Marketing Strategy BA 7050

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Marketing Strategy BA 7050

• January 19, 2002

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Chapter 1

• Marketing Role - Facilitating Change
• Conditions Necessary
• Parties in an Exchange
• Wants Needs
• Benefit Orientation - end state
• Value function - satisfaction
• Relationship Marketing

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Chapter 1

• NeedgtBenefits SoughtgtChoice
  CriteriagtProduct Service FeaturesgtBrand/Su
  pplier Chosen
• (Acceptable Brand Set of Options)
• Focus on Needs not just product orientation
• Defining a Market

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Chapter 1

• Market Segmentation
• Buying Selling Flows Functions
• Competitive Intelligence
• Marketing Research
• Environmental Scanning
• Marketing Institutions

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Chapter 1 Summary

• Strategic Mkt Programs - Target
• Marketing Mix - 4 Ps,
• Product, Price, Place, Promotion
• Globalization
• Increased Service Importance
• Information Technology
• Relationships gt Functions Firms

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Chapter 2

• Shifts in Strategy Occur???
• Corp, Business, Marketing Strats gtdifferent
  issues at different levels???
• Definition of Strategy
• Fundamental Pattern of present planned
  objectives, resource deployments interactions
  of an organization with markets, competitors
  other environmental factors.

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Chapter 2

• Hierarchy of Strategies
• 1. Corporate
• 2. Business Unit or Business Level
• 3. Functional Strategies

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Chapter 2

• Components of Strategy
• ----Scope
• ----Goals Objectives
• ----Resource Deployments
• ----Identification of Sustainable Competitive
  Advantage
• ----Synergy

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Chapter 2

• Corporate Mission
• Strategic Intent
• Social Values Ethical Principles
• Ethical Guidelines
• Corporate Objectives - Multiple Objectives

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Chapter 2

• Current Products
• Penetration Strats
• Increase Mkt Share
• Increase Product Use
• -freq, quant, new app
• Mkt Development Strats
• Expand Mkts for Existing products
• -Geographic
• -Target New Segments

• New Products
• Product Dev Strats
• Prod Improvement
• Prod Line Extensions
• New Product-same mkt
• Diversification Strats
• Vertical Integration
• -Forward - Backward
• Related Bus Concentric
• Unrelated Conglomerate

Current Markets
New Mkts
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Chapter 2BCG MKT/Growth Relative Mkt Share Matrix
High

• Stars
• Cash Cows

• Question Marks
• Dogs

Mkt Growth Rate
Low
Relative Mkt Share
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Chapter 2

• Factors Affecting Creation of Shareholder Value
• Shareholder Return - Dividends, Cap Gains
• Valuation Components
• Cash Flow from Operations
• Discount Rate
• Debt
• Value Drivers
• Value growth duration
• Sales Growth Operating Profit Margin, Income Tax
  rate
• Working Capital Investment, Fixed Capital
  Investment
• Cost of Capital

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Chapter 3

• Environmental Analysis
• Political/legal
• Green Products
• Govt Regulation Deregulation
• DTVG Example
• Technological Environment
• Biology - Pharmaceuticals, Agri, DNA

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Chapter 3

• Demographics
• Geographics - Ethnicity - Age
• Economic Environment
• International Trade - MAPS System
• Sociocultural Environment
• Individual Values - Lifestyle - Attitudes
• Competition
• Globalization - Ethical Issues
• Opportunity Threat Matrix
• Proactive vs Reactive Response Strategies

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Summary

• Segmentation Exercise