Company and Marketing Strategy: Partnering to Build Customer RelationshipsLearning GoalsCase Study Disney –What are its challenges?What is Strategic Planning?Marketing ManagementThe Business PortfolioSlide 7Marketing’s Role in Strategic PlanningMarketing StrategySlide 10Slide 11Marketing MixManaging the Marketing EffortSlide 14Slide 15Slide 16Measuring EffectivenessCompany and Marketing Strategy: Partnering to Build Customer RelationshipsChapter 22 - 2Learning Goals1. Explain strategic planning2. Describe business portfolios and growth strategies3. Detail marketing’s role in strategic planning4. Describe elements of customer-driven marketing strategy5. List the marketing management functions2 - 3•Disney has grown via diversification. •Originally known for films, animation, theme parks. •Satisfying the customer is everyone’s job.Case StudyDisney –What are its challenges?Discussion Questions1. Has Disney grown too large? 2. Will consumers accept new Disney businesses?2 - 4What is Strategic Planning?Strategic Planning Defined:The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunitiesGoal 1: Explain strategic planning2 - 5Marketing ManagementA 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MotivatingMarket-Oriented MissionGoal 1: Explain strategic planning2 - 6The Business PortfolioA business portfolio is the collection of businesses and products that make up the companyBusiness portfolio planning involves two steps:1. Analyzing the current business portfolio 2. Shaping the future portfolio by developing strategiesGoal 2: Describe business portfolios and growth strategies2 - 7Marketing Management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 marksAnalyzing the Current Business PortfolioGoal 2: Describe business portfolios and growth strategies2 - 8Marketing’s Role in Strategic Planning•Provide a guiding philosophy•Identify attractive opportunities•Design effective strategies •Build strong value chains•Form superior value delivery networksGoal 3: Detail marketing's role in strategic planning2 - 9Customers grouped by:•Geographic•Demographic•Psychographic•BehavioralMarket segment is a groups of consumers who respond in similar ways to marketing efforts.1. Market Segmentation2. Target marketing3. Market PositioningMarketing StrategyStrategyStrategyGoal 4: Describe elements of customer-driven strategy2 - 10Evaluation of each segment’s attractivenessSelection of segments with greatest long-term profitabilityA company can choose one or several segments to targetMarketing StrategyStrategyStrategyGoal 4: Describe elements of customer-driven strategy1. Market Segmentation2. Target marketing3. Market Positioning2 - 11The place the product occupies in the consumer’s mindProducts are positioned relative to competing productsMarketers look for clear, distinctive and desirable place in positioningMarketing StrategyStrategyStrategyGoal 4: Describe elements of customer-driven strategy1. Market Segmentation2. Target marketing3. Market Positioning2 - 12Marketing Mix•The marketing mix includes controllable and tactical marketing tools knows as the 4P’s•The 4P’s include•Product•Place•Promotion•PriceGoal 4: Describe elements of customer-driven strategy2 - 13Finding opportunitiesAvoiding threatsUnderstanding strengthsAnalyzing weaknessesGoal 5: List the marketing management functions•Analysis•Planning•Implementation•ControlManaging the Marketing EffortMarketing FunctionsMarketing Functions2 - 14Marketing plans include: •Executive summary•Analysis of current situation•Objectives•Targets and positioning•Marketing mix•Budget•ControlsManaging the Marketing EffortGoal 5: List the marketing management functionsMarketing FunctionsMarketing Functions•Analysis•Planning•Implementation•Control2 - 15Plans are turned into action with day-to-day activities Good implementation is a challengeManaging the Marketing EffortGoal 5: List the marketing management functionsMarketing FunctionsMarketing Functions•Analysis•Planning•Implementation•Control2 - 16Evaluation of the results of marketing strategiesChecks for differences between goals and performanceManaging the Marketing EffortGoal 5: List the marketing management functionsMarketing FunctionsMarketing Functions•Analysis•Planning•Implementation•Control2 - 17Measuring EffectivenessReturn on marketing (marketing ROI)The net return from a marketing investment divided by the costs of the investmentsGoal 5: List the marketing management