Company and Marketing Strategy: Partnering to Build Customer Relationships

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• Company and Marketing Strategy Partnering to
  Build Customer Relationships

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Strategic Planning

• Strategic Planning is the Process of Developing
  and Maintaining a Strategic Fit Between the
  Organizations Goals and Capabilities and Its
  Changing Marketing Opportunities.

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Steps in Strategic Planning
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Questions a Mission Statement Should Answer
What is our Business?
Who is the Customer?
What do Consumers Value?
What Should our Business Be?
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The Mission Statement

• A statement of the organizations purpose
• What it wants to accomplish in the larger
  environment
• Should be market oriented and defined in terms of
  customer needs.

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Mission Statements Should
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Designing the Business Portfolio

• The business portfolio is the collection of
  businesses and products that make up the company.
• The company must
• analyze its current business portfolio or
  Strategic Business Units (SBUs),
• decide which SBUs should receive more, less, or
  no investment,
• develop growth strategies for growth or
  downsizing.

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Portfolio Analysis

• An evaluation of the products and business making
  up the company.
• Resources are directed to more profitable
  businesses and weaker ones are phased down or
  dropped.

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Strategic Business Unit (SBU)

• A unit of the company that has a separate mission
  and objectives and that can be planned
  independently from other company businesses.
• Can be a company division, a product line within
  a division, or sometimes a single product or
  brand.

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Analyzing Current SBUsBCG Growth-Share Matrix

Relative Market Share High
Low
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• Question Marks
• Low share SBUs in high growth
• markets
• Require cash to hold
• market share
• Build into Stars or phase out

• Stars
• High growth share
• May need heavy
• investment to grow
• Eventually, growth will slow

Market Growth Rate Low High

• Cash Cows
• Low growth, high share
• Established, successful
• SBUs
• Produce cash

• Dogs
• Low growth share
• Generate cash to sustain self
• Do not promise to be cash
• sources

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Problems With Matrix Approaches
Can be Difficult, Time Consuming, Costly to
Implement
Difficult to Define SBUs Measure Market
Share/Growth
Focus on Current Businesses, Not Future Planning
Can Place too Much Emphasis on Growth
Can Lead to Poorly Planned Diversification

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Product/Market Expansion Grid
P R O D U C T
Existing
New
Market Penetration
ProductDevelopment
Existing
M A R K E T
Market Development
New
Diversification
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Growth at Starbucks
To maintain its phenomenal growth in an
increasingly over-caffeinated marketplace,
Starbucks has brewed up an ambitious,
multi-pronged growth strategy.
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Marketings Role in Strategic Planning
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Value Delivery Network
Companys Value Chain
Distributors
Suppliers
Customers
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The Value Chain
Wal-Marts ability to offer the right products at
low prices depends on the contributions from
people in all of the companys departmentsmarketi
ng, purchasing, information systems, and
operations.
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Market Segmentation

• The process of dividing a market into distinct
  groups of buyers with different needs,
  characteristics, or behavior who might require
  separate products of marketing programs.
• A market segment consists of consumers who
  respond in a similar way to a given set of
  marketing efforts.

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Market Segmentation
Marriott offers business travelers lodging
designed to meet their particular needs.
Click the picture above to play video
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Target Marketing

• Involves evaluating each market segments
  attractiveness and selecting one or more segments
  to enter.
• Target segments that can sustain profitability.
• Example
• Arm Hammers baking soda.
• Click to See Arm Hammer's Website

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Market Positioning

• Arranging for a product to occupy a clear,
  distinctive, and desirable place relative to
  competing products in the minds of target
  consumers (e.g., Chevy Blazer Like a rock)
• Process begins with differentiating the companys
  marketing offer so it gives consumers more value.

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Positioning
Toyotas hybrid Prius is a revelation
brilliantly disguised as a car. The Hummer is
Like nothing elseSport utility? Define Sport!
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The 4 Ps of the Marketing Mix
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The 4 Ps 4 Cs of theMarketing Mix

• 4 Ps - Sellers View
• Product
• Price
• Place
• Promotion

• 4 Cs - Buyers View
• Customer Solution
• Customer Cost
• Convenience
• Communication

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Managing the Marketing Effort
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Marketing Department Organization
Functional Organization
Market or Customer Organization
Geographic Organization
Product Management Organization
Combination of Two or More
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Marketing Control Process