Download - ch02 marketing
-
8/12/2019 ch02 marketing
1/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-1
Company and Marketing
Strategy: Partnering to Build
Customer Relationships
2
Marketing : An Introduction
An Asian Perspective
Armstrong, Kotler
& da Silva
-
8/12/2019 ch02 marketing
2/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-2
Explain companywide strategic planning andits four steps.
Explain marketings role in strategic planningand how marketing works with its partners tocreate and deliver customer value.
Describe the elements of a customer-drivenmarketing strategy and mix, and the forcesthat influence it.
Important Concepts
-
8/12/2019 ch02 marketing
3/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-3
Opening Case Study- Walt Disney
Company
-
8/12/2019 ch02 marketing
4/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva
Disney Land
Known for films, animation, theme parks and customer
orientation
Parks offer a variety of attractions as well as cleanliness, order,and warmth
Satisfying the customer is everyones job
Disney has grown via diversification
Disneys strong presence will be enhanced in Asia with theopening of Hong Kong
2-4
-
8/12/2019 ch02 marketing
5/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-5
Strategic Planning
Strategic Planningis the Process of
Developing and Maintaining a
Strategic Fit Between theOrganizations Goals and
Capabilities and Its Changing
Marketing Opportunities.
-
8/12/2019 ch02 marketing
6/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-6
Steps in Strategic Planning
Figure 2.1
-
8/12/2019 ch02 marketing
7/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-7
Outcomes of effective marketing
strategies:
Achieve clear competitive advantages
over the firms rivals
Create positive responses among its
target customers
Turn in positive contributions to its bottom-
line
-
8/12/2019 ch02 marketing
8/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-8
Figure 2.3
Strategies Over Time-Singapore
Airlines
-
8/12/2019 ch02 marketing
9/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-9
Questions a Mission Statement Should
Answer
What is our Business?
Who is the Customer?
What do Consumers Value?
What Should our Business Be?
-
8/12/2019 ch02 marketing
10/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-10
The Mission Statement
A statement of the organizations purpose
What it wants to accomplish in the larger
environment
Should be market oriented and defined in
terms of customer needs.
-
8/12/2019 ch02 marketing
11/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-11
Mission Statements Should:
Be Realistic
Be Specific
Fit the Market Environment
Be Based on Distinctive Competencies
Be Motivating
-
8/12/2019 ch02 marketing
12/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-12
Mission Statements : Examples
Amazon.com: We sell books, videos,CDs, Consumer electronics,
hardware and other products.
Canon: We make copying machines,fax machines and scanners
-
8/12/2019 ch02 marketing
13/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-13
Designing the Business Portfolio
The business portfolio is the collection ofbusinesses and products that make up the
company.
The company must:
analyze its currentbusiness portfolio or
Strategic Business Units (SBUs),
decide which SBUs should receive more, less,
or no investment,
develop growth strategies for growth or
downsizing.
-
8/12/2019 ch02 marketing
14/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-14
Strategic Business Unit (SBU)
A unit of the company that has a separate
mission and objectives and that can be
planned independently from other
company businesses.
Can be a company division, a product line
within a division, or sometimes a singleproduct or brand.
-
8/12/2019 ch02 marketing
15/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-15
-
8/12/2019 ch02 marketing
16/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-16
Portfolio Analysis
An evaluation of the products and
business making up the company.
Resources are directed to more profitable
businesses and weaker ones are phased
down or dropped.
-
8/12/2019 ch02 marketing
17/49
-
8/12/2019 ch02 marketing
18/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-18
Analyzing Current SBUs:
BCG Growth-Share Matrix
Question Marks
Low share SBUs in high growthmarkets
Require cash to holdmarket share
Build into Stars or phase out
Stars
High growth & shareMay need heavy
investment to growEventually, growth will slow
Relative Market Share
High Low
Marke
tGrowthRa
te
Low
H
igh
?
Cash Cows
Low growth, high shareEstablished, successfulSBUs
Produce cash
Dogs
Low growth & shareGenerate cash to sustain selfDo not promise to be cash
sources
-
8/12/2019 ch02 marketing
19/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-19
Figure 2.6
Strategies in Managing the SBUs in the Portfolio
-
8/12/2019 ch02 marketing
20/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-20
The BCG Growth-Share Matrix
Figure 2.4
-
8/12/2019 ch02 marketing
21/49
-
8/12/2019 ch02 marketing
22/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-22
Can be Difficult, Time Consuming, Costly to Implement
Difficult to Define SBUs & Measure Market Share/Growth
Focus on Current Businesses, Not Future Planning
Can Place too Much Emphasis on Growth
Problems With Matrix Approaches
-
8/12/2019 ch02 marketing
23/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva
Step II. Developing strategies for
growth and Downsizing
2-23
Marketing has the main responsibility for achieving
profitable growth for the company.
Marketing must identify, evaluate, and select market
opportunities and lay down strategies for collecting
them.
One useful device for identifying growth
opportunities is the Product/Market Expansion
Grid.
-
8/12/2019 ch02 marketing
24/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-24
MarketPenetration
ProductDevelopment
MarketDevelopment
Existing New
P R O D U C T
NewMA
R
K
ET
Diversification
Existing
Product/Market Expansion Grid
Figure 2.7
-
8/12/2019 ch02 marketing
25/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-25
Product/Market Expansion Grid
Based on Starbucks
Market Penetration: make more sales tocurrent customers without changingproducts.
