1-2 pages assignment, due 7 hours later
Nancy 00001
Lesson_Plan_2.pptxCompany & Marketing Strategy: Partnering to Build Customer Relationships
Lesson Plan #2
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Company and Marketing Strategy
Explain companywide strategic planning and its four steps.
Discuss how to design business portfolios and develop growth strategies.
Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value.
Describe the elements of a customer-driven marketing strategy and mix and the forces that influence it.
List the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring and managing return on marketing investment.
Objectives
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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
Strategic Planning
Note to Instructor:
Strategic planning sets the stage for the rest of the planning in the firm.
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Companywide Strategic Planning
Steps in Strategic Planning
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Companywide Strategic Planning
The mission statement is the organization’s purpose, what it wants to accomplish in the larger environment
Market-oriented mission statement defines the business in terms of satisfying basic customer needs.
A clear mission statement acts as an “invisible hand” that guides people in the organization.
Defining a Market-Oriented Mission
What might be Google’s mission statement?
Note to Instructor:
A mission statement should:
Not be myopic in product terms
Meaningful and specific
Motivating
Emphasize the company’s strengths
Contain specific workable guidelines
Not be stated as making sales or profits
Discussion Question: Google Starbucks Mission statement, ask your students if it would help define the actions of individuals from the average barista to the CEO
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Companywide Strategic Planning
Defining a Market-Oriented Mission
We help you organize the world’s information and make it universally accessible and useful.
Note to Instructor:
A mission statement should:
Not be myopic in product terms
Meaningful and specific
Motivating
Emphasize the company’s strengths
Contain specific workable guidelines
Not be stated as making sales or profits
Discussion Question: Google Starbucks Mission statement, ask your students if it would help define the actions of individuals from the average barista to the CEO
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Companywide Strategic Planning
| Company | Product-Oriented Definition | Market-Oriented Definition |
| Amazon.com | We sell books, videos, CDs, toys, consumer electronics and other products online | We make the Internet buying experience fast, easy, and enjoyable— we’re the place where you can find and discover anything you want to buy online |
| Disney | We run theme parks | We create fantasies—a place where dreams come true and America still works the way it’s supposed to |
| Nike | We sell athletic shoes and apparel | We bring inspiration and innovation to every athlete* in the world (* if you have a body, you are an athlete) |
Instructor’s Note:
This is a great opportunity to begin the discussion on positioning. Google “Under Armour” mission statement and compare it to Nike’s mission
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Companywide Strategic Planning
Setting Company Objectives and Goals
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Business objectives
Build profitable customer relationships
Invest in research
Improve profits
Marketing objectives
Increase market share
Create local partnerships
Increase promotion
Companywide Strategic Planning
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.
The best business portfolio is the one that best fits the company’s strengths and weaknesses to opportunities in the environment.
Designing the Business Portfolio
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LVMH EMPIRE
NOTE:
Under fashion, LVMH owns several luxury fashion brands: Dior, Givenchy, Fendi and Céline to name but a few.
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Companywide Strategic Planning
Strategic business unit (SBU) is a unit of the company that has a separate mission and objectives that can be planned separately from other company businesses
Company division
Product line within a division
Single product or brand
Analyzing the Current Business Portfolio
Note to Instructor
This Web link is to LVMH. Have students explore the different business and product offerings by LVMH
Discussion Question
Which product categories might be growing markets, slower markets, and emerging markets.
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Companywide Strategic Planning
Analyzing the Current Business Portfolio
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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
Companywide Strategic Planning
Difficulty in defining SBUs and measuring market share and growth
Time consuming
Expensive
Focus on current businesses, not future planning
Problems with Matrix Approaches
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Companywide Strategic Planning
Product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
Developing Strategies for Growth and Downsizing
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Companywide Strategic Planning
Developing Strategies for Growth and Downsizing Product/Market Expansion Grid Strategies
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Market penetration
Market development
Product development
Diversification
Companywide Strategic Planning
Developing Strategies for Growth and Downsizing
Product/market expansion grid strategies
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Companywide Strategic Planning
Market penetration is a growth strategy increasing sales to current market segments without changing the product
Market development is a growth strategy that identifies and develops new market segments for current products
Developing Strategies
for Growth and Downsizing
NOTES:
Crocs and KFC.
Click on picture to see the collaboration with KFC.
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Companywide Strategic Planning
Product development is a growth strategy that offers new or modified products to existing market segments
Diversification is a growth strategy through starting up or acquiring businesses outside the company’s current products and markets
Developing Strategies
for Growth and Downsizing
Note to Instructor
This Web link leads to the homepage for Virgin. This is a great company to discuss as they provide examples of market development, product development and diversification. Their homepage lists all their industries and products including tourism, leisure, shopping, media, finance, and healthcare.
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Companywide Strategic Planning
Downsizing is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy
Developing Strategies
for Growth and Downsizing
NOTES:
Tommy Hilfiger once had an athletic division. Due to overall poor performance, the line was discontinued.
