a separate mission & can be planned independently from other company businesses.
7 The BCG Growth-Share Matrix StarOften need heavy investment to finance rapid growth. These turn into Cash Cows.Question MarkRequire a lot of cash to hold market share. Some are built into stars and some are phased out.HighMarket Growth RateCash CowEstablished. Need less investment to hold market share. These support other SBUs.DogMay generate enough cash to sustain themselves but do not support other SBUs.LowHighLowRelative Market ShareThe size of the circles is proportional to the SBU’s dollar sales.Each SBU has a life cycle and over time, SBUs change positions in the matrix. The company needs to keep adding new products so that some will become stars & cash cows.
8 The BCG Growth-Share Matrix Example: Macintosh StariPodQuestion MarkHighMarket Growth RateCash CowMac ComputersDogMacOSLowHighLowRelative Market ShareRelative Market Share: the ratio of sales of a particular brand to total sales of that product type in a defined region (country).
9 Ways to Research Market Share 10K ReportsSIC Codes (Standard Industry Classification)NAICS Codes (North American Industry Classification)Use Library Databases & Journals to look up articles related to the company/industry
10 Problems with Matrix Approaches Difficult to quantify market share and market growth.Focus on current business not future planning.Companies have shifted toward customized, decentralized approaches to strategic planning.
11 Product/Market Expansion Grid Strategies for company growthExisting ProductsNew ProductsMarket PenetrationIncreasing sales of current products to current market segments without changing the product.Product DevelopmentOffering modified or new products to current market segments.Existing MarketsMarket DevelopmentIdentifying and developing new market segments for current products.DiversificationStarting up or acquiring businesses outside the company’s current products and markets.New Markets
12 Product/Market Expansion Grid Examples of Starbucks’ growthExisting ProductsNew ProductsMarket PenetrationStarbucks is adding 23 stores per week.Product DevelopmentStarbucks recently added hot breakfast sandwiches to its menu.Existing MarketsMarket DevelopmentStarbucks might consider new demographic markets (for example: senior citizens or different ethnic groups).DiversificationStarbucks tested new restaurant concepts in San Francisco to enter a new related market.New Markets
13 Marketing’s Role in Strategic Planning The major functional departments in each unit of the company – marketing, finance, accounting, purchasing, operations, information systems, human resources, and others - must work together to accomplish the strategic objectives.Provide a guiding philosophy (the marketing concept)Provide inputs to strategic plannersDesign strategies to reach objectives
14 Value Delivery Network Company’s value chain – internal departments that must perform and coordinate activitiesDistributors (for example Pepsi has partnered with the college dining halls)Suppliers (for example Dell has partnered with Microsoft and Intel)
15 Marketing StrategyThe following steps help the company choose which customers to serve and how:Market SegmentationTarget MarketingMarket Positioning
16 Market SegmentationThe 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.
17 Target MarketingInvolves evaluating each market segment’s attractiveness and selecting one or more segments to enter.Target segments that can sustain profitability.
18 Market PositioningArranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.Begins with differentiating the company’s marketing offer so it gives consumers more value.
19 Marketing Mix Product Price Place Promotion The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.Consists of the 4 PsProductPricePlacePromotion
20 ProductVariety Quality Design Features Brand Name Packaging ServicesPriceList Price Discounts Allowances Payment Period Credit TermsTarget CustomersIntended PositioningPlaceChannels Coverage Assortments Locations Inventory Transportation LogisticsPromotionAdvertising Personal Selling Sales Promotion Public Relations
21 The 4 P’s & the 4 C’s of the Marketing Mix 4 P’s - Seller’s ViewProductPricePlacePromotion4 C’s - Buyer’s ViewCustomer SolutionCustomer CostConvenienceCommunication
22 SWOT Analysis An analysis of your company verses competition StrengthsCompetitive AdvantagesWeaknessesLimitations the firm has in its marketing strategyThreatsBarriers that may prevent the firm from reaching its goalsOpportunitiesFavorable conditions that could yield rewards
23 SWOT Analysis An analysis of your company verses competition Strengthsyour specialist marketing expertisea new, innovative product or servicelocation of your businessquality processes and proceduresany other aspect of your business that adds value to your product or serviceWeaknesseslack of marketing expertiseundifferentiated products or services (i.e. in relation to your competitors)location of your businesspoor quality goods or servicesdamaged reputationThreatsa new competitor in your home marketprice wars with competitorsa competitor has a new, innovative product or servicecompetitors have superior access to channels of distributiontaxation is introduced on your product or serviceOpportunitiesa developing market such as the Internetmergers, joint ventures or strategic alliancesmoving into new market segments that offer improved profitsa new international marketa market vacated by an ineffective competitor
24 Sections of Marketing Plan Executive summary – summarizes main goalsCurrent marketing situationAnalysis of threats and opportunities that the product might faceObjectives for the brandMarketing strategyAction programs – what/when/whoMarketing budget – expected costs & revenuesControls – how progress is monitored
25 Marketing Control Process Set GoalsMeasure PerformanceEvaluate PerformanceTake Corrective Action
26 Marketing Department Organization Functional Organization – by marketing activity (sales, advertising, etc.)Geographic Organization – by locationProduct Management Organization – by product or brandMarket or Customer Organization – by market/type of customerCombination
27 Dunkin’ Donuts (10 minutes) Video CaseDunkin’ Donuts(10 minutes)
28 Thoughts Is Dunkin’ Donuts more product-oriented or customer-oriented? How would you prepare against the invasion of Starbucks and Krispy Kreme?https://www.dunkindonuts.com