Marketing Strategy

Strategic Planning The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.

The Mission Statement A statement of the organization’s purpose or “raison d’etre”.

The Mission Statement Good mission statements… – clearly state one or two specific goals – Identify their target customer(s) – are market-oriented – promise to fulfill specific needs and wants – are simultaneously broad but specific – align with organizational core competencies – are realistic – are values-based – are memorable

Mission Statement Examples Rubbermaid “ Our vision is to be the Global Market Share Leader in each of the markets we serve. We will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, cost- effective and environmentally responsible products. We will add value to these products by providing legendary customer service through our uncompromising Commitment to Customer Satisfaction.”

Mission Statement Examples Motorola “ 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.”

Mission Statement Examples Ebay “We help people trade anything on earth. We will continue to enhance the online trading experiences of all – collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers.”

Mission Statement Examples Pepsi Bottling Group “We bottle and distribute Pepsi products.”

Core Compentencies Sources of competitive advantage and sustainability Skills can be leveraged in a wide variety of markets Transcend mere product or service capabilities and target market limitations The “career-change” analogy

What are Netflix’s Core Competencies?

Core Competencies What would… – Google do if online search became obsolete? – McDonald’s do if people stopped eating fast food? – Ebay do if online auctions became illegal? – HP do if people no longer needed to print? – T-Mobile do if cell phones were banned?

Question du Jour Should firms always stick to their core competencies?

Some Market Analysis & Strategy Tools BCG Growth-Share Matrix Product/Market Expansion Grid SWOT Analysis

The BCG Growth-Share Matrix

The Product/Market Expansion Grid

SWOT Analysis

In-class Activity Describe the core competencies of each of the following companies:

In-class Activity Choose one of the companies from the previous slide and perform a SWOT analysis.