BA320 Summer 2006 Marketing Strategy


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  • 05/31/10
  • 05/31/10
  • 05/31/10
  • 05/31/10
  • 05/31/10
  • 05/31/10
  • 05/31/10
  • 05/31/10
  • BA320 Summer 2006 Marketing Strategy

    1. 1. BA320 Summer 2006 Marketing Strategy
    2. 2. <ul><li>Explain companywide strategic planning and its four steps. </li></ul><ul><li>Discuss how to design business portfolios and growth strategies. </li></ul><ul><li>Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value. </li></ul><ul><li>Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence it. </li></ul><ul><li>List the marketing management functions, including the elements of a marketing plan. </li></ul>Agenda for Today
    3. 3. Strategic Planning <ul><li>The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. </li></ul>
    4. 4. Figure 2-1 Steps in Strategic Planning
    5. 5. The Mission Statement <ul><li>A statement of the organization’s purpose. </li></ul><ul><ul><li>What it wants to accomplish in the larger environment. </li></ul></ul><ul><li>Should be market oriented and defined in terms of customer needs. </li></ul>
    6. 6. The Mission Statement <ul><li>Questions the mission statement should answer include: </li></ul><ul><ul><li>What is our business? </li></ul></ul><ul><ul><li>Who is our customer? </li></ul></ul><ul><ul><li>What do consumers value? </li></ul></ul><ul><ul><li>What should our business be? </li></ul></ul>
    7. 7. The Mission Statement: <ul><li>Should be realistic. </li></ul><ul><li>Should be specific. </li></ul><ul><li>Should fit the market environment. </li></ul><ul><li>Should be based on distinctive competencies. </li></ul><ul><li>Should be motivating. </li></ul>
    8. 8. Let’s Talk!
    9. 9. Designing the Business Portfolio <ul><li>The business portfolio is the collection of businesses and products that make up the company. </li></ul><ul><li>The company must: </li></ul><ul><ul><li>analyze its current business portfolio or Strategic Business Units (SBUs), </li></ul></ul><ul><ul><li>decide which SBUs should receive more, less, or no investment, </li></ul></ul><ul><ul><li>develop growth strategies for growth or downsizing. </li></ul></ul>
    10. 10. Portfolio Analysis <ul><li>An evaluation of the products and business making up the company. </li></ul><ul><li>Resources are directed to more profitable businesses and weaker ones are phased down or dropped. </li></ul>
    11. 11. Strategic Business Unit (SBU) <ul><li>A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses. </li></ul><ul><li>Can be a company division, a product line within a division, or sometimes a single product or brand. </li></ul>
    12. 12. Strategic Business Units <ul><li>The Symrise company creates ingredients used in flavors, fragrances, and cosmetics. </li></ul><ul><li>The Flavors Division is structured into SBUs which are responsible for developing the product categories shown at left. </li></ul>Marketing in Action http://
    13. 13. Figure 2-2 The BCG Growth-Share Matrix
    14. 14. BCG Growth-Share Matrix <ul><li>Stars </li></ul><ul><ul><li>High share of low growth market. </li></ul></ul><ul><ul><li>Build into cash cow via investment. </li></ul></ul><ul><li>Cash Cows </li></ul><ul><ul><li>High share of low growth market. </li></ul></ul><ul><ul><li>Maintain or harvest for cash to build STARS. </li></ul></ul><ul><li>Question Marks </li></ul><ul><ul><li>Low share of high growth market. </li></ul></ul><ul><ul><li>Build into STAR via investment if warranted, or reallocate financing and let slip into DOG status. </li></ul></ul><ul><li>Dogs </li></ul><ul><ul><li>Low share of low growth market. Maintain or divest. </li></ul></ul>
    15. 15. Problems with Matrix Approaches <ul><li>Can be difficult, time consuming, and costly to implement. </li></ul><ul><li>Difficult to define SBUs and measure market share and growth rate. </li></ul><ul><li>Focus is on current businesses; gives little help with future planning. </li></ul><ul><li>Can place too much emphasis on growth. </li></ul><ul><li>Can lead to poorly planned diversification. </li></ul>
    16. 16. Figure 2-3 The Product/Market Expansion Grid
    17. 17. Planning Marketing <ul><li>Marketing plays a key role in strategic planning: </li></ul><ul><ul><li>Provides a guiding philosophy. </li></ul></ul><ul><ul><ul><li>The Marketing Concept </li></ul></ul></ul><ul><ul><li>Provides inputs to strategic planners. </li></ul></ul><ul><ul><li>Designs strategies to reach objectives. </li></ul></ul>
