Presentation on theme: "Company and Marketing Strategy. Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit between the."— Presentation transcript:
Company and Marketing Strategy
Companywide Strategic Planning Strategic Planning The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
Steps in Strategic Planning Defining the company mission Setting company objectives and goals Designing the business portfolio Planning marketing and other functional strategies Corporate level Business unit, product, and market level
1.Defining a Market-Oriented Mission Mission Statement A statement of the organization’s purpose— what it wants to accomplish in the larger environment. It should be market oriented and defined in terms of satisfying basic customer needs.
Its mission is not simply to sell ice cream. Its mission is to “make people happy around the world by selling the highest quality, most creative ice cream experience with passion, excellence, and innovation.”
Its mission is not simply to hold online auctions and trading. It aims “to provide a global trading platform where practically anyone can trade practically anything”—with eBay, “shop victoriously!” It wants to be a unique Web community in which people can safely shop around, have fun, and get to know each other, for example, by chatting at eBay café.
Mission Statement Should be meaningful and specific yet motivating Should emphasize the company’s strengths in the marketplace Should not be stated as making more sales or profits
Market-Oriented Business Definition CompanyProduct-Oriented Definition Market-Oriented Definition Amazon.comWe sell books, videos, CDs, toys, consumer electronics, hardware, housewares, and other product online. We make the internet buying experience fast, easy, and enjoyable—we’re the place where you can find and discover anything you want to buy online. L’OrealWe make cosmetics.We sell lifestyle and self- expression; success and status, memories, hopes, and dreams. AdidasWe sell athletic shoes and apparel. We strive to be the global leader in the sporting goods industry with sports brands built on a passion for sports and sporting lifestyle. TescoWe run discount stores.We deliver low prices everyday and give ordinary folks the chance to buy the same things as rich people.
2. Setting Company Objectives and Goals Turn company’s mission into detailed supporting objectives for each level of management.
3. Designing the Business Portfolio Business portfolio The collection of businesses and products that make up the company The best business portfolio is the one that best fits the company’s strengths and weaknesses to opportunities in the environment.
2 Steps in Business Portfolio Planning 1. Analyzing the current business portfolio Portfolio analysis The process by which management evaluates the products and businesses that make up the company Growth-share matrix A portfolio-planning method that evaluates a company’s strategic business units in terms of its market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs.
The BCG Growth Share Matrix
2 Steps in Business Portfolio Planning 2. Developing strategies for growth and downsizing Market penetrationProduct development Market developmentDiversification Existing market Existing products New products New market
4 Strategic Alternatives Market penetration: a marketing strategy that tries to increase market share among existing customers Market development: a marketing strategy that entails attracting new customers to existing products Product development: a marketing strategy that entails the creation of new products for current customers Diversification: a strategy of increasing sales by introducing new products into new markets
Ansoff’s Strategic Opportunity Matrix Present ProductNew Product Present MarketMarket penetration: McDonald’s sells more Happy Meals with Disney movie promotions Product development: McDonald’s introduces premium salads and McWater New MarketMarket development: McDonald’s opens restaurants in China Diversification: McDonald’s introduces line of children’s clothing
Planning Marketing: Partnering to Build Customer Relationships Value chain The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.
Marketers help deliver value to customers: Learn what customers need Stock the stores’ shelves with the desired products at the unbeatable low prices Prepare advertising and merchandising programs assist shopper with customer service
Marketers need help from other departments to effectively deliver value to customers: Purchasing: skill in developing the needed suppliers and buying from them at low cost IT: provide fast and accurate info. About products are selling in each store Operations: provide effective low-cost merchandising handling
Partnering with Others in the Marketing System Value delivery network The network made up of the company, suppliers, distributors, and ultimately, customer who partner with each other to improve the performance of the entire system
Knows the importance of building close relationships with its suppliers Puts “achieve supplier satisfaction” as a part of its mission statement
What Toyota Do with Suppliers: Learns about their businesses Conducts joint improvement activities Helps train supplier employees Gives daily performance feedback Actively seeks out supplier concerns Recognizes top performers with annual performance award
Those approaches to suppliers help Toyota: Increase the degree of trust, open, honest communication between them Improve its own quality Reduce costs of production Develop new product quickly
Marketing Strategy and the Marketing Mix Marketing strategy The marketing logic by which the business unit hopes to create customer value and achieve profitable customer relationships It involves 2 key questions: – Which customers will we serve (segmentation and targeting)? – How will we create value for them (differentiation and positioning)?
