1. Company and Marketing Strategy: Partnering to Build Customer Relationships
Chapter 1
Chapter 2

2. What is marketing ? Understanding marketplace and consumers
Design customer-driven marketing strategy
Integrated marketing program
Build profitable relationships
Capture value from customers
Research consumers and marketplace
Segmentation and targeting
Product management
CRM: build strong relationships with selected customers
Create satisfied and loyal customers
Pricing
Capture CLTV
Managing marketing and customer data
Differentiation and positioning
Placement
PRM: build strong relationships with marketing partners
Increase share of market and share of customer
Promotion
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3. Rest Stop: Previewing the Concepts
Explain companywide strategic planning and its steps.
Discuss how to design business portfolios and growth strategies.
Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value.
Describe the elements of a customer-driven market-ing strategy and mix, and the forces that influence it.
List the marketing management functions, including the elements of a marketing plan and discuss the importance of measuring/managing marketing ROI.
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4. NASCAR – Customer Driven Strategy
Case Study
NASCAR – Customer Driven Strategy
NASCAR Today
Popularity: Second highest watched regular season sport on TV (18 million viewers per average event). Seen in 150 countries. N. 1 live spectator sport.
The Fans: 75 million young, affluent, family oriented fans; 40% are female and fans are very passionate about NASCAR.
The Payoff: Fans spend nearly $700 a year on NASCAR-related items; Fans are three times more loyal to sponsors than are fans of other sports. NASCAR generates $2 billion in merchandise sales annually and $555 million for TV broadcasting rights.
How did they succeed?
NASCAR’s Strategy: Customer driven and single-minded in developing relationships via a blend of live racing, media coverage, and compelling Web sites. In-car TV coverage puts fans in the middle of the action. Web sites are both informational and entertaining. Content includes news, stats, standings, driver bios, online games, community discussions and more.
Value Creation at Race Events: Family-oriented atmosphere features RV parks next to the racing ovals, security guards to enhance safety, and drivers who are friendly and excellent role models. Plus, fans are encouraged to bring their own food.
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5. Strategic Planning
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
It sets the stage for the rest of planning in the firm.
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6. The Mission Statement Corporate level:
Defining the company mission.
Setting objectives and goals.
Designing the business portfolio.
Business unit, product, and market level:
Planning marketing and other functional strategies.
Marketing supports strategic planning in its changing environment
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7. The Mission Statement
What companies wants to accomplish in the larger environment:
What is our business?
Who is our customer?
What do consumers value?
What should our business be?
Mission acts as an “invisible hand”
Mission statements should be market oriented, not product oriented.
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8. The Mission Statement Company Product-Oriented Definition
Market-Oriented Definition
Amazon.com
We sell books, videos, CDs, toys, consumer electronics and other products online
We make the Internet buying experience fast, easy, and enjoyable
America Online
We provide online services
We create customer connectivity, anytime, anywhere
Disney
We run theme parks
We create fantasies – a place where America still works the way it’s supposed to
eBay
We hold online auctions
We provide a global marketplace where practically anyone can trade practically anything
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9. The Mission Statement Should be realistic Should be specific
Should fit the market environment
Should be based on distinctive competencies
Should be motivating
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10. Setting Firm Objectives and Goals
The mission should be translated into supporting objectives for each level of management.
Creates a hierarchy of objectives that are consistent with one another. For example:
General objective: Increase profits.
Marketing objective: Increase market share of domestic and international markets.
Marketing strategies and programs must support such marketing objectives.
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11. Designing the Business Portfolio
The business portfolio is the collection of businesses and products that make up the company.
The company must:
Analyze its current business portfolio or strategic business units (SBUs);
Decide which SBUs should receive more, less, or no investment; and
Develop strategies for growth and downsizing.
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12. Analyzing the Business Portfolio
Portfolio analysis:
Process by which management evaluates the products and businesses making up the company.
Resources are directed toward more profitable businesses while weaker ones are phased out or dropped.
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13. Strategic Business Unit (SBU)
A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses.
An SBU can be a company division, a product line within a division, or sometimes a single product or brand.
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14. BCG Growth-Share Matrix
Stars: High-share of high-growth market.
Strategy: Build into cash cow via investment.
Cash cows: High-share of low-growth market.
Strategy: Maintain or harvest for cash to build STARS.
Question marks: Low-share of high-growth market.
Strategies: Build into STAR via investment if warranted, or reallocate financing and let slip into DOG status.
Dogs: Low-share of low-growth market.
Strategies: Maintain or divest by selling it.
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15. Problems with Matrix Approaches
Several problems exist:
Can be difficult, time consuming, and costly to implement.
Difficult to define SBUs and measure market share and growth rate.
Focus is on current businesses; gives little help with future planning.
Many companies have dropped formal matrix methods in favor of customized approaches.
