Kotl Pom 7ce Ppt Bas 02

Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition

Chapter 2

Company and Marketing Strategy:

Partnering to Build Customer Relationships

2-2Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition

Learning Goals1. Explain company-wide strategic planning and

its four steps2. Discuss how to design business portfolios and

develop strategies for growth and downsizing3. 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 them

5. List the marketing management functions, including the elements of a marketing plan


• Began as animated films 75 years ago

• Theme parks: four major North American resorts

• Walt Disney world: world’s #1 tourist destination

• Key success factors:– Sparkling cleanliness– Friendliness of employees– Mission: make people

happy; dream come true– Outstanding customer

service

• Now a diversified, media and entertainment conglomerate Disney has grown via diversification. Is it too large?

• Originally known for films, animation, theme parks. Will consumers/investors accept new businesses?

• Satisfying the customer is everyone’s job. Is this culture changing?

• What can it do during travel and economic downturns?

Case Study Disney –What are its challenges?


• Strategic Planning Defined–The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities

Companywide Strategic Planning: Defining Marketing’s Role


Defining aMarket-Oriented Mission

• Mission statement– A statement of an organization’s

purpose; what it wants to accomplish in the larger environment; needs to be specific, realistic, and motivating; today’s statements are market-oriented


Defining aMarket-Oriented Mission

• A mission statement asks..– What is our

business?– Who is the

customer?– What do consumers

value?– What should our

business be?

• A mission statement should be:– An “invisible hand” – Neither too narrow

nor too broad– Fitting of market

environment– Based on distinctive

competencies– Motivating


Discussion QuestionsMission Statements

• Under what circumstances would you suggest a company change its mission?

• What challenges might it encounter as it implements a change in its mission?

??


Setting CompanyObjectives and Goals

• The mission is turned into detailed business and marketing objectives

• Marketing strategies and programs must develop to support marketing objectives


Designing The Business Portfolio

• A business portfolio is the collection of businesses and products that make up the company

• Business portfolio planning involves two steps:

1. Analyzing its current business portfolio2. Shaping the future portfolio by developing

strategies for growth and down sizing



• Analyzing the Current Business Portfolio– Portfolio analysis is a strategic planning tool to

identify/evaluate businesses that make up the firm and make resource allocation decisions

• Strategic business unit (SBU): – Unit with separate mission and objectives– Planned independently from other company

businesses– Used as the building block of portfolio analysis


The Business Portfolio BCG Matrix

• Build– Increase

market share– Works well for

question marks

• Hold– Preserve

market share– Good for cash

cow

• Harvest– Increases short-

term cash flow– Good for weak

cash cows, question marks and dogs

• Divest– Sell or liquidate– Good for dogs

and question marks



• Developing Strategies for growth and Downsizing– Marketing must identify, evaluate, and

select market opportunities and lay down strategies for capturing them

– Product Market Expansion Grid• A portfolio-planning tool for identifying

company growth opportunities


• Provide a guiding philosophy• Identify attractive opportunities• Design effective strategies • Build Customer and Partner

Relationship management– Form strong value chains– Form superior value delivery networks

Planning Marketing: Partnering to Build Customer

Relationships


• Partnering with Other Company Departments– Coordination of the value-creating activities

performed by each department within the company

• Partnering with Others in the Marketing System– The objective is to improve the performance

of the customer value-delivery network.

Planning Marketing: Partnering to Build Customer

Relationships


Marketing Strategy and the Marketing Mix

• Marketing Strategy– The marketing logic by which the

business unit hopes to achieve its marketing objectives

• Marketing Mix– The company designs a mix made up of

factors under its control• The company engages in marketing

analysis, planning, implementation, and control


Customer-CenteredMarketing Strategy

1. Market Segmentation

2. Target marketing3. Market Positioning

• Dividing a market into groups with distinct needs who might require (respond to) different marketing mixes

• Market segment is a group of consumers who respond in similar ways to marketing efforts

• Bases for segmentation





• Evaluating the attractiveness of each market segment

• Selection of segments with greatest long-term profitability

• Deciding which segment(s) to enter

• A company can choose one or several segments to target





• The place the product occupies in the consumer’s mind

• Products are positioned relative to competing products

• Marketers look for clear, distinctive and desirable places in positioning

• Differentiation by offering and delivering greater value


Developing the Marketing Mix

– The marketing mix includes controllable and tactical marketing tools knows as the 4P’s

– The 4P’s include• Product• Place• Promotion• Price


Managing the Marketing Effort

1. Analysis2. Planning3. Implementation4. Control

• Finding opportunities

• Avoiding threats• Understanding

strengths• Analyzing

weaknesses




• Marketing plans include: – Executive summary– Analysis of current

situation– Objectives– Targets and

positioning– Marketing mix– Budget– Controls




• Process that turns strategies and plans into marketing actions that accomplish strategic marketing objectives

• Good implementation is a challenge

• Marketing department organization




• Involves Evaluating the results of marketing strategies and plans and taking corrective action

• Checks for differences between goals and performance

• Operating control, strategic control, marketing audit


Measuring and ManagingReturn on Marketing

• Return on marketing (marketing ROI)– The net return from a marketing investment

divided by the costs of the investments

Kotl Pom 7ce Ppt Bas 02

Documents

Transcript of Kotl Pom 7ce Ppt Bas 02