View
27
Download
0
Category
Preview:
Citation preview
Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Chapter 2
Company and Marketing Strategy:
Partnering to Build Customer Relationships
2-2Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Learning Goals1. Explain company-wide strategic planning and
its four steps2. Discuss how to design business portfolios and
develop strategies for growth and downsizing3. Explain marketing’s role in strategic planning
and how marketing works with its partners to create and deliver customer value
4. Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence them
5. List the marketing management functions, including the elements of a marketing plan
2-3Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
• Began as animated films 75 years ago
• Theme parks: four major North American resorts
• Walt Disney world: world’s #1 tourist destination
• Key success factors:– Sparkling cleanliness– Friendliness of employees– Mission: make people
happy; dream come true– Outstanding customer
service
• Now a diversified, media and entertainment conglomerate Disney has grown via diversification. Is it too large?
• Originally known for films, animation, theme parks. Will consumers/investors accept new businesses?
• Satisfying the customer is everyone’s job. Is this culture changing?
• What can it do during travel and economic downturns?
Case Study Disney –What are its challenges?
2-4Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Learning Goals1. Explain company-wide strategic planning and
its four steps2. Discuss how to design business portfolios and
develop strategies for growth and downsizing3. Explain marketing’s role in strategic planning
and how marketing works with its partners to create and deliver customer value
4. Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence them
5. List the marketing management functions, including the elements of a marketing plan
2-5Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
• Strategic Planning Defined–The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities
Companywide Strategic Planning: Defining Marketing’s Role
2-6Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Defining aMarket-Oriented Mission
• Mission statement– A statement of an organization’s
purpose; what it wants to accomplish in the larger environment; needs to be specific, realistic, and motivating; today’s statements are market-oriented
2-7Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Defining aMarket-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
2-8Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Discussion QuestionsMission Statements
• Under what circumstances would you suggest a company change its mission?
• What challenges might it encounter as it implements a change in its mission?
??
2-9Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Setting CompanyObjectives and Goals
• The mission is turned into detailed business and marketing objectives
• Marketing strategies and programs must develop to support marketing objectives
2-10Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Learning Goals1. Explain company-wide strategic planning and
its four steps2. Discuss how to design business portfolios and
develop strategies for growth and downsizing3. Explain marketing’s role in strategic planning
and how marketing works with its partners to create and deliver customer value
4. Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence them
5. List the marketing management functions, including the elements of a marketing plan
2-11Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Designing The Business Portfolio
• A business portfolio is the collection of businesses and products that make up the company
• Business portfolio planning involves two steps:
1. Analyzing its current business portfolio2. Shaping the future portfolio by developing
strategies for growth and down sizing
2-12Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Designing The Business Portfolio
• Analyzing the Current Business Portfolio– Portfolio analysis is a strategic planning tool to
identify/evaluate businesses that make up the firm and make resource allocation decisions
• Strategic business unit (SBU): – Unit with separate mission and objectives– Planned independently from other company
businesses– Used as the building block of portfolio analysis
2-13Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
The Business Portfolio BCG Matrix
• Build– Increase
market share– Works well for
question marks
• Hold– Preserve
market share– Good for cash
cow
• Harvest– Increases short-
term cash flow– Good for weak
cash cows, question marks and dogs
• Divest– Sell or liquidate– Good for dogs
and question marks
2-14Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Designing The Business Portfolio
• Developing Strategies for growth and Downsizing– Marketing must identify, evaluate, and
select market opportunities and lay down strategies for capturing them
– Product Market Expansion Grid• A portfolio-planning tool for identifying
company growth opportunities
2-15Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Learning Goals1. Explain company-wide strategic planning and
its four steps2. Discuss how to design business portfolios and
develop strategies for growth and downsizing3. Explain marketing’s role in strategic planning
and how marketing works with its partners to create and deliver customer value
4. Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence them
5. List the marketing management functions, including the elements of a marketing plan
2-16Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
• Provide a guiding philosophy• Identify attractive opportunities• Design effective strategies • Build Customer and Partner
Relationship management– Form strong value chains– Form superior value delivery networks
Planning Marketing: Partnering to Build Customer
Relationships
2-17Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
• Partnering with Other Company Departments– Coordination of the value-creating activities
performed by each department within the company
• Partnering with Others in the Marketing System– The objective is to improve the performance
of the customer value-delivery network.
