Chapter 2 Company and Marketing Strategy Partnering to

Chapter 2 Company and Marketing Strategy Partnering to Build Customer Relationships Copyright © 2014 by Pearson Education, Inc. All rights reserved

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� 5 for 5 �You have 1 minute to get into groups � 5 minutes to come up with 5 things you learned from Chapter 1 �Present to class! 3 Copyright © 2014 by Pearson Education, Inc. All rights reserved 2 - 3

Company and Marketing Strategy Objectives �Companywide Strategic Planning: Defining Marketing’s Role �Planning Marketing: Partnering to Build Customer Relationships �Marketing Strategy & the Marketing Mix �Managing the Marketing Effort �Measuring & Managing Return on Marketing Investment Copyright © 2014 by Pearson Education, Inc. All rights reserved

Companywide Strategic Planning Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities Copyright © 2014 by Pearson Education, Inc. All rights reserved

Companywide Strategic Planning Steps in Strategic Planning Copyright © 2014 by Pearson Education, Inc. All rights reserved

Companywide Strategic Planning Defining a Market-Oriented Mission �The mission statement is the organization’s purpose, what it wants to accomplish in the larger environment We help you organize the world’s �Market-oriented information and make it mission statement universally accessible and useful. defines the business in terms of satisfying basic customer needs Copyright © 2014 by Pearson Education, Inc. All rights reserved

How does Google achieve their mission? We help you organize the world’s information and make it universally accessible and useful. Copyright © 2014 by Pearson Education, Inc. All rights reserved

Mission Statement �http: //www. missionstatements. com/ Copyright © 2014 by Pearson Education, Inc. All rights reserved

Mission Statement �What’s yours? Copyright © 2014 by Pearson Education, Inc. All rights reserved

Dr. Shari Carpenter �I am dedicated to helping individuals find value in themselves by guiding them through self-exploration and additive education. I will constantly give to others; helping them to be better for having known me. I will always remain true to my farming roots, work ethic and my passion for lifelong learning. I will be well and I will live well. Copyright © 2014 by Pearson Education, Inc. All rights reserved

Companywide Strategic Planning Setting Company Objectives and Goals Business objectives • Build profitable customer relationships • Invest in research • Improve profits Copyright © 2014 by Pearson Education, Inc. All rights reserved Marketing objectives • Increase market share • Create local partnerships • Increase promotion

Companywide Strategic Planning Designing the Business Portfolio The business portfolio is the collection of businesses and products that make up the company Portfolio analysis is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company Copyright © 2014 by Pearson Education, Inc. All rights reserved

�Practice! �Name a company & its portfolio �The business portfolio is the collection of businesses and products that make up the company Copyright © 2014 by Pearson Education, Inc. All rights reserved

Companywide Strategic Planning SBU = Strategic Business Unit � An autonomous division or organizational unit, small enough to be flexible and large enough to exercise control over most of the factors affecting its long term performance. � Because strategic business units are more agile, and usually have missions and objectives, they can respond quickly to changing market situations. Copyright © 2014 by Pearson Education, Inc. All rights reserved

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Companywide Strategic Planning Analyzing the Current Business Portfolio Strategic business units can be �Company division �Product line within a division �Single product or brand Copyright © 2014 by Pearson Education, Inc. All rights reserved

Product Line �A group of related products manufactured by a single company. Copyright © 2014 by Pearson Education, Inc. All rights reserved

Product Line; Example �A cosmetic company's makeup product line might include foundation, powder, blush, eyeliner, eye shadow, mascara and lipstick products that are all closely related. Copyright © 2014 by Pearson Education, Inc. All rights reserved

Product Line; Example �The same company might also offer more than one product line. The cosmetic company might have a special product line geared toward teenagers and another line geared toward women older than 60, in addition to its regular product line, that can be used by women of any age. Copyright © 2014 by Pearson Education, Inc. All rights reserved

CINCH �http: //www. cinchjeans. com/ �PRODUCT LINES? �SBU �Division Copyright © 2014 by Pearson Education, Inc. All rights reserved

