Intel’s success has resulted from strong strategic planning and its relentless dedication to a simple marketing strategy: delivering superior value to customers by creating a continuous stream of leading-edge products. They also invest heavily to develop state-of-the-art products and bring them quickly to market. Intel’s marketing strategy goes far beyond innovative products and market development. It also includes innovative advertising using brand-awareness ads that create brand personality and convince PC buyers that Intel microprocessors really are superior. Intel has innovated at such a torrid pace that its microprocessors have sometimes outpaced market needs and capabilities. To help thing along, Intel has invested heavily in market development, creating new PC applications that can take full advantage of the latest Intel-powered PC’s. This strategy has brought it amazing success.
A market segment consists of consumers who respond in a similar way to a given set of marketing efforts. After a company has defined market segments, it can enter one or many segments of a given market. A target market is one or more segments that a company decides to enter. A company should target segments in which it can profitably generate the greatest customer value and sustain it over time.
Chapter 2 Strategic Planning and the Marketing Process
The 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 (SBU’s),
decide which SBU’s should receive more, less, or no investment,
develop growth strategies for adding new products or businesses to the portfolio.
Analyzing Current SBU’s: BCG Growth-Share Matrix (Fig. 2-2)
High growth, low share
Build into Stars or phase out
Require cash to hold
High growth & share
May need heavy
investment to grow
Low growth, high share
Low growth & share
Low profit potential
Relative Market Share High Low Market Growth Rate Low High ?
Problems With Matrix Approaches Can be Difficult, Time-Consuming, Costly to Implement Difficult to Define SBU’s & Measure Market Share/Growth Focus on Current Businesses, But Not Future Planning Can Lead to Unwise Expansion or Diversification
Contents of a Marketing Plan (Table 2-2) Executive Summary Current Marketing Situation Threats and Opportunity Analysis Objectives and Issues Marketing Strategy Action Programs Budgets Controls
Marketing Department Organization Formats for Organizing the Department Include: Geographic Organization Combination Plan Market or Customer Organization Functional Organization Product Management Organization