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Mar 20 presentation #2
 

Mar 20 presentation #2

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  • This is mostly product development where a new product is offered to U.S. consumers. Some may say it is market development because they are beginning to target the health-conscious consumer.
  • There are several potential answers to this categorization: Starbucks is appealing to the at-home coffee drinking market. This is market development. Some students might argue this is market penetration if it is selling ADDITIONAL coffee to current drinkers. The answer could also be product development where Starbucks is offering coffee in areas where there are no Starbucks retail outlets.

Mar 20 presentation #2 Mar 20 presentation #2 Presentation Transcript

  • Company and Marketing Strategy: Partnering to Build Customer Relationships
    • “ If you fail to plan, you plan to fail”
  •  
  • Strategic Planning
    • Strategic planning is defined as:
      • “The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.”
  • Strategic Planning
    • Planning activities occur at the business unit, product, and market levels, and include:
      • Defining the purpose and mission
      • Setting objectives and goals
      • Designing the business portfolio
      • Developing detailed marketing and departmental plans
  • Strategic Planning
    • Mission statements should . . .
      • serve as a guide for what the organization wants to accomplish.
      • be “market-oriented” rather than “product-oriented”.
      • be neither too narrow, nor too broad.
      • fit with the market environment.
      • be motivating.
  • Defining the Organization’s Mission
    • A mission may begin with these questions:
      • What business are we in?
      • What customers should we serve?
      • How should we develop the firm’s capabilities and focus its efforts?
  • http://www.southwest.com/travel_center/customer_service_commitment.html
  • Evolution of Harley Davidson Mission
  • Evolution of Harley Davidson Mission
  •  
  • Virgin Mission Statement
    • We believe in making a difference. In our customers' eyes, Virgin stands for value for money, quality, innovation, fun and a sense of competitive challenge. We deliver a quality service by empowering our employees and we facilitate and monitor customer feedback to continually improve the customer's experience through innovation.
  • http://www.celestialseasonings.com/whoweare/corporatehistory/mission.php
  • Strategic Planning
    • Business portfolio: “the collection of businesses and products that make up the company.”
    • Designing the business portfolio is a key element of the strategic planning process.
  • Limited Brands Limited Brands is committed to building a family of the world's best fashion brands offering captivating customer experiences that drive long-term loyalty and deliver sustained growth for our shareholders.
  • Limited Brands
    • Current Brands Sold or Closed Co .
    • The Limited Abercrombie & Fitch
    • Express Women & Men Lane Bryant
    • (Structure) Lerner’s
    • Intimate Brands New York & Co.
    • Victoria’s Secret Gaylan’s
    • Bath and Body Works Cacique
    • White Barn Candle Penhaligons
    • Aura Science Limited Too
    • Henri Bendel
    • Mast Industries
    • C.O. Bigelow
  • Strategic Planning
    • Step 1: Analyze the current business portfolio
    • Step 2: Shape the future business portfolio
    • Identify strategic business units (SBUs)
    • Assess each SBU:
      • The BCG growth-share matrix classifies SBUs into one of four categories using the:
        • Market growth rate
        • SBU’s relative market share within the market.
    Portfolio Design
  • Strategic Planning BCG Growth-Share Matrix High Relative Market Share High Market Growth Low Market Growth Stars Cash Cows Question Marks Dogs Low Relative Market Share
  • Strategic Planning
    • Step 1: Analyze the current business portfolio
    • Step 2: Shape the future business portfolio
    • Determine the future role of each SBU and choose the appropriate resource allocation strategy:
      • Build
      • Hold
      • Harvest
      • Divest
    • SBUs change positions over time
    Portfolio Design
  • Strategic Planning
    • Matrix approaches to formal planning share many problems:
      • Difficult, time-consuming, and costly to implement.
      • Difficult to define SBU’s & Measure Market Share/Growth
      • Focus only on current businesses.
      • Too strongly emphasize market share growth or growth via diversification.
      • Can lead to unwise expansion or diversification
  • Strategic Planning Product/Market Expansion Grid Existing Products New Products Existing Markets New Markets Market Penetration Market Development Product Development Diversification
  • The Business Portfolio
    • Which strategy is this?
    • Market penetration
    • Market development
    • Product development
    • Diversification
    -
  • The Business Portfolio
    • Which strategy
    • is this?
    • Market penetration
    • Market development
    • Product development
    • Diversification
    2 -
  • Market Penetration
    • Strategy: to increase sales to current buyers without changing the products being sold.
