marketing strategies and definitions. strategy strategy is an organization’s long-term course of...

Marketing Strategiesand

Definitions

Strategy

Strategy is an organization’slong-term course of action

designed to deliver a unique customer experience while

achieving its goals.

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Marketing Strategy

Marketing strategy is the means by which a marketing goal is to be

achieved, usually characterizedby a specified target market anda marketing program to reach it.

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Strategic Marketing Process

The strategic marketing process is the approach whereby an

organization allocates its marketing mix resources to reach

its target markets.

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Goals or Objectives

Goals or objectives are the statements of an accomplishment of a task to be achieved, often by

a specific time.

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Business

A business is the clear, broad, underlying industry or market

sector of an organization’s offering.

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Organization of a typical manufacturing firm, showing a breakdown

of the marketing department

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The board of directors oversees the three levels of strategy in organizations:

corporate, business unit, and functional

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The organization of a business unit in a typical consumer packaged goods firm shows two product or brand groups

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Profit

Profit is the money left after a business firm’s total expenses are subtracted from its total revenues

and is the reward for the risk it undertakes in marketing its

offerings.

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Profits are not evil!

No company or person can stay inbusiness if they do not make a profit.

But we have mixed feeling about this!

Suppose a John Deere worker makes $80,000 a year.

He starts his own business.

How much would he have to make just to break even?

It would be close to $100,000

That is how much he would have to make after payingfor all his own supplies

salariesinsurance

non-personal taxes of all kindsetc… etc..

If McDonald’s doubled its minimum wagewhat would be the cost of a BigMac?

Santa Claus does not appear by magic and give

gifts made by someone else (not like you) from somewhere (not here) todeserving people (like you).

Market Share

Market share is the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

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Core Values

Core values are the fundamental, passionate, and enduring

principles of an organization that guide its conduct over time.

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Organizational Culture

An organizational culture consists of the set of values, ideas, attitudes, and norms of behavior that is learned and

shared among the members ofan organization.

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Mission

A mission is a statement of the organization’s function in society that often identifies its customers,

markets, products, and technologies. The term is often

used interchangeably with vision.

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Star Trek Enterprise Why is a mission statement important?

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Mission Statement:

What business are we in?What makes you different from all others?

Mission Statement:

It should serve as an “invisible hand” that guides people in the organization.

Mission Statement:

It must be believable It must be something employees can buy into

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Mission Statement

Marketing Dashboard

A marketing dashboard is the visual computer display of the essential information related to

achieving a marketing objective.

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An effective marketing dashboard like Sonatica’s helps managers assess a

business situation at a glance

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Marketing Metric

A marketing metric is a measure of the quantitative value or trend of a marketing activity or result.

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Business Portfolio Analysis

Business portfolio analysis is a technique that managers use to

quantify performance measures and growth targets to analyze its clients’ strategic business units (SBUs) as

though they were a collection of separate investments.

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SETTING STRATEGIC DIRECTIONSWHERE DO WE WANT TO GO?

Business Portfolio Analysis (BCG Matrix)M

arke

t G

row

th R

ate

Stars

Cash Cows Dogs

Question Marks

Relative Market Share

High

High Low

Low

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Kodak Consumer-Related ProductsWhat SBU type in the BCG growth-share matrix?

Kodak Picture kioskKodak film

Kodak digital photo printerKodak digital camera

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BCG business portfolio analysis for Kodak’s consumer SBUs for 2003 (red circle) and

2012 (red arrow)

Kodak digitalphoto printer

KodakPicture kiosk

④

③

Kodak digitalcamera

Kodakfilm

①

②

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Market Segmentation

Market segmentation involves aggregating prospective buyers into groups, or segments, that(1) have common needs and(2) will respond similarly to a

marketing action.

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• Limited Resources to Market Offerings

Can’t Be “All Things to All People”

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Marketing Plan

A marketing plan is a road map for the marketing activities of an

organization for a specified future time period, such as one year or

five years.

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Visionary organizations:(1) establish a foundation, (2) set a direction,

and (3) create strategies to successfully develop and market their offerings

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Elements in typical marketing and business plans targeted at different audiences

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Have Complete and Feasible Plans

Set Measurable, Achievable Goals

Use a Base of Facts and Assumptions

Use Simple, But Clear and Specific Plans

Make Plans Controllable and Flexible

Find the Right Person to Implement

Work Toward Consensus-Building2-43

Marketing Plan Rules

Competitive Advantage

1.Who is a competitor?Levels

Same product touchplay machinesSame product class slot machinesOthers that supply the

same service casinosCompete for the same

dollars entertainmentCompete with resources rent, etc.

Competitors

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1.Who is a competitor?

Point-of-viewIndustry view What industry are

you in?Coca Cola Pepsi

Customer view Coca Colathirst lifestyle etc.


1.Who is a competitor?

Competitor myopia: short-sighted

Kodak sold filmBritannica sold hard copy encyclopedia


2. What can competitors do?a. What are your competitors’ objectives?

market sharecash flowleadershipprofitabilitystock viability


2. What can competitors do?b. What are the competitors’ strategies?c. What are competitors strengths and weakness?

SWOT analysisInformation sources?

d. What will competitors do?


3. Selecting the competitors to compete with.a. Strong and weak competitors

weak: easier but less gainstrong: hard by greater gain

customer value analysiswhat actions create customer value?how do customers rate value?


3. Selecting the competitors to compete with.b. Close or distant competitors

close: they are like youdistant: they are unlike you

Why not just destroy close competitors?1. They can increase total demand.

2. They can share cost and R&D3. They can serve unattractive segments4. They can lower threat from government 5. They can improve bargaining power with

publics (governments, unions, special interest groups, etc.


3. Selecting the competitors to compete with.c. Good and bad competitors

good: play be the rulesbad: do not play fair


4. Building a system to gather informationProctor and Gamble example.


5. Developing competitive strategies.a. Cost leadershipb. Differentiationc. Focus

What do they emphasize1. Operational excellence Wal-Mart2. Customer intimacy Emirates3. Product leadership Apple


5. Developing competitive strategies.d. Market leadership

Nichinga. Low volume, high marginsb. Specialization

customer sizeservicegeographyend users (beds in NY)\etc…. etc….

Diversification Analysis

• Market Penetration

• Market Development

• Product Development

• Diversification

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Defining Precise Tasks, Responsibilities, and Deadlines

• Program Schedules

• Gantt Chart

• Action Item List

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Tasks and time needed to complete a term project

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Gantt chart for scheduling a term project that distinguishes sequential and concurrent

tasks

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Improving Implementation of Marketing Programs

• Reward Successful ProgramImplementation

• Communicate Goals and The Means ofAchieving Them

• Have a Responsible Program ChampionWilling to Act

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The evaluation phase of the strategic marketing process ties results and actions to goals, often using marketing metrics and

dashboards

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The evaluation phase requires that Kodak compare actual results with goals to identify

and act on deviations tofill in the “planning gap” by 2012

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