MKT 230 1st Edition Lecture 4Outline of Last Lecture I. PlanningII. SWOTIII. Assessing Organizational Resources and OpportunitiesOutline of Current Lecture I. Business Unit Strategya. Mission Statementsb. Corporate Strategyc. Business Unit Strategyd. Marketing Strategyi. SMART ObjectiveII. Marketing Plansa. Customer Relationship MarketingIII. Internal MarketingIV. Marketing ActivitiesCurrent Lecture I. Business Unit Strategy- Involves Marketing, Production, Finance, and Human Resources.- Hierarchy of strategies:o Mission Statemento Corporate Strategy (to accomplish mission statement)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.o Business-Unit Strategy (to accomplish corporate strategy)o Marketing Strategy (to accomplish Business-Unit Strategy)o Marketing Mix elements (to accomplish the marketing strategy)a. Mission Statements – A long-term vision of what an organization wants to become. It addresses: Who are our customers? What are our core competencies?- This is the companies purpose for being, why they exist- If the mission statement is too long then people won’t remember it – keep it short.- Helps to determine strategies- Corporate identities should support all of the corporations activities**The main importance of mission statements: they give overall goal and state the target of the company**b. Corporate Strategy – a strategy that determines the means for utilizing resources in the various functional areas to reach the organization’s goalsc. Business-Unit Strategy - Strategic Business Unit (SBU) – a division, product line or other profit center within a parent companyo These should be making the parent company money- Market – group of individuals and/or organization that have needs for products and the ability, willingness, and authority to buyo Where ability = $, willingness = want, and authority = can/legally allowedo Example: Minors and alcohol, they have the ability ($), and willingness (want), but they are not legally allowed to make the purchase- Market share – percentage of a market thatactuallybuys a specific product from aspecific companyo This can be a benchmark to compare to competitorso Companies need to consider overall profitability of their customers- Growth Share Matrix – shows rating of a product based off their market growth and their relative market share. This contains four different ratings: a star, a cash cow, a question mark, and a dogo STAR – product is doing well and looks like it is going to do even better. It has high product market growth and high relative market share.1. Example: Electric vehicleso CASH COW – there is not much room for growth but it still generates money. Low product market growth and high relative market share2. Example: Smart phones, Coca-Cola, Tide detergento QUESTION MARK – growth is relatively good but the market share is low. Highproduct market growth and low relative market share3. Example: touch-screens, wearable technologyo DOGS – low market share and low growth. These could have once been stars. Companies need to know when to pull a product in order to avoid dogs. d. Marketing Strategy- The point of the marketing strategy is to accomplish the corporate mission- Is it most important to focus on CUSTOMERS/TARGET MARKET o Who do I want to sell to?o Then create appropriate marketing mix.- Target market selection is the basis for creating a good marketing mix- Sustainable Competitive advantage – an advantage that another company cannoteasily copy in the foreseeable future- Marketing Planning – systematic process of:o Assessing marketing opportunities and resourceso Determining objectives: what do I want to accomplish?1. Ex: we want to: increase our market share, maximize profit, etc.o Defining strategy: how are we going to do it?o Establish guidelines for implementation and control of the marketing program: do it within measures- Marketing Objective – statement of what is to be accomplished through marketing activities. Should be: SMARTo S – Specific (a broad objective will not get you to your goal)o M – Measureable (quantifiable and measureable)o A – Attainable (realistic that we can do this)o R – Relevant (goal that will further the company)o T – Time Bound (needs to have a deadline)II. Marketing Plana. Needs to start with an executive summary – a 1-2 page synopsis that only includes critical details- Executive summaries need to condense a large plan into a readable summary that can be used to investors, management, etc.b. Marketing Implementation – 3 Stages- Indented Implement  Realize- What did we say we were going to do  Doing what we said we were going to do  what did we do wrong - A good plan will need tweaksc. Customer Relationship Management (CRM) – strives to build satisfying exchange relationships between the buyer and seller- Impressing the customer and keeping them happy- Involves gathering useful data at customer contact points, analyzing it to better understand the customers’ needs, desires, and habits- Requires shift in thinking from share of market to share of customero Making customers come backo How much of the customer’s ability to spend do you have?d. Improving CRM- Technology has helped marketers build better databases and improve CRM- Customer Lifetime Value (CLV) – measure of customers worth to a firmo May include an individuals purchases and his or her word of mouth communication about a productIII. Internal Marketinga. External Customer: an individual who patronizes a business- The traditional definition of a customerb. Internal Customer: the company’s employees- Needs of both groups must be met in order for implementation to succeedc. Total Quality Management – philosophy that commitment to quality in all organizational areas will promote a culture that meets the customer’s perceptions of quality- Quality depends on the value perceivedd. Benchmarking – comparing quality of the organization’s goods, services, or processes with high-performing competitorse. Empowerment – gives employee the authority and responsibilityto make marketing decisions without approval of their supervisors- Resolves issues quicker and improves CRMIV. Marketing Activitiesa. Organized by type of customerb. Marketing Control Process – establishes performance standards, evaluation actual performance by