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Marketing:AnIntroductionFifteenthEditionChapter02CompanyandMarketingStrategy:PartneringtoBuildCustomerEngagement,Value,andRelationshipsCopyright©2023,2020,2017PearsonEducation,Inc.AllRightsReservedObjectivesOutline(1of2)2.1 Explaincompany-widestrategicplanninganditsfoursteps.2.2 Discusshowtodesignbusinessportfoliosanddevelop
growthstrategies.2.3 Explainmarketing’sroleinstrategicplanningandhowmarketingworkswithitspartnerstocreateanddelivercustomervalue.ObjectivesOutline(2of2)2.4 Describetheelementsofacustomervalue-drivenmarketingstrategyandmixandtheforcesthatinfluencethem.2.5 Listthemarketingmanagementfunctions,includingtheelementsofamarketingplan,anddiscusstheimportanceofmeasuringandmanagingmarketingreturnoninvestment.FirstStop:Nike’sCustomerValue-DrivenMarketingStrategyTheNikeswoosh—it’severywhere.Nike’soutstandingsuccessresultsfromcreatingdeepbrand–customerengagement,valuedbrandexperiences,andclosebrandcommunitywithandamongcustomers.ObjectiveOutline2.1Explaincompany-widestrategicplanninganditsfoursteps.StrategicPlanningGameplanforlong-runsurvivalandgrowthHelpstomaintainastrategicfitbetweenitsgoalsandcapabilitiesandchangingmarketingopportunities.Figure2.1StepsinStrategicPlanningMissionStatementStatementoftheorganization’spurposeMarketoriented—definedintermsofsatisfyingbasiccustomerneedsEmphasizethecompany’sstrengthsFocusoncustomersandthecustomerexperienceTable2.1(1of2)Product-versusMarket-OrientedBusinessDefinitionsCompanyProduct-OrientedDefinitionMarket-OrientedDefinitionStarbucksWesellcoffeeandsnacks.Wesell“TheStarbucksExperience,”onethatenrichespeople’slivesonemoment,onehumanbeing,oneextraordinarycupofcoffeeatatime.WalmartWerundiscountstoresWedeliverlowpriceseverydayandgiveordinaryfolksthechancetobuythesamethingsasrichpeople.“SaveMoney.LiveBetter.”ZoomWehostonlinemeetings.Wedeliverhappinessbymakingvideocommunicationsfrictionlessandsecure,empoweringpeopletoaccomplishmore.HomeDepotWeselltoolsandhomerepairandimprovementitemsWeempowerconsumerstoachievethehomesoftheirdreams.Table2.1(2of2)Product-versusMarket-OrientedBusinessDefinitionsCompanyProduct-OrientedDefinitionMarket-OrientedDefinitionNPRWeareapublicradionetwork.Wecreateamoreinformedpublic—onechallengedandinvigoratedbyadeeperunderstandingandappreciationofevents,ideas,andculturesSephoraWeareabeautyproductsretailer.Weselllifestyleandself-expressionbyhelpingcustomerstounlocktheirbeautypotentialAirbnbWerentplacesonlineWehelpcreateaworldwherepeoplecan“belonganywhere,”wheretheycanliveinaplaceinsteadofjusttravellingtoit.SettingCompanyObjectivesandGoals(1of2)DetailedsupportingobjectivesforeachlevelofmanagementSettingahierarchyofobjectivesBusinessobjectivesMarketingobjectivesSettingCompanyObjectivesandGoals(2of2)ObjectiveOutline2.1SummaryStrategicplanningDefiningthecompany’smissionSettingobjectivesandgoalsDesigningabusinessportfolioDevelopingfunctionalplans CompanymissionstatementMarket-oriented,realistic,specificMotivating,consistentwithmarketenvironmentObjectiveOutline2.2Discusshowtodesignbusinessportfoliosanddevelop
growthstrategies.BusinessPortfolio(1of2)CollectionofbusinessesandproductsthatmakeupthecompanyStepsinbusinessportfolioplanning:Analyzethefirm’scurrent
businessportfolioDevelopstrategiestoshapethefutureportfolioBusinessPortfolio(2of2)MarsInc.isnotonlytheworld’snumberonecandymakerbutaworld-leadingpetnutritionandhealth-carecompany.PortfolioAnalysisManagement’sevaluationoftheproductsandbusinessesthatmakeupthecompanyIdentifythestrategicbusinessunits(SBUs)AssessSBUs’attractivenessanddecideonthelevelofsupportSBUdeservesDirectresourcestowardmoreprofitablebusinessesandphasedownordropitsweakeronesFigure2.2TheBCGGrowth-ShareMatrixGrowth-ShareMatrixEvaluatesacompany’sSBUsintermsofmarketgrowthrateandrelativemarketshareProblemswithGrowth-ShareMatrixDifficult,timeconsuming,andcostlyDifficulttodefineandmeasureProvideslittleadviceforfutureplanningFigure2.3TheProduct/MarketExpansionGridDevelopingStrategiesforGrowthInonlythreedecades,StarbuckshasgrownatanastoundingpacefromasmallSeattlecoffeeshoptoanover$24billionpowerhousewithmorethan33,000retailstoresinmorethan76countries.DownsizingProductsorbusinessunitsthatareunprofitableornolongerfitthecompany’soverallstrategyReasonstoabandonproductsormarketsRapidgrowthofthecompanyLackofexperienceinamarketChangeinmarketenvironmentDeclineofaparticularproductObjectiveOutline2.2SummaryPortfolioanalysisBCGGrowth-ShareMatrixProduct/marketexpansiongridStrategiesforgrowthanddownsizingObjectiveOutline2.3Explainmarketing’sroleinstrategicplanningandhowmarketingworkswithitspartnerstocreateanddelivercustomervalue.PlanningMarketing:PartneringtoBuildCustomerRelationshipsProvidesaguidingphilosophyMarketingconcept—companystrategyshouldcreatecustomervalueandbuildprofitablerelationshipsProvidesinputstostrategicplannersIdentifymarketopportunitiesandpotentialtotakeadvantageofthemDesignsstrategiesforreachingthebusinessunit’sobjectivesPartneringwithOtherCompanyDepartments(1of2)Companydepartmentsarelinksinthecompany’sinternalvaluechain.Firm’ssuccessdependsonhowwellthevariousdepartmentscoordinatetheiractivities.Marketersshouldensureallthedepartmentsarecustomer-focusedanddevelopasmoothfunctioningvaluechain.PartneringwithOtherCompanyDepartments(2of2)TrueValue’sInternalValueChain.PartneringwithOthersintheMarketingSystemCompaniesshouldassessvaluechainsInternaldepartmentsExternal:suppliers,distributorsandcustomersValuedeliverynetworkiscomposedofthecompany,itssuppliers,itsdistributors,anditscustomersObjectiveOutline2.3SummaryPlanningMarketingPartneringtobuildcustomerrelationshipsPartneringwithothercompanydepartmentsPartneringwithsuppliers,distributors,andcustomersValuedeliverynetworkObjectiveOutline2.4Describetheelementsofacustomervalue-drivenmarketingstrategyandmixandtheforcesthatinfluencethem.Figure2.4
ManagingMarketingStrategiesandtheMarketingMixCustomerValue-DrivenMarketingStrategyMarketinglogicbywhichthecompanycreatescustomervalueandachievesprofitablecustomerrelationshipsIntegratedmarketingmix:product,price,place,andpromotionActivitiesforbestmarketingstrategyandmixMarketinganalysisPlanning,implementation,andcontrolMarketSegmentationandMarketTargetingMarketsegmentationDividingamarketintodistinctgroupsofbuyerswhohavedifferentneeds,characteristics,orbehaviors,andwhomightrequireseparateproductsormarketingprogramsMarkettargetingEvaluatingeachmarketsegment’sattractivenessandselectingoneormoresegmentstoenterMarketDifferentiationandPositioningPositioningtheproducttooccupyaclear,distinctive,anddesirableplacerelativetocompetingproductsDifferentiatingthemarketofferingtocreatesuperiorcustomervalueTheentiremarketingprogramshouldsupportthechosenpositioningstrategy.PositioningPositioning:ShareableurbantransportationcompanyLimepositionsitselfas“Smartmobilityforthemodernworld.”Suchsimplestatementsformthebackboneofabrand’smarketingstrategy.Figure2.5TheFourPsoftheMarketingMixCriticismsoftheFourPsOmitsorunderemphasizesserviceproductsNeedstoincludepackagingasaproductdecisionBuyer’sperspectivewouldemphasizethefourAs:AcceptabilityAffordabilityAccessibilityAwarenessObjectiveOutline2.4SummaryCustomervalue-drivenmarketingstrategyMarketsegmentationandmarketsegmentMarkettargetingPositioninganddifferentiatingFourPsofthemarketingmixObjectiveOutline2.5Listthemarketingmanagementfunctions,includingtheelementsofamarketingplan,anddiscusstheimportanceofmeasuringandmanagingmarketingreturnoninvestment.Figure2.6ManagingMarketing:Analysis,Planning,Implementation,andControlFigure2.7SWOTAnalysis:Strengths(S),Weaknesses(W),Opportunities(O),andThreats(T)ContentsofaMarketingPlan(1of2)SectionPurposeExecutivesummaryBriefsummaryofthemaingoalsandrecommendationsCurrentmarketingsituationGivesthemarketdescription
andtheproduct,
competition,anddistribution
reviewThreatsandopportunitiesanalysisHelpsmanagementtoanticipateimportantpositiveornegativedevelopmentsObjectivesandissuesStatesanddiscussesmarketingobjectivesandkeyissuesContentsofaMarketingPlan(2of2)SectionPurposeMarketingstrategyOutlinesthebroadmarketinglogicandthespecificsoftargetmarkets,positioning,marketingexpenditurelevels,andstrategiesforeachmarketingmixelementActionprogramsSpellsouthowmarketingstrategieswillbeturnedintospecificactionprogramsBudgetsDetailsasupportingmarketingbudgetthatisaprojectedprofit-and-lossstatementControlsOutlinesthecontrolsthatwillbeusedtomonitorprogress,allowmanagementtoreviewimplementationresults,andspotproductsthatarenotmeetingtheirgoalsMarketImplementationTurningmarketingstrategiesandplansintomarketingactionstoaccomplishstrategicmarketingobjectivesAddressesthewho,where,when,andhowofthemarketingactivitiesMarketingDepartmentOrganizationFunctionalorganizationGeographicorganizationProductmanagementorganizationMarketorcustomermanagementorganizationCombinationorganizationMarketingControlMeasuringandevaluatingtheresultsofmarketingstrategiesandplansOperatingcontrolensuresthatthecompanyachievesitssales,profits,andothergoals.Strategiccontrolinvolveslookingatwhetherthecompany’sbasicstrategiesarewellmatchedtoitsopportunities.MeasuringandManagingMarketingReturnonInvestment(ROI)NetreturnfromamarketinginvestmentdividedbythecostsofthemarketinginvestmentAssessmentmeasuresStandardmarketingperformancemeasuresCustomer-centeredmeasuresFigure2.8MarketingReturnonInvestmentSource:AdaptedfromRolandT.Rust,KatherineN.Lemon,andValerieA.Zeithaml,“ReturnonMarketing:UsingConsum
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