Transcript Document

Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
PRINCIPLES OF MARKETING
University of Management and Technology
1901 Fort Myer Drive
Arlington, VA 22209
Voice: (703) 516-0035 Fax: (703) 516-0985
Website: www.umtweb.edu
Page 1 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Module 2: Company and Marketing
Strategy: Partnering to Build
Customer Relationships
Page 2 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Copyright Warning
This presentation is the intellectual property of Pearson Education
Inc. 2011. Students are hereby advised that they may not copy or
distribute this work to any third party
info
info
Page 3 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Rest Stop: Previewing the Concepts
Explain companywide strategic planning and its four steps.
Discuss how to design business portfolios and growth strategies.
Explain marketing’s role in strategic planning and how marketing
works with its partners to create and deliver customer value.
Describe the elements of a customer-driven marketing strategy and
mix, and the forces that influence it.
info
List the marketing management functions, including the elements of
a marketing
plan and discuss the importance of measuring and
info
managing marketing ROMI.
Page 4 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
First Stop
NIKE: Creating Brand Experiences & Community
Nike’s Early Success
Challenge & Solution
1970s: Nike’s earliest success was the
waffle trainer and by 1979 the firm
owned 50% of U.S. running shoe
market.
Late 1990s: Nike became a victim of
its own success; sales slipped, ad
creativity declined, & customer
relationships cooled.
1980s: Endorsements, promotional
events, and heavy ad spending on
“Just Do It” campaign revolutionized
sports marketing. Nike built customer
relationships by marketing a way of
life.
Nike Turnaround: Refocused
on product innovation, revised mission
statement, sought deeper, stronger,
customer relationships via interactions
with customers.
info
1990s: info
Nike Swoosh logo became
prominent; firm expanded into other
sports and product offerings.
Building Brand Experiences:
Reduced mass media spending in
favor of customer community building
via social networking
and in-person events, resulting
in large market share gains.
Page 5 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Strategic Planning Defined
info
info
Process of developing and
maintaining a strategic fit
between the organization’s
goals and capabilities and
its changing marketing
opportunities.
Page 6 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Figure 2.1:
Steps in Strategic Planning
info
info
Page 7 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Steps in Strategic Planning Process
Corporate level:
Defining the company mission.
Setting objectives and goals.
Designing the business portfolio.
Business unit, product, and market level:
Planning marketing strategy as well as other functional strategies.
info
info
Page 8 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Mission Statement
A statement of the
organization’s purpose
– what it wants to
accomplish in the
larger environment.
info
info
Page 9 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
The Mission Statement
Questions the mission statement should answer include:
What is our business?
Who is our customer?
What do consumers value?
What should our business be?
Mission statements should be market oriented, not product oriented.
info
info
Page 10 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Marketing in Action
Nike’s mission is “to
bring inspiration and
innovation to every
athlete* in the world
(*if you have a body, you
are an athlete).”
info
info
Page 11 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
The Mission Statement
Well-defined mission statements should also be:
Meaningful.
Specific.
Motivating.
Based on the firm’s strengths in the marketplace.
Focused on customers and the customer experience rather than on
sales and profits.
info
info
Page 12 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Fuel for Thought
Evaluate the following mission statement for a real estate
agency against the criteria previously discussed:
“We sell houses and commercial property.”
Rewrite the mission statement.
info
info
Page 13 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Setting Firm Objectives and Goals
The mission should be translated into supporting objectives for each
level of management.
Creates a hierarchy of objectives that are consistent with one another.
For example:
Business objective: Increase profits.
Marketing objective: Increase market share of domestic and international
markets.
info
info
Page 14 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Marketing in Action
McDonald’s revised mission,
“Being our customers’
favorite place and way to
eat,” now steers the company
towards the goal of achieving
exceptional experiences for
its customers.
info
info
Page 15 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Marketing in Action
Kohler’s overall objective is to
build profitable customer
relationships by developing
efficient yet beautiful products
that embrace the “essence of
gracious living.” Visit their web
site at Koler.com to see how it
works to meet this objective.
info
info
Page 16 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Business Portfolio
The collection of businesses
and products that make up
the country.
info
The info
businesses chosen for the portfolio should be those that fit
the firm’s strengths and weaknesses.