      • Market penetration can be achieved by adding new stores in current market areas, improving advertising, lowering prices, adding services, etc.
  • Market Development
    • Strategy: identify and develop new markets – demographic or geographic – for current products .
    Bass Pro Shops has aggressively developed new geographic markets for its Outdoor World retail stores.
  • Product Development
    • Strategy: offering modified or new products to current markets.
      • How? Adding new sizes, flavors, or offerings, co-branding products, etc.
  • Diversification
    • Strategy: start up or buy businesses outside of current products and markets.
      • Diversification is the riskiest strategy.
      • Firms that diversify too broadly into unfamiliar products or industries can lose their market focus.
    www.timewarner.com/corp / www.virgin.com
  • Marketing’s Role in Strategic Planning Provides a Guiding Philosophy Provides Inputs to Strategic Planners Designs Strategies for Reaching Unit’s Objectives
  • The Marketing Process Target Consumers Product Place Price Promotion Marketing Implementation Marketing Planning Marketing Control Marketing Analysis Competitors Marketing Intermediaries Publics Suppliers Demographic- Economic Environment Technological- Natural Environment Political- Legal Environment Social- Cultural Environment
  • The Marketing Process
    • The strategic planning and business portfolio analysis processes help to identify and evaluate marketing opportunities.
    • The purpose of the marketing process is to help the firm plan how to capitalize on these opportunities.
    • Analyzing marketing opportunities
    • Selecting target markets
    • Developing the marketing mix
    • Managing the marketing effort
    Key Elements
  • The Marketing Process
    • The segmentation process divides the total market into market segments.
    • Target marketing determines which segment(s) are pursued.
    • The market positioning for the product is then determined.
    • Analyzing marketing opportunities
    • Selecting target markets
    • Developing the marketing mix
    • Managing the marketing effort
    Key Elements
  • Process of Selecting Target Consumers
      • Market Segment - consumers who respond in similar way to a given set of marketing efforts.
      • Market Segmentation: process of dividing a market into distinct groups buyers (segments) with different needs, etc. who might require separate products.
      • Target Marketing : evaluating each market segment’s attractiveness and selecting one or more target segments to enter.
      • Market Positioning: products and or services
      • clear, distinctive and desirable place relative to competing products in the minds of target segments.
  • What Market Segment is this targeted to ?
  • Market Segmentation
    • Clinique for Men products are designed for a segment of men who will pay more for skin care products.
  • Target Markets
    • Lucky Magazine is targeted to younger women who are shoppers
  • Saturn Corporation Product Positioning
    • Created in 1985
    • Saturn’s mission was to create a “Different Kind of Company”
    • Realized people dreaded the purchase process and established no-hassle, no haggle pricing policy
    • Works to build loyalty from consumer
    • By 1990 Saturn was winning awards from Popular Science, Popular Mechanics, AAA, MotorWeek.
    • First Saturn Homecoming in 1994 at its manufacturing complex had 38,000 Saturn owners attending
    Saturn Corporation Product Positioning
  • Scion by Toyota www.scion.com What is the market segment? Target Market? Product Positioning ?
  • The Marketing Process
    • Competitor analysis guides competitive marketing strategy development.
    • Strategy leads to tactics by way of the marketing mix:
      • The “Four Ps” – product, price, place, promotion (seller viewpoint)
      • The “Four Cs” – customer solution, cost, convenience, and communication (customer viewpoint)
    • Analyzing marketing opportunities
    • Selecting target markets
    • Developing the marketing mix
    • Managing the marketing effort
    Key Elements
  • Figure 2-5: The Marketing Mix
  • The Marketing Process
    • Marketing analysis
      • Provides information helpful in planning, implementation, and control
    • Marketing planning
      • Strategies and tactics
    • Marketing implementation
      • Turns plans into action
    • Marketing control
      • Operating control
      • Strategic control
        • Marketing audit
    • Analyzing marketing opportunities
    • Selecting target markets
    • Developing the marketing mix
    • Managing the marketing effort
    Key Elements
  • Four Marketing Management Functions Planning Develop Strategic Plans Develop Marketing Plans Implementation Carry Out the Plans Marketing Analysis of Company’s Situation Control Measure Results Evaluate Results Take Corrective Action
  • Figure 2-7 SWOT Analysis
    • 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
    Marketing Management: Planning
  • Figure 2-8 Return on Marketing
  • Measuring Effectiveness
    • Return on marketing (marketing ROI)
      • The net return from a marketing investment divided by the costs of the investments