Date post: | 18-Jan-2016 |
Category: |
Documents |
Upload: | alicia-elliott |
View: | 215 times |
Download: | 0 times |
Marketing Strategiesand
Definitions
Strategy
Strategy is an organization’slong-term course of action
designed to deliver a unique customer experience while
achieving its goals.
2-3
Marketing Strategy
Marketing strategy is the means by which a marketing goal is to be
achieved, usually characterizedby a specified target market anda marketing program to reach it.
2-4
Strategic Marketing Process
The strategic marketing process is the approach whereby an
organization allocates its marketing mix resources to reach
its target markets.
2-6
Goals or Objectives
Goals or objectives are the statements of an accomplishment of a task to be achieved, often by
a specific time.
2-8
Business
A business is the clear, broad, underlying industry or market
sector of an organization’s offering.
2-9
Organization of a typical manufacturing firm, showing a breakdown
of the marketing department
2-10
The board of directors oversees the three levels of strategy in organizations:
corporate, business unit, and functional
2-11
The organization of a business unit in a typical consumer packaged goods firm shows two product or brand groups
2-12
Profit
Profit is the money left after a business firm’s total expenses are subtracted from its total revenues
and is the reward for the risk it undertakes in marketing its
offerings.
2-13
Profits are not evil!
No company or person can stay inbusiness if they do not make a profit.
But we have mixed feeling about this!
Suppose a John Deere worker makes $80,000 a year.
He starts his own business.
How much would he have to make just to break even?
It would be close to $100,000
That is how much he would have to make after payingfor all his own supplies
salariesinsurance
non-personal taxes of all kindsetc… etc..
If McDonald’s doubled its minimum wagewhat would be the cost of a BigMac?
Santa Claus does not appear by magic and give
gifts made by someone else (not like you) from somewhere (not here) todeserving people (like you).
Market Share
Market share is the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.
2-20
Core Values
Core values are the fundamental, passionate, and enduring
principles of an organization that guide its conduct over time.
2-22
Organizational Culture
An organizational culture consists of the set of values, ideas, attitudes, and norms of behavior that is learned and
shared among the members ofan organization.
2-23
Mission
A mission is a statement of the organization’s function in society that often identifies its customers,
markets, products, and technologies. The term is often
used interchangeably with vision.
2-24
Star Trek Enterprise Why is a mission statement important?
2-25
Mission Statement:
What business are we in?What makes you different from all others?
Mission Statement:
It should serve as an “invisible hand” that guides people in the organization.
Mission Statement:
It must be believable It must be something employees can buy into
2-29
Mission Statement
Marketing Dashboard
A marketing dashboard is the visual computer display of the essential information related to
achieving a marketing objective.
2-30
An effective marketing dashboard like Sonatica’s helps managers assess a
business situation at a glance
2-31
Marketing Metric
A marketing metric is a measure of the quantitative value or trend of a marketing activity or result.
2-32
Business Portfolio Analysis
Business portfolio analysis is a technique that managers use to
quantify performance measures and growth targets to analyze its clients’ strategic business units (SBUs) as
though they were a collection of separate investments.
2-33
SETTING STRATEGIC DIRECTIONSWHERE DO WE WANT TO GO?
Business Portfolio Analysis (BCG Matrix)M
arke
t G
row
th R
ate
Stars
Cash Cows Dogs
Question Marks
Relative Market Share
High
High Low
Low
2-34
Kodak Consumer-Related ProductsWhat SBU type in the BCG growth-share matrix?
Kodak Picture kioskKodak film
Kodak digital photo printerKodak digital camera
2-35
BCG business portfolio analysis for Kodak’s consumer SBUs for 2003 (red circle) and
2012 (red arrow)
Kodak digitalphoto printer
KodakPicture kiosk
④
③
Kodak digitalcamera
Kodakfilm
①
②
2-36
Market Segmentation
Market segmentation involves aggregating prospective buyers into groups, or segments, that(1) have common needs and(2) will respond similarly to a
marketing action.
2-37
• Limited Resources to Market Offerings
Can’t Be “All Things to All People”
2-38
Marketing Plan
A marketing plan is a road map for the marketing activities of an
organization for a specified future time period, such as one year or
five years.
2-40
Visionary organizations:(1) establish a foundation, (2) set a direction,
and (3) create strategies to successfully develop and market their offerings
2-41
Elements in typical marketing and business plans targeted at different audiences
2-42
Have Complete and Feasible Plans
Set Measurable, Achievable Goals
Use a Base of Facts and Assumptions
Use Simple, But Clear and Specific Plans
Make Plans Controllable and Flexible
Find the Right Person to Implement
Work Toward Consensus-Building2-43
Marketing Plan Rules
Competitive Advantage
1.Who is a competitor?Levels
Same product touchplay machinesSame product class slot machinesOthers that supply the
same service casinosCompete for the same
dollars entertainmentCompete with resources rent, etc.
Competitors
2-45
Competitive Advantage
1.Who is a competitor?
Point-of-viewIndustry view What industry are
you in?Coca Cola Pepsi
Customer view Coca Colathirst lifestyle etc.
Competitive Advantage
1.Who is a competitor?
Competitor myopia: short-sighted
Kodak sold filmBritannica sold hard copy encyclopedia
Competitive Advantage
2. What can competitors do?a. What are your competitors’ objectives?
market sharecash flowleadershipprofitabilitystock viability
Competitive Advantage
2. What can competitors do?b. What are the competitors’ strategies?c. What are competitors strengths and weakness?
SWOT analysisInformation sources?
d. What will competitors do?
Competitive Advantage
3. Selecting the competitors to compete with.a. Strong and weak competitors
weak: easier but less gainstrong: hard by greater gain
customer value analysiswhat actions create customer value?how do customers rate value?
Competitive Advantage
3. Selecting the competitors to compete with.b. Close or distant competitors
close: they are like youdistant: they are unlike you
Why not just destroy close competitors?1. They can increase total demand.
2. They can share cost and R&D3. They can serve unattractive segments4. They can lower threat from government 5. They can improve bargaining power with
publics (governments, unions, special interest groups, etc.
Competitive Advantage
3. Selecting the competitors to compete with.c. Good and bad competitors
good: play be the rulesbad: do not play fair
Competitive Advantage
4. Building a system to gather informationProctor and Gamble example.
Competitive Advantage
5. Developing competitive strategies.a. Cost leadershipb. Differentiationc. Focus
What do they emphasize1. Operational excellence Wal-Mart2. Customer intimacy Emirates3. Product leadership Apple
Competitive Advantage
5. Developing competitive strategies.d. Market leadership
Nichinga. Low volume, high marginsb. Specialization
customer sizeservicegeographyend users (beds in NY)\etc…. etc….
Diversification Analysis
• Market Penetration
• Market Development
• Product Development
• Diversification
2-56
Defining Precise Tasks, Responsibilities, and Deadlines
• Program Schedules
• Gantt Chart
• Action Item List
2-58
Tasks and time needed to complete a term project
2-59
Gantt chart for scheduling a term project that distinguishes sequential and concurrent
tasks
2-60
Improving Implementation of Marketing Programs
• Reward Successful ProgramImplementation
• Communicate Goals and The Means ofAchieving Them
• Have a Responsible Program ChampionWilling to Act
2-61
The evaluation phase of the strategic marketing process ties results and actions to goals, often using marketing metrics and
dashboards
2-62
The evaluation phase requires that Kodak compare actual results with goals to identify
and act on deviations tofill in the “planning gap” by 2012
2-63