    18. 18. Figure 2-4 Managing Marketing Strategy and the Marketing Mix
    19. 19. Market Segmentation <ul><li>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. </li></ul><ul><li>A market segment consists of consumers who respond in a similar way to a given set of marketing efforts. </li></ul>
    20. 20. Target Marketing <ul><li>Involves evaluating each market segment’s attractiveness and selecting one or more segments to enter. </li></ul><ul><li>Target segments that can sustain profitability. </li></ul>
    21. 21. Target Marketing <ul><li>Jones Soda caters to its niche of 12- to 24-year-olds who “appreciate the brand’s wacky and irrelevant attitude”. </li></ul><ul><li>Loyal consumers help design product flavors, colors, labels, and brand names. Visit the Web site to learn more. </li></ul>Marketing in Action http://
    22. 22. Market Positioning <ul><li>Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. </li></ul><ul><li>Begins with differentiating the company’s marketing offer so it gives consumers more value. </li></ul>
    23. 23. Marketing in Action Promoting attributes, benefits, usage situations, or users can help to establish a product’s position in the consumer’s mind. Positioning
    24. 24. The Marketing Mix <ul><li>The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. </li></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Place (distribution) </li></ul></ul><ul><ul><li>Promotion </li></ul></ul>
    25. 25. Figure 2-5 The Four “Ps” of the Marketing Mix
    26. 26. Discussion
    27. 27. Figure 2-6 Marketing Analysis, Implementation, Planning, and Control
    28. 28. Managing the Marketing Effort <ul><li>Four marketing management functions: </li></ul><ul><ul><li>Marketing Analysis </li></ul></ul><ul><ul><ul><li>SWOT analysis is key. </li></ul></ul></ul><ul><ul><li>Marketing Planning </li></ul></ul><ul><ul><ul><li>Create brand marketing plan. </li></ul></ul></ul><ul><ul><li>Marketing Implementation </li></ul></ul><ul><ul><ul><li>Determine who, where, when, and how. </li></ul></ul></ul><ul><ul><li>Marketing Control </li></ul></ul><ul><ul><ul><li>Evaluate results, take corrective action. </li></ul></ul></ul>
    29. 29. SWOT Analysis <ul><li>Strengths: Internal capabilities that may help a company reach its objectives. </li></ul><ul><li>Weaknesses: Internal limitations that may interfere with a company’s ability to achieve its objectives. </li></ul>
    30. 30. SWOT Analysis <ul><li>Opportunities: External factors that the company may be able to exploit to its advantage. </li></ul><ul><li>Threats: Current and emerging external factors that may challenge the company’s performance. </li></ul>
    31. 31. Discussion
    32. 32. Brand / Product Marketing Plan <ul><li>Executive summary </li></ul><ul><li>Current marketing situation </li></ul><ul><li>Analysis of threats and opportunities </li></ul><ul><li>Objectives for the brand </li></ul><ul><li>Marketing strategy </li></ul><ul><li>Action programs </li></ul><ul><li>Marketing budget </li></ul><ul><li>Controls </li></ul>
    33. 33. Marketing Implementation - Department Organization <ul><li>Functional Organization: Each marketing activity is headed by a functional specialist. </li></ul><ul><li>Geographic Organization: Sales and marketing people are assigned to specific countries, regions, and districts. </li></ul>
    34. 34. Marketing Department Organization <ul><li>Product Management Organization: One person given responsibility for complete strategy and marketing program for a single product. </li></ul><ul><li>Market or Customer Organization: Manager responsible for particular market or customer. </li></ul>
    35. 35. Marketing Department Organization <ul><li>Combination Organization: Use some combination of the previous four approaches. </li></ul><ul><ul><li>This is especially true in large companies (e.g., Procter & Gamble) </li></ul></ul>
    36. 36. Discussion
    37. 37. Marketing Control Process <ul><li>Set Goals </li></ul><ul><li>Measure Performance </li></ul><ul><li>Evaluate Performance </li></ul><ul><li>Take Corrective Action </li></ul>
    38. 38. Figure 2-8 Return on Marketing
    39. 39. <ul><li>Explain companywide strategic planning and its four steps. </li></ul><ul><li>Discuss how to design business portfolios and growth strategies. </li></ul><ul><li>Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence it. </li></ul><ul><li>List the marketing management functions, including the elements of a marketing plan. </li></ul>
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