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Planning Marketing
Partnering to Build Customer Relationships
Value chain is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products
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Mission Statement and Marketing Strategy
Marketing Strategy and the Marketing Mix
So we have our company’s mission statement, and have a marketing strategy, but what’s missing?
At the center of it all is our profitable customer relationship.
http://www.shutterstock.com/pic-45761482/stock-photo-happy-customers-at-the-reception-of-a-hotel.html
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Marketing Strategy and the Marketing Mix
Market segmentation is the division of a market into distinct groups of buyers who have distinct needs, characteristics, or behaviour and who might require separate products or marketing mixes
Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts
Customer-Driven Marketing Strategy
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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
Customer-Centered Marketing Strategy
http://www.shutterstock.com/pic-31135552/stock-photo-an-arrow-hits-the-target-in-a-pyramid-of-balls-symolizing-targeted-marketing.html
Note to Instructor
This link goes to the nike.com site. Start by asking the students, “What if Nike only made one pair of shoes, would all of you be wearing them?” Explore with the students the different segments including gender Nike Women, psychographics (sports centric including football), and age.
Discussion Questions (can include the topic of positioning which is on the following slide).
Specific questions for the students:
How does Nike segment their market?
What appears to be their most important segments?
How does Nike position their products in the marketplace?
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Marketing Strategy and the Marketing Mix
Customer-Centered Marketing Strategy
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.
http://www.shutterstock.com/pic-2415155/stock-photo-one-white-stone-standing-out-among-gray-ones.html
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Marketing Strategy and the Marketing Mix
Customer-Centered Marketing Strategy
Write down three words that describes each company.
WestJet
Air Canada
Starbucks
Tim Hortons
Would you say they are exactly the same as each other?
How about:
Nike
Adidas
Instructors Notes: The key here is to get people thinking about positioning, differentiation and the place the product holds in the consumers mind. You might want to ask who is a user of the product or service and who purchases both.
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Marketing Strategy and the 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.
Developing an Integrated Marketing Mix
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Marketing Strategy and the Marketing Mix
Developing an Integrated Marketing Mix
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Marketing Strategy and the Marketing Mix
Developing an Integrated Marketing Mix from the customer point of view
| 4 P’s | 4 C’s |
| Product | Customer Solution |
| Price | Customer Cost |
| Place | Convenience |
| Promotion | Communication |
Seeing the 4 P’s from the customers perspective (example: Promotion in terms of Communication) can help us understand how we create value for our customers.
Note to Instructor
It is interesting to ask how to make the 4Ps more customer centric? This leads to a redefining of the 4Ps to the 4Cs as follows:
Product—Customer solution
Price—Customer cost
Place—Convenience
Promotion—Communication
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Analysis (SWOT)
Planning
Implementation
Control
Finding opportunities
Avoiding threats
Understanding strengths
Analyzing weaknesses
Managing the Marketing Effort
Managing the Marketing Effort
Marketing Analysis – SWOT Analysis
SWOT Analysis
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Analysis
Planning
Implementation
Control
Marketing plans include:
Executive summary
Analysis of current situation
Objectives
Targets and positioning
Marketing mix
Budget
Controls
Managing the Marketing Effort
Analysis
Planning
Implementation
Control
Process that turns strategies and plans into marketing actions that accomplish strategic marketing objectives
Good implementation is a challenge
Marketing department organization
Managing the Marketing Effort
Managing the Marketing Effort
Implementing is the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives
Successful implementation depends on how well the company blends its people, organizational structure, decision and reward system, and company culture into a cohesive action plan that supports its strategies
Marketing Implementation
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Analysis
Planning
Implementation
Control
Involves Evaluating the results of marketing strategies and plans and taking corrective action
Checks for differences between goals and performance
Operating control, strategic control, marketing audit
Managing the Marketing Effort
Managing the Marketing Effort
Controlling is the measurement and evaluation of results and the taking of corrective action as needed.
Operating control
Strategic control
Marketing Control
Note to Instructor
Operating control involves checking ongoing performance against an annual plan and taking corrective action as needed.
Strategic control involves looking at whether the company’s basic strategies are well matched to its opportunities.
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Measuring and Managing Return on Marketing Investment
Return on Marketing Investment (Marketing ROI)
Return on Marketing Investment (Marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment. Marketing ROI provides a measurement of the profits generated by investments in marketing activities.
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Managing the Marketing Effort
Marketing Control
From Ch. 2, Pg. 60, 8th CE
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Homework Assignment #1 (Worth 10%)
Complete a detailed S.W.O.T analysis for a fashion company of your choice. Under each heading, provide a minimum of 4 bullet points. For example, “S” stands for Strengths: what are 4 strengths of the company?
Assignment Requirements:
To add interest to the assignment, create an interesting chart/graphic (Google some possible templates you could use) for your SWOT analysis.
The assignment can be completed in any program of your choosing.
Remember to include a title page with your name, assignment # and date.
DUE: next class.
