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marketing philip kotler chp#2
1.
Chapter 2- slide
1 Chapter Two Company and Marketing Strategy Partnering to Build Customer Relationships
2.
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2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Company and Marketing Strategy • Companywide Strategic Planning: Defining Marketing’s Role • Designing the Business Portfolio • Planning Marketing: Partnering to Build Customer Relationships • Marketing Strategy and the Marketing Mix • Managing the Marketing Effort • Measuring and Managing Return on Marketing Investment Topic Outline
3.
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3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide 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 Strategic Planning
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4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4 Strategic Planning Process: This process involves: –Defining a Mission: Statement of an organization’s purpose; should be market oriented. –Setting Company Objectives: Supporting goals and objectives to guide the entire company. –Designing a Business Portfolio: Collection of businesses and products that make up the company. –Planning Functional Strategies: Detailed planning for each department designed to accomplish strategic objectives.
5.
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5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning • The mission statement is the organization’s purpose, what it wants to accomplish in the larger environment • Market-oriented mission statement defines the business in terms of satisfying basic customer needs Defining a Market-Oriented Mission
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6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Setting Company Objectives and Goals
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7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning The business portfolio is the collection of businesses and products that make up the company Portfolio analysis is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company Designing the Business Portfolio
8.
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8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Strategic business unit (SBU) is a unit of the company that has a separate mission and objectives that can be planned separately from other company businesses • Company division • Product line within a division • Single product or brand Boston Consulting Approach: Using the Boston consulting group a companies classifies all its SBU’s according to growth share matrix Analyzing the Current Business Portfolio
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9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Analyzing the Current Business Portfolio
10.
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10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning:
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11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Analyzing Current SBU’s Boston Consulting Group Approach Analyzing Current SBU’s Boston Consulting Group Approach Question Marks • High growth, low share • Build into Stars/ phase out • Requires cash to hold market share Question Marks • High growth, low share • Build into Stars/ phase out • Requires cash to hold market share Stars • High growth & share • Profit potential • May need heavy investment to grow Cash Cows • Low growth, high share • Established, successful SBU’s •Produces cash Cash Cows • Low growth, high share • Established, successful SBU’s •Produces cash Dogs • Low growth & share • Low profit potential Dogs • Low growth & share • Low profit potential Relative Market Share High Low MarketGrowthRate LowHigh
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12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning • Difficulty in defining SBUs and measuring market share and growth • Time consuming • Expensive • Focus on current businesses, not future planning Problems with Matrix Approaches
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13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification Developing Strategies for Growth and Downsizing
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14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Developing Strategies for Growth and Downsizing Product/market expansion grid strategies
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15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Market penetration is a growth strategy increasing sales to current market segments without changing the product Market development is a growth strategy that identifies and develops new market segments for current products Developing Strategies for Growth and Downsizing
16.
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16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Product development is a growth strategy that offers new or modified products to existing market segments Diversification is a growth strategy through starting up or acquiring businesses outside the company’s current products and markets Developing Strategies for Growth and Downsizing
17.
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17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Downsizing is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy Developing Strategies for Growth and Downsizing
18.
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18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Planning Marketing Partnering to Build Customer Relationships Value chain is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products
19.
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19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Planning Marketing Partnering to Build Customer Relationships Value delivery network is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system
20.
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20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Strategy and the Marketing Mix
21.
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21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Strategy and the Marketing Mix Market segmentation is the division of a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mixes Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts Customer-Driven Marketing Strategy
22.
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22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Strategy and the Marketing Mix Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter Customer-Centered Marketing Strategy
23.
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23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Strategy and the Marketing Mix Customer-Centered Marketing Strategy Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer
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24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Strategy and the Marketing Mix Marketing mix is the set of controllable tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market Developing an Integrated Marketing Mix
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25 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4ps takes the seller’s view of the market , not the buyer or customer view. From the customer point of view or buyer view 4 Ps can be describe as 4Cs are shown in the following 4P’s 4C’s Product Customer solution Price Customer cost Place Convenience Promotion Communication
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26 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Strategy and the Marketing Mix Developing an Integrated Marketing Mix
27.
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27 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Managing the Marketing Effort
28.
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28 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Managing the Marketing Effort Swot Analysis Marketing Analysis – SWOT Analysis
29.
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29 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Managing the Marketing Effort Market Planning—Parts of a Marketing Plan
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30 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Managing the Marketing Effort Implementing is the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives • Successful implementation depends on how well the company blends its people, organizational structure, decision and reward system, and company culture into a cohesive action plan that supports its strategies Marketing Implementation
31.
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31 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Managing the Marketing Effort Marketing Department Organization
32.
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32 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Managing the Marketing Effort • Controlling is the measurement and evaluation of results and the taking of corrective action as needed • Operating control • Strategic control Marketing Control
33.
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33 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Measuring and Managing Return on Marketing Investment Return on Marketing Investment (Marketing ROI) Return on marketing investment (Marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment. Marketing ROI provides a measurement of the profits generated by investments in marketing activities.
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