Divisions �A division of a business or business division is one of the large parts into which a business organization or company is divided. The divisions are distinct parts of that business. If these divisions are all part of the same company, then that company is legally responsible for all of the obligations and debts of the division. Copyright © 2014 by Pearson Education, Inc. All rights reserved

Procter & Gamble �http: //www. pg. com/en_US/index. shtml Copyright © 2014 by Pearson Education, Inc. All rights reserved

Companywide Strategic Planning Analyzing the Current Business Portfolio Identify key businesses (strategic business units, or SBUs) that make up the company Assess the attractiveness of its various SBUs Decide how much support each SBU deserves Copyright © 2014 by Pearson Education, Inc. All rights reserved

Boston Consulting Matrix �http: //www. valuebasedmanagement. net/ methods_bcgmatrix. html Copyright © 2014 by Pearson Education, Inc. All rights reserved

Companywide Strategic Planning:

�Cash Cow high market share in a slowgrowing industry. �They generate cash in excess of the amount of cash needed to maintain them. �They are to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth. Copyright © 2014 by Pearson Education, Inc. All rights reserved 2 - 27

�Dogs, are units with low market share in a mature, slow-growing industry. �"break even", generating barely enough cash to maintain the business's market share. �Dogs, usually are sold off. Copyright © 2014 by Pearson Education, Inc. All rights reserved 2 - 28

�Question marks are businesses in a high market growth, but have low market share. �Startup businesses �Question marks have a potential to gain market share and become stars, and eventually cash cows when market growth slows. �Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share. Copyright © 2014 by Pearson Education, Inc. All rights reserved 2 - 29

�Stars high market share in a fast-growing industry. The hope is that stars become next cash cows. �Stars require high funding to fight competitions and maintain a growth rate. Copyright © 2014 by Pearson Education, Inc. All rights reserved 2 - 30

Companywide Strategic Planning Developing Strategies for Growth & Downsizing Product/Market Expansion Grid Market a tool for identifying company growth opportunities Copyright © 2014 by Pearson Education, Inc. All rights reserved penetration Product development Market development Diversification

Companywide Strategic Planning Developing Strategies for Growth and Downsizing Market penetration growth by increasing sales to current market segments without changing the product Copyright © 2014 by Pearson Education, Inc. All rights reserved

Companywide Strategic Planning Developing Strategies for Growth and Downsizing Market development growth by identifying and developing new market segments for current products Copyright © 2014 by Pearson Education, Inc. All rights reserved

Best of the Best �http: //www. therichest. com/rich-list/most- popular/the-top-10 -biggest-chain-of-fastfood-restaurants-in-the-world/ Copyright © 2014 by Pearson Education, Inc. All rights reserved

Companywide Strategic Planning Developing Strategies for Growth and Downsizing Product development is a growth strategy that offers new or modified products to existing market segments Copyright © 2014 by Pearson Education, Inc. All rights reserved

Companywide Strategic Planning Diversification is a growth strategy through starting up or acquiring businesses outside the company’s current products and markets Copyright © 2014 by Pearson Education, Inc. All rights reserved

Companywide Strategic Planning Developing Strategies for Growth and Downsizing prune, harvest or divest businesses that are unprofitable or that no longer fit the strategy Copyright © 2014 by Pearson Education, Inc. All rights reserved

Planning Marketing Partnering to Build Customer Relationships Value chain is a series of departments that carry out valuecreating activities to design, produce, market, deliver, and support a firm’s products Copyright © 2014 by Pearson Education, Inc. All rights reserved

Planning Marketing Partnering to Build Customer Relationships Value delivery network is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system Copyright © 2014 by Pearson Education, Inc. All rights reserved

Marketing Strategy and the Marketing Mix Copyright © 2014 by Pearson Education, Inc. All rights reserved

Marketing Strategy and the Marketing Mix Market segmentation is the division of a market into distinct groups of buyers who have different needs, characteristics, or behavior and who might require separate products or marketing mixes Copyright © 2014 by Pearson Education, Inc. All rights reserved

Marketing Strategy and the Marketing Mix Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts Copyright © 2014 by Pearson Education, Inc. All rights reserved

Marketing Strategy and the Marketing Mix Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter Copyright © 2014 by Pearson Education, Inc. All rights reserved

