Company and Marketing Strategy

Report
Company and Marketing
Strategy
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.
Steps in Strategic Planning
Corporate level
Defining the
company
mission
Setting
company
objectives and
goals
Business unit, product, and
market level
Designing the
business
portfolio
Planning
marketing and
other functional
strategies
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.
• 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.”
• 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.
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
Market-Oriented Business Definition
Company
Product-Oriented
Definition
Market-Oriented
Definition
Amazon.com
We sell books, videos, CDs,
toys, consumer electronics,
hardware, housewares, and
other product online.
We make the internet buying
experience fast, easy, and
enjoyable—we’re the place
where you can find and
discover anything you want to
buy online .
L’Oreal
We make cosmetics.
We sell lifestyle and selfexpression; success and status,
memories, hopes, and dreams.
Adidas
We sell athletic shoes and
apparel.
We strive to be the global
leader in the sporting goods
industry with sports brands
built on a passion for sports
and sporting lifestyle.
Tesco
We run discount stores.
We deliver low prices everyday
and give ordinary folks the
chance to buy the same things
as rich people.
2. Setting Company Objectives and
Goals
• Turn company’s mission into detailed
supporting objectives for each level of
management.
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.
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.
The BCG Growth Share Matrix
2 Steps in Business Portfolio Planning
2. Developing strategies for growth and downsizing
Existing
market
New
market
Existing
products
New
products
Market penetration
Product
development
Market development
Diversification
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
Ansoff’s Strategic Opportunity Matrix
Present Product
New Product
Present Market
Market penetration:
McDonald’s sells more
Happy Meals with
Disney movie
promotions
Product development:
McDonald’s introduces
premium salads and
McWater
New Market
Market development:
McDonald’s opens
restaurants in China
Diversification:
McDonald’s introduces
line of children’s
clothing
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.
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
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
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
• Knows the importance of building close
relationships with its suppliers
• Puts “achieve supplier satisfaction” as a part
of its mission statement
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
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
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)?
Managing Marketing Strategies and
the Marketing Mix
At its core, marketing
is all about creating
customer value and
profitable customer
relationships
Then the company
designs a
marketing
program-the 4Psthat delivers the
intended value to
target consumers
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
Importance of Market Segmentation
Market
Segmentation
More precise
definition of
consumer needs
and wants
More accurate
marketing
objectives
Improve
resource
allocation
Better
marketing result
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
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
Positioning of Procter & Gamble
Detergents
Brand
Positioning
Tide
Tough, powerful cleaning
Cheer
Tough cleaning and color protection
Bold
Detergent plus fabric softener
Gain
Sunshine scent and odor-removing formula
Era
Stain treatment and stain removal
Dash
Value brand
Oxide
Bleach-boosted formula, whitening
Solo
Detergent and fabric softener in liquid form
Dreft
Outstanding cleaning for baby clothes, safe for tender
skin
Ivory Snow
Fabric and skin safety on baby clothes and fine
washables
Ariel
Tough cleaner, aimed at Hispanic market
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
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.
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” campaign didn’t tell
consumers what “it” was, but most
got emotional message of achievement & courage
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
4Ps
4Cs
Product
Customer Solution
Price
Customer Cost
Place
Convenience
Promotion
Communication
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
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
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
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

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