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Chapter 2 mktg
1.
Chapter 2- slide
1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Company and Marketing Strategy Partnering to Build Customer Relationships
2.
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2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Company and Marketing Strategy • 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 Topic Outline
3.
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3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide 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 Strategic Planning
4.
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4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
5.
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5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Setting Company Objectives and Goals
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6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning 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 Designing the Business Portfolio
7.
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7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning 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 Analyzing the Current Business Portfolio
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8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Analyzing the Current Business Portfolio
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9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
10.
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10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification Developing Strategies for Growth and Downsizing
11.
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11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Developing Strategies for Growth and Downsizing Product/Market Expansion Grid Strategies
12.
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12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning 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 Developing Strategies for Growth and Downsizing
13.
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13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Product development 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
14.
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14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning 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 Developing Strategies for Growth and Downsizing
15.
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15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Planning Marketing Value chain is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products Partnering to Build Customer Relationships
16.
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16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Planning Marketing 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 Partnering to Build Customer Relationships
17.
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17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Strategy and the Marketing Mix 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 Customer-Driven Marketing Strategy
18.
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18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Strategy and the Marketing Mix Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter Customer-Centered Marketing Strategy
19.
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19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Strategy and the Marketing Mix 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 Customer-Centered Marketing Strategy
20.
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20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Strategy and the 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 Developing an Integrated Marketing Mix
21.
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21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Planning – involves a strategies that will help the company attain its overall objectives. Marketing strategy- consist of specific strategies for target markets, positioning, the marketing mix and marketing expenditure levels. It outlines how the company intends to create value for target customers in order to capture value in return.
22.
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22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Managing the Marketing Effort Marketing Planning—Parts of a Marketing Plan
23.
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23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall PARTS OF MARKETING PLAN EXECUTIVE SUMMARY - presents a brief summary of the main goals and recommendations of the plan for management review Current marketing situations- described the target market and company’s position in it, which includes, a market review, product review, a competition review and distribution.
24.
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24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall PARTS OF MARKETING PLAN Threats and opportunities analysis – assesses major threats and opportunities that the product might face, helping the management to anticipate important positive or negative developments that might have an impact on the firm and its strategies.
25.
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25 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall PARTS OF MARKETING PLAN Objectives and Issues – states the marketing objectives that the company would like to attain during the pan’s term and discusses key issues that will affect their attainment. Marketing strategy – outlines the broad marketing logic by which business unit hopes to create customer value and relationships
26.
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26 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall PARTS OF MARKETING PLAN Action program – spells out how marketing strategies will be turned into specific actions that will answer the ff. questions: What will be done? When will be done? Who will do it? How much will it cost?
27.
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27 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall PARTS OF MARKETING PLAN Budgets – it shows expected revenues (forecasted number of units sold and the average net price) and expected cost of production, distribution and marketing. The difference is the projected profit. Controls – it includes measures of return on marketing investment.
28.
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28 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall SWOT ANALYSIS
29.
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29 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Managing the Marketing Effort Marketing Implementation - 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
30.
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30 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Managing the Marketing Effort Marketing Department Organization
31.
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31 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Managing the Marketing Effort • Is the process of measuring and evaluating the results of marketing strategies and plans and taking corrective action as needed to ensure that objectives are achieved. Marketing Control
32.
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32 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall • Operating control – involves checking performance against the annual plan. The purpose is to ensure that the company achieves the sales, profit and other goals set out in its annual plan • Strategic control – involves looking at whether the company’s basic strategies are well matched to its opportunities.
33.
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33 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Measuring and Managing Return on 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)
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