Chapter # 2 kotler
- 1. Chapter Two Company and Marketing Strategy Partnering to Build Customer Relationships
- 2. Company and Marketing Strategy Topic Outline • Companywide Strategic Planning: Defining Marketing’s Role • Designing the Business Portfolio • Planning Marketing: Partnering to Build Customer Relationships • Marketing Strategy and the Marketing Mix • Managing the Marketing Effort • Measuring and Managing Return on Marketing Investment
- 3. Companywide Strategic Planning 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.
- 4. Companywide Strategic Planning Steps in Strategic Planning
- 5. • A Mission Statement defines the company's business, its objectives and its approach to reach those objectives. • A Vision Statement describes the desired future position of the company. Elements of • Mission and Vision Statements are often combined to provide a statement of the company's purposes, goals and values.
- 6. GSK: DO MORE, FEEL BETTER, AND LIVE LONGER HAMDARD LABORATORIES (WAQF) PAKISTAN: “An institution of eastern system of medicine dedicated for health care and education and a movement for the promotion of morality, science and culture”
- 7. • 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 Companywide Strategic Planning Defining a Market‐Oriented Mission We help you organize the world’s information and make it universally accessible and useful.
- 8. MISSION STATEMENTS Distribution of products with excellence in price, quality and variety to professional customers, offering those advantages and opportunities of growth Vitality is at the heart of everything we do. It's in our brands, our people and our approach to business Our aim to become trend setters in promoting healthy living through providing quality food products To be the best cellular option for U
- 9. GOAL, OBJECTIVE, MISSION, VISION Goal is a state of affairs, or a state of concrete activity, which an organization or system wishes to achieve or obtain. Objective is the plan, to involve and implement specific actions which must be taken to close the gap between the current realities and the ideal state. Mission is the process of defining objectives and developing strategies to reach those objectives. Vision involves the foresight needed to acquire the necessary expertise to organize existing resources, to accomplish the desired results.
- 11. Difference of Goals & Objectives • Goals are: • Primary and important goals Large in size The end The result The whole Longer term Objectives are: • Sub-goals Medium or small in size The means to the end The steps Part of the whole Shorter term
- 12. Goals Vs Objectives GOAL OBJECTIVE Plan: Broad plan Narrow plan Action: Generic action Specific action Example: I want to achieve success in the field of genetic research and do what no one has ever done. I want to complete this thesis on genetic research by the end of this month. Measure: Goals may not be strictly measurable or tangible. Must be measurable and tangible. Time frame: Longer term Short to medium term Meaning: The purpose toward which an endeavor is directed. Something that one's efforts or actions are intended to attain or accomplish; purpose; target. Principle: Based on ideas Based on fact
- 13. Companywide Strategic Planning Setting Company Objectives and Goals
- 14. Companywide Strategic Planning Designing the Business Portfolio The business 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
- 15. Companywide Strategic Planning Analyzing the Current Business Portfolio Strategic business 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
- 16. Companywide Strategic Planning Analyzing the Current Business Portfolio
- 18. • Stars – Stars are high growth businesses or products competing in markets where they are relatively strong compared with the competition. They are typically at the peak of their product life cycle. Stars generate large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate. Often they need heavy investment to sustain their growth. Eventually their growth will slow and will become cash cows. • Cash Cows – Cash cows are low-growth businesses or products with a relatively high market share. These are mature, successful businesses with relatively little need for investment. They typically bring in far more money than is needed to maintain their market share. In this decline stage of their life cycle, these products are “milked” for cash that will be invested in new question marks. • Question marks – Question marks are businesses or products with low market share but which operate in higher growth markets. Question marks are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. A question mark (also known as a “problem child”) has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after years of cash consumption it will degenerate into a dog when the market growth declines. Management have to think hard about “question marks” – which ones should they invest in? Which ones should they allow to fail or shrink? • Dogs – Dogs have low market share and a low growth rate and thus neither generate nor consume a large amount of cash. However, dogs are cash traps because of the money tied up in a business that has little potential. Such businesses are candidates for divestiture.
- 19. Companywide Strategic Planning Problems with Matrix Approaches • Difficulty in defining SBUs and measuring market share and growth • Time consuming • Expensive • Focus on current businesses, not future planning
- 20. Companywide Strategic Planning Developing Strategies for Growth and Downsizing Product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
- 21. Companywide Strategic Planning Developing Strategies for Growth and Downsizing Product/Market Expansion Grid Strategies
- 22. Companywide Strategic Planning Developing Strategies for Growth and Downsizing Product/market expansion grid strategies
- 23. Companywide Strategic Planning Developing Strategies for Growth and Downsizing Market penetration 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
- 24. Companywide Strategic Planning Developing Strategies for Growth and Downsizing Product development is a growth strategy that offers new or modified products to existing market segments Diversification is a growth strategy through starting up or acquiring businesses outside the company’s current products and markets
- 25. Companywide Strategic Planning Developing Strategies for Growth and Downsizing Downsizing is 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
- 26. Planning Marketing Partnering to Build Customer Relationships Value chain is a series of departments that carry out value‐creating activities to design, produce, market, deliver, and support a firm’s products
- 27. Planning Marketing Partnering to Build Customer Relationships Value delivery network is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system
- 28. Marketing Strategy and the Marketing Mix
- 29. Marketing Strategy and the Marketing Mix Customer‐Driven Marketing Strategy Market segmentation is the division of a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mixes Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts
- 30. Marketing Strategy and the Marketing Mix Customer‐Centered Marketing Strategy Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
- 31. Marketing Strategy and the Marketing Mix Customer‐Centered Marketing Strategy Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer Differentiation: Actually differentiating the market offering to create superior customer value.
- 32. Marketing Strategy and the Marketing Mix Developing an Integrated Marketing Mix Marketing mix is the set of controllable tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market
- 33. Marketing Strategy and the Marketing Mix Developing an Integrated Marketing Mix
- 34. Marketing Strategy and the Marketing Mix Developing an Integrated Marketing Mix 4Ps 4Cs Product Customer Solution Price Customer Cost Place Convenience Promotion Communication
- 35. Managing the Marketing Effort
- 36. Managing the Marketing Effort Marketing Analysis – SWOT Analysis
- 37. Managing the Marketing Effort Market Planning—Parts of a Marketing Plan
- 38. Managing the Marketing Effort Marketing Implementation 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
- 39. Managing the Marketing Effort Marketing Department Organization
- 40. Managing the Marketing Effort Marketing Control • Controlling is the measurement and evaluation of results and the taking of corrective action as needed • Operating control • Strategic control
- 41. Measuring and Managing Return on Marketing Investment Return on Marketing Investment (Marketing ROI) 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.
- 42. Time: 15 Minutes Don’t Forget to write: Date Name and Enrollment # On your answer sheet
- 43. Time: 15 Minutes 1. Define BCG Matrix with examples 2. Differentiate between Segmentation and Targeting and give examples