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  • 11/13/10 Copyright 2005 Brainy Betty, Inc.
  • 11/13/10 Copyright 2005 Brainy Betty, Inc.
  • 11/13/10 Copyright 2005 Brainy Betty, Inc.
  • 11/13/10 Copyright 2005 Brainy Betty, Inc.
  • 11/13/10 Copyright 2005 Brainy Betty, Inc.
  • 11/13/10 Copyright 2005 Brainy Betty, Inc.
  • 11/13/10 Copyright 2005 Brainy Betty, Inc.
  • 11/13/10 Copyright 2005 Brainy Betty, Inc.

Transcript

  • 1. Chapter Two Company and Marketing Strategy: Partnering to Build Customer Relationships
  • 2.
    • Explain companywide strategic planning and its four steps.
    • Discuss how to design business portfolios and growth strategies.
    • Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value.
    • Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence it.
    • List the marketing management functions, including the elements of a marketing plan.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 3.
    • Early Days
    • Characterized by “seat of the pants” management.
    • Innovative sneaker tread drove early success.
    • Technological product superiority, big-name endorsements and “Just Do It” ads revolutionized sport marketing.
    • 1980s – 1990s: Nike leverages brand strength into new product areas.
    Case Study
    • Late 1990s - Present
    • Changes in consumer shoe preference, declining product innovation, and negative PR plague Nike.
    • Anti-establishment image no longer works: brand backlash occurs.
    • Strategic planning is embraced and Nike focuses on innovation and exploring new market opportunities.
    • Nike has global success.
    Copyright 2007, Prentice Hall, Inc. 2- NIKE – Strategy: Then & Now
  • 4. Strategic Planning
    • The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 5. Steps in Strategic Planning
    • Defining the company mission.
    • Setting company objectives and goals.
    • Designing the business portfolio.
    • Planning marketing and other functional strategies.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 6. The Mission Statement
    • A statement of the organization’s purpose.
      • What it wants to accomplish in the larger environment.
    • Should be market oriented and defined in terms of customer needs.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 7. The Mission Statement
    • Questions the mission statement should answer include:
      • What is our business?
      • Who is our customer?
      • What do consumers value?
      • What should our business be?
    Copyright 2007, Prentice Hall, Inc. 2-
  • 8. The Mission Statement:
    • Should be realistic.
    • Should be specific.
    • Should fit the market environment.
    • Should be based on distinctive competencies.
    • Should be motivating.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 9. Designing the Business Portfolio
    • 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 (SBUs),
      • decide which SBUs should receive more, less, or no investment,
      • develop growth strategies for growth or downsizing.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 10. Portfolio Analysis
    • An evaluation of the products and business making up the company.
    • Resources are directed to more profitable businesses and weaker ones are phased down or dropped.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 11. Strategic Business Unit (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.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 12. BCG Growth-Share Matrix
    • Stars
      • High share of low growth market.
      • Build into cash cow via investment.
    • Cash Cows
      • High share of low growth market.
      • Maintain or harvest for cash to build STARS.
    • Question Marks
      • Low share of high growth market.
      • Build into STAR via investment if warranted, or reallocate financing and let slip into DOG status.
    • Dogs
      • Low share of low growth market. Maintain or divest.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 13. Problems with Matrix Approaches
    • Can be difficult, time consuming, and costly to implement.
    • Difficult to define SBUs and measure market share and growth rate.
    • Focus is on current businesses; gives little help with future planning.
    • Can place too much emphasis on growth.
    • Can lead to poorly planned diversification.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 14. Product/Market Expansion Grid
    • Market Penetration
      • Existing markets, existing products
    • Market Development
      • New markets, existing products
    • Product Development
      • Existing markets, new products
    • Diversification
      • New products, new markets
    Copyright 2007, Prentice Hall, Inc. 2-
  • 15. Planning Marketing
    • Marketing plays a key role in strategic planning:
      • Provides a guiding philosophy.
        • The Marketing Concept
      • Provides inputs to strategic planners.
      • Designs strategies to reach objectives.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 16. Value Delivery Network
    • Components include:
      • Company’s value chain
        • Each department is a link
      • Distributors
      • Suppliers
      • Customers
    • Improved performance in delivery value to customers is the goal.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 17. Market Segmentation
    • 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.
