Company and Marketing Strategy

1. Company and Marketing Strategy

2. Companywide Strategic Planning Strategic Planning • 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 Business unit, product, and market level Corporate level

4. 1.Defining a Market-Oriented Mission Mission Statement • A statement of the organization’s purpose—what it wants to accomplish in the larger environment. • It should be market oriented and defined in terms of satisfying basic customer needs.

5. Its mission is not simply to sell ice cream. • Its mission is to “make people happy around the world by selling the highest quality, most creative ice cream experience with passion, excellence, and innovation.”

6. Its mission is not simply to hold online auctions and trading. • It aims “to provide a global trading platform where practically anyone can trade practically anything”—with eBay, “shop victoriously!” • It wants to be a unique Web community in which people can safely shop around, have fun, and get to know each other, for example, by chatting at eBay café.

7. Mission Statement • Should be meaningful and specific yet motivating • Should emphasize the company’s strengths in the marketplace • Should not be stated as making more sales or profits

8. Market-Oriented Business Definition

9. 2. Setting Company Objectives and Goals • Turn company’s mission into detailed supporting objectives for each level of management.

10. 3. Designing the Business Portfolio Business portfolio • The collection of businesses and products that make up the company • The best business portfolio is the one that best fits the company’s strengths and weaknesses to opportunities in the environment.

11. 2 Steps in Business Portfolio Planning 1. Analyzing the current business portfolio Portfolio analysis • The process by which management evaluates the products and businesses that make up the company Growth-share matrix • A portfolio-planning method that evaluates a company’s strategic business units in terms of its market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs.

12. The BCG Growth Share Matrix

13. 2 Steps in Business Portfolio Planning 2. Developing strategies for growth and downsizing Existing products New products Existing market New market

14. 4 Strategic Alternatives • Market penetration: a marketing strategy that tries to increase market share among existing customers • Market development: a marketing strategy that entails attracting new customers to existing products • Product development: a marketing strategy that entails the creation of new products for current customers • Diversification:a strategy of increasing sales by introducing new products into new markets

15. Ansoff’s Strategic Opportunity Matrix

16. Planning Marketing: Partnering to Build Customer Relationships Value chain • The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.

17. Marketers help deliver value to customers: • Learn what customers need • Stock the stores’ shelves with the desired products at the unbeatable low prices • Prepare advertising and merchandising programs • assist shopper with customer service

18. Marketers need help from other departments to effectively deliver value to customers: • Purchasing: skill in developing the needed suppliers and buying from them at low cost • IT: provide fast and accurate info. About products are selling in each store • Operations: provide effective low-cost merchandising handling

19. Partnering with Others in the Marketing System Value delivery network • The network made up of the company, suppliers, distributors, and ultimately, customer who partner with each other to improve the performance of the entire system

20. Knows the importance of building close relationships with its suppliers • Puts “achieve supplier satisfaction” as a part of its mission statement

21. What Toyota Do with Suppliers: • Learns about their businesses • Conducts joint improvement activities • Helps train supplier employees • Gives daily performance feedback • Actively seeks out supplier concerns • Recognizes top performers with annual performance award

22. Those approaches to suppliers help Toyota: • Increase the degree of trust, open, honest communication between them • Improve its own quality • Reduce costs of production • Develop new product quickly

23. Marketing Strategy and the Marketing Mix Marketing strategy • The marketing logic by which the business unit hopes to create customer value and achieve profitable customer relationships • It involves 2 key questions: • Which customers will we serve (segmentation and targeting)? • How will we create value for them (differentiation and positioning)?

24. Managing Marketing Strategies and the Marketing Mix Then the company designs a marketing program-the 4Ps-that delivers the intended value to target consumers At its core, marketing is all about creating customer value and profitable customer relationships

25. Market Segmentation • Market: people or organizations with needs or wants and the ability and willingness to buy • Market Segment: a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs Market Segmentation: the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups Purpose: to enable the marketer to tailor marketing mixes to meet the needs of one or more specific segments

26. Importance of Market Segmentation Market Segmentation More precise definition of consumer needs and wants More accurate marketing objectives Improve resource allocation Better marketing result

27. Targeting • Target Market: a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges Targeting narrowly Targeting broadly Undifferentiated (mass) marketing Differentiated (segmented) marketing Concentrated (niche) marketing Micro (local or individual) marketing

28. Positioning • Positioning:developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general • Position: the place of product, brand, or group of products occupies in consumers’ minds relative to competing offerings • Product differentiation: a positioning strategy that some firms use to distinguish their product from those of competitors

29. Positioning of Procter & Gamble Detergents

30. Positioning Bases • Attribute: feature or benefit of product • Kleenex® Anti-Viral* Tissue • Kleenex® Anti-Viral* tissues' specially treated middle layer kills cold and flu viruses. • Price & quality: price as the indication of value • Use or application: • Kahlua liqueur • used advertising • to point out 228 ways to consume the product

31. Positioning Bases • Product user: personality of type of user • Imac positions itself as the best PC for artworks • Product class: product is positioned against others that provide the same class of benefits.

32. Positioning Bases • Competitor: Avis rental car positioning as “no.2” compared to Hertz and 7up with “the uncola” • Emotion: focus on how product makes customers feel • “Just Do It” campaigndidn’t tell consumers what “it” was, but most got emotional message of achievement & courage

33. Marketing Mix • A unique blend of product, place, promotion, and pricing strategies (often referred to as the four Ps) designed to produce mutually satisfying exchanges with a target market

34. Marketing Mix • Product strategies: the product includes not only the physical unit but also its package, warranty, after-sale service, brand name, company image, value, and etc. • Product can be… • Tangible goods: computers • Ideas: consultant offered • Services: medical care • Products should also offer customer value

35. Marketing Mix • Place strategies: are concerned with making product available when and where customers want them. • It is a physical distribution which involves all the business activities concerned with storing and transporting raw materials or finished products • The goal is to make sure products arrive in usable condition at designated places when needed

36. Marketing Mix • Promotion strategies: includes advertising, public relations, sales promotion, and personal selling • Promotion’s role in the marketing mix is to bring about mutually satisfying exchanges with target markets by informing, educating, persuading, and reminding them of the benefits of an organization or a product • Good promotion strategy can dramatically increase sales, however, not all good strategies guarantee success

37. Marketing Mix • Pricing strategies: price is what a buyer must give up to obtain a product • It is often the most flexible of the 4 marketing mix elements—the quickest element to change • Price is an important competitive weapon and is very important to the organization because price multiplied by the number of units sold equals to total revenue for the firm