PowerPoint Presentation Lecture 2 Company and Marketing Strategy Topic Outline 1 Explain company wide strategic planning and its four steps 2 Discuss how to design business portfolios and develop grow.
Lecture 2: Company and Marketing Strategy Topic Outline Explain company-wide strategic planning and its four steps Discuss how to design business portfolios and develop growth strategies Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value Describe the elements of a customer value-driven marketing strategy and mix and the forces that influence them List the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring and managing marketing return on investment NIKE: Building Customer Value through Brand Engagement and Community “Nike’s outstanding success results from much more than just making good sports gear The iconic company’s strategy is to build deep engagement and a sense of community with and between the Nike brand and its customer.” Learning Objective Explain company-wide strategic planning and its four steps Company-Wide Strategic Planning Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities, and its changing marketing opportunities steps of Strategic Planning Process Company-Wide Strategic Planning The mission statement is the organization’s purpose; what it wants to accomplish in the larger environment CV S Health’s overall mission is to be a “pharmacy innovation company,” one that is “helping people on their way to better health.” Its marketing strategies and programs must support this mission Company-Wide Strategic Planning Product- versus Market-Oriented Business Definitions Company Product-Oriented Definition Market-Oriented Definition Starbucks We sell coffee and snacks We sell “The Starbucks Experience,” one that enriches people’s lives in one moment, one human being, one extraordinary cup of coffee at a time Panera We sell fast-casual food in our restaurants We give customers “Food as it should be”: food that tastes good; food that feels good; food that does good things for them and the world around them Company-Wide Strategic Planning Setting Company Objectives and Goals • Business objectives – – – • Build profitable customer relationships Invest in research Improve profits Marketing objectives – – – Increase market share Create local partnerships Increase promotion Real Marketing: Airbnb’s Mission Belong Anywhere–Don’t Stay There Live There Planning Marketing: Partnering to Build Customer Relationships Partnering with Other Company Departments Value chain is a series of departments that carry out value creating activities to design, produce, market, deliver, and support a firm’s products Planning Marketing: Partnering to Build Customer Relationships Partnering with Other Company Departments The value chain: Walmart’s ability to help you “Save Money Live Better.” by offering the right products at lower prices depends on the contributions of people in all of the company’s departments It’s time to think! Discuss in groups to solve the following questions: What is the interrelationship between Marketing department and - Group 1: R&D department ? - Group 2: Purchasing and Production department ? - Group 3: Finance & Accounting Department ? - Group 4: Sales Department ? - Group 5: HR Department ? (Hint: How they support each others? What are potential conflicts?) Find a practical business case study to critically analyze the importance of these interrelationship Planning Marketing: Partnering to Build Customer Relationships Partnering with Others in the Marketing System Value delivery network is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system Learning Objective Describe the elements of a customer value-driven marketing strategy and mix and the forces that influence them Marketing Strategy and the Marketing Mix Marketing Strategy and the Marketing Mix Figure 2.5 The Four Ps of the Marketing Mix Learning Objective List the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring and managing marketing return on investment Managing the Marketing Effort Figure 2.6 Managing Marketing: Analysis, Planning, Implementation, and Control Managing the Marketing Effort Figure 2.7 S W O T Analysis: Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T) Managing the Marketing Effort Market Planning—Parts of a Marketing Plan • • • • • • • • Executive summary Marketing situation Threats and opportunities Objectives and issues Marketing strategy Action programs Budgets Controls Managing the Marketing Effort Marketing Implementation • Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives • Addresses who, where, when, and how Measuring and Managing Return on Marketing Investment Return on Marketing Investment (Marketing RO I) • Net return from a marketing investment divided by the costs of the marketing investment • Measurement of the profits generated by investments in marketing activities Measuring and Managing Return on Marketing Investment Figure 2.8 Marketing Return on Investment References KOTLER, P and ARMSTRONG, G (2018) Principles of Marketing, 17 th edition London: Prentice Hall