Managing Marketing Strategies and the Marketing Mix Then the company designs a marketing program-the 4Ps- that delivers the intended value to target consumers At its core, marketing is all about creating customer value and profitable customer relationships
Describing the Target Market Marketing strategy: the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets A market segment: a group of individuals or organizations that share one or more characteristics Target market should address demographics, psychographics, and buyer behavior
Market Segmentation Market: people or organizations with needs or wants and the ability and willingness to buy Market Segment: a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs Market Segmentation: the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups Purpose: to enable the marketer to tailor marketing mixes to meet the needs of one or more specific segments
Importance of Market Segmentation Market Segmentation More precise definition of consumer needs and wants More accurate marketing objectives Improve resource allocation Better marketing result
Targeting Target Market: a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges Undifferentiated (mass) marketing Differentiated (segmented) marketing Concentrated (niche) marketing Micro (local or individual) marketing Targeting broadly Targeting narrowly
Positioning Positioning: developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general Position: the place of product, brand, or group of products occupies in consumers’ minds relative to competing offerings Product differentiation: a positioning strategy that some firms use to distinguish their product from those of competitors
Positioning of Procter & Gamble Detergents BrandPositioning TideTough, powerful cleaning CheerTough cleaning and color protection BoldDetergent plus fabric softener GainSunshine scent and odor-removing formula EraStain treatment and stain removal DashValue brand OxideBleach-boosted formula, whitening SoloDetergent and fabric softener in liquid form DreftOutstanding cleaning for baby clothes, safe for tender skin Ivory SnowFabric and skin safety on baby clothes and fine washables ArielTough cleaner, aimed at Hispanic market
Positioning Bases Attribute: feature or benefit of product – Kleenex® Anti-Viral* Tissue – Kleenex® Anti-Viral* tissues' specially treated middle layer kills cold and flu viruses. Price & quality: price as the indication of value Use or application: Kahlua liqueur used advertising to point out 228 ways to consume the product
Positioning Bases Product user: personality of type of user – Imac positions itself as the best PC for artworks Product class: product is positioned against others that provide the same class of benefits.
Positioning Bases Competitor: Avis rental car positioning as “no.2” compared to Hertz and 7up with “the uncola” Emotion: focus on how product makes customers feel – “Just Do It” campaign didn’t tell consumers what “it” was, but most got emotional message of achievement & courage
Marketing Mix A unique blend of product, place, promotion, and pricing strategies (often referred to as the four Ps) designed to produce mutually satisfying exchanges with a target market 4Ps4Cs ProductCustomer Solution PriceCustomer Cost PlaceConvenience PromotionCommunication
Marketing Mix Product strategies: the product includes not only the physical unit but also its package, warranty, after-sale service, brand name, company image, value, and etc. Product can be… Tangible goods: computers Ideas: consultant offered Services: medical care Products should also offer customer value
Marketing Mix Place strategies: are concerned with making product available when and where customers want them. It is a physical distribution which involves all the business activities concerned with storing and transporting raw materials or finished products The goal is to make sure products arrive in usable condition at designated places when needed
Marketing Mix Promotion strategies: includes advertising, public relations, sales promotion, and personal selling Promotion’s role in the marketing mix is to bring about mutually satisfying exchanges with target markets by informing, educating, persuading, and reminding them of the benefits of an organization or a product Good promotion strategy can dramatically increase sales, however, not all good strategies guarantee success
Marketing Mix Pricing strategies: price is what a buyer must give up to obtain a product It is often the most flexible of the 4 marketing mix elements—the quickest element to change Price is an important competitive weapon and is very important to the organization because price multiplied by the number of units sold equals to total revenue for the firm