Chapter 2 Intro to Marketing Strategy Strategic planning The managerial decision process that matches the organization s resources and capabilities to its market opportunities for long term growth Business plans Guide entire organization or its business units Marketing plans Describe the marketing environment Outline marketing strategies Identify plans for implementation and evaluation Company Strategic Planning Step 1 Define the Organization s Mission Mission Statement Statement of the organization s purpose what it wants to accomplish in the larger environment A mission may begin with these questions What business are we in What customers should we serve How should we develop the firm s capabilities and focus its efforts How do an organization s goal s relate to its mission Goals or objectives measure how well the organization s mission is being accomplished Needs to measurable and be able to time it Step 2 Setting Company Objectives and Goals Set Organizational Strategic Business Unit SBU and Functional Marketing Objectives Characteristics of Good Objectives Measurable specific Realistic Time specific the firm SBU and functional Marketing objectives must support be consistent with the overall priorities of Step 3 Designing the Business Portfolio Business Portfolio The collection of businesses and products that make up the company Portfolio Analysis The process by which management evaluates the products and businesses that make up the company Two questions Where do we want to go Question 1 Where are we now Boston Consulting Group BCG Matrix Growth Share Matrix A portfolio planning method that evaluates company s SBUs in terms of Market growth rate and Relative market share Question 2 Where do we want to go Product Market Growth Matrix illustrates different growth strategies Two dimensions Opportunities for growth in existing or new markets Allocating resources into existing products or new products Market Penetration Increasing sales of current products to current market segments without changing the product Product Development Offering modified or new products to current market segments Market Development Identifying and developing new market segments for current company products Diversification Starting up or acquiring businesses outside the company s current product markets Step 4 Planning Marketing and Other Functional Strategies Value Chain The series of internal departments that carry out value creating activities to design produce market deliver and support a firm s products Value Delivering Network The network made up of the company its distributors and ultimately its customers who partner with each other to improve the performance of the entire system Position Arranging for a product to occupy a clear distinctive and desirable place relative to competing products in the minds of target customers Differentiation Actually differentiating the market offering to create superior customer value Steps in the Marketing Planning Process 1 Perform a SWOT analysis 2 Set Marketing Objectives 3 Develop Marketing strategy the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships Select a Target Market o Market Segmentation Dividing a market into distinct groups of buyers who have different needs characteristics or behaviors and who might require separate products or marketing programs o Market Segment A group of customers who respond in a similar way to a given set of marketing efforts o Market Targeting The process of evaluating each market segment s attractiveness and selecting one or more segments to enter Develop marketing mix strategies 4 Ps 4 Implement marketing strategies 5 Monitor and control strategies o Marketing Control Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved o Return on Marketing Investment or marketing ROI The net return for a marketing investment divided by the costs of the marketing investment More About The 4 P s Product o Physical unit o Package o Warranty o Service o Brand o Image o Value Place Promotion Price o Product availability where and when customers want them o All activities from raw materials to finished products o Goal Ensure products arrive in usable condition at designated palces when needed o Role is to bring about exchanges with target markets by Informing education persuading reminding o Includes integration of Personal selling advertising sales promotion public relation o Price is what a buyer must give up to obtain a product o The most flexible of the 4 P s quickest to change With the 4 P s Come the 4 C s Product Price Place Promotion Customer Solution Customer Cost Convenience Communication
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