Transcript Marketing Chapter 2 Lecture Presentation - MyBC

Company and Marketing Strategy
Bluefield College
August 31, 2010
Capturing Value From Customers
 Value is captured from customers via current and future
sales, market share and profit.
– Superior customer value leads to highly satisfied loyal customers
who buy more.
– Key outcomes of customer value include customer loyalty,
retention, share of market, share of customer, & customer equity.
 Customer lifetime value
– The value of the entire stream of purchases that the customer
would make over a lifetime of patronage.
 Share of customer
– The portion of the customer’s purchasing that a company gets in
their product categories.
 Customer Equity
– The total combined customer lifetime values of all the company’s
current and potential customers.
Customer Relationship Groups
An Expanded Model of the
Marketing Process
Strategic Planning
Strategic planning is the process of developing
and maintaining a strategic fit between the
organization’s goals and capabilities and its
changing marketing opportunities.
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.
Mission Statement
The mission statement is a statement of the
organization’s purpose – what it wants to
accomplish in the larger environment.
 Questions the mission statement should answer include:
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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.
The Mission Statement
 Well-defined mission statements should also be:
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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.
 Evaluate the following mission statement for a
real estate agency against the criteria above:
“We sell houses and commercial property.”
– Rewrite the mission statement.
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.
Business Portfolio
The business portfolio is the collection
of businesses and products that
make up the company.
 In 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.
Strategic Business Unit
A The strategic business unit is a segment of
the company that has a separate mission
and objectives and that can be planned
independently from other company
businesses.
– An SBU can be a company division, a
product line within a division, or
sometimes a single product or brand.
Portfolio Analysis
A Portfolio analysis is a process by which
management evaluates the products and
businesses making up the company.
 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.
Portfolio Analysis
The BCG Growth-Share Matrix
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.
 Dogs: Low-share of low-growth market.
– Strategies: Maintain or divest.
Portfolio Analysis
The Product/Market Expansion Grid
Managing Marketing Strategies
& the Marketing Mix
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.
Segmentation
Segmentation is 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.
 Targeting:
– Involves evaluating each market segment’s attractiveness
and selecting one or more segments to enter.
 Positioning:
– Arranging for a product to occupy a clear, distinctive, and
desirable place relative to competing products in the minds
of target consumers. http://www.pg.com/en_US/brands/household_care/index.shtml
 Differentiation:
– Creating superior customer value by actually differentiating
the market offering.
26.0¢/oz
Product Positioning
“Dirt goes, color stays”
“Mild cleansing”
“The smell says clean”
“Powerful laundry detergent
that is tough on stains”
“Knows fabrics best”
“For a clean you can trust”
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
The Four Ps of the Marketing Mix
SWOT Analysis
Contents of a Marketing Plan
1.
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Executive summary
Current marketing situation
Analysis of threats and opportunities
Objectives and issues
Marketing strategy
Action programs
Budgets
Controls
Organizing Marketing Departments
 Functional organization:
– Each marketing activity is headed by a functional specialist.
 Geographic organization:
– Sales and marketing people are assigned to specific countries,
regions, and/or districts.
 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:
– Uses some combination of the previous four approaches.
Return on Marketing Investment