Company and Market Strategy

7/30/2019 Company and Market Strategy

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Company and Marketing

Strategy


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Strategic Planning

The process of developing and maintaining a strategic fitbetween the organizations goals and capabilities and itschanging marketing opportunities

The first step is to define the companys overall purposeand mission

The mission is then turned into detailed supportingobjectives

What portfolio of businesses and products is best for thecompany?

Marketing planning occurs at the business-unit, product,and market levels


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Defining a Market-Oriented Mission

What is our business? Who is the customer? What doconsumers value? What should our business be?

A mission statement is a statement of the organizations

purpose invisible hand

to provide a global trading platform where practicallyanyone can trade practically anything

Mission statements should be meaningful and specificyet motivating

Should emphasize the companys strengths in themarketplace


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Setting Company Objectives and Goals

The company needs to turn its mission intodetailed supporting objectives for each level ofmanagement

Each manager should have objectives and beresponsible for reaching them

BASF: build profitable customerrelationships by developing better products

leads to series of goals Marketing strategies and programs must be

developed to support these marketing objectives


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Business Portfolio

The collection of businesses and products thatmake up the company

The company must analyze its current businessportfolio and decide which businesses shouldreceive more, less, or no investment

It must shape the future portfolio by developingstrategies for growth and downsizing


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Analyzing the Current Business

Portfolio Identify the key businesses that make up the

company (SBU)

Assess the attractiveness of its various SBUs The purpose of strategic planning is find ways in

which the company can best use its strengths totake advantage of attractive opportunities in the

environment The attractiveness of the SBUs market

The strength of the SBUs position in that market


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BCG Approach

A company classifies all its SBUs accordingto the growth-share matrix

Stars

Cash cows

Question marks

Dogs


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Strategies for Growth and

Downsizing The companys objective must be to manage

profitable growth Marketing needs to identify, evaluate, and select

market opportunities and lay down strategies forcapturing them

Product/market expansion grid Downsizing: Reducing the business portfolio by

eliminating products of business units that arenot profitable or that no longer fit the companysoverall strategy


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Partnering with other company

departments Value chain: The series of departments that carry out

value-creating activities to design, produce, market,deliver, and support a firms products

Wal-Marts goal is to create customer value andsatisfaction by providing shoppers with the products atthe lowest possible prices

Suppliers, IT dept., operations people (effective, low-cost merchandise handling) are very important

If you are not thinking customer, you are not thinking


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Partnering with others in the

marketing system More companies today are concerned about the

customer value delivery network Value delivery network: made up of the company,

suppliers, distributors, and ultimately, customers whopartner with each other to improve the performance ofthe entire system

McDonalds captures over 40% of the burger market QSCV quality, service, cleanliness, and value

Toyotas close relationships with its suppliers In todays marketplace, competition takes place between

the entire value delivery networks created by thecompetitors


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Marketing Strategy

The marketing logic by which the businessunit hopes to create customer value and

achieve profitable customer relationships Customer-driven marketing strategy

Companies cannot profitably serve all

customers in a given market

Understand customers needs and wants


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Market Targeting

The process of evaluating each market segmentsattractiveness and selecting one or more segments toenter

A company should target segments in which it canprofitably generate the greatest customer value andsustain it over time

Market niches; e.g. Ferrari

Several related segments different kinds of customersbut with the same basic wants

GM says that it makes a car for every person, purse andpersonality.


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Positioning and Differentiation

Positioning: arranging for a product tooccupy a clear, distinctive, and desirable

place relative to competing products in theminds of target consumers

Positioning is why a shopper will pay a

little more for your brand GMG: First Class All the Way


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Positioning and Differentiation

Competitive advantages upon which tobuild the position

Charge lower prices or offer greaterbenefits

Differentiating the market offering to

create superior customer value The companys entire marketing program

should support the positioning strategy


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Developing a Marketing Mix

The set of controllable tactical marketing toolsproduct, price, place, and promotion (four Ps)that the firm blends to produce the response it

wants in the target market Buyers viewpoint: four Cs Customers buying value or solutions to their

problems

Marketers would do well to think through thefour Cs first and then build the four Ps on thatplatform


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Managing the Marketing Effort

Analysis: provides information and evaluation

Planning: strategic plans, and then marketing

plans for each division, product and brand Implementation: turns the plans into actions

Control: measuring and evaluating the results ofmarketing activities and taking corrective actionsif needed


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Marketing Analysis

SWOT analysis

Find attractive opportunities and identify

environmental threats

Match the companys strengths toattractive opportunities in the environment


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Marketing Planning

Marketing planning involves deciding onmarketing strategies that will help the

company attain its overall strategicobjectives


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Contents of a Marketing Plan

Executive summary: brief summary of the main goals andrecommendations of the plan

Current marketing situation: describes the target market andcompanys position in it, including information about the market,

product performance, competition, and distribution Threats and opportunities analysis Objectives and issues Marketing strategy: How will the company create value for

customers in order to capture value from customers in return? Action programs: What? When? Who? How much will it cost? Budgets: projected profit-and-loss statement. Expected revenues

and expected costs of production, distribution and marketing Controls: outlines the control that will be used to monitor progress

and take corrective actions


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Marketing Implementation

The process that turns marketing strategies andplans into marketing actions in order to

accomplish strategic marketing objectives Whereas marketing planning addresses the what

and why of marketing activities, implementationaddresses the who, where, when, and how

doing things right

Faster and better execution


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Marketing Control

Evaluating the results of marketing strategies and plans, and takingcorrective actions

Differences between expected and actual performance Operating controlinvolves checking ongoing performance against

the annual plan and taking corrective action when necessary Strategic controlinvolves looking at whether the companys basic

strategies are well matched to its opportunities Marketing strategies and programs should be reassessed periodically

The marketing audit covers allmajor marketing areas of a business Normally conducted by an experienced outside party Sometimes the findings may come as a shock


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Measuring and Managing ROI

ROI is the net return from a marketing investment divided by the costs ofthe marketing investment

Marketing returns can be difficult to measure no consistent definition ofmarketing ROI

Advertising impact arent easily put into dollar returns Marketing performance measures: brand awareness, sales, or marketing

share Marketing dashboards: marketing performance measures in a single display Customer centered measures of marketing impact: customer acquisition,

customer retention, customer lifetime value, and customer equity. More

difficult to measure but capture both current and future performance.

Documents

Company and Market Strategy