Page 17 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Designing the Business Portfolio
The company must:
Analyze its current business portfolio or strategic business units (SBUs)
and decide which SBUs should receive more, less, or no investment.
Develop strategies for growth and downsizing that will shape the future
business portfolio.
info
info
Page 18 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Strategic Business Unit
info
info
A unit of the company that
has a separate mission and
objectives and that can be
planned independently from
other company businesses.
Page 19 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Strategic Business Unit (SBU)
Strategic business unit:
An SBU can be a company division,
a product line within a division, or
sometimes a single product or
brand.
info
info
Theme resorts are just one SBU
within Disney
Page 20 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Portfolio Analysis
A process by which
management evaluates the
products and businesses
making up the company.
info
info
Page 21 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Portfolio Analysis
Purpose of portfolio analysis:
Resources are directed toward more profitable businesses while weaker
ones are phased out or dropped.
Standard portfolio analysis evaluates SBUs on two important
dimensions:
Attractiveness of SBU’s market or industry.
Strength of SBU’s position within that market or industry.
info
info
Page 22 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Figure 2.2:
The BCG Growth-Share Matrix
info
info
Page 23 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
BCG Growth-Share Matrix
Stars: High-share of high-growth market.
Strategy: Build into cash cow via investment.
Cash cows: High-share of low-growth market.
Strategies: Maintain or harvest for cash to build STARS.
Question marks: Low-share of high-growth market.
Strategies: Build into STAR via investment OR reallocate funding and let
slip into DOG status.
info
info
Dogs: Low-share of low-growth market.
Strategies: Maintain or divest.
Page 24 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Problems with Matrix Approaches
Several problems exist:
Can be difficult, time consuming, and costly to implement.
Difficult to define SBUs and measure market share and growth rate.
Focus is on current businesses; gives little help with future planning.
These problems have led to changes in the strategic planning
process used by firms.
info
info
Page 25 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Figure 2.3:
The Product/Market Expansion Grid
info
info
Page 26 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Marketing in Action
info
info
Under Armour has grown substantially by means of its
market penetration, market development, and product
development strategies.
Page 27 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Marketing in Action
The key to growth in many consumer
goods companies is new product
development. New products provide
customers with value when they
satisfy needs better than existing
offerings.
info
info
Page 28 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Downsizing
Downsizing reduces the business portfolio by eliminating products of
business units that are not profitable or that no longer fit the
company’s overall strategy.
Many reasons exist for downsizing.
info
info
Page 29 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Planning Marketing
Marketing plays a key role in strategic planning:
Provides a guiding philosophy.
The marketing concept
Provides inputs to strategic planners.
Identifies opportunities
Designs strategies to reach objectives.
info
info
Page 30 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Creating Customer Value
Marketers must practice partner relationship management.
Working with partners internally within the company can create an
effective value chain.
Working with external partners in the marketing system helps to form a
superior value delivery network.
info
info
Page 31 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Value Chain
Each company department engages in some type of value-creating
activity.
Purchasing
Marketing
Operations, etc.
Coordination between departments is key to providing superior
value.
info
info
Page 32 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Marketing in Action
info
info
Wal-Mart’s ability to help buyers “Save money. Live
better.” depends on the contributions of its value chain
– people in all of the company’s departments.
Page 33 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Value Delivery Network
Components include:
Company’s value
chain
Distributors
Suppliers
Customers
info
Improved
performance
in delivery value to customers is the goal.
info
Page 34 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Figure 2.4:
Managing Marketing Strategies & the Marketing Mix
info
info
Page 35 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Marketing Strategy and the Marketing Mix
Goal: create value for customers and build customer relationships.
Marketing strategy decisions include:
Market segmentation and targeting
Differentiation and positioning
Marketing strategy must guide marketing mix decisions.
info
info
Page 36 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Segmentation
info
The process of dividing the
market into distinct groups of
buyers who have different needs,
characteristics, or behaviors and
who might require separate
marketing programs or products.
info
Page 37 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Market Segmentation and Targeting
Targeting:
Involves evaluating each
market segment’s
attractiveness and
selecting one or more
segments to enter.
info
info
Page 38 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Marketing in Action
Logitech focuses on niche marketing
by marketing “personal peripherals”
including every variety of computer
mouse imaginable. In the niches it
services, Logitech is the undisputed
market leader.
info
info
Page 39 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Differentiation and Positioning
Positioning:
Arranging for a product to occupy a
clear, distinctive, and desirable place
relative to competing products in the
minds of target consumers.