    • A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 18. Target Marketing
    • Involves evaluating each market segment’s attractiveness and selecting one or more segments to enter.
    • Target segments that can sustain profitability.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 19. Market Positioning
    • Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
    • Begins with differentiating the company’s marketing offer so it gives consumers more value.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 20. The Marketing Mix
    • The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.
      • Product
      • Price
      • Place (distribution)
      • Promotion
    Copyright 2007, Prentice Hall, Inc. 2-
  • 21. The Marketing Mix
    • Product:
      • Variety, quality, design, features, brand name, packaging and services.
    • Promotion:
      • Advertising, sales promotion, public relations and personal selling.
    Copyright 2007, Prentice Hall, Inc. 2-
    • Place:
      • Channels, coverage, logistics, locations, transportation, assortments and inventory.
    • Price:
      • List price, discounts, allowances, payment period and credit terms.
  • 22. The 4 Ps & the 4 Cs of the Marketing Mix
    • 4 Ps – Seller’s View
      • Product
      • Price
      • Place
      • Promotion
    • 4 Cs – Buyer’s View
      • Customer Solution
      • Customer Cost
      • Convenience
      • Communication
    Copyright 2007, Prentice Hall, Inc. 2-
  • 23. Managing the Marketing Effort
    • Four marketing management functions:
      • Marketing Analysis
        • SWOT analysis is key.
      • Marketing Planning
        • Create brand marketing plan.
      • Marketing Implementation
        • Determine who, where, when, and how.
      • Marketing Control
        • Evaluate results, take corrective action.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 24. SWOT Analysis
    • Strengths: Internal capabilities that may help a company reach its objectives.
    • Weaknesses: Internal limitations that may interfere with a company’s ability to achieve its objectives.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 25. SWOT Analysis
    • Opportunities: External factors that the company may be able to exploit to its advantage.
    • Threats: Current and emerging external factors that may challenge the company’s performance.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 26. Brand / Product Marketing Plan
    • Executive summary
    • Current marketing situation
    • Analysis of threats and opportunities
    • Objectives for the brand
    • Marketing strategy
    • Action programs
    • Marketing budget
    • Controls
    Copyright 2007, Prentice Hall, Inc. 2-
  • 27. Marketing Department Organization
    • Functional Organization: Each marketing activity is headed by a functional specialist.
      • Sales Manager
      • Advertising Manager
      • Director of Marketing Research
      • Customer Service Manager
      • New Product Manager
    Copyright 2007, Prentice Hall, Inc. 2-
  • 28. Marketing Department Organization
    • Geographic Organization: Sales and marketing people are assigned to specific countries, regions, and districts.
    • Product Management Organization: One person given responsibility for complete strategy and marketing program for a single product.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 29. Marketing Department Organization
    • Market or Customer Organization: Manager responsible for particular market or customer.
    • Combination Organization: Use some combination of the previous four approaches.
      • This is especially true in large companies (e.g., Procter & Gamble)
    Copyright 2007, Prentice Hall, Inc. 2-
  • 30. Marketing Control Process
    • Set Goals
    • Measure Performance
    • Evaluate Performance
    • Take Corrective Action
    Copyright 2007, Prentice Hall, Inc. 2-
  • 31. Marketing Control Process
    • Operating Control
      • Evaluates performance against the plan and takes corrective action.
    • Strategic control
      • Evaluates whether strategies match opportunities.
        • The marketing audit is major tool.
    Copyright 2007, Prentice Hall, Inc. 2-
  • 32. Return on Marketing
    • Assessed using one or more methods:
      • Standard marketing performance measures
        • Brand awareness, sales, market share
      • Customer-centered measures
        • Customer acquisition, customer retention, customer lifetime value
    Copyright 2007, Prentice Hall, Inc. 2-
  • 33.
    • Explain companywide strategic planning and its four steps.
    • Discuss how to design business portfolios and growth strategies.
    • Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value.
    • Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence it.
    • List the marketing management functions, including the elements of a marketing plan.
    Copyright 2007, Prentice Hall, Inc. 2-