1. 2
Marketing Strategy

2. ROAD MAP: Previewing the Concepts
Companywide strategic planning:
Four steps.
business portfolios and growth strategies.
How marketing works with its partners to create and deliver customer value: Customer Relationships.
Marketing strategy and mix:
Forces that influence it.
Marketing management functions:
Elements of a marketing plan.
Professor Takada

3. ROAD MAP: Companywide strategic planning: Marketing strategy and mix:
Four steps.
business portfolios and growth strategies.
How marketing works with its partners to create and deliver customer value: Customer Relationships.
Marketing strategy and mix:
Forces that influence it.
Marketing management functions:
Elements of a marketing plan.
Professor Takada

4. Strategic Planning
Process of Developing and Maintaining a Strategic Fit Between the Organization’s Goals and Capabilities and Its Changing Marketing Opportunities.
Professor Takada

5. Step 1 The Mission Statement
A statement of the organization’s purpose
What it wants to accomplish in the larger environment
Should be market oriented and defined in terms of customer needs.
What is our Business?
Who is the Customer?
What do Consumers Value?
What Should our Business Be?
Professor Takada

6. Mission Statements Should:
Be Realistic
Be Specific
Fit the Market Environment
Be Based on Distinctive Competencies
Be Motivating
Professor Takada
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7. Good Mission Statements
Focus on limited number of goals
Stress major policies and values
Define major competitive spheres
Professor Takada

8. GE’s breakthroughs in the process of desalination crosses multiple competitive spheres
By 2015, two-thirds of the world will be water-stressed. Desalination plants like this one help to relieve water shortages.
Professor Takada

9. “The purpose of Motorola is to honorably
serve the needs of the community by providing
products and services of superior quality at a
fair price to our customers; to do this so as to
earn an adequate profit which is required for
the total enterprise to grow; and by doing so,
provide the opportunity for our employees and
shareholders to achieve their personal
objectives.”
Professor Takada

10. Product Orientation vs. Market Orientation
Company
Product
Market
Missouri-Pacific Railroad
We run a railroad
We are a people-and-goods mover
Xerox
We make copying equipment
We improve office productivity
Standard Oil
We sell gasoline
We supply energy
Columbia Pictures
We make movies
We entertain people
Professor Takada

11. Step 2 Setting Company Objectives and Goals
Company’s Mission -> Objectives
Business Objectives
Marketing Objectives:
Marketing Strategies and Programs
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12. Step 3 Business Portfolio
Collection of businesses and products that make up the company.
The company must:
analyze its current business portfolio:
Strategic Business Units (SBUs),
decide which SBUs should receive more, less, or no investment,
develop growth strategies for growth or downsizing.
Professor Takada

13. Characteristics of SBUs
It is a single business or collection of related businesses
It has its own set of competitors
It has a leader responsible for
Strategic planning
Profitability
Efficiency
Professor Takada

14. Analyzing Current SBU’s: BCG Growth-Share Matrix
Relative Market Share
High Low ?
Stars
High growth & share
May need heavy
investment to grow
Eventually, growth will slow
Question Marks
Low share SBUs in high growth
markets
Require cash to hold
market share
Build into Stars or phase out
Market Growth Rate
Low High
Cash Cows
Low growth, high share
Established, successful
SBU’s
Produce cash
Dogs
Low growth & share
Generate cash to sustain self
Do not promise to be cash
sources
Professor Takada

15. Problems With Matrix Approaches
Can be Difficult, Time Consuming, Costly to Implement
Difficult to Define SBUs & Measure Market Share/Growth
Focus on Current Businesses, Not Future Planning
Problems With Matrix Approaches
Can Place too Much Emphasis on Growth
Can Lead to Poorly Planned Diversification
Professor Takada

16. Ansoff’s Product-Market Expansion Grid
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17. Growth at Starbucks
To maintain its phenomenal growth in an increasingly over-caffeinated marketplace, Starbucks has brewed up an ambitious, multi-pronged growth strategy.
Professor Takada

18. Starbucks Product/Market Expansion Grid
Market Penetration: make more sales to current customers without changing products.
How? Add new stores in current market areas; improve advertising, prices, menu, service.
Market Development: identify and develop new markets for current products.
How? Review new demographic (seniors/ethnic consumers) or geographic (Asian, European, Australian, & South American) markets.
Product Development: offering modified or new products to current markets.
How? Add food offerings, sell coffee in supermarkets, co-brand products.
Diversification: start up or buy businesses outside current products and markets.
How? Making and selling CDs, testing restaurant concepts, or branding casual clothing.
Professor Takada

