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Company and Marketing Strategy: Partnering to Build Customer Relationships

Company and Marketing Strategy: Partnering to Build Customer Relationships. Chapter 2. Strategic Planning. ORGANIZATIONAL CAPABILITIES AND GOALS. MARKETING OPPORTUNITIES. Strategic Planning. Strategic planning is defined as:

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Company and Marketing Strategy: Partnering to Build Customer Relationships

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  1. Company and Marketing Strategy: Partnering to Build Customer Relationships Chapter 2

  2. Strategic Planning ORGANIZATIONAL CAPABILITIES AND GOALS MARKETING OPPORTUNITIES

  3. Strategic Planning • Strategic planning is defined as: • “The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.”

  4. Steps in the Strategic Planning Process

  5. Market-Oriented Mission Marketing Management • A mission statement should be: • An “invisible hand” • Neither too narrow nor too broad • Fitting of market environment • Based on distinctive competencies • Motivating • A mission statement asks.. • What is our business? • Who is the customer? • What do consumers value? • What should our business be?

  6. Sample Mission “We help you organize the world’s information and make it universally accessible and useful.”

  7. Disney “We create fantasies—a place where dreams come true and America still works the way it’s supposed to”

  8. Strategic Planning Company Objectives must tie to Marketing Objectives Company Mission Business Objectives Marketing Objectives

  9. Analyze Portfolio Business portfolio:“the collection of businessesand products that make up the company.”

  10. Strategic Planning • Designing the businessportfolio is a key step in the strategic planning process. • The best portfolio is the one that best fits the company’s strengths and weaknesses to opportunities in the environment.

  11. The Business Portfolio Business portfolio planning involves two steps: • Analyzing the current business portfolio • Shaping the future portfolio by developing strategies

  12. Step 1: Analyze the current business portfolio Step 2: Shape the future business portfolio Identify strategic business units (SBUs) Assess each SBU: The BCG growth-share matrix classifies SBUs into one of four categories using: Market growth rate The SBU’s relative market share within the market. Strategic Planning Portfolio Design

  13. SBUs • A strategic business unit (SBU) is a unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses. • Portfolio analysis calls for management to assess the attractiveness of its various SBUs and decide how much support each deserves.

  14. Portfolio - BCG Matrix $ HIGH Market Growth Rate LOW HIGH LOW Relative Market Share

  15. Growth-Share Matrix

  16. Analyzing Current SBU’s:GE’s Strategic Business-Planning Grid Business Strength Strong Average Weak C High A Medium Industry Attractiveness D B Low

  17. Analyzing the Current Business Portfolio Marketing Management • Build • Increase market share • Works well for question marks • Hold • Preserve market share • Good for cash cow • Harvest • Increases short-term cash flow • Good for weak cash cows, question marks and dogs • Divest • Sell or liquidate • Good for dogs and question marks

  18. Step 1: Analyze the current business portfolio Step 2:Shape the future business portfolio Determine the future role of each SBU and choose the appropriate resource allocation strategy: Build Hold Harvest Divest SBUs change positions over time Strategic Planning Portfolio Design

  19. Strategic Planning Develop GrowthStrategies

  20. Product / Market Expansion Grid

  21. The strategic planning and business portfolio analysis processes help to identify and evaluate marketing opportunities. The purpose of the marketing process is to help the firm plan how to capitalize on these opportunities. The Marketing Process Key Elements Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort

  22. The segmentation process divides the total market into market segments. Target marketing chooses which segment(s) are pursued. Market positioningfor the product is then determined. The Marketing Process Key Elements Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort

  23. The Value Delivery Process

  24. Customers grouped by: Geographic Demographic Psychographic Behavioral Market segment is a groups of consumers who respond in similar ways to marketing efforts. Marketing Strategy Strategy • Market Segmentation • Target marketing • Market Positioning

  25. Evaluation of each segment’s attractiveness Selection of segments with greatest long-term profitability A company can choose one or several segments to target Marketing Strategy Strategy • Market Segmentation • Target marketing • Market Positioning

  26. The place the product occupies in the consumer’s mind Products are positioned relative to competing products Marketers look for clear, distinctive and desirable place in positioning Marketing Strategy Strategy • Market Segmentation • Target marketing • Market Positioning

  27. Competitor analysis guides competitive marketing strategy development. Strategy leads to tactics via the marketing mix: The “Four Ps” – product, price, place, promotion (seller viewpoint) The “Four Cs” – customer solution, cost, convenience, and communication (customer viewpoint) The Marketing Process Key Elements Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort

  28. Marketing Mix • The marketing mix includes controllable and tactical marketing tools knows as the 4P’s • The 4P’s include • Product • Place • Promotion • Price

  29. The Marketing Mix

  30. Marketing analysis Provides information helpful in planning, implementation, and control Marketing planning Strategies and tactics Marketing implementation Turns plans into action Marketing control Operating control Strategic control The Marketing Process Key Elements Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort

  31. Finding opportunities Avoiding threats Understanding strengths Analyzing weaknesses Managing the Marketing Effort Marketing Functions • Analysis • Planning • Implementation • Control

  32. MarketingAnalysis Weaknesses Threats Strengths Opportunities T W S O INTERNAL EXTERNAL POSITIVE NEGATIVE

  33. Marketing plans include: Executive summary Analysis of current situation Objectives Targets and positioning Marketing mix Budget Controls Managing the Marketing Effort Marketing Functions • Analysis • Planning • Implementation • Control

  34. Plans are turned into action with day-to-day activities Good implementation is a challenge Managing the Marketing Effort Marketing Functions • Analysis • Planning • Implementation • Control

  35. Evaluation of the results of marketing strategies Checks for differences between goals and performance Managing the Marketing Effort Marketing Functions • Analysis • Planning • Implementation • Control

  36. Managing the Marketing Effort

  37. The Marketing Process

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