Marketing ConceptsMarketing Strategy MKTG 3110-004 Spring 2014 Mrs. Tamara L. Cohen Class #3
KEY TERMS • Profit • Strategy • Culture • Core Competency • Unique Selling Point (Unique Selling Proposition/USP) • Market Segment • Target Market • Marketing Dashboard
KEY CONCEPTS • Strategic planning • Strategic Business Unit (SBU) • Core values • Mission statement • Marketing metric • Market growth strategies Strategic marketing process: • Planning • SWOT analysis • market segmentation • Implementing • marketing strategy • Evaluating BCG’s growth-share matrix
Strategy = organization’s long-term course of action designed to deliver value to customer while achieving organization's goals These goals should include PROFIT (in for-profit businesses) or some other METRIC (in non-profits).
Strategy in Organizations The board of directors oversees the 3 levels of strategy in organizations: corporate, business unit, and functional
Strategy in Organizations EXAMPLE: Nestlé Board of Directors Corporate level mission SBU level 7 worldwide SBUs (global product groups) Functional level marketing/finance/production/etc departments
How Strategy Happens Visionary organizations:(1) establish a foundation; (2) set a direction; and (3) create strategies to successfully develop and market their offerings marketing
Mission Statements Star Trek EnterpriseWhy is a mission statement important?
more Mission Statements Medtronic’s “Rising fig.” MuralWhat does it signify to stakeholders? “At Medtronic, we're committed to Innovating for Life by pushing the boundaries of medical technology and changing the way the world treats chronic disease.” Founder, Earl Bakken
Vision? What business are we really in? Do we have a viable business model?
Goals(Objectives) • Customer satisfaction/ serve the public good • Employee welfare • Social responsibility • Efficiency • Profit • Sales • Market share • Quality
Goals should be S.M.A.R.T. • Specific • Measurable • Attainable (Achievable) • Relevant • Time-based
Strategy Variations Variation by OFFERING: • Product • Service • Idea Variation by LEVEL: • Corporate • SBU • Function
Dashboards Car dashboard shows in one quick glance all essential information about status of key indicators, e.g. fuel gauge, temperature Marketing dashboard shows in one quick glance all essential information about status of key indicators, e.g. top customers, revenue, sales trends, prices. Marketing metrics on dashboard are linked to marketing objectives, which come from the marketing plan.
Hard to Measure: Metrics for Non-Profits “Every nonprofit organization should measure its progress in fulfilling its mission, its success in mobilizing its resources, and its staff's effectiveness on the job.” * • Define mission narrowly; success will be easier to measure. • Research effectiveness of programs. • Develop ‘microlevel’ goals, and extrapolate results.
Strategic Marketing Process 3 vital phases of strategic marketing: • PLANNING - How do we allocate our resources to get where we want to go? • IMPLEMENTATION - How do we convert our plans to actions? • EVALUATION - How do our results compare with our plans and do deviations require new plans?
Strategic Planning • Where are we now? • Core competencies • competitive advantage? • Unique Selling Point (USP)? • Customer identification • managing expectations, e.g. quality • Competitors • in different shapes and forms Lands’ End
Strategic Planning • Where do we want to go? • Business portfolio analysis • quantify performance of SBUs on growth share matrix • Diversification analysis • Search for new opportunities among current & new products, current & new markets
Strategic Planning High Stars Question Marks Cash Cows Dogs Market Growth Rate Relative Market Share Low High Low • Where do we want to go? • Business Portfolio Analysis
BCG business portfolio analysis for Kodak’s consumer SBUs for 2003 (solid circle) and 2010 (hollow circle) ② ③ Kodak digitalpicture frame Kodak digitalphoto printer ④ ① Kodak digitalcamera Kodak film sales: US,Canada, & W. Europe
Strategic Marketing Process:PLANNING phase Step 1: Situation Analysis (SWOT) • Strengths • Weaknesses • Opportunities • Threats
Strategic Marketing Process:PLANNING phase Step 2: Market-Product Focus & Goal-Setting • Market segmentation • Set marketing & product goals • Select target markets • Points of difference • Position product
Strategic Marketing Process:PLANNING phase Step 3: Marketing Program • Product • Price • Promotion • Place (distribution) 4 P’s
in-class exercise (Details in class)
Next class: Marketing Environment Preparation: Read Ch. 3:p.63 Facebook pp.65 fig.3-2