Company and Marketing

Strategic Planning The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. It involves defining a clear company mission, setting supporting objectives, designing a sound business portfolio and coordination functional strategies,

Steps in Strategic Planning Defining the company mission Setting the company objectives and goals Defining the company mission Designing the business portfolio Planning marketing and other functional strategies

Defining a market oriented mission –A mission statement is a statement of the organization’s purpose – what it wants to accomplish in the larger environment Setting company objectives and goals –Company mission needs to be turned in to detailed supporting objectives for each level of management. –Marketing strategies and programs must be developed to support these marketing objectives.

Designing the Business Portfolio –The collection of businesses and products that make up the company –Portfolio analysis

Marketing Strategy and The Marketing Mix Profitable customer relationship Market segmentation, target marketing, market positioning Product, price, place, Promotion Market analysis, planning, implementaion, control

Product Levels

Each level add more customer value and the five constitute a customer value hierarchy Eg: Hotel Room –Core benefit – rest and sleep –Basic product – bed, bathrrom, towel, desk –Expected product – clean bed, fresh towels, working lamps, quietness –Augmented product – exceeds customer espectation

Product Classification Durability and Tangibility –Non durable goods –Durable goods –Services Consumer Goods Classification –Convenience goods –Shopping goods –Specialty goods –Unsought goods

Industrial goods classification –Materials and parts –Manufactured materials –Capital items –Supplies and business services

Major Stages in New Product DEvelopment Idea generation Idea screening Concept development and testing Marketing strategy Business analysis Product development Test marketing communication

Product Life Cycle Strategies

Stages in PLC Product development – Co. finds and develops a new idea. Sales are zero and Co’s investment cost mounts. Introduction – slow sales growth. Profits are non existent Growth – period of rapid market acceptance and increasing profit. Maturity – slowdown in sales growth. Profit level off or decline. Decline – sales fall off and profits drop.

PLC can describe a Product class, a Product form or a form Product classes have the longest life cycles

Introduction Stage When product is first launched. Profits are negative or low basic versions of the product. Initial marketing strategy is the first step in the grander marketing plan.

Growth Stage Sales will satrt climbing quickly Early adopters will continue to buy, later buyers will start following. Entrance of new competitors Prices remain where they are or fall slightly Profit increase Firm faces a trade off between high market share and high current profit.

Maturity Stage Sales growth will slow down This stage lasts longer Slow down in sales growth many producers with many products to sell Drop in profit

Decline Stage Sales dip Pruning happens Management need to be careful while dealing with such products,