Marketing Management 16 February 2011

Company and Marketing Strategy Current Situation, Opportunities, Objectives and Resources – Inputs of Strategic Planning Strategic Planning: The process of developing and maintaining a strategic fit between the organisation’s goals and capabilities and it’s changing marketing opportunities. Strategic Planning deals with how we can change our company to deal with opportunities in an ever evolving environment On a overall business level the strategic planning process is initiated with a description of the purpose, mission and vision of the business Mission Statement: A statement of the organisation’s purpose – what do we want to accomplish in the larger environment

Company and Marketing Strategy Similar to Marketing Strategy, a company strategy must be focused on serving the customer Important Question: What’s our business? Who do we serve? What do our customers value? What do we want our business to do/be? Missions statements shouldn’t be product or technology based - these become obsolete – they must not be sales and profits based - must be market orientated

Steps in Strategic Planning 1.Defining the Company’s Mission 2.Setting Company Objectives and Goals 3.Designing the Business Portfolio 4.Planning Function Strategies including Marketing Company strategy planning will always lead and guide marketing strategy and planning

Business Portfolio Planning Purpose of Strategic Planning – find ways of best utilising strengths to close existing opportunities Business Portfolio: Collection of businesses and products which make up the company Involves 2 processes 1.Analyse current business portfolio and determine investment levels of all 2.Shape future portfolio through strategies for growth or for downsizing Portfolio Analysis: Process through which management evaluates products and businesses which constitute the company It’s important to add and support products and businesses which fit the company’s core philosophy and competence

Strategies for Business Growth In order for companies to compete they need to consistently grow – stakeholder and relevance pressures Marketing is responsible for profitable growth through identifying, evaluating and selecting opportunities through strategies Growth opportunities identified through a product or market expansion grid Market Penetration Market Development Product Development Diversification

Business Growth Definitions Market Penetration: increasing sales of existing products to current market segments without altering the product Market Development: identifying and developing new market segments for present company products Product Development: growth through offering modified or new products to existing market segments Diversification: growth through starting up or acquiring businesses outside the company’s current products and markets Downsizing: reduction in business portfolio through elimination of non profitable products which don’t fit company’s overall strategy

Role of Marketing in Strategic Planning Each business unit within a company will have its own strategic plan All functional departments must collaborate and work together to accomplish strategic objectives Importance of Marketing in Strategic Planning 1.Guiding philosophy – profitable relationships with NB clients and consumer groups 2.Inputs – identifying attractive market opportunities and ability to close them Strategies for meeting objectives Customer value is key in marketer’s success

Role of Marketing in Strategic Planning Marketers never operate in a vacuum Marketers need to practise partner relationship management along with customer relationship management Company Value chain: various departments which carry out certain activities in designing, producing, marketing, delivering and supporting a company’s products Company Value Delivery Network: network of company suppliers, distributors and customers which combine and partner to improve the performance of the system

Leveraging Power of Marketing

Marketing Strategy and the Mix Marketing Strategy: the marketing logic which the BU hopes to create customer value and thus achieve profitable customer relationships Marketing: The process of managing profitable customer relationships Activities of managing customer driven Marketing Strategy and Marketing Mix 1.Customer 2.Create value and build profitable relationships 3.Marketing Strategy 4.Segmentation and Targeting of customers 5.USP, Differentiation and Positioning 6.Marketing Mix – 4 Ps 7.Marketing Analysis, Planning, Implementation and Control

Marketing Strategy and the Mix Market Segment: Group with similar response traits to marketing efforts Market Segmentation: Dividing a holistic market into distinct groups of buyers with different needs and behaviours who’ll require separate products and marketing programs Market Targeting: Evaluation of market segment attractiveness and the selection of specific segments to penetrate Positioning: The way in which a product is placed and received relative to other brands in the minds of target consumers Differentiation: Creating superior customer value through a new or different market offering

Four Ps of Marketing Mix

Marketers sell products, customers buy value and solutions From a customer’s perspective: Customer Solution – Product Customer Cost – Price Convenience – Place Communication - Promotion The Marketing Mix constitutes a company’s tactical toolkit for establishing strong positioning in desired target markets

Marketing Management Managing the Marketing process requires four management functions: 1.Analysis: information and evaluations for marketing activities 2.Planning: development of strategic and marketing plans 3.Implementation: turning strategies into actions 4.Control: measuring and evaluating results Return on Marketing Investment (ROI) is the net return from a marketing investment divided by the costs of the marketing investment

Marketing Planning

See you next time. Cheers Guys!