Planning Marketing: Partnering to Build Customer
Relationships
2-18Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Learning Goals1. Explain company-wide strategic planning and
its four steps2. Discuss how to design business portfolios and
develop strategies for growth and downsizing3. Explain marketing’s role in strategic planning
and how marketing works with its partners to create and deliver customer value
4. Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence them
5. List the marketing management functions, including the elements of a marketing plan
2-19Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Marketing Strategy and the Marketing Mix
• Marketing Strategy– The marketing logic by which the
business unit hopes to achieve its marketing objectives
• Marketing Mix– The company designs a mix made up of
factors under its control• The company engages in marketing
analysis, planning, implementation, and control
2-20Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Customer-CenteredMarketing Strategy
1. Market Segmentation
2. Target marketing3. Market Positioning
• Dividing a market into groups with distinct needs who might require (respond to) different marketing mixes
• Market segment is a group of consumers who respond in similar ways to marketing efforts
• Bases for segmentation
2-21Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Customer-CenteredMarketing Strategy
1. Market Segmentation
2. Target marketing3. Market Positioning
• Evaluating the attractiveness of each market segment
• Selection of segments with greatest long-term profitability
• Deciding which segment(s) to enter
• A company can choose one or several segments to target
2-22Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Customer-CenteredMarketing Strategy
1. Market Segmentation
2. Target marketing3. 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 places in positioning
• Differentiation by offering and delivering greater value
2-23Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Developing the Marketing Mix
– The marketing mix includes controllable and tactical marketing tools knows as the 4P’s
– The 4P’s include• Product• Place• Promotion• Price
2-24Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Learning Goals1. Explain company-wide strategic planning and
its four steps2. Discuss how to design business portfolios and
develop strategies for growth and downsizing3. Explain marketing’s role in strategic planning
and how marketing works with its partners to create and deliver customer value
4. Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence them
5. List the marketing management functions, including the elements of a marketing plan
2-25Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Managing the Marketing Effort
1. Analysis2. Planning3. Implementation4. Control
• Finding opportunities
• Avoiding threats• Understanding
strengths• Analyzing
weaknesses
2-26Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Managing the Marketing Effort
1. Analysis2. Planning3. Implementation4. Control
• Marketing plans include: – Executive summary– Analysis of current
situation– Objectives– Targets and
positioning– Marketing mix– Budget– Controls
2-27Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Managing the Marketing Effort
1. Analysis2. Planning3. Implementation4. Control
• Process that turns strategies and plans into marketing actions that accomplish strategic marketing objectives
• Good implementation is a challenge
• Marketing department organization
2-28Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Managing the Marketing Effort
1. Analysis2. Planning3. Implementation4. Control
• Involves Evaluating the results of marketing strategies and plans and taking corrective action
• Checks for differences between goals and performance
• Operating control, strategic control, marketing audit
2-29Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Measuring and ManagingReturn on Marketing
• Return on marketing (marketing ROI)– The net return from a marketing investment
divided by the costs of the investments
2-30Copyright © 2008 Pearson Education Canada Principles of Marketing, Seventh Canadian Edition
Learning Goals1. Explain company-wide strategic planning and
its four steps2. Discuss how to design business portfolios and
develop strategies for growth and downsizing3. Explain marketing’s role in strategic planning
and how marketing works with its partners to create and deliver customer value
4. Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence them
5. List the marketing management functions, including the elements of a marketing plan
Recommended