Customer Relationship And Strategic Planning Marketing
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Transcript of Customer Relationship And Strategic Planning Marketing
Chapter Two
Company and Marketing Strategy:
Partnering to Build Customer Relationships
Roadmap: Previewing the Concepts
Copyright 2007, Prentice Hall, Inc. 2-2
1. Explain companywide strategic planning and its four steps.
2. Discuss how to design business portfolios and growth strategies.
3. Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value.
4. Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence it.
5. List the marketing management functions, including the elements of a marketing plan.
Copyright 2007, Prentice Hall, Inc. 2-3
Early Days Characterized by “seat of
the pants” management. Innovative sneaker tread
drove early success. Technological product
superiority, big-name endorsements and “Just Do It” ads revolutionized sport marketing.
1980s – 1990s: Nike leverages brand strength into new product areas.
NIKE – Strategy: Then & NowNIKE – Strategy: Then & NowCase StudyCase Study
Late 1990s - Present Changes in consumer
shoe preference, declining product innovation, and negative PR plague Nike.
Anti-establishment image no longer works: brand backlash occurs.
Strategic planning is embraced and Nike focuses on innovation and exploring new market opportunities.
Nike has global success.
Copyright 2007, Prentice Hall, Inc. 2-4
Strategic Planning
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
Copyright 2007, Prentice Hall, Inc. 2-5
Steps in Strategic Planning
1. Defining the company mission.
2. Setting company objectives and goals.
3. Designing the business portfolio.
4. Planning marketing and other functional strategies.
Copyright 2007, Prentice Hall, Inc. 2-6
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.
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The Mission Statement
Questions the mission statement should answer include:– What is our business?– Who is our customer?– What do consumers value?– What should our business be?
Copyright 2007, Prentice Hall, Inc. 2-8
The Mission Statement:
Should be realistic. Should be specific. Should fit the market environment. Should be based on distinctive
competencies. Should be motivating.
Copyright 2007, Prentice Hall, Inc. 2-9
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.
Copyright 2007, Prentice Hall, Inc. 2-10
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.
Copyright 2007, Prentice Hall, Inc. 2-11
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.
Copyright 2007, Prentice Hall, Inc. 2-12
BCG Growth-Share Matrix
Stars– High share of low growth market.– Build into cash cow via investment.
Cash Cows– High share of low growth market.– Maintain or harvest for cash to build STARS.
Question Marks– Low share of high growth market.– Build into STAR via investment if warranted, or
reallocate financing and let slip into DOG status. Dogs
– Low share of low growth market. Maintain or divest.
Copyright 2007, Prentice Hall, Inc. 2-13
Problems with Matrix Approaches
Can be difficult, time consuming, and costly to implement.
Difficult to define SBUs and measure market share and growth rate.
Focus is on current businesses; gives little help with future planning.
Can place too much emphasis on growth. Can lead to poorly planned diversification.
Copyright 2007, Prentice Hall, Inc. 2-14
Product/Market Expansion Grid
Market Penetration– Existing markets, existing products
Market Development– New markets, existing products
Product Development– Existing markets, new products
Diversification– New products, new markets
Copyright 2007, Prentice Hall, Inc. 2-15
Planning Marketing
Marketing plays a key role in strategic planning:– Provides a guiding philosophy.
• The Marketing Concept– Provides inputs to strategic planners.– Designs strategies to reach objectives.
Copyright 2007, Prentice Hall, Inc. 2-16
Value Delivery Network
Components include: – Company’s value chain
• Each department is a link– Distributors– Suppliers– Customers
Improved performance in delivery value to customers is the goal.
Copyright 2007, Prentice Hall, Inc. 2-17
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.
Copyright 2007, Prentice Hall, Inc. 2-18
Target Marketing
Involves evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Target segments that can sustain profitability.
Copyright 2007, Prentice Hall, Inc. 2-19
Market Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Begins with differentiating the company’s marketing offer so it gives consumers more value.
Copyright 2007, Prentice Hall, Inc. 2-20
The Marketing Mix
The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.– Product– Price– Place (distribution)– Promotion
Copyright 2007, Prentice Hall, Inc. 2-21
The Marketing Mix
Product:– Variety, quality,
design, features, brand name, packaging and services.
Promotion:– Advertising, sales
promotion, public relations and personal selling.
Place:– Channels, coverage,
logistics, locations, transportation, assortments and inventory.
Price:– List price, discounts,
allowances, payment period and credit terms.
Copyright 2007, Prentice Hall, Inc. 2-22
The 4 Ps & the 4 Cs of the Marketing Mix
4 Ps – Seller’s View– Product– Price– Place– Promotion
4 Cs – Buyer’s View– Customer Solution– Customer Cost– Convenience– Communication
Copyright 2007, Prentice Hall, Inc. 2-23
Managing the Marketing Effort
Four marketing management functions:– Marketing Analysis
• SWOT analysis is key.– Marketing Planning
• Create brand marketing plan.– Marketing Implementation
• Determine who, where, when, and how.– Marketing Control
• Evaluate results, take corrective action.
Copyright 2007, Prentice Hall, Inc. 2-24
SWOT Analysis
Strengths:Internal capabilities that may help a company reach its objectives.
Weaknesses:Internal limitations that may interfere with a company’s ability to achieve its objectives.
Copyright 2007, Prentice Hall, Inc. 2-25
SWOT Analysis
Opportunities:External factors that the company may be able to exploit to its advantage.
Threats:Current and emerging external factors that may challenge the company’s performance.
Copyright 2007, Prentice Hall, Inc. 2-26
Brand / Product Marketing Plan
1. Executive summary2. Current marketing situation3. Analysis of threats and opportunities4. Objectives for the brand5. Marketing strategy6. Action programs7. Marketing budget8. Controls
Copyright 2007, Prentice Hall, Inc. 2-27
Marketing Department Organization
Functional Organization: Each marketing activity is headed by a functional specialist.– Sales Manager– Advertising Manager– Director of Marketing Research– Customer Service Manager– New Product Manager
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Marketing Department Organization
Geographic Organization: Sales and marketing people are assigned to specific countries, regions, and districts.
Product Management Organization: One person given responsibility for complete strategy and marketing program for a single product.
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Marketing Department Organization
Market or Customer Organization: Manager responsible for particular market or customer.
Combination Organization: Use some combination of the previous four approaches.– This is especially true in large companies
(e.g., Procter & Gamble)
Copyright 2007, Prentice Hall, Inc. 2-30
Marketing Control Process
Set Goals Measure Performance Evaluate Performance Take Corrective Action
Copyright 2007, Prentice Hall, Inc. 2-31
Marketing Control Process
Operating Control– Evaluates performance against the plan
and takes corrective action.
Strategic control– Evaluates whether strategies match
opportunities.• The marketing audit is major tool.
Copyright 2007, Prentice Hall, Inc. 2-32
Return on Marketing
Assessed using one or more methods:– Standard marketing performance
measures• Brand awareness, sales, market share
– Customer-centered measures• Customer acquisition, customer
retention, customer lifetime value
Rest Stop: Reviewing the Concepts
Copyright 2007, Prentice Hall, Inc. 2-33
1. Explain companywide strategic planning and its four steps.
2. Discuss how to design business portfolios and growth strategies.
3. Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value.
4. Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence it.
5. List the marketing management functions, including the elements of a marketing plan.