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Fundamentals of Marketing
LESSON 1:
Marketing Strategies
Lesson Objectives
Students will be able to:
1. Explain company-wide strategic planning and its four steps
2. Discuss how to design business portfolios and develop
strategies for growth and downsizing
3. Explain marketing’s role in strategic planning and how
marketing works with its partners to create and deliver
customer value
4. Describe the elements of a customer-driven marketing
strategy and mix, and the forces that influence them
5. List the marketing management functions, including the
elements of a marketing plan
Case Study Disney –What are its
challenges?
• Began as animated films 75
years ago
• Theme parks: four major North
American resorts
• Walt Disney world: world’s #1
tourist destination
• Key success factors:
– Sparkling cleanliness
– Friendliness of employees
– Mission: make people happy;
dream come true
– Outstanding customer service
2-3
• Now a diversified, media and
entertainment conglomerate
Disney has grown via
diversification. Is it too large?
• Originally known for films,
animation, theme parks. Will
consumers/investors accept
new businesses?
• Satisfying the customer is
everyone’s job. Is this culture
changing?
• What can it do during travel
and economic downturns?
Lesson Objective 1
Companywide Strategic Planning:
Defining Marketing’s Role
• Strategic Planning Defined
–The process of developing and maintaining a
strategic fit between the organization’s goals
and capabilities and its changing marketing
opportunities
2-4
Defining a
Market-Oriented Mission
• Mission statement
– A statement of an organization’s purpose;
what it wants to accomplish in the larger
environment; needs to be specific, realistic,
and motivating; today’s statements are
market-oriented
2-5
Defining a
Market-Oriented Mission
• A mission statement
asks..
– What is our business?
– Who is the customer?
– What do consumers
value?
– What should our
business be?
2-6
• A mission statement
should be:
– An “invisible hand”
– Neither too narrow nor
too broad
– Fitting of market
environment
– Based on distinctive
competencies
– Motivating
Discussion Questions
Mission Statements
• Under what
circumstances would
you suggest a
company change its
mission?
• What challenges
might it encounter as
it implements a
change in its
mission?
2-7
Setting Company
Objectives and Goals
• The mission is turned into detailed
business and marketing objectives
• Marketing strategies and programs must
develop to support marketing objectives
2-8
Lesson Objective 2
Designing The Business Portfolio
•
•
A business portfolio is the collection of
businesses and products that make up
the company
Business portfolio planning involves two
steps:
1. Analyzing its current business portfolio
2. Shaping the future portfolio by developing
strategies for growth and down sizing
2-9
Designing The Business Portfolio
•
Analyzing the Current Business Portfolio
– Portfolio analysis is a strategic planning tool to
identify/evaluate businesses that make up the firm
and make resource allocation decisions
•
Strategic business unit (SBU):
– Unit with separate mission and objectives
– Planned independently from other company
businesses
– Used as the building block of portfolio analysis
2-10
The Business Portfolio
BCG Matrix
• Build
• Harvest
• Hold
• Divest
– Increase market
share
– Works well for
question marks
– Preserve market
share
– Good for cash
cow
2-11
– Increases short-term
cash flow
– Good for weak cash
cows, question
marks and dogs
– Sell or liquidate
– Good for dogs and
question marks
Designing The Business Portfolio
• Developing Strategies for growth and
Downsizing
– Marketing must identify, evaluate, and select
market opportunities and lay down strategies
for capturing them
– Product Market Expansion Grid
• A portfolio-planning tool for identifying company
growth opportunities
2-12
Marketing’s Role in Strategic Planning
Planning Marketing: Partnering to Build Customer
Relationships
• Provide a guiding philosophy
• Identify attractive opportunities
• Design effective strategies
• Build Customer and Partner Relationship
management
– Form strong value chains
– Form superior value delivery networks
2-13
Planning Marketing: Partnering to Build
Customer Relationships
• Partnering with Other Company
Departments
– Coordination of the value-creating activities
performed by each department within the
company
• Partnering with Others in the Marketing
System
– The objective is to improve the performance
of the customer value-delivery network.
2-14
Lesson Objective 4
Marketing Strategy and the Marketing
Mix
• Marketing Strategy
– The marketing logic by which the business
unit hopes to achieve its marketing objectives
• Marketing Mix
– The company designs a mix made up of
factors under its control
• The company engages in marketing
analysis, planning, implementation, and
control
2-15
Customer-Centered
Marketing Strategy
1. Market Segmentation
2. Target marketing
3. Market Positioning
2-16
• Dividing a market into
groups with distinct needs
who might require
(respond to) different
marketing mixes
• Market segment is a
group of consumers who
respond in similar ways to
marketing efforts
• Bases for segmentation
Customer-Centered
Marketing Strategy
1. Market Segmentation
2. Target marketing
3. Market Positioning
2-17
• Evaluating the
attractiveness of each
market segment
• Selection of segments
with greatest long-term
profitability
• Deciding which
segment(s) to enter
• A company can choose
one or several segments
to target
Customer-Centered
Marketing Strategy
1. Market Segmentation
2. Target marketing
3. Market Positioning
2-18
• The place the product
occupies in the
consumer’s mind
• Products are positioned
relative to competing
products
• Marketers look for clear,
distinctive and desirable
places in positioning
• Differentiation by offering
and delivering greater
value
Developing the Marketing Mix
– The marketing mix includes controllable and
tactical marketing tools knows as the 4P’s
– The 4P’s include
•
•
•
•
2-19
Product
Place
Promotion
Price