Company and Marketing Strategy

Strategic planning
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities
Mission Statement
The organization’s purpose, what it wants to accomplish in the larger environment
Market-oriented mission statement
Defines the business in terms of satisfying basic customer needs
1. Build profitable relationships
2. Invest research
3. Improve profits
What are the BUSINESS OBJECTIVES?
1. Increase market share
2. Create local partnerships
3. Increase promotion
What are the MARKETING OBJECTIVES?
Business Portfolio
The collection of businesses and products that make up the company
Portfolio Analysis
A major activity in strategic planning whereby management evaluates the products and businesses that make up the company.
Strategic business unit (SBU)
A unit of the company that has a separate mission and objectives that can be planned separately from other company businesses
Strategic business unit (SBU)
Also called Key-business
Product/market expansion grid
A tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
Market Penetration
A growth strategy increasing sales to current market segments without changing the product
Market Development
A growth strategy that identifies and develops new market segments for current products
Product Development
A growth strategy that offers new or modified products to existing market segments
Diversification
A growth strategy for starting up or acquiring businesses outside the company’s current products and markets
Downsizing
the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy.
Value chain
A series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products
Value Delivery Network
Made up of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve performance of the entire system
Market Segmentation
The division of a market into distinct groups of buyers who have distinct needs, characteristics, or behavior, and who might require separate products or marketing mixes
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 segment’s attractiveness and selecting one or more segments to enter
Market Positioning
The arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer
Marketing Mix
The set of controllable tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market
Marketing Planning
Involves a strategies that will help the company attain its overall objectives.
Marketing Strategy
Consist of specific strategies for target markets, positioning, the marketing mix and marketing expenditure levels. It outlines how the company intends to create value for target customers in order to capture value in return.
1. Executive summary
2. Marketing situation
3. Threats and opportunities
4. Objective and issues
5. Action programs
6. Budgets
7. Controls
The Parts of a Marketing Plan
Executive Summary
Presents a brief summary of the main goals and recommendations of the plan for management review
Current Marketing Situations
Described the target market and company’s position in it, which includes, a market review, product review, a competition review and distribution.
Threats and Opportunities Analysis
Assesses major threats and opportunities that the product might face, helping the management to anticipate important positive or negative developments that might have an impact on the firm and its strategies.
Objectives and Issues
States the marketing objectives that the company would like to attain during the pan’s term and discusses key issues that will affect their attainment.
Marketing Strategy
Outlines the broad marketing logic by which business unit hopes to create customer value and relationships
Action Program
Spells out how marketing strategies will be turned into specific actions that will answer the ff. questions:
• What will be done?
• When will be done?
• Who will do it?
• How much will it cost?
Budgets
It shows expected revenues (forecasted number of units sold and the average net price) and expected cost of production, distribution and marketing. The difference is the projected profit.
Controls
It includes measures of return on marketing investment.
Strengths
Weaknesses
Opportunities
Threats
What does SWOT in SWOT Analysis stands for?
Marketing Implementation
The process that turns marketing plans into marketing actions to accomplish strategic marketing objectives
Marketing Control
The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action as needed to ensure that objectives are achieved.
Operating Control
Involves checking performance against the annual plan. The purpose is to ensure that the company achieves the sales, profit and other goals set out in its annual plan
Strategic Control
Involves looking at whether the company’s basic strategies are well matched to its opportunities.
Return on Marketing Investment
The net return from a marketing investment divided by the costs of the marketing investment. Marketing ROI provides a measurement of the profits generated by investments in marketing activities.
Growth-share Matrix
A portfolio-planning method that evaluates a company’s SBU in terms of its market growth rate and relative market share. SBUs are classified as stars, cash cows, dog, and question mark.
Marketing Control
The process of measuring and evaluating the results of marketing strategies and plans and taking corrective action as needed to ensure that objectives are achieved.