Transcript Chapter – 2
Company and Marketing Strategy: Partnering to Build Customer Relationships Chapter 2 Strategic Planning MARKETING OPPORTUNITIES ORGANIZATIONAL CAPABILITIES AND GOALS 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.” 2-2 Steps in the Strategic Planning Process 2-3 Marketing Management Market-Oriented Mission A mission statement asks.. What is our business? Who is the customer? What do consumers value? What should our business be? A mission statement should be: An “invisible hand” Neither too narrow nor too broad Fitting of market environment Based on distinctive competencies Motivating 2-4 Sample Mission “We help you organize the world’s information and make it universally accessible and useful.” Disney “We create fantasies— a place where dreams come true and America still works the way it’s supposed to” Strategic Planning Company Objectives must tie to Marketing Objectives Company Mission Business Objectives Marketing Objectives 2-7 Analyze Portfolio Business portfolio: “the collection of businesses and products that make up the company.” Strategic Planning Designing the business portfolio 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. 2-9 The Business Portfolio Business portfolio planning involves two steps: 1. Analyzing the current business portfolio 2. Shaping the future portfolio by developing strategies 2 - 10 Strategic Planning Portfolio Design Step 1: Analyze the current business portfolio Step 2: Shape the future business portfolio Identify strategic business units (SBUs) Assess each SBU: The BCG growthshare matrix classifies SBUs into one of four categories using: Market growth rate The SBU’s relative market share within the market. 2 - 11 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. 2 - 12 HIGH $ LOW Market Growth Rate Portfolio - BCG Matrix HIGH LOW Relative Market Share Growth-Share Matrix 2 - 14 Analyzing Current SBU’s: GE’s Strategic Business-Planning Grid Industry Attractiveness Business Strength Strong Average High Weak C A Medium B D Low 2 - 15 Analyzing the Current Marketing Management Business Portfolio Build Increase market share Works well for question marks Hold Preserve market share Good for cash cow Harvest Increases shortterm cash flow Good for weak cash cows, question marks and dogs Divest Sell or liquidate Good for dogs and question marks 2 - 16 Strategic Planning Portfolio Design 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 2 - 17 Strategic Planning Develop Growth Strategies Product / Market Expansion Grid 2 - 19 The Marketing Process Key Elements Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort 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. 2 - 20 The Marketing Process Key Elements Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort The segmentation process divides the total market into market segments. Target marketing chooses which segment(s) are pursued. Market positioning for the product is then determined. 2 - 21 The Value Delivery Process 2 - 22 Marketing Strategy Strategy 1. Market Segmentation 2. Target marketing 3. Market Positioning Customers grouped by: Geographic Demographic Psychographic Behavioral Market segment is a groups of consumers who respond in similar ways to marketing efforts. 2 - 23 Marketing Strategy Strategy 1. Market Segmentation 2. Target marketing 3. Market Positioning Evaluation of each segment’s attractiveness Selection of segments with greatest long-term profitability A company can choose one or several segments to target 2 - 24 Marketing Strategy Strategy 1. Market Segmentation 2. Target marketing 3. Market Positioning 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 2 - 25 The Marketing Process Key Elements Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort 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) 2 - 26 Marketing Mix The marketing mix includes controllable and tactical marketing tools knows as the 4P’s The 4P’s include Product Place Promotion Price 2 - 27 The Marketing Mix 2 - 28 The Marketing Process Key Elements Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort 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 2 - 29 Managing the Marketing Effort Marketing Functions • • • • Analysis Planning Implementation Control Finding opportunities Avoiding threats Understanding strengths Analyzing weaknesses 2 - 30 EXTERNAL INTERNAL Marketing Analysis S O W T Strengths Weaknesses Opportunities Threats POSITIVE NEGATIVE Managing the Marketing Effort Marketing Functions Marketing plans include: Executive • • • • Analysis Planning Implementation Control summary Analysis of current situation Objectives Targets and positioning Marketing mix Budget Controls 2 - 32 Managing the Marketing Effort Marketing Functions • • • • Analysis Planning Implementation Control Plans are turned into action with day-to-day activities Good implementation is a challenge 2 - 33 Managing the Marketing Effort Marketing Functions • • • • Analysis Planning Implementation Control Evaluation of the results of marketing strategies Checks for differences between goals and performance 2 - 34 Managing the Marketing Effort 2 - 35 The Marketing Process 2 - 36