MARKETING-CH2
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The document discusses strategic planning and marketing strategy. It outlines the key steps in strategic planning, including analyzing the company's current business portfolio, markets, and products. Different strategic planning models and matrices are presented, such as the BCG Growth-Share Matrix, Product/Market Expansion Grid, and competitive strategies analysis. The roles and components of an effective marketing strategy and mix are also described, including market segmentation, targeting, positioning, and the four Ps (Product, Price, Place, Promotion).
MARKETING-CH2
- 1. Company and Marketing Strategy: Partnering to Build Customer Relationships
- 2. Strategic Planning Strategic Planning is the Process of Developing and Maintaining a Strategic Fit Between the Organization’s Goals and Capabilities and Its Changing Marketing Opportunities.
- 3. Steps in Strategic Planning
- 4. The 3 R’s of Strategy Routes: The directions the firm will choose to pursue in terms of markets and products Responses: How the firm reacts to competitors marketing strategies Rationale: The basis upon which the firm chooses to compete such as lower costs, differentiation or niching
- 5. Different Dimensions of Strategy (3 R’s)
- 6. Outcomes of effective marketing strategies: Achieve clear competitive advantages over the firm’s rivals Create positive responses among its target customers Turn in positive contributions to its bottom-line
- 7. Strategies Over Time-Singapore Airlines
- 8. Questions a Mission Statement Should Answer What is our Business? Who is the Customer? What do Consumers Value? What Should our Business Be?
- 9. 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.
- 10. Mission Statements Should: Be Realistic Be Specific Fit the Market Environment Be Based on Distinctive Competencies Be Motivating
- 12. 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.
- 13. 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.
- 14. 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.
- 15. Analyzing Current SBU’s: BCG Growth-Share Matrix Question Marks Low share SBUs in high growth markets Require cash to hold market share Build into Stars or phase out Stars High growth & share May need heavy investment to grow Eventually, growth will slow Relative Market Share High Low Market Growth Rate Low High ? Cash Cows Low growth, high share Established, successful SBU’s Produce cash Dogs Low growth & share Generate cash to sustain self Do not promise to be cash sources
- 16. The BCG Growth-Share Matrix Figure 2.4
- 17. Comparison of Business Portfolios Figure 2.5
- 18. Figure 2.6 Strategies in Managing the SBUs in the Portfolio
- 19. Problems With Matrix Approaches Can be Difficult, Time Consuming, Costly to Implement Difficult to Define SBUs & Measure Market Share/Growth Focus on Current Businesses, Not Future Planning Can Place too Much Emphasis on Growth Can Lead to Poorly Planned Diversification
- 20. Product/Market Expansion Grid Market Penetration Product Development Market Development Existing New P R O D U C T New M A R K E T Diversification Existing Figure 2.7
- 21. Growth at Starbucks To maintain its phenomenal growth in an increasingly over-caffeinated marketplace, Starbucks has brewed up an ambitious, multi-pronged growth strategy.
- 22. Product/Market Expansion Grid Based on Starbucks Market Penetration : make more sales to current customers without changing products. How? Add new stores in current market areas; improve advertising, prices, menu, service. Market Development : identify and develop new markets for current products. How? Review new demographic (seniors/ethnic consumers) or geographic (Asian, European, Australian, & South American) markets.
- 23. Product/Market Expansion Grid Based on Starbucks Product Development : offering modified or new products to current markets. How? Add food offerings, sell coffee in supermarkets, co-brand products. Diversification : start up or buy businesses outside current products and markets. How? Making and selling CDs, testing restaurant concepts, or branding casual clothing.
- 24. Linking the Product/Market Expansion Grid to Marketing Strategies
- 25. Competitive Strategies: Comparison of Service Attributes of Full Service and Budget Airlines
- 26. Linking the Strategic Planning Models (marketing implications)
- 28. Marketing’s Role in Strategic Planning Provide a Guiding Philosophy Provide Inputs to Strategic Planners Design Strategies to Reach Objectives
- 29. Managing Marketing Strategy and Marketing Mix Figure 2.13
- 30. 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.
- 31. Target Marketing Involves evaluating each market segment’s attractiveness and selecting one or more segments to enter. Target segments that can sustain profitability.
- 32. Market Positioning Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers (e.g. “in a perfect world everyone would drive a Mercedes Benz”) Process begins with differentiating the company’s marketing offer so it gives consumers more value.
- 33. The Marketing Mix The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. Consists of the 4 P’s Product Price Place Promotion
- 34. The 4 P’s of the Marketing Mix
- 35. Achieving Competitive Advantage, Integration and Positioning in the Marketing Mix
- 36. An Example of Integration in the Marketing Mix
- 37. The 4 P’s & 4 C’s of the Marketing Mix 4 P’s - Seller’s View Product Price Place Promotion 4 C’s - Buyer’s View Customer Solution Customer Cost Convenience Communication Implication for marketers: We need to empathize with the customer. The marketing mix represent the tools we use to achieve results. Customer outcomes such as solutions, cost, convenience and communication are the keys to marketing success!
- 39. Managing the Marketing Effort Figure 2.16
- 40. Major Sections of Product/Brand Plan Executive Summary Current Marketing Situation Analysis of Threats and Opportunities Objectives for the Brand Marketing Strategy Action Programs Marketing Budget Controls
- 41. Marketing Control Process Figure 2.17