2 -1 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Correction of Final Exam...

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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Correction of Final Exam Day

• Final Exam is on 12/9 (Friday): 9:10-11:10.

MARKETING AN INTRODUCTION

Armstrong/Kotler2


Company and Marketing

StrategyPartnering to Build Customer Relationships

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Chapter Outline

• Corporate level planning: Business missions vs. marketing objectives

• Analyze business portfolio: BCG Approach• Marketing Strategy and the Marketing Mix

– STP Process– Marketing Mix

• Managing the Marketing Effort• Measuring and Managing Return on Marketing

Investment

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Strategic Planning

A fit between marketing opportunities and organizational goals and capabilities

Organizational capabilities and

goals

Marketing opportunities

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Companywide Strategic Planning

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Defining a Market-Oriented Mission

Market oriented and based

on satisfyi

ng custom

er needs

Meaningful and specific yet motivating

Emphasize company’s strengths in the

market

Should NOT be stated in sales

or profitsMission

Statement

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Market-oriented business definitions

Company Product-oriented Market-oriented

Charles Schwab We are a brokerage firm.

Nike We sell athletic shoes and apparel

Revlon We make cosmetics

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Market-oriented business definitions

Company Product-oriented Market-oriented

Charles Schwab We are a brokerage firm. We are the guardian of our customers’ financial dreams.

Nike We sell athletic shoes and apparel

We bring inspiration and innovation to every athelete in the world. (f you have a body, you are an athlete.)

Revlon We make cosmetics We sell lifestyle and self-expression; success and status; memories, hopes and dreams.

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©2011 Pearson Education, Inc. publishing as Prentice Hall

Which of the following mission statements is market-oriented?

1.Revlon: We sell cosmetics

2.Disney: We run theme parks

3.Wal-Mart: We deliver value through low prices

4.Xerox: We make copy, fax, and other office machines

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Which of the following mission statements is market-oriented?

1.Disney: We run theme parks

2.Revlon: We sell cosmetics

3.Wal-Mart: We deliver value through low prices

4.Xerox: We make copy, fax, and other office machines

Market-oriented mission statements are defined in terms of customer needs, rather than products or technologies.

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Business Mission of Ebay

• What does e-bay offer?

• Comparing with other selling’s website, what makes ebay more competitive?

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Business Missions: Ebay

• eBay – We help people trade practically anything on earth. We will continue to enhance the online trading experiences of all-collectors, dealers, small business, unique item seekers, bargain hunters, opportunity sellers, and browsers.

• www.ebay.com

http://www.ebay.com/

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Setting Company Objectives and GoalsWhat Marketing Objectives?

Build profitable business

relationships

Marketing Objective?

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Marketing Objective

• A statement of what is to be accomplished through marketing activities

• Realistic, measurable, and time specific

• Examples of marketing objective statements

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Example of Marketing Objective

• Our objective is to be a leader in the industry in terms of new-product development.

• Our objective is to spend 12 percent of sales revenue between 2007 and 2008 on research and development in an effort to introduce at least five new products in 2008

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Designing the Business Portfolio

The Business Portfolio is the collection of businesses andproducts that make up the company

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The Boston Consulting Group Approach

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Analyze Apple’s Product Portfolio

Star(iphone,ipad)

?Apple TV

Cashcow(ipod)

Mac

Mar

ket

Gro

wth

Rat

e

Relative Market Share

High

low

High low

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Strategies for Growth and Downsizing

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Market-Product Strategies: Ben and Jerry

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Video case: Live Nation

• What is Live Nation’s mission?

• Based on the product/market expansion grid, what strategy is Live Nation pursuing

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Outline

• Course Id to access mymktlab: CRSCDD5-258730– IE web browser preferred

• Marketing strategy– STP Process

– Return on marketing investment

• Class activity 1

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Marketing Strategy and the Marketing Mix

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1.Introduce new bicycle models2.Introduce modifications to its existing

bicycle products3.Identify new market segments for its

current products 4.Start up or acquire businesses outside of

its current products and markets

Schwinn Bicycle Company wants to grow by diversification. To accomplish this, Schwinn will:

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Schwinn Bicycle Company wants to grow by diversification. To accomplish this, Schwinn will:

1. Introduce new bicycle models2.Introduce modifications to its existing

bicycle products3.Identify new market segments for its

current products 4.Start up or acquire businesses outside

of its current products and markets

Diversification is the riskiest strategy as it requires that businesses develop new products in new markets.

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Procter & Gamble once had more that ten different brands of laundry detergent but now markets only six. This is an example of:• Downsizing • Diversification• Market contraction• Market penetration

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Procter & Gamble once had more that ten different brands of laundry detergent but now markets only six. This is an example of:1.Downsizing 2.Diversification3.Market contraction4.Market penetration

Downsizing is reducing the business portfolio by eliminating products of business units that are not profitable or that no longer fit the company’s overall strategy.

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Marketing Strategy

Segmentation

Targeting

Positioning

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Customer Driven Marketing Strategy

Market segmentation is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors,

and who might require separate products or

marketing programs

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Segmentation

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Market targeting involves evaluating eachmarket segment’sattractiveness and selecting one or moreto enter

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Positioning is arranging for a product to occupy a clear distinctive,and desirable place relative to competing products in the minds of the customer.

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Discussion: Mapping SUVs

• Position these brands on a 2-dimension map (Price vs. performance)– Range Rover– Hummer H1– Hummer H2– Lexus LX 470– Lincoln Navigator– Land Cruiser– Escalade

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Discussion: Mapping SUVs

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The Gap Example

What is Gap’s STP strategy?•How do they segment the market?

•What are their target markets

•How do they position the brand?

Summary

http://www.gap.com/

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Developing an Integrated Marketing Mix

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Managing the Marketing EffortMarketing Analysis

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Marketing Analysis

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Marketing Control

Set marketing goals

Measures performance

Evaluates causes of

differences

Take corrective

actions

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Measuring and Managing Return on Marketing Investment

Return on marketing investment (marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment.

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Class activity one

Product Portfolio Analyze

http://pegasus2.pearsoned.com/Pegasus/frmlogin.aspx

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