Burger King’s worldwide
marketing campaign is
built around its “Have it
your way” positioning.
info
info
Page 40 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Differentiation and Positioning
Differentiation:
Creating superior customer
value by actually differentiating
the market offering.
info
info
Page 41 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
The Marketing Mix
The set of controllable, tactical marketing tools that the firm blends
to produce the response it wants in the target market.
These tools are often called the 4 P’s:
Product
Price
Place (distribution)
Promotion
info
info
Page 42 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Marketing Mix
info
info
The set of controllable,
tactical marketing tools that
the firm blends to produce
the response it wants in the
target market.
Page 43 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Figure 2.5:
The Four Ps of the Marketing Mix
info
info
Page 44 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
The 4 Ps and the 4 Cs of the Marketing Mix
4 Ps –
Seller’s View
4 Cs –
Buyer’s View
Product
Customer Solution
Price
Customer Cost
Place
Convenience
Promotion
Communication
info
info
Page 45 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Figure 2.6:
Managing Marketing:
Analysis, Planning, Implementation, and Control
info
info
Page 46 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Figure 2.7:
SWOT Analysis
info
info
Page 47 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Fuel for Thought
External factors – including trends stemming from the economic,
technological, social, legal-political, and competitive environments –
may represent threats or opportunities to many businesses.
How have recent technological changes impacted the marketing
of various goods and services?
info
info
Page 48 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Contents of a Marketing Plan
Executive summary
Current marketing situation
Analysis of threats and opportunities
Objectives and issues
Marketing strategy
Action programs
info
info
Budgets
Controls
Page 49 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Marketing Implementation
Turns marketing plans into marketing actions by addressing:
Who
Where
When
How
Implementation can be difficult, but is critical to success.
info
info
Page 50 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Organizing Marketing Departments
Chief marketing officer (CMO) positions are becoming more
common.
Functional organization:
Each marketing activity is headed by a functional specialist.
E.g., sales manager, advertising manager, marketing research manager, etc.
Geographic organization:
info
Sales and marketing people are assigned to specific countries, regions,
and/or
districts.
info
Page 51 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Marketing Department Organization
Product management organization:
One person is given responsibility for complete strategy and marketing
program for a single product.
Market or customer organization:
Manager responsible for particular market or type of customer (e.g.,
government buyers).
Combination organization:
info
Uses
some combination of the previous four approaches.
info
Page 52 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Marketing Control Process
Marketing control involves four steps:
Set goals
Measure performance
Evaluate performance
Take corrective action
May require changing action programs
or goals.
info
info
Page 53 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Marketing Control Process
Operating control
Evaluates performance against the annual plan and takes corrective
action.
Strategic control
Evaluates whether strategies match opportunities.
The marketing audit is a major tool.
info
info
Page 54 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Figure 2.8:
Return on Marketing Investment
info
info
Page 55 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Return on Marketing Investment
Return on marketing investment is assessed using one or more
methods:
Standard marketing performance measures (marketing dashboards):
Brand awareness, sales, market share.
Customer-centered measures:
Customer acquisition, customer retention, customer lifetime value, customer
equity.
info
info
Page 56 of 57
Module 2, MKT100
Version 181118
Visit UMT online at www.umtweb.edu
© 2011 Pearson Education Inc. © 2012 UMT
Rest Stop: Reviewing the Concepts
Explain companywide strategic planning and its four steps.
Discuss how to design business portfolios and growth strategies.
Explain marketing’s role in strategic planning and how marketing
works with its partners to create and deliver customer value.
Describe the elements of a customer-driven marketing strategy and
mix, and the forces that influence it.
info
List the marketing management functions, including the elements of
a marketing
plan and discuss the importance of measuring and
info
managing marketing ROMI.
Page 57 of 57
Module 2, MKT100