M300 1nd Edition Lecture 2 Company and Marketing Strategy Outline of Current LectureI. Mission Statement – 4 AttributesII. Product vs. Market OrientedIII. Mission Statements – ElaboratedIV. Setting Company ObjectivesV. The Product Life Cycle – 4 PremisesVI. The Product Life Cycle – 4 StagesVII. Exercise: The Product Life CycleVIII. Growth Share MatrixCurrent Lecture I. Mission Statement – 4 Attributesa. 1. Explains who we areb. 2. Describes what we doc. 3. For whom?d. 4. And why do we do it?i. A mission statement should overall explain “Why are we in business?” ii. It should be market-oriented vs. product oriented (look outside, then in)iii. Example: Kodak failed because they labeled themselves a “chemical company.” They didn’t focus on what consumers needed. A broad missionstatement allows a company to expand to customer needs.iv. Example P&G mission statement: “To improve lives of consumers around the world.”II. Product vs. Market Orienteda. Amazon Product-oriented: “We sell music, books etc.”b. Amazon Market-oriented: “We make purchasing easy and fun.”c. Disney Product-oriented: “We run theme parks.”d. Disney Market-oriented: “We create fantasies.”e. Starbucks Product-oriented: “We make coffee.”f. Starbucks Market-oriented: “We bring special, delectable moments.”III. Mission Statements - elaborateda. What problems might firms experience if they offer a product-oriented mission statement vs. a market-oriented statement? They are not understanding the These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.connection with the consumer. b. How you frame business enables you to expand/change. For an example, Amazon now sells everything. Not just books and music.c. Make your product something consumers want to believe in.IV. Setting Company Objectivesa. Greater profits is primary objectiveb. Other objectives include:i. Sustainability, social responsibility, extending lives, financial objectives, employee happiness.V. The Product Life Cycle – 4 Premisesa. 1. Products have limited lifeb. 2. Products will go through 4 distinct stages, each with different marketing implications.c. 3. Profits from a product vary at different stages in life.i. Sales peak during maturityii. Profits peak during growthd. 4. Products request different life cycle ranges.VI. The Product Life Cycle – 4 Stagesa. 1. Introductioni. Build awareness via knowledge oriented communicationb. 2. Growthi. Knowledge oriented with increasingly persuasive communications. (Persuasion because of growing levels of competition)c. 3. Maturityd. 4. DeclineVII. Exercise: The Product Life Cyclea. What is the PLC’s value to marketers? Better understanding product and possible strategies that can drive growthb. What are its limitations to marketers? Aggregate model – individual model may be different. VIII. Designing the Business Portfolioa. Market share: Percent of market your company owns as percent of total market.b. Market share example: BK sold 40 mil hamburgers. All firms sold 400. Market share = 10%IX. Growth Share Matrixa. 4 stages, 4 quadrants a product can move through. Doesn’t always move in this order, but this is the desired order. b. 1. Question Marki. At this point, we don’t know what’s going to happen.c. 2. Stari. You own marketplace, huge growth d. 3. Cash Cowi. Growth is slowing, you still have market sharee. 4. Dogi. Declinef. This is why you need to have a diversified portfolio of products. This is what happened to Kodak: Their Star product reached the Dog stage and they didn’t have any more products to move into the upper quadrants to take its