Chapter 2 – Company and marketing strategy partnering to ...



Chapter 2 – Company and marketing strategy partnering to build costumer relationships Defining a market-oriented mission Corporate level: Defining the company missionSetting company objectives and gals Designing the business portfolioPlanning marketing and other functional strategies Mission statement: purpose of an organization – what it wants to accomplish in the larger environment Must turn this mission statement into SMART objectives: Specific Measurable Attainable Realistic Timely Analysing the current 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 Boston matrix: -628656667500Stars: high growth, high share businesses or products; heavy investments necessary to finance their rapid growth eventually turn into cash cows Cash cows: low growth, high-share businesses or products. Need less investment to hold their market share Question marks: low share business units in high growth markets. Require a lot of cash to hold their shares: Dogs: low growth, low share businesses and products. May generate enough cash to maintain themselves but aren’t a large source of cash. Limitations: difficult, time consuming, costly to implement, difficult to measure market share and growth, focus on classifying current businesses but provide little advice for future planning. Product/market expansion grid market segmentation – dividing the market into groups of buyers based on needs characteristics behaviour (geographical, demographical, psychological, behavioural)market segment – group of consumers who respond in a similar way to a given set of marketing efforts market targeting – the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter differentiation: differentiating the market offering to create superior customer value Marketing mix 4 p’s (product price place promotion)4 c’s (customer solution, customer cost, convenience communication)marketing return on investment = the net return from a marketing investment divided by the costs of the marketing investment SUMMARY CHAPTER 2Objective 1: Explain company-wide strategic planning and its four steps?Key words: Strategic planning, mission statement ?- Strategic planning sets the stage for the rest of the company’s planning - marketing contributes to strategic planning and the overall plan defines marketing’s role in the company - Strategic planning involves: Developing a strategy for long-run survival and growth 1. Defining the company’s mission2. Setting objectives and goals 3. Designing a business portfolio 4. Developing functional plans - Company’s mission should be market oriented, realistic, motivating and consistent with the market environment - Mission statement is then transformed into detailed supporting goals and objectives which in turn guide decisions about the business portfolio - Each business and product unit must develop detailed marketing plans in line with the company-wide plans ?Objective 2: Discuss how to design business portfolios and develop growth strategies ?Key words: Business portfolio, portfolio analysis, growth-share matrix, product/market expansion grid, market penetration, market development ?- Guided by the company’s mission statement and objectives management plan its business portfolio (the collection of business and products that make up the company)- must fit business’ strengths and weaknesses to opportunities in the environment - to do so: Must analyse and adjust is current business portfolio and develop growth and downsizing strategies for adjusting the future portfolio - May use formal portfolio planning approaches that better suit their situation ?Objective 3: Explain marketing’s role in strategic planning and how marketing works with is partners to create and deliver customer value. ?Key words: Value chain, value delivery network - Under the strategic plan, the major departments must work together to accomplish strategic objectives. - Marketing plays a key role in the company’s strategic planning: Provides a marketing concept + inputs regarding market opportunities - Marketing designs strategies to help each department achieve their objectives - Marketers need to have partner relationship management + work closely with partners in other departments à better product quality - Must partner with other companies to form a superior value delivery network Objective 4: Describe the elements of a customer-driven marketing strategy and mix and the forces that influence it ?Key words: Marketing strategy, marketing segmentation, marketing segment marketing targeting, positioning, differentiation, marketing mix ?- Customer value and relationships – centre of marketing strategy and programs - with the use of market segmentation, targeting, differentiation & positioning, the company divides the market into smaller segments and select its target market à decides how it wants to bring value to target consumers.à designs an integrated marketing mix to meet consumer wants and needs ??Objective 5: List the marketing management functions, including the elements of a marketing plan and discuss the importance of measuring and managing return on marketing investment. ?Key words: SWOT analysis, Marketing implementation, marketing control, return on marketing investment ?- Company engages in marketing analysis, planning, implementation and control - Marketing plan includes:executive summarycurrent marketing situation threats and opportunities (SWOT)objectives and issues marketing strategies action plan budget - Marketing department must be organized in 1 or combination of ways:functional marketing organizationgeographic organizationproduct management organization market management organization - Many companies are changing from their organizational focus from product or territory management à customer relationship management ?? ................
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