Presentation on theme: "Chapter Two Marketing Strategy: Where Marketing Really Begins"— Presentation transcript:
1 Chapter Two Marketing Strategy: Where Marketing Really Begins With Duane Weaver
2 OUTLINE Strategic Planning Defined and the Process SBU’s Marketing Positioning – Tools: - The BCG Matrix and - The Product-Market Expansion GridPartneringStrategy a& Marketing MixSegmentationDifferentiation & PositioningManaging Effort, SWOTs, & ROIA Marketing Plan
3 What Is Strategic Planning? Strategic Planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
4 Strategic Planning and the Marketing Process Company Wide Strategic PlanningCompany Mission and Company ObjectivesDesign Business PortfolioBCG MatrixStrategies for GrowthProduct Market ExpansionDeveloping Customer Driven Marketing StrategySegmentation, Targeting and PositioningDeveloping the Integrated Marketing MixProduct, Price, Place, Promotion
5 Company Wide Strategic Planning Defining a Clear Company MissionStates the organization’s purpose.Market and customer-oriented.Provides direction to internal stakeholders.Setting Company Objectives and GoalsThe mission of the organization is translated to detailed, quantifiable objectivesThe rest of the planning process is supported by these objectives
6 Mission StatementsMission statement A statement of the organization’s purpose -what it wants to accomplish in the larger environment.It answers basic questionsWhat is our business?Who is the customer?What does the customer value?What should our business be?
7 Defining a Market Oriented Mission A market oriented mission statementDefines the business in terms of satisfying customer needsWill not be too narrow or too broadWill be in tune with the current market environment
8 Company Objectives and Goals Goals must be sustainable and lead to growthCorporate objectives include marketing objectives (specific, measurable, obtainable):Invest in research and developmentImprove or develop new productsDevelop customer relationships
9 Strategic Business Units (SBU) A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses.Can be a company division, a product line within a division or sometimes a single product or brand
10 Business PortfolioThe 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 and portfolio planning using tools such as the BCG matrix.
11 The BCG Growth Share Matrix Rising StarsQuestion MarksCash CowsDogsFix or abandonUse cash to make into a starNurture to generate cashDefend positionIndustry attractiveness, market share, cash generationBusiness strength, growth rate, cash use
13 Product/Market Expansion Grid in-class notesProduct/Market Expansion GridStrategies for growthMarket penetration strategyMarket development strategyProduct development strategyDiversification strategyStrategies for international growthCompany must decide whether to go international, then which markets, how many, and which types to enter
14 Partners Create and Deliver Customer Value Partnering to build customer relationshipsIn building profitable customer relationships companies partner with the value chain to deliver value to its customersThe value chain is the collective system of internal company departments and external business partners that together provide customer value by producing, delivering, marketing, and supporting the company’s products
15 Marketing Strategy and the Marketing Mix Mission StatementCorporate ObjectivesBusiness ObjectivesMarketing ObjectivesMarketing Strategies - The marketing logic by which the company creates customer value and achieves profitable customer relationships.Marketing Mix Strategies – guided by marketing strategies made up of factors under its control - product, price, place, and promotion.
16 Customer Driven Marketing Strategy Market Segmentation – sub dividing the target marketMarket Targeting – evaluating each segment and selecting one or more segmentsMarket Differentiation and Positioning – occupy a clear distinctive place in consumer’s mind
17 Market SegmentationThe process of dividing a market into distinct groups of buyers with different needs, characteristics or behaviours who might require separate products or marketing programs.Consumers are grouped into market segments based on:GeographicDemographicPsychographicBehavioral factors (e.g.: bought here before-loyalty)
18 Market Segmentation - exercise PLEASE TAKE 5 MINUTES TO:Get into your case team groups.Choose a company you are familiar with as a team.Identify one of the typical customers they sell to.Determine what form of market segmentation would work for them best to reach this type of customer (as a group/segment)?Be prepared to explain to the class why you think this type of segmentation is the best approach.
19 Market Differentiation and 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.
20 The Marketing MixThe set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.
21 Creating the Integrated Marketing Mix Product – offers the right product, service or experience.Price – controls perceived value and satisfaction.Place – allows customers’ easy access to product and support.Promotion – communicates the offer and the value proposition.Include this after the section “developing the integrated marketing mix”
22 The Four Ps and the Four Cs PRODUCT provides CUSTOMER SOLUTIONPRICE represents CUSTOMER COSTPLACE provides CONVENIENCEPROMOTION is two-way COMMUNICATION
23 Managing the Marketing Effort Marketing Analysis – A detailed description and analysis of the current situation facing the company (e.g.: SWOT)Marketing Planning – a detailed plan for each business unitMarketing Implementation – turning plans into actionMarketing Department Organization –Functional organizationsProduct organizationsMarket based organizationsGeographic organizationsCombinational organizationsMarketing Control – evaluating the results
24 Measuring and Managing Return on Marketing Investment Can you PROVE it will or it did work? The return on investment that can be calculated and attributed directly to the efforts of marketingCalculated by dividing net return from marketing by the cost of marketing investmentMeasures the profits generated by investments in marketing activities
25 A Marketing Plan Outline Executive summary.Current marketing situation.Market description.Product review.Competitive review.Review of distribution.Threat and opportunity analysis (SWOT).Objectives and issues.Marketing strategy.Action program.Budgets.Controls.