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2 Marketing Strategy.

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Presentation on theme: "2 Marketing Strategy."— Presentation transcript:

1 2 Marketing Strategy

2 ROAD MAP: Previewing the Concepts
Companywide strategic planning: Four steps. business portfolios and growth strategies. How marketing works with its partners to create and deliver customer value: Customer Relationships. Marketing strategy and mix: Forces that influence it. Marketing management functions: Elements of a marketing plan. Professor Takada

3 ROAD MAP: Companywide strategic planning: Marketing strategy and mix:
Four steps. business portfolios and growth strategies. How marketing works with its partners to create and deliver customer value: Customer Relationships. Marketing strategy and mix: Forces that influence it. Marketing management functions: Elements of a marketing plan. Professor Takada

4 Strategic Planning Process of Developing and Maintaining a Strategic Fit Between the Organization’s Goals and Capabilities and Its Changing Marketing Opportunities. Professor Takada

5 Step 1 The Mission Statement
A statement of the organization’s purpose What it wants to accomplish in the larger environment Should be market oriented and defined in terms of customer needs. What is our Business? Who is the Customer? What do Consumers Value? What Should our Business Be? Professor Takada

6 Mission Statements Should:
Be Realistic Be Specific Fit the Market Environment Be Based on Distinctive Competencies Be Motivating Professor Takada 2-11

7 Good Mission Statements
Focus on limited number of goals Stress major policies and values Define major competitive spheres Professor Takada

8 GE’s breakthroughs in the process of desalination crosses multiple competitive spheres
By 2015, two-thirds of the world will be water-stressed. Desalination plants like this one help to relieve water shortages. Professor Takada

9 “The purpose of Motorola is to honorably
serve the needs of the community by providing products and services of superior quality at a fair price to our customers; to do this so as to earn an adequate profit which is required for the total enterprise to grow; and by doing so, provide the opportunity for our employees and shareholders to achieve their personal objectives.” Professor Takada

10 Product Orientation vs. Market Orientation
Company Product Market Missouri-Pacific Railroad We run a railroad We are a people-and-goods mover Xerox We make copying equipment We improve office productivity Standard Oil We sell gasoline We supply energy Columbia Pictures We make movies We entertain people Professor Takada

11 Step 2 Setting Company Objectives and Goals
Company’s Mission -> Objectives Business Objectives Marketing Objectives: Marketing Strategies and Programs Professor Takada

12 Step 3 Business Portfolio
Collection of businesses and products that make up the company. The company must: analyze its current business portfolio: Strategic Business Units (SBUs), decide which SBUs should receive more, less, or no investment, develop growth strategies for growth or downsizing. Professor Takada

13 Characteristics of SBUs
It is a single business or collection of related businesses It has its own set of competitors It has a leader responsible for Strategic planning Profitability Efficiency Professor Takada

14 Analyzing Current SBU’s: BCG Growth-Share Matrix
Relative Market Share High Low ? Stars High growth & share May need heavy investment to grow Eventually, growth will slow Question Marks Low share SBUs in high growth markets Require cash to hold market share Build into Stars or phase out Market Growth Rate Low High Cash Cows Low growth, high share Established, successful SBU’s Produce cash Dogs Low growth & share Generate cash to sustain self Do not promise to be cash sources Professor Takada

15 Problems With Matrix Approaches
Can be Difficult, Time Consuming, Costly to Implement Difficult to Define SBUs & Measure Market Share/Growth Focus on Current Businesses, Not Future Planning Problems With Matrix Approaches Can Place too Much Emphasis on Growth Can Lead to Poorly Planned Diversification Professor Takada

16 Ansoff’s Product-Market Expansion Grid
Professor Takada

17 Growth at Starbucks To maintain its phenomenal growth in an increasingly over-caffeinated marketplace, Starbucks has brewed up an ambitious, multi-pronged growth strategy. Professor Takada

18 Starbucks Product/Market Expansion Grid
Market Penetration: make more sales to current customers without changing products. How? Add new stores in current market areas; improve advertising, prices, menu, service. Market Development: identify and develop new markets for current products. How? Review new demographic (seniors/ethnic consumers) or geographic (Asian, European, Australian, & South American) markets. Product Development: offering modified or new products to current markets. How? Add food offerings, sell coffee in supermarkets, co-brand products. Diversification: start up or buy businesses outside current products and markets. How? Making and selling CDs, testing restaurant concepts, or branding casual clothing. Professor Takada

