What is Marketing?

Report
Chapter Two
Marketing Strategy: Where
Marketing Really Begins
With Duane Weaver
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© 2010 Pearson Education Canada
OUTLINE
• Strategic Planning Defined and the Process
• SBU’s
• Marketing Positioning – Tools:
- The BCG Matrix and
- The Product-Market Expansion Grid
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Partnering
Strategy a& Marketing Mix
Segmentation
Differentiation & Positioning
Managing Effort, SWOTs, & ROI
A Marketing Plan
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What Is 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.
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Strategic Planning and the Marketing
Process
Company Wide Strategic Planning
Company Mission and Company Objectives
Design Business Portfolio Strategies for Growth
BCG Matrix
Product Market Expansion
Developing Customer Driven Marketing Strategy
Segmentation, Targeting and Positioning
Developing the Integrated Marketing Mix
Product, Price, Place, Promotion
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Company Wide Strategic Planning
• Defining a Clear Company Mission
– States the organization’s purpose.
– Market and customer-oriented.
– Provides direction to internal stakeholders.
• Setting Company Objectives and Goals
– The mission of the organization is translated to
detailed, quantifiable objectives
– The rest of the planning process is supported by
these objectives
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Mission Statements
• Mission statement
A statement of the organization’s purpose what it wants to accomplish in the larger
environment.
• It answers basic questions
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What is our business?
Who is the customer?
What does the customer value?
What should our business be?
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Defining a Market Oriented Mission
A market oriented mission statement
– Defines the business in terms of
satisfying customer needs
– Will not be too narrow or too broad
– Will be in tune with the current market
environment
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Company Objectives and Goals
• Goals must be sustainable and lead to
growth
• Corporate objectives include marketing
objectives (specific, measurable, obtainable):
– Invest in research and development
– Improve or develop new products
– Develop customer relationships
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Strategic Business Units (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
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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
and portfolio planning using tools such as the BCG
matrix.
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The BCG Growth Share Matrix
Rising Stars Question Marks
Business
strength,
growth rate,
cash use
Defend position
Cash Cows
Nurture to
generate cash
Use cash to make
into a star
Dogs
Fix or abandon
Industry attractiveness, market
share, cash generation
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Analyze Opportunities
• Product-Market Expansion Grid identifies
four potential growth areas.
Existing
Products
New
Products
Existing
Markets
Market
Penetration
Product
Development
New
Markets
Market
Development
Diversification
© 2010 Pearson Education Canada
in-class notes
Product/Market Expansion Grid
• Strategies for growth
– Market penetration strategy
– Market development strategy
– Product development strategy
– Diversification strategy
• Strategies for international growth
– Company must decide whether to go
international, then which markets, how
many, and which types to enter
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Partners Create and Deliver
Customer Value
• Partnering to build customer
relationships
– In building profitable customer relationships
companies partner with the value chain to deliver
value to its customers
– The value chain is the collective system of internal
company departments and external business
partners that together provide customer value by
producing, delivering, marketing, and supporting
the company’s products
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Marketing Strategy and the Marketing Mix
Mission Statement
Corporate Objectives
Business Objectives
Marketing Objectives
Marketing Strategies - The marketing logic by which the
company creates customer value and achieves profitable
customer relationships.
Marketing Mix Strategies – guided by marketing strategies
made up of factors under its control - product, price, place, and
promotion.
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Customer Driven Marketing Strategy
• Market Segmentation – sub dividing the
target market
• Market Targeting – evaluating each segment
and selecting one or more segments
• Market Differentiation and Positioning –
occupy a clear distinctive place in consumer’s
mind
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Market Segmentation
• The process of dividing a market into distinct groups of
buyers with different needs, characteristics or
behaviours who might require separate products or
marketing programs.
• Consumers are grouped into market segments based
on:
• Geographic
• Demographic
• Psychographic
• Behavioral factors (e.g.: bought here before-loyalty)
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Market Segmentation - exercise
PLEASE TAKE 5 MINUTES TO:
1. Get into your case team groups.
2. Choose a company you are familiar with as a team.
3. Identify one of the typical customers they sell to.
A. Determine what form of market segmentation
would work for them best to reach this type of
customer (as a group/segment)?
B. Be prepared to explain to the class why you think
this type of segmentation is the best approach.
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Market Differentiation
and Positioning
• Arranging for a product to occupy a clear,
distinctive and desirable place relative
to competing products in the minds of target
consumers.
• Process begins with differentiating the
company’s marketing offer so it gives
consumers more value.
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The Marketing Mix
The set of controllable, tactical
marketing tools that the firm blends to
produce the response it wants in the
target market.
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Creating the Integrated Marketing Mix
• Product – offers the right product, service or
experience.
• Price – controls perceived value and
satisfaction.
• Place – allows customers’ easy access to
product and support.
• Promotion – communicates the offer and the
value proposition.
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The Four Ps and the Four Cs
• PRODUCT provides CUSTOMER SOLUTION
• PRICE represents CUSTOMER COST
• PLACE provides CONVENIENCE
• PROMOTION is two-way COMMUNICATION
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Managing the Marketing Effort
• Marketing Analysis – A detailed description and analysis
of the current situation facing the company (e.g.: SWOT)
• Marketing Planning – a detailed plan for each business
unit
• Marketing Implementation – turning plans into action
• Marketing Department Organization –
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Functional organizations
Product organizations
Market based organizations
Geographic organizations
Combinational organizations
• Marketing Control – evaluating the results
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Measuring and Managing Return on
Marketing Investment
Can you PROVE it will or it did work?
• Return on Marketing Investment
– The return on investment that can be calculated and
attributed directly to the efforts of marketing
– Calculated by dividing net return from marketing by
the cost of marketing investment
– Measures the profits generated by investments in
marketing activities
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A Marketing Plan Outline
• Executive summary.
• Current marketing situation.
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Market description.
Product review.
Competitive review.
Review of distribution.
Threat and opportunity analysis (SWOT).
Objectives and issues.
Marketing strategy.
Action program.
Budgets.
Controls.
© 2010 Pearson Education Canada
Thanks!
© 2010 Pearson Education Canada

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