19. Marketing’s Role in Strategic Planning
Provide a Guiding Philosophy
Provide Inputs to Strategic Planners
Design Strategies to Reach Objectives
Professor Takada

20. The Business Unit Strategic Planning Process
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21. SWOT Analysis Strengths Weaknesses Opportunities Threats
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22. Market Opportunity Analysis (MOA)
Can the benefits involved in the opportunity be articulated convincingly to a defined target market?
Can the target market be located and reached with cost-effective media and trade channels?
Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?
Professor Takada

23. Market Opportunity Analysis (MOA)_2
Can the company deliver the benefits better than any actual or potential competitors?
Will the financial rate of return meet or exceed the company’s required threshold for investment?
Professor Takada

24. FedEx FedEx added Sunday deliveries based on customer requests and
market demand
Professor Takada

25. Opportunity Matrix
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26. Threat Matrix
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27. Porter’s Generic Strategies
Overall Cost Leadership
Differentiation
Focus
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28. The Star Alliance
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29. Categories of Marketing Alliances
Product or Service Alliances
Promotional Alliances
Logistics Alliances
Pricing Collaborations
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30. Feedback and Control
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31. Value Delivery Network
Company’s Value Chain
Distributors
Suppliers
Customers
Professor Takada

32. The Value Chain
Wal-Mart’s ability to offer the right products at low prices depends on the contributions from people in all of the company’s departments—marketing, purchasing, information systems, and operations.
Professor Takada

33. The Value Delivery Process
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34. Nike Creates Value
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35. Improving Value Delivery the Japanese Way
0 customer
feedback time
0 product
improvement time
0 setup time
purchasing time
0 defects
Professor Takada

36. 3 V’s Approach to Marketing
Define the value segment
Define the value proposition
Define the value network
Professor Takada

37. Porter’s Value Chain
Professor Takada

38. Benchmarks Organizational costs and performance measures Competitor
Professor Takada

39. Core Business Processes
Market
sensing
Customer
relationship
management
New offering
realization
Fulfillment
management
Customer
acquisition
Professor Takada

40. Wal-Mart’s stock replenishment process is legendary
Professor Takada

41. Characteristics of Core Competencies
A source of competitive advantage
Applications in a wide variety of markets
Difficult to imitate
Professor Takada

42. Netflix’s Distinctive Capabilities
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43. Challenges Facing CMO’s
Doing more with less
Driving new business
development
Becoming a
full business partner
Professor Takada

44. ROAD MAP: Marketing strategy and mix: Marketing management functions:
Companywide strategic planning:
Four steps.
business portfolios and growth strategies.
How marketing works with its partners to create and deliver customer value: Customer Relationships.
Marketing strategy and mix:
Forces that influence it.
Marketing management functions:
Elements of a marketing plan.
Professor Takada

45. Managing Marketing Strategy and Marketing Mix
Professor Takada

46. Market Segmentation
The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products of marketing programs.
A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.
Professor Takada

47. Target Marketing
Involves evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Target segments that can sustain profitability.
Professor Takada

48. Market Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Process begins with differentiating the company’s marketing offer so it gives consumers more value.
Professor Takada

49. The Marketing Mix
The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.
Consists of the 4 P’s
Product
Price
Place
Promotion
Professor Takada

50. The 4 P’s of the Marketing Mix
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51. The 4 P’s & 4 C’s of the Marketing Mix
4 P’s - Seller’s View
Product
Price
Place
Promotion
4 C’s - Buyer’s View
Customer Solution
Customer Cost
Convenience
Communication
Professor Takada

52. Managing the Marketing Effort
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53. Major Sections of Product/Brand Plan
Executive Summary
Current Marketing Situation
Analysis of Threats and Opportunities
Objectives for the Brand
Marketing Strategy
Action Programs
Marketing Budget
Controls
Professor Takada

54. Evaluating a Marketing Plan
Is the plan simple?
Is the plan specific?
Is the plan realistic?
Is the plan complete?
Professor Takada

55. Marketing Department Organization
Functional
Organization
Market or Customer
Organization
Geographic
Organization
Product Management
Organization
Combination of Two or More
Professor Takada

56. Marketing Control Process
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57. Rest Stop: Reviewing the Concepts
Explain companywide strategic planning and its four steps.
Discuss how to design business portfolios and develop strategies growth and downsizing.
Assess marketing’s role in strategic planning and explain how marketers partner with others inside and outside the firm to build profitable customer relationships.
Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence it.
List the marketing management functions, including the elements of a marketing plan.
Professor Takada