How? Add new stores in current market areas;improve advertising, prices, menu, service.
Market Development: identify and developnew markets for current products.
How? Review new demographic(seniors/ethnic consumers) or geographic(Asian, European, Australian, & South
American) markets.
-
8/12/2019 ch02 marketing
26/49
Market Penetration
1/ 2011Surej P John26
Started the first shop in
2004
In 2009, the number of
shops reached 41including 8 University
campuses
-
8/12/2019 ch02 marketing
27/49
Market Development
-
8/12/2019 ch02 marketing
28/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-28
Product/Market Expansion GridBased on Starbucks
Product Development: offering modified ornew products to current markets.
How? Add food offerings, sell coffee insupermarkets, co-brand products.
Diversification: start up or buy businessesoutside current products and markets.
How? Making and selling CDs, testingrestaurant concepts, or branding casualclothing.
-
8/12/2019 ch02 marketing
29/49
Product
Development
1/ 2011Surej P John29
-
8/12/2019 ch02 marketing
30/49
Diversification Diversification is developing new products for new
markets
1/ 2010Surej P John30
i i
-
8/12/2019 ch02 marketing
31/49
Downsizing: Reducing the business portfolio by eliminating the
products or business units that are not profitable or
that no longer fit the companys overall strategy.
1/ 2011Surej P John31
M i M k ti St t d
-
8/12/2019 ch02 marketing
32/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-32
Managing Marketing Strategy and
Marketing Mix
Figure 2.13
-
8/12/2019 ch02 marketing
33/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-33
Market Segmentation
The process of dividing a market intodistinct groups of buyers with different
needs, characteristics, or behavior who
might require separate products ofmarketing programs.
A market segment consists of consumerswho respond in a similar way to a given
set of marketing efforts.
-
8/12/2019 ch02 marketing
34/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva
Market segmentation
2-34
-
8/12/2019 ch02 marketing
35/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva
What is the
targetmarket?
2-35
-
8/12/2019 ch02 marketing
36/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-36
Target Marketing
Involvesevaluating each
market segments
attractiveness and
selecting one ormore segments to
enter.
Target segments
that can sustain
profitability.
-
8/12/2019 ch02 marketing
37/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-37
Market Positioning
Arranging for a product to occupy a clear,distinctive, and desirable place relative to
competing products in the minds of target
consumers (e.g. in a perfect worldeveryone would drive a Mercedes Benz)
Process begins with differentiating thecompanys marketing offer so it gives
consumers more value.
-
8/12/2019 ch02 marketing
38/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-38
The Marketing Mix
The set ofcontrollable,
tactical marketing
tools that the firmblends to
produce the
response it wantsin the target
market.
Consists of the
4 Ps
1. Product2. Price
3. Place
4. Promotion
Th 4 P f th M k ti Mi
-
8/12/2019 ch02 marketing
39/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-39
The 4 Ps of the Marketing MixFigure 2.14
A hi i C titi Ad t I t ti
-
8/12/2019 ch02 marketing
40/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-40
Achieving Competitive Advantage, Integration
and Positioning in the Marketing Mix
Figure 2.15 (a)
-
8/12/2019 ch02 marketing
41/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-41
Product strategies
Any kind of strategies that
are related to make
product improvements.
Product quality
Product design
Product features
Brand Name
PackagingServices
P i St t i
-
8/12/2019 ch02 marketing
42/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-42
Price Strategies
Any kind of business
decisions that directly related
to the price of the product or
service offered
List price
DiscountsAllowances
Credit terms etc.
-
8/12/2019 ch02 marketing
43/49
-
8/12/2019 ch02 marketing
44/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-44
Promotion Strategies
Promotion means activities that communicate the merits of
the products and persuade the target customers to buy it.
Advertising, Sales promotion, personal selling, public relations
etc. are coming under the Promotion concept.
-
8/12/2019 ch02 marketing
45/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-45
SWOT ANALYSIS
An overall evaluation if the companys
strength (S), weakness (W), Opportunities(O), and Threats (T) is called SWOT analysis.
-
8/12/2019 ch02 marketing
46/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-46
StrengthsInternal abilities that help the company to achieve its objectives
Good brand name
Low cost of
production
Cheap Labor
Enough budget for
advertisement or
promotions
Ability to introduce
the new product
into market
-
8/12/2019 ch02 marketing
47/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-47
WeaknessInternal limitations that may interfere or block
the companys ability to achieve its objectives
High Competition
Lack of enough
money
Poor Quality
Cheap Brand
name
-
8/12/2019 ch02 marketing
48/49
Marketing : An Introduction
An Asian Perspective Armstrong, Kotler & da Silva 2-48
Opportunities'
External factors of the market that the company maybe able to take advantage.
Large potential marketLack of competitors
Moving into new market segment that offer more profits
-
8/12/2019 ch02 marketing
49/49
Threat
External factors that may challenge the companys
performance
A new competitor in your
home market.
Price wars with competitors.
A competitor has a new,
innovative product or
service.
Competitors have superior
access to channels of
distribution.