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Company and Marketing
Strategy
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Strategic Planning
The process of developing and maintaining a strategic fitbetween the organizations goals and capabilities and itschanging marketing opportunities
The first step is to define the companys overall purposeand mission
The mission is then turned into detailed supportingobjectives
What portfolio of businesses and products is best for thecompany?
Marketing planning occurs at the business-unit, product,and market levels
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Defining a Market-Oriented Mission
What is our business? Who is the customer? What doconsumers value? What should our business be?
A mission statement is a statement of the organizations
purpose invisible hand
to provide a global trading platform where practicallyanyone can trade practically anything
Mission statements should be meaningful and specificyet motivating
Should emphasize the companys strengths in themarketplace
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Setting Company Objectives and Goals
The company needs to turn its mission intodetailed supporting objectives for each level ofmanagement
Each manager should have objectives and beresponsible for reaching them
BASF: build profitable customerrelationships by developing better products
leads to series of goals Marketing strategies and programs must be
developed to support these marketing objectives
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Business Portfolio
The collection of businesses and products thatmake up the company
The company must analyze its current businessportfolio and decide which businesses shouldreceive more, less, or no investment
It must shape the future portfolio by developingstrategies for growth and downsizing
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Analyzing the Current Business
Portfolio Identify the key businesses that make up the
company (SBU)
Assess the attractiveness of its various SBUs The purpose of strategic planning is find ways in
which the company can best use its strengths totake advantage of attractive opportunities in the
environment The attractiveness of the SBUs market
The strength of the SBUs position in that market
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BCG Approach
A company classifies all its SBUs accordingto the growth-share matrix
Stars
Cash cows
Question marks
Dogs
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Strategies for Growth and
Downsizing The companys objective must be to manage
profitable growth Marketing needs to identify, evaluate, and select
market opportunities and lay down strategies forcapturing them
Product/market expansion grid Downsizing: Reducing the business portfolio by
eliminating products of business units that arenot profitable or that no longer fit the companysoverall strategy
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Partnering with other company
departments Value chain: The series of departments that carry out
value-creating activities to design, produce, market,deliver, and support a firms products
Wal-Marts goal is to create customer value andsatisfaction by providing shoppers with the products atthe lowest possible prices
Suppliers, IT dept., operations people (effective, low-cost merchandise handling) are very important
If you are not thinking customer, you are not thinking
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Partnering with others in the
marketing system More companies today are concerned about the
customer value delivery network Value delivery network: made up of the company,
suppliers, distributors, and ultimately, customers whopartner with each other to improve the performance ofthe entire system
McDonalds captures over 40% of the burger market QSCV quality, service, cleanliness, and value
Toyotas close relationships with its suppliers In todays marketplace, competition takes place between
the entire value delivery networks created by thecompetitors
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Marketing Strategy
The marketing logic by which the businessunit hopes to create customer value and
achieve profitable customer relationships Customer-driven marketing strategy
Companies cannot profitably serve all
customers in a given market
Understand customers needs and wants
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Market Targeting
The process of evaluating each market segmentsattractiveness and selecting one or more segments toenter
A company should target segments in which it canprofitably generate the greatest customer value andsustain it over time
Market niches; e.g. Ferrari
Several related segments different kinds of customersbut with the same basic wants
GM says that it makes a car for every person, purse andpersonality.
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Positioning and Differentiation
Positioning: arranging for a product tooccupy a clear, distinctive, and desirable
place relative to competing products in theminds of target consumers
Positioning is why a shopper will pay a
little more for your brand GMG: First Class All the Way
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Positioning and Differentiation
Competitive advantages upon which tobuild the position
Charge lower prices or offer greaterbenefits
Differentiating the market offering to
create superior customer value The companys entire marketing program
should support the positioning strategy
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Developing a Marketing Mix
The set of controllable tactical marketing toolsproduct, price, place, and promotion (four Ps)that the firm blends to produce the response it
wants in the target market Buyers viewpoint: four Cs Customers buying value or solutions to their
problems
Marketers would do well to think through thefour Cs first and then build the four Ps on thatplatform
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Managing the Marketing Effort
Analysis: provides information and evaluation
Planning: strategic plans, and then marketing
plans for each division, product and brand Implementation: turns the plans into actions
Control: measuring and evaluating the results ofmarketing activities and taking corrective actionsif needed
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Marketing Analysis
SWOT analysis
Find attractive opportunities and identify
environmental threats
Match the companys strengths toattractive opportunities in the environment
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Marketing Planning
Marketing planning involves deciding onmarketing strategies that will help the
company attain its overall strategicobjectives
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Contents of a Marketing Plan
Executive summary: brief summary of the main goals andrecommendations of the plan
Current marketing situation: describes the target market andcompanys position in it, including information about the market,
product performance, competition, and distribution Threats and opportunities analysis Objectives and issues Marketing strategy: How will the company create value for
customers in order to capture value from customers in return? Action programs: What? When? Who? How much will it cost? Budgets: projected profit-and-loss statement. Expected revenues
and expected costs of production, distribution and marketing Controls: outlines the control that will be used to monitor progress
and take corrective actions
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Marketing Implementation
The process that turns marketing strategies andplans into marketing actions in order to
accomplish strategic marketing objectives Whereas marketing planning addresses the what
and why of marketing activities, implementationaddresses the who, where, when, and how
doing things right
Faster and better execution
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Marketing Control
Evaluating the results of marketing strategies and plans, and takingcorrective actions
Differences between expected and actual performance Operating controlinvolves checking ongoing performance against
the annual plan and taking corrective action when necessary Strategic controlinvolves looking at whether the companys basic
strategies are well matched to its opportunities Marketing strategies and programs should be reassessed periodically
The marketing audit covers allmajor marketing areas of a business Normally conducted by an experienced outside party Sometimes the findings may come as a shock
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Measuring and Managing ROI
ROI is the net return from a marketing investment divided by the costs ofthe marketing investment
Marketing returns can be difficult to measure no consistent definition ofmarketing ROI
Advertising impact arent easily put into dollar returns Marketing performance measures: brand awareness, sales, or marketing
share Marketing dashboards: marketing performance measures in a single display Customer centered measures of marketing impact: customer acquisition,
customer retention, customer lifetime value, and customer equity. More
difficult to measure but capture both current and future performance.