Company-Wide Strategic Planning: Defining Marketing’s Role (pg36)Strategic planning the process of developing and maintaining a strategic fit between an organizations goals and capabilities and the changing market opportunitiesHelps the firm take advantage of opportunities in the ever changing environmentSteps in strategic planning (pg37)Corporate level defines overall purpose and company missionSet company objectives and goalsDesign business portfolioAll becomes planning marketing and other functional strategiesMission statement a statement of the organization’s purpose (pg37)Forming a sound missionAnswer questions such as…What is our business?Who is our customer?What do customers value?Needs to be market orientedEx: Chipotle’s mission is not sell burritos but promises “Food with Integrity”Something that is never outdated no matter the productFocus on customers and customer experience rather than profitSetting company objectives and goalsBusiness objectives and marketing objectivesDesign a business portfolio (pg39)Business portfolio the collection of businesses and products that make up the companyTwo steps to design business portfolioAnalyze current portfolio and determine which business should receive more less or no investmentPortfolio analysis process by which management evaluates the products and business that makes up the companyIdentify SBUs (strategic business units)can be a company division, product line in a division, or a single product or brandEvaluate SBUs on attractiveness and strengthShape future portfolio for growth and downsizingGrowth Share Matrix (pg41)Growth share matrix portfolio planning method that evaluates SBUs in terms of its market growth rate and market shareVertical axis market growth rate shows attractivenessHorizontal axis relative market share shows strength in the market4 types of SBUsstar high growth high share; eventually will slow down turning into cash cowscash cow low growth high-share; produce quick cash to pay bills and support investmentquestion mark low share high growth; management must decide which to make stars and which to phase outdogs low growth low share; can maintain themselves but not a large source of cashDecisions for analysisBuild invest moreHold stay the sameHarvest milk short term cash flow for long term eventsDivest sell shares or phase outProblemsTime consuming, only focus on the presentDeveloping strategies for growth and downsizing (pg43)Product/market expansion grid portfolio planning tool for identifying company growth opportunities through market penetration, market development, or diversificationMarket penetration company growth by increasing sales of products to current market segments without changing the productEx: Under Armor adds retail and online calling to increase sales of their original apparelMarket development company growth by identifying and developing new market segments for current company productsEx: Under Armor focuses on “women’s only” campaign to increase female apparel salesProduct development company growth by offering modified or new products to current market segmentsEx: Under Armor makes its own cotton apparel “we made it better”Diversification company growth through starting up or acquiring businesses outside the company’s current products and marketsEx: Under Armor making non performance leisure wear or sports equipment instead of “performance wear apparel”Planning Marketing: Partnering to Build Customer Relationships (pg 44)Steps to marketingPhilosophy (The marketing concept): company strategy should revolve around profitable relationships and consumer groupsInput to strategic planners: indentify attractive market opportunities and the potential to use themStrategies: reach the unit’s objectivesPartnering with other company departmentsValue chain series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firms productValue delivery network made of company, supplier, distributor, and customersMarketing Strategy and the Marketing Mix (pg47)Marketing strategy marketing logic by which company hoes to create customer value and achieve profitable customer relationshipsIdentify the whole market then figure out how to divide it into segmentsCustomer driven marketing strategyMarket segmentation divide a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate programs or productsMarket segment a group of consumers who respond in a similar way to a given set of marketing effortsEx: car buyers who don’t focus on brand but on comfortable big cars are one marketMarket targeting the process of evaluating each market segment’s attractiveness and selecting one or more segments to enterEx: Ferrari sells 1,500 cars a year at a high price; focuses on a niche marketMarket differentiation and positioningPositioning arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumersEx: BMW “Ultimate driving Machine”Differentiation actually differentiating the market offering to create superior customer valueDeveloping an Integrated Marketing Mix (pg50)Marketing mix set of tactical marketing tools, products, price, place, and promotion that the firm blends to produce the response it wants in the target market4 p’sProduct goods and servicesPrice the amount the customer must pay to obtain the productPlace company activities that make product available to consumersPromotion activities that communicate the merits of customers to buy it4 c’scustomer solutioncustomer costconveniencecommunicationManaging the Marketing Effort (pg52)4 marketing management processesanalysis, planning, implementation, and controlMarketing AnalysisSWOT Analysis an overall evaluation of the company’s strengths, weaknesses, opportunities, and threats (SWOT)Match strengths to attractive opportunities and eliminate weaknessesMarketing planningMarketing strategy target markets, positioning, marketing mix, and expenditure levelsmarketing budgetMarketing ImplementationMarketing implementation turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectivesMarketing Department OrganizationCMO chief marketing offierHeads up all marketing