Chapter two marketing strategy where marketing really begins
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Chapter Two Marketing Strategy: Where Marketing Really Begins . With Duane Weaver. OUTLINE. Strategic Planning Defined and the Process SBU’s Marketing Positioning – Tools: - The BCG Matrix and - The Product-Market Expansion Grid Partnering Strategy a& Marketing Mix Segmentation

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Chapter Two Marketing Strategy: Where Marketing Really Begins

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Chapter two marketing strategy where marketing really begins

Chapter Two

Marketing Strategy: Where Marketing Really Begins

With Duane Weaver


Chapter two marketing strategy where marketing really begins 1326489

OUTLINE

  • Strategic Planning Defined and the Process

  • SBU’s

  • Marketing Positioning – Tools:- The BCG Matrix and- The Product-Market Expansion Grid

  • Partnering

  • Strategy a& Marketing Mix

  • Segmentation

  • Differentiation & Positioning

  • Managing Effort, SWOTs, & ROI

  • A Marketing Plan


What is strategic planning

What Is Strategic Planning?

Strategic Planningis the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.


Strategic planning and the marketing process

Strategic Planning and the Marketing Process

Company Wide Strategic Planning

Company Mission and Company Objectives

Design Business Portfolio

BCG Matrix

Strategies for Growth

Product Market Expansion

Developing Customer Driven Marketing Strategy

Segmentation, Targeting and Positioning

Developing the Integrated Marketing Mix

Product, Price, Place, Promotion


Company wide strategic planning

Company Wide Strategic Planning

Defining a Clear Company Mission

States the organization’s purpose.

Market and customer-oriented.

Provides direction to internal stakeholders.

Setting Company Objectives and Goals

The mission of the organization is translated to detailed, quantifiable objectives

The rest of the planning process is supported by these objectives


Mission statements

Mission Statements

  • Mission statementA statement of the organization’s purpose -what it wants to accomplish in the larger environment.

  • It answers basic questions

    • What is our business?

    • Who is the customer?

    • What does the customer value?

    • What should our business be?


Defining a market oriented mission

Defining a Market Oriented Mission

A market oriented mission statement

  • Defines the business in terms of satisfying customer needs

  • Will not be too narrow or too broad

  • Will be in tune with the current market environment


Company objectives and goals

Company Objectives and Goals

  • Goals must be sustainable and lead to growth

  • Corporate objectives include marketing objectives (specific, measurable, obtainable):

    • Invest in research and development

    • Improve or develop new products

    • Develop customer relationships


Strategic business units sbu

Strategic Business Units (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 single product or brand


Business portfolio

Business Portfolio

  • The business portfolio is the collection of businesses and products that make up the company.

  • The company must:

    • Analyze its current business portfolio or Strategic Business Units (SBUs).

    • Decide which SBUs should receive more, less or no investment.

    • Develop growth strategies for growth or downsizing and portfolio planning using tools such as the BCG matrix.


The bcg growth share matrix

The BCG Growth Share Matrix

Rising Stars

Question Marks

Use cash to makeinto a star

Businessstrength,growth rate,cash use

Defend position

Cash Cows

Dogs

Fix or abandon

Nurture to generate cash

Industry attractiveness, marketshare, cash generation


Analyze opportunities

Existing

Products

New

Products

Existing

Markets

Market

Penetration

Product

Development

New

Markets

Market

Development

Diversification

Analyze Opportunities

  • Product-Market Expansion Grid identifies four potential growth areas.


Product market expansion grid

in-class notes

Product/Market Expansion Grid

  • Strategies for growth

    • Market penetration strategy

    • Market development strategy

    • Product development strategy

    • Diversification strategy

  • Strategies for international growth

    • Company must decide whether to go international, then which markets, how many, and which types to enter


Partners create and deliver customer value

Partners Create and Deliver Customer Value

  • Partnering to build customer relationships

    • In building profitable customer relationships companies partner with the value chain to deliver value to its customers

    • The value chain is the collective system of internal company departments and external business partners that together provide customer value by producing, delivering, marketing, and supporting the company’s products


Marketing strategy and the marketing mix

Marketing Strategy and the Marketing Mix

Mission Statement

Corporate Objectives

Business Objectives

Marketing Objectives

Marketing Strategies - The marketing logic by which the company creates customer value and achieves profitable customer relationships.

Marketing Mix Strategies – guided by marketing strategies made up of factors under its control - product, price, place, and promotion.


Customer driven marketing strategy

Customer Driven Marketing Strategy

  • Market Segmentation – sub dividing the target market

  • Market Targeting – evaluating each segment and selecting one or more segments

  • Market Differentiation and Positioning – occupy a clear distinctive place in consumer’s mind


Market segmentation

Market Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics or behaviours who might require separate products or marketing programs.

Consumers are grouped into market segments based on:

Geographic

Demographic

Psychographic

Behavioral factors (e.g.: bought here before-loyalty)


Chapter two marketing strategy where marketing really begins 1326489

Market Segmentation - exercise

  • PLEASE TAKE 5 MINUTES TO:

  • Get into your case team groups.

  • Choose a company you are familiar with as a team.

  • Identify one of the typical customers they sell to.

    • Determine what form of market segmentation would work for them best to reach this type of customer (as a group/segment)?

    • Be prepared to explain to the class why you think this type of segmentation is the best approach.


Market differentiation and positioning

Market Differentiationand Positioning

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

Process begins with differentiating the company’s marketing offer so it gives consumers more value.


The marketing mix

The Marketing Mix

The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.


Creating the integrated marketing mix

Creating the Integrated Marketing Mix

  • Product – offers the right product, service or experience.

  • Price – controls perceived value and satisfaction.

  • Place– allows customers’ easy access to product and support.

  • Promotion – communicates the offer and the value proposition.


The four ps and the four cs

The Four Ps and the Four Cs

PRODUCT provides CUSTOMER SOLUTION

PRICE represents CUSTOMER COST

PLACE provides CONVENIENCE

PROMOTION is two-way COMMUNICATION


Managing the marketing effort

Marketing Analysis – A detailed description and analysis of the current situation facing the company (e.g.: SWOT)

Marketing Planning – a detailed plan for each business unit

Marketing Implementation – turning plans into action

Marketing Department Organization –

Functional organizations

Product organizations

Market based organizations

Geographic organizations

Combinational organizations

Marketing Control – evaluating the results

Managing the Marketing Effort


Measuring and managing return on marketing investment can you prove it will or it did work

Measuring and Managing Return on Marketing InvestmentCan you PROVE it will or it did work?

  • Return on Marketing Investment

    • The return on investment that can be calculated and attributed directly to the efforts of marketing

    • Calculated by dividing net return from marketing by the cost of marketing investment

    • Measures the profits generated by investments in marketing activities


A marketing plan outline

Executive summary.

Current marketing situation.

Market description.

Product review.

Competitive review.

Review of distribution.

Threat and opportunity analysis (SWOT).

Objectives and issues.

Marketing strategy.

Action program.

Budgets.

Controls.

A Marketing Plan Outline


Thanks

Thanks!


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