Marketing Strategy and the Marketing Mix Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer Whole marketing plan supports the positioning strategy Copyright © 2014 by Pearson Education, Inc. All rights reserved

Marketing Strategy and the Marketing Mix Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer Whole marketing plan supports the positioning strategy Copyright © 2014 by Pearson Education, Inc. All rights reserved

Marketing Strategy and the Marketing Mix Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer Segment the following cars Position the following Cars Copyright © 2014 by Pearson Education, Inc. All rights reserved

Dodge Products �http: //www. dodge. com/en/? sid=1037056 &KWNM=dodge&KWID=3521733963&TR =1&channel=paidsearch �Audiences for each? Copyright © 2014 by Pearson Education, Inc. All rights reserved

Marketing Strategy and the Marketing Mix �Differentiation begins the positioning process �Whole marketing plan supports the positioning strategy Copyright © 2014 by Pearson Education, Inc. All rights reserved

Marketing Strategy and the Marketing Mix Developing an Integrated Marketing Mix Marketing mix is the set of controllable tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market Copyright © 2014 by Pearson Education, Inc. All rights reserved

Marketing Strategy and the Marketing Mix Developing an Integrated Marketing Mix Marketing mix is the 4 P’s —product, price, place, and Copyright © 2014 by Pearson Education, Inc. All rights reserved

�Count off by 4 �Head to a board Copyright © 2014 by Pearson Education, Inc. All rights reserved

�What is a team? �List of things that make a team function well �And then… Copyright © 2014 by Pearson Education, Inc. All rights reserved 2 - 52

�If this class is a team – how do we make it work the best we can? �Each person write done what they personally are going to do to help everyone learn better �Name on it & turn it in Copyright © 2014 by Pearson Education, Inc. All rights reserved 2 - 53

Lets review! Pick One �Marketing �Market Segmentation �Marketing Mix �Target Markets �Strategic Planning �Mission Statements Copyright © 2014 by Pearson Education, Inc. All rights reserved

Developing an Integrated Marketing Mix Marketing Strategy & the Marketing Mix Copyright © 2014 by Pearson Education, Inc. All rights reserved

Managing the Marketing Effort Copyright © 2014 by Pearson Education, Inc. All rights reserved

SWOT Managing the Marketing Effort Marketing Analysis – SWOT Analysis Copyright © 2014 by Pearson Education, Inc. All rights reserved

PRACTICE �EOU ◦ SWOT Copyright © 2014 by Pearson Education, Inc. All rights reserved

Managing the Marketing Effort Market Planning—Parts of a Marketing Plan Executive Marketing situation summary Objective & issues Marketing strategy Budgets Copyright © 2014 by Pearson Education, Inc. All rights reserved Threats & opportunities Action programs Controls

Executive Summary �http: //voices. yahoo. com/6 -keys-perfect- marketing-plan-executive-summary 7222914. html Copyright © 2014 by Pearson Education, Inc. All rights reserved

Managing the Marketing Effort Marketing Implementation Implementing �Turns marketing plans into marketing actions to accomplish strategic marketing objectives �Addresses who, where, when, how Copyright © 2014 by Pearson Education, Inc. All rights reserved

Managing the Marketing Effort Marketing Controlling �evaluating of results �taking of corrective action to achieve objectives �Operating control �Strategic control Copyright © 2014 by Pearson Education, Inc. All rights reserved

Measuring and Managing Return on Marketing Investment (Marketing ROI) Return on marketing investment �is net return from a marketing investment divided by the costs of the marketing investment. �provides a measurement of the profits generated by investments in marketing activities. Copyright © 2014 by Pearson Education, Inc. All rights reserved

Campbells �http: //www. campbellsoup. com/ Copyright © 2014 by Pearson Education, Inc. All rights reserved

Company and Marketing Strategy Objectives �Companywide Strategic Planning: Defining Marketing’s Role �Planning Marketing: Partnering to Build Customer Relationships �Marketing Strategy & the Marketing Mix �Managing the Marketing Effort �Measuring & Managing Return on Marketing Investment Copyright © 2014 by Pearson Education, Inc. All rights reserved