M300 1nd Edition Lecture 2 Company and Marketing Strategy Outline of Current Lecture I II III IV V VI VII VIII Mission Statement 4 Attributes Product vs Market Oriented Mission Statements Elaborated Setting Company Objectives The Product Life Cycle 4 Premises The Product Life Cycle 4 Stages Exercise The Product Life Cycle Growth Share Matrix Current Lecture I Mission Statement 4 Attributes a 1 Explains who we are b 2 Describes what we do c 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 mission statement 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 Oriented a 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 elaborated a 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 Objectives a Greater profits is primary objective b Other objectives include i Sustainability social responsibility extending lives financial objectives employee happiness V The Product Life Cycle 4 Premises a 1 Products have limited life b 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 maturity ii Profits peak during growth d 4 Products request different life cycle ranges VI The Product Life Cycle 4 Stages a 1 Introduction i Build awareness via knowledge oriented communication b 2 Growth i Knowledge oriented with increasingly persuasive communications Persuasion because of growing levels of competition c 3 Maturity d 4 Decline VII Exercise The Product Life Cycle a What is the PLC s value to marketers Better understanding product and possible strategies that can drive growth b What are its limitations to marketers Aggregate model individual model may be different VIII Designing the Business Portfolio a 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 Matrix a 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 Mark i At this point we don t know what s going to happen c 2 Star i You own marketplace huge growth d 3 Cash Cow i Growth is slowing you still have market share e 4 Dog i Decline f 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 place