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marketing stratigies
- 1. Company and MarketingStrategy: Partnering to Build Customer Relationships
- 2. Companywide Strategic Planning Strategicplanning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities Strategic Planning
- 3. Companywide Strategic Planning The mission statement is the organization’s purpose, what it wants to accomplish in the larger environment Market-oriented mission statement defines the business in terms of satisfying basic customer needs Defining a Market-Oriented Mission
- 4. Companywide Strategic Planning Business objectives •Build profitable customer relationships •Investin research •Improve profits Marketing objectives •Increase market share •Create local partnerships •Increase promotion Setting Company Objectives
- 5. Companywide Strategic Planning Thebusiness portfolio is the collection of businesses and products that make up the company Portfolio analysis is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company Designing the Business Portfolio
- 6. Companywide Strategic Planning Strategicbusiness unit (SBU) is a unit of the company that has a separate mission and objectives that can be planned separately from other company businesses Company division Product line within a division Single product or brand Analyzing the Current Business Portfolio
- 7. Companywide Strategic Planning Identifykey businesses (strategic business units, or SBUs) that make up the company Assess the attractiveness of its various SBUs Decide how much support each SBU deserves Analyzing the Current Business Portfolio
- 8. What Is BCGMatrix? BOSTON CONSULTING GROUP (BCG) MATRIX is developed by BRUCE HENDERSON of the BOSTON CONSULTING GROUP IN THE EARLY 1970’s. According to this technique, businesses or products are classified as low or high performers depending upon their market growth rate and relative market share. It is based on the combination of market growth and market share relative to the next best competitor.
- 9. Boston Consulting Group(BCG) Matrix
- 10. STARS High growth, Highmarket share Stars are leaders in business. They also require heavy investment, to maintain its large market share. It leads to large amount of cash consumption and cash generation. Attempts should be made to hold the market share otherwise the star will become a CASH COW.
- 11. CASH COWS Low growth, High market share They are foundation of the company and often the stars of yesterday. They generate more cash than required. They extract the profits by investing as little cash as possible They are located in an industry that is mature, not growing or declining.
- 12. DOGS Low growth, Lowmarket share Dogs are the cash traps. Dogs do not have potential to bring in much cash. Number of dogs in the company should be minimized. Business is situated at a declining stage.
- 13. QUESTION MARKS High growth, Low market share Most businesses start of as question marks. They will absorb great amounts of cash if the market share remains unchanged, (low). Why question marks? Question marks have potential to become star and eventually cash cow but can also become a dog. Investments should be high for question marks.
- 14. Companywide Strategic Planning Difficulty in defining SBUs and measuring market share and growth Time consuming Expensive Focus on current businesses, not future planning Problems with Matrix Approaches
- 15. Companywide Strategic Planning Product/marketexpansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification Developing Strategies for Growth and Downsizing
- 16. Companywide Strategic Planning DevelopingStrategies for Growth and Downsizing Product/Market Expansion Grid Strategies
- 17. Companywide Strategic Planning Marketpenetration is a growth strategy increasing sales to current market segments without changing the product Market development is a growth strategy that identifies and develops new market segments for current products Developing Strategies for Growth and Downsizing
- 18. Companywide Strategic Planning Productdevelopment is a growth strategy that offers new or modified products to existing market segments Diversification is a growth strategy for starting up or acquiring businesses outside the company’s current products and markets Developing Strategies for Growth and Downsizing
- 19. Companywide Strategic Planning Downsizingis the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy Developing Strategies for Growth and Downsizing
- 20. Managing the MarketingEffort Executive summary Marketing situation Threats and opportunities Objective and issues Action programs Budgets Controls Market Planning—Parts of a Marketing Plan
- 21. Managing the MarketingEffort Implementing is the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives Successful implementation depends on how well the company blends its people, organizational structure, decision and reward system, and company culture into a cohesive action plan that supports its strategies Marketing Implementation
- 22. Managing the MarketingEffort Controlling is the measurement and evaluation of results and the taking of corrective action as needed Operating control Strategic control Marketing Control
- 23. Measuring and Managing Returnon Marketing Investment Return on marketing investment (marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment. Marketing ROI provides a measurement of the profits generated by investments in marketing activities. Return on Marketing Investment (Marketing ROI)