Strategic planning is sometimes decentralized to cross-functional teams of divisional managers.
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16. Product/Market Expansion Grid
Marketing must identify market opportunities for growth and develop strategies to capture them
Market penetration
Existing markets, existing products
Market development
New markets, existing products
Product development
Existing markets, new products
Diversification
New products, new markets
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17. Planning Marketing Marketing plays a key role in strategic planning:
Provides a guiding philosophy.
The marketing concept
Provides inputs to strategic planners by identifying attractive market opportunities
Designs strategies to reach objectives of each SBU
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18. Creating Customer Value
Marketers must practice partner relationship management.
Working with partners internally within the company can create an effective value chain.
Working with external partners (suppliers, distributors, customer) in the marketing system helps to form a superior value delivery network
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19. Value Delivery Network
Components include:
Company’s value chain
Each department is a link
Distributors
Suppliers
Customers
Improved performance in delivery value to customers is the goal.
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20. Customer-Driven Marketing Strategy
To find the best marketing strategy and mix the company should engage in customer analysis and planning.
To be successful, firms must engage in:
Market segmentation
Market targeting
Differentiation
Positioning
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21. Market Segmentation and Targeting
The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products or marketing programs.
Targeting:
Involves evaluating each market segment’s attractiveness and selecting one or more segments to enter.
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22. Differentiation and Positioning
Creating superior customer value by actually differentiating the market offering.
Positioning:
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
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23. The Marketing Mix
The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.
Product
Price
Place (distribution)
Promotion
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24. The Marketing Mix Product: Promotion: Place: Price:
Variety, features, brand name, quality, design, packaging, and services.
Promotion:
Advertising, sales promotion, public relations, and personal selling.
Place:
Channels, coverage, logistics, locations, transportation, assortments, and inventory.
Price:
List price, discounts, allowances, payment period, and credit terms.
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25. The 4 Ps and the 4 Cs of the Marketing Mix
4 Ps – Seller’s View
Product
Price
Place
Promotion
4 Cs – Buyer’s View
Customer Solution
Customer Cost
Convenience
Communication
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26. Managing the Marketing Effort
Four marketing management functions:
Marketing analysis
SWOT analysis is key.
Marketing planning
Create brand marketing plan.
Marketing implementation
Determine who, where, when, and how.
Marketing control
Evaluate results, take corrective action.
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27. SWOT Analysis Complete analysis of company’s situation Strengths:
Internal resources and capabilities that may help a company reach its objectives.
Weaknesses:
Internal limitations that may interfere with a company’s ability to achieve its objectives.
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28. SWOT Analysis Opportunities: Threats:
External (i.e., environmental) factors that the company may be able to exploit to its advantage.
Threats:
Current and emerging external factors that may challenge the company’s performance.
Marketing task is to help general management find market opportunities
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29. Brand/Product Marketing Plan
Executive summary (assessments, goals and recommendations)
Current marketing situation (market description, product review, competition and distribution)
Product/brand SWOT analysis
Objectives for the brand (15% market share)
Marketing strategy
Action programs
Marketing budget (profit-loss statement)
Controls
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30. Marketing Implementation
Turns marketing plans into marketing actions, in order to accomplish strategic objectives, by addressing:
Who
Where
When
How
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31. Marketing Department Organization
Functional organization:
Each marketing activity is headed by a functional specialist.
E.g., sales manager, advertising manager, marketing research manager, etc.
Geographic organization:
Sales and marketing people are assigned to specific countries, regions, and districts.
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32. Marketing Department Organization
Product management organization:
One person given responsibility for complete strategy and marketing program for a single product.
Market or customer organization:
Manager responsible for particular market or customer.
Combination organization:
Uses some combination of the previous four approaches.
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33. Marketing Control Process
Involves evaluating the results of marketing strategies and plans and taking corrective actions to ensure that objective are attained. It includes four steps:
Set marketing goals
Measure performance
Evaluate performance against expectations
Take corrective action
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34. Marketing Control Process
Operating control
Evaluates performance against the annual plan and takes corrective action.
Strategic control
Evaluates whether strategies match changing opportunities.
The marketing audit consists of periodic examination of company’s environment, objectives, strategies to determine problems and opportunities
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35. Return on Marketing
Return on marketing investments is assessed using one or more methods:
Standard marketing performance measures
Brand awareness, sales, market share
Customer-centered measures
Customer acquisition, customer retention, customer lifetime value
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36. Rest Stop: Reviewing the Concepts
Explain companywide strategic planning and its steps.
Discuss how to design business portfolios and growth strategies.
Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value.
Describe the elements of a customer-driven market-ing strategy and mix, and the forces that influence it.
List the marketing management functions, including the elements of a marketing plan and discuss the importance of measuring/managing marketing ROI.
Prentice Hall, Copyright 2009