Chapter 2 Company and Marketing Strategy Idil Yaveroglu Lecture Notes

Planning Strategic Planning - The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.

Steps in Strategic Planning

Mission Statement A statement of the organizations scope and purpose, often identifying its customers, markets, products, technology and values. A statement of what it wants to accomplish in the larger environment Should be market oriented not product or technology oriented.

Market-Oriented Mission A mission statement asks.. A mission statement should be: What is our business? Who is the customer? What do consumers value? What should our business be? An “invisible hand” Neither too narrow nor too broad Fitting of market environment Based on distinctive competencies Motivating

Example Mission Statements “We create fantasies – a place where America still works the way it’s supposed to” We help people experience the emotion of competition, winning, and crushing competitors. We sell lifestyle and self expression; success and status, memories, hopes and dreams. Google’s mission is to organize the world‘s information and make it universally accessible and useful.

“..creativity, quality design and rapid turnaround to adjust to changing market demands”

Mission Statement Marketing Objectives Business Objectives

Designing the Business Portfolio Business Portfolio – the collection of businesses and products that make up the company Identify key businesses or strategic business units. A strategic business unit is a unit of a company with a separate mission and objectives and that can be planned independently from other company businesses. Assess attractiveness of the SBUs

The BCG Matrix Strategies that can be followed for each SBU: Build: invest more Hold: invest enough to hold current position Harvest: Milking ST cash flow Divest: Phasing out

Procter and Gamble http://www.pg.com.tr/procter/pg_sitemap.htm http://www.pg.com/en_US/brands/all_brands.sht ml

Limitations of the BCG Matrix Difficult to implement – sometimes it is difficult to define SBUs and measure market share and growth Classifies current businesses but provides little advice for future planning.

Product/Market Expansion Grid

Strategic Windows Product Development Diversification Market Increase market share among existing customers Market Penetration Attract new customers to existing products Market Development Create new products for present markets Product Development Introduce new products into new markets Diversification

Marketing Strategy and Marketing Mix

Target Market Strategy Segment the market based on groups with similar characteristics Analyze the market based on attractiveness of market segments Select one or more target markets Find points of difference Position your product Develop a marketing mix that will produce satisfying exchanges with target markets

Marketing Mix The marketing mix includes controllable and tactical marketing tools knows as the 4P’s The 4P’s include Product Place Promotion Price

The Marketing Mix

S W O T SWOT Analysis Internal External Things the company does well. ©South-Western College Publishing S W O T Things the company does well. Things the company does not do well. Conditions in the external environment that favor strengths. Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness. Internal External

Strengths and Weaknesses SWOT Analysis Strengths and Weaknesses INTERNAL Production Costs Marketing Skills Employee Capabilities Financial Resources Available Technology Company/Brand Image

Opportunities and Threats SWOT Analysis Opportunities and Threats EXTERNAL Social Demographic Economic Technological Political/Legal Competitive