19 Marketing’s Role in Strategic Planning
Provide a Guiding Philosophy Provide Inputs to Strategic Planners Design Strategies to Reach Objectives Professor Takada

20 The Business Unit Strategic Planning Process
Professor Takada

21 SWOT Analysis Strengths Weaknesses Opportunities Threats
Professor Takada

22 Market Opportunity Analysis (MOA)
Can the benefits involved in the opportunity be articulated convincingly to a defined target market? Can the target market be located and reached with cost-effective media and trade channels? Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits? Professor Takada

23 Market Opportunity Analysis (MOA)_2
Can the company deliver the benefits better than any actual or potential competitors? Will the financial rate of return meet or exceed the company’s required threshold for investment? Professor Takada

24 FedEx FedEx added Sunday deliveries based on customer requests and
market demand Professor Takada

25 Opportunity Matrix Professor Takada

26 Threat Matrix Professor Takada

27 Porter’s Generic Strategies
Overall Cost Leadership Differentiation Focus Professor Takada

28 The Star Alliance Professor Takada

29 Categories of Marketing Alliances
Product or Service Alliances Promotional Alliances Logistics Alliances Pricing Collaborations Professor Takada

30 Feedback and Control Professor Takada

31 Value Delivery Network
Company’s Value Chain Distributors Suppliers Customers Professor Takada

32 The Value Chain Wal-Mart’s ability to offer the right products at low prices depends on the contributions from people in all of the company’s departments—marketing, purchasing, information systems, and operations. Professor Takada

33 The Value Delivery Process
Professor Takada

34 Nike Creates Value Professor Takada

35 Improving Value Delivery the Japanese Way
0 customer feedback time 0 product improvement time 0 setup time purchasing time 0 defects Professor Takada

36 3 V’s Approach to Marketing
Define the value segment Define the value proposition Define the value network Professor Takada

37 Porter’s Value Chain Professor Takada

38 Benchmarks Organizational costs and performance measures Competitor
Professor Takada

39 Core Business Processes
Market sensing Customer relationship management New offering realization Fulfillment management Customer acquisition Professor Takada

40 Wal-Mart’s stock replenishment process is legendary
Professor Takada

41 Characteristics of Core Competencies
A source of competitive advantage Applications in a wide variety of markets Difficult to imitate Professor Takada

42 Netflix’s Distinctive Capabilities
Professor Takada

43 Challenges Facing CMO’s
Doing more with less Driving new business development Becoming a full business partner Professor Takada

44 ROAD MAP: Marketing strategy and mix: Marketing management functions:
Companywide strategic planning: Four steps. business portfolios and growth strategies. How marketing works with its partners to create and deliver customer value: Customer Relationships. Marketing strategy and mix: Forces that influence it. Marketing management functions: Elements of a marketing plan. Professor Takada

45 Managing Marketing Strategy and Marketing Mix
Professor Takada

46 Market Segmentation The 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. Professor Takada

47 Target Marketing Involves evaluating each market segment’s attractiveness and selecting one or more segments to enter. Target segments that can sustain profitability. Professor Takada

48 Market Positioning Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Process begins with differentiating the company’s marketing offer so it gives consumers more value. Professor Takada

49 The Marketing Mix 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 P’s Product Price Place Promotion Professor Takada

50 The 4 P’s of the Marketing Mix
Professor Takada

51 The 4 P’s & 4 C’s of the Marketing Mix
4 P’s - Seller’s View Product Price Place Promotion 4 C’s - Buyer’s View Customer Solution Customer Cost Convenience Communication Professor Takada

52 Managing the Marketing Effort
Professor Takada

53 Major Sections of Product/Brand Plan
Executive Summary Current Marketing Situation Analysis of Threats and Opportunities Objectives for the Brand Marketing Strategy Action Programs Marketing Budget Controls Professor Takada

54 Evaluating a Marketing Plan
Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete? Professor Takada

55 Marketing Department Organization
Functional Organization Market or Customer Organization Geographic Organization Product Management Organization Combination of Two or More Professor Takada

56 Marketing Control Process
Professor Takada

57 Rest Stop: Reviewing the Concepts
Explain companywide strategic planning and its four steps. Discuss how to design business portfolios and develop strategies growth and downsizing. Assess marketing’s role in strategic planning and explain how marketers partner with others inside and outside the firm to build profitable customer relationships. 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. Professor Takada

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