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Principles of Marketing

Kotler and Armstrong

Chapter 2:
Company and
Insert

Textbook Marketing
Cover Image
Partnering
Strategy to Build
Customer
Engagement, Value,
and Relationships
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Company and Marketing
Strategy
Nikes outstanding
success results from
much more than just
making good sports
gear. The iconic
companys strategy
is to build
engagement and a
sense of community
with and between
the Nike brand and
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Inc. 2-2
Company and Marketing
Strategy
Learning Objectives
Objective 1: Explain company-wide
strategic planning and its four steps.

Objective 2: Discuss how to design


business portfolios and develop growth
strategies.

Objective 3: Explain marketings role in


strategic planning and how marketing works
with its partners to create and deliver
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Company and Marketing
Strategy
Learning Objectives

Objective 4: Describe the elements


of a customer value-driven marketing
strategy and mix, and the forces that
influence it.

Objective 5: List the marketing


management functions, including the
elements of a marketing plan, and
discuss the importance of measuring
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Company and Marketing
Strategy
Learning Objective 1

Explain company-wide strategic


planning and its four steps.

Company-Wide Strategic Planning:


Defining Marketings Role

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Company-Wide Strategic
Planning
Strategic Planning

Strategic planning is the process of


developing and maintaining a strategic
fit between the organizations goals
and capabilities, and its changing
marketing opportunities.

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Inc.
Company-Wide Strategic Planning

Steps in Strategic Planning

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Company-Wide Strategic Planning

Defining a Market-Oriented Mission

The mission statement


is the organizations
purpose; what it wants
to accomplish in the
larger environment.

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Company-Wide Strategic Planning

Setting Company Objectives and


Goals
Business Marketing
objectives objectives
Build Increase
profitable market
customer share
relationship Create local
s partnership
Invest in s
research Increase
Improve promotion
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Inc.
Company-Wide Strategic Planning
Setting Company Objectives and Goals

Heinzs overall objective is


to build profitable customer
relationships by developing
foods superior in quality,
taste, nutrition, and
convenience that embrace
its nutrition and wellness
mission.

H.J. Heinz Company

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Inc.
Company and Marketing
Strategy
Learning Objective 1

Explain company-wide strategic planning and


its four steps.
Company-Wide Strategic Planning: Defining
Marketings Role
- Strategic Planning
- Steps in Strategic Planning
- Defining a Market-Oriented Mission
- Setting Company Objectives and Goals

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Company and Marketing
Strategy
Learning Objective 2

Discuss how to design business portfolios


and develop growth strategies.

Designing the Business Portfolio

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Designing the Business
Portfolio

The business portfolio is the


collection of businesses and
products that make up the company.
Portfolio analysis is a major
activity in strategic planning
whereby management evaluates the
products and businesses that make
up the company.
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Inc.
Designing the Business
Portfolio

Strategic business units can be a


Company division
Product line within a division
Single product or brand

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Inc.
Designing the Business
Portfolio

Analyzing the Current Business Portfolio

Identify strategic business units


(SBUs)

Assess the attractiveness of its


various SBUs

Decide how much support each


SBU deserves
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Designing the Business
Portfolio

Analyzing the Current Business


Portfolio
Growth-share matrix is a portfolio-
planning method that evaluates a
companys SBUs in terms of market
growth rate and relative market
share.

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Inc.
Designing the Business
Portfolio
Analyzing the Current Business
Portfolio

The Boston
Consulting
Group
Approach

FIGURE 2.2 The BCG Growth-Share Matrix

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Designing the Business Portfolio

Problems with Matrix


Approaches
Difficulty in defining SBUs and measuring
market share and growth
Time consuming
Expensive
Focus on current businesses, not future
planning

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Inc.
Designing the Business Portfolio
Developing Strategies for Growth
and Downsizing

Product/market expansion grid looks at


new products, existing products, new
markets, and existing markets for company
growth opportunities.

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Inc.
Designing the Business Portfolio

Developing Strategies for Growth and


Downsizing
Existing New
products products

Existin
g
marke
ts
New
marke
ts
FIGURE 2.3 The Product/Market Expansion Grid

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Inc.
Designing the Business
Portfolio
Developing Strategies for Growth
and Downsizing

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Designing the Business
Portfolio

Developing Strategies for Growth


and Downsizing

Downsizing is when a company


must prune, harvest, or divest
businesses that are unprofitable or
that no longer fit the strategy.

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Inc.
Company and Marketing
Strategy
Learning Objective 2
Discuss how to design business
portfolios and develop growth
strategies.

Designing the Business Portfolio


Analyzing the Current Business
Portfolio
- Growth-share matrix
Strategies for Growth and Downsizing
- Product/market expansion
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Company and Marketing Strategy

Learning Objective 3

Explain marketings role in strategic


planning and how marketing works with
its partners to create and deliver
customer value.
Planning Marketing: Partnering to Build
Customer Relationships

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Inc.
Planning Marketing:
Partnering to Build Customer
Partnering with Other Company
Relationships
Departments

Value chain is a series of departments


that carry out value-creating activities
to design, produce, market, deliver,
and support a firms products.

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Planning Marketing: Partnering to
Build Customer Relationships

Partnering with Other Company


Departments

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