chapter 2 marketing notes

Strategic Planning
The process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities.
Steps of Strategic planning
1) Define the company mission
2) Setting company objectives and goals
3)Designing the business portfolio
4) Planning marketing and other functional strategies
Mission Statement
A statement of the organizations purpose – what it wants to accomplish in the larger environment
Business Portfolio
the collection of businesses and products that make up the company
Business portfolio has 2 steps
1) the company must analyze its current business portfolio and determine which businesses should more, less or, no investment.

2)it must shape the future portfolio by developing strategies for growth and downsizing

Portfolio Analysis
The process by which management evaluates the products and businesses that make up the company
Growth Share Matrix
A portfolio planning method that evaluated a companies SBU’s in terms of market growth rate and relative market share.
Growth Share Matrix Spots
Stars – High growth high share

Cash Cows – Low growth high share

Question Marks – high growth low share

Dogs – low growth low share

After defining SBU’s you have 4 options
-invest more to BUILD
-Invest enough to HOLD
-HARVEST (milking short term cash)
-DIVEST (Phasing it out)
-Prune (make own entity outside conglomerate)
Portfolio model that creates many different branches
Decentralized
Product Market Expansion Grid
A portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
Market Penentration
Company growth by increasing sales of current products to current market segments without changing the product
Market Development
Company growth by identifying and developing new market segments for current company products
Product Development
Company growth by offering modified or new products to current market segments.
Diversification
Company growth through starting up or acquiring businesses outside the company current products or markets
Marketings role in strategic palnning
1) provides a guiding *philosophy* that suggests revolving around customer value and building profitable relationships

2) Provides *inputs* to strategic planers by helping them identify attractive market opportunities and assessing the firms potential to take advantage of them.

3) designs *strategies* for reaching the units objectives

Value chain
Series of internal departments that carry out a value-creating activities to design, produce, market, deliver, and support a firms products.
Value delivery network
The network made up of the company, its suppliers, its distributors, and ultimately its customers who partner with each other to improve the performance of the entire system.
Marketing strategy
The marketing logic by which the company hopes to create customer value and achieve profitable consumer relationships
Marketing strategy 2 main q’s
Which customers will we serve? (Segmentation and targeting)

How will we create value for them? (Differentiation and positioning)

Market Segmentation
Dividing a market into distinct groups of buyers who have different needs characteristics, or behaviors, and who might require separate products or marketing programs.
MARKET segment
A group of consumers who respond in a similar way to a given set of marketing efforts
Market Targeting
The process of evaluating each market segments attractiveness and selecting one or more segments to enter.
positioning
Arranging for a product to occupy a clear distinctive and desirable place relative to competing products in the minds of target consumers
Differentiation
Actually differentiating the market offering to create superior customer value.
Marketing Mix
Set of tactical marketing tools – Price , Product, Place, Promotion – That the firm blends to produce the response it wants in the target.
4 p’s from a buyers standpoint
4 C’s
Customer solution
Customer cost
Convenience
Communication
Marketing management functions
analysis, planning, implementation, organization, and control.
Swot analysis
Overall eval of the company’s strengths, weaknesses, opportunities, and threats
Marketing Strategy in a marketing plan
consists of specific strategies for target markets, positioning, the marketing mix, and marketing expenditure levels
Marketing implementation
turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives

-adresses who where when and how

Functional Organization
Different marketing activities are headed by a functional specialist – a sales manager, research manager, etc…
(Most common)
Geographic org
Different people assigned to different regions, countries, etc..
(global brands)
Product management organization
product manager develops and implements a complete strategy and marketing program for a specific product or brand
(many products)
Customer or market management organization
Market managers responsible for developing for their specific markets or customers
(One product to many markets)

customer starting to be the norm

Marketing Control
Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.
4 steps of marketing control
1) Management sets specific marketing goals
2) Management measures its performance in the marketplace
3) Management then evaluates the causes of any differences between expected and actual performance
4) takes corrective action to close gaps between goals and performances
Operating control
checking ongoing performance against the annual plan and taking corrective action when necessary
Strategic control
looking at whether the company’s basic strategies and well matched to its opportunities
Marketing ROI
The net return from a marketing investment divided by the costs of the marketing investment
Marketing dashboards
meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance.
Product oriented vs market oriented: Chipotle
We sell burritos vs we give customers food with integrity served with commitment towards the long term welfare of the customer sand environment
True Market Orientation
everyone should be focused on creating value
5 Marketing Management functions
1) Analysis
2) Planning
3) Implementation
4) organization
5) control
Marketing Plan
1) Executive summary
2) Current Marketing Situation
3)Threats and Oppurtunuties analysis
4)Objectives and Issues
5) Marketing Strategy
6) Action programs
7) Budgets
8) Controls