marketing chapter 2

Chapter 2 :COMPANY AND MARKETING STRATEGY :

PARTNERING TO BUILD CUSTOMER RELATIONSHIPS

COMPANYWIDE STRATEGIC PLANNING:

DEFINING MARKETING’S ROLE

Strategic planning : Process of developing and maintaining strategic fit between the organization’s goal and capabilities

STEP IN STRATEGIC PLANNING

Planning marketing and other function

strategies

Designing

business portfolio

Setting compan

y objective and goal

Defining company mission

Corporate Level

Business Unit,

Product, and market

strategies……

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i. DEFINING A MARKET-ORIENTED MISSION

Mission statement:

statement of the organization purpose. market oriented and defined in terms of satisfying basic customer needs.should be meaningful and specific yet motivating.

II. SETTING COMPANY OBJECTIVE AND GOALS

Business Objectives- To build profitable customer relationships- Investing heavily in research- Heavy investment must funded the improved profit

Marketing Objectives- Increase market share- Increase product availability and promotion

III. DESIGNING THE BUSINESS PORTFOLIO

Business Portfolio- Collection of businesses and product that make up

the company.- Is the one that best fits the company strengths and

weaknesses to opportunities in the environment.

Portfolio Analysis- Process by which management evaluates the

products and businesses that make up the company.

CONT…

Business portfolio involve two steps:

1. Analyzing the current business portfolio.

2. Developing strategies for growth and downsizing

BOSTON CONSULTING GROUP APPROACH

PROBLEM WITH MATRIX APPROACH

Difficult to define SBUs and measure market share and grows

time-consuming Costly to implement Focus on classifying current business, provide

little advise for future planning.

PRODUCT / MARKET EXPANSION GRID

Market penetration

Market developmen

t

Product development Diversification

Product / market expansion grid : a portfolio- planning tool for identifying company growth opportunities through market penetration, market development, product development or diversification.

Market penetration : company growth by increasing sales of current products to current market segments without changing the product.

Market development: Company growth by identifying and developing new market segments' for current company products.

Product development: Company growth by offering modified or new products to current market segments.

Diversification : Company growth through starting up or acquiring businesses outside the company’s products and markets.

PLANNING MARKETING: PARTNERING TO BUILD CUSTOMER RELATIONSHIP

i. Partnering with Other Company Departments.

ii. Partnering with Others in the Marketing System

Value Chain : The series of internal departments that carry out value-creating activities to design, produce, market, deliver and support a firm’s products.

Value delivery Network : The network made up of the company, its suppliers, its distributors and ultimately, Its customers who partner with each other to improve the performance of the entire system.

MARKETING STRATEGY AND THE MARKETING MIX

● The marketing logic by which the company hopes to create customer value and achieve profitable customer relationship.

● The company designs an integrated marketing mix made up of factors under its control such as product, price, place and promotion.

CUSTOMER-DRIVEN MARKETING STRATEGY

● To succeed in today’s competitive marketplace, companies must first understand customer needs and wants.

● The process involves : Market segmentation Market targeting Differentiation Positioning

MARKET SEGMENTATION

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and might require separate products or marketing programs

Market segment : a group of consumers who respond in a similar way to a given set of marketing efforts.

Market targeting : The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Positioning : Arranging for a product to occupy a clear, distinctiveand desirable place relative to competing products in the minds of target consumers.

Differentiation : Actually differentiating the market offering to create superior customer value.

DEVELOPING AN INTEGRATED MARKETING MIX

• Marketing mix : the set of tactical marketing tools that the firm blends to produce the response it wants in the target market.

product – the goods and services combination the company offers to the target market. Price – the amount of money customers must pay to obtain the product. Place – company activities that make the product available to target customers. Promotion – activities that communicate the merits of the product and persuade target customers to buy it.

MANAGING THE MARKET EFFORTMANAGING MARKETING :

Analysis,Planning,Implementation & Control

MARKETING ANALYSIS

Use SWOT Analysis. S = strengths W = weaknesses O = opportunities T = threats

MARKETING PLANNING

Marketing StrategiesSpecifict strategies for target markets,positioning,the marketing mix and marketing expenditures levels.

Marketing BudgetsOutlines that used to control monitor progress,measure return on marketing investment and take corrective action.

MARKETING IMPLEMENTATION

Is the process turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.

Marketing planning addresses the what and why the marketing activities,implementation addresses the who,where,when and how.

MARKETING DEPARTMENT ORGANIZATION

Design marketing organizatios that can carry out marketing strategies and plans.

Example ;Chief marketing officers(CMO)

position : head up the company marketing operations & represent marketing on the top management team.

WAYS OF MARKETING DEPARTMENT

Functional Organization

Handle different marketing activities by specialities a sale manager,advertising manager,marketing research manager,customer services manager & new product manager.

Geographic Organization

Sales and marketing people assigned to specifics country,regions and districts.

Product Management Organization

Manager of PMO develops and implements a complete strategy and marketing program for a specific product or brand.

Market / Customer Management Organization

Market managers are responsible for developing marketing strategies and plans for specifics market or customers

MARKETING CONTROL Measuring & evaluating the results of marketing

strategies and plans and taking corrective action to ensures that the objectives are achieved.

Operating Control Checking ongoing performance against the

annual plan and taking corrective action when necessary.

Strategic Control Looking at wheter the company’s basic

strategies are well matched to its opportunity.

MEASURING & MANAGING RETURN ON MARKETING INVESTMENT

THE END…..

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