Presentation on theme: "Correction of Final Exam Day"— Presentation transcript:
1Correction of Final Exam Day Final Exam is on 12/9 (Friday): 9:10-11:10.
2Company and Marketing Strategy Partnering to Build Customer Relationships
3Chapter OutlineCorporate level planning: Business missions vs. marketing objectivesAnalyze business portfolio: BCG ApproachMarketing Strategy and the Marketing MixSTP ProcessMarketing MixManaging the Marketing EffortMeasuring and Managing Return on Marketing Investment
4Organizational capabilities and goals Marketing opportunities Strategic PlanningOrganizational capabilities and goalsMarketing opportunitiesA fit between marketing opportunities and organizational goals and capabilitiesNotes to Accompany Slide:Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changingmarketing opportunities.
5Companywide 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.
6Defining a Market-Oriented Mission Mission StatementMarket oriented and based on satisfying customer needsMeaningful and specific yet motivatingEmphasize company’s strengths in the marketShould NOT be stated in sales or profitsNotes to Accompany Slide:A mission statement is a statement of the organization’s purposes, what it wants to accomplish in the larger environment.
7Market-oriented business definitions CompanyProduct-orientedMarket-orientedCharles SchwabWe are a brokerage firm.NikeWe sell athletic shoes and apparelRevlonWe make cosmetics
8Market-oriented business definitions CompanyProduct-orientedMarket-orientedCharles SchwabWe are a brokerage firm.We are the guardian of our customers’ financial dreams.NikeWe sell athletic shoes and apparelWe bring inspiration and innovation to every athelete in the world. (f you have a body, you are an athlete.)RevlonWe make cosmeticsWe sell lifestyle and self-expression; success and status; memories, hopes and dreams.
11Business Mission of Ebay What does e-bay offer?Comparing with other selling’s website, what makes ebay more competitive?
12Business 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?
13Setting Company Objectives and Goals What Marketing Objectives? Build profitable business relationshipsMarketing 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?
14Marketing ObjectiveA statement of what is to be accomplished through marketing activitiesRealistic, measurable, and time specificExamples of marketing objective statements
15Example 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 2008Add animation
16Designing the Business Portfolio The Business Portfolio is the collection of businesses and products that make up the company
17The 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.
18Analyze Apple’s Product Portfolio Star(iphone,ipad)?Apple TVCashcow(ipod)MacHighMarket Growth RatelowMarketing 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.HighlowRelative Market Share
29Customer 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 programsNotes 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.
31Customer Driven Marketing Strategy Market targeting involves evaluating each market segment’s attractiveness and selecting one or more to enterNotes to Accompany Slide:The instructor can ask students what makes a market attractive and worth targeting.
32Customer 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.
33Discussion: Mapping SUVs Position these brands on a 2-dimension map (Price vs. performance)Range RoverHummer H1Hummer H2Lexus LX 470Lincoln NavigatorLand CruiserEscalade
35The Gap Example What is Gap’s STP strategy? How do they segment the market?What are their target marketsHow do they position the brand?SummaryHow do they segment the market? By gender and age.What are their target market?What are their positionning?
36Developing 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.
37Managing the Marketing Effort Marketing Analysis Notes to Accompany Slide:Each of these steps will be described in the following slides
38Marketing 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.
39Marketing Control Set marketing goals Measures performance Evaluates causes of differencesTake corrective actionsNotes to Accompany Slide:Control is important because so many surprises can occur during the implementation of marketing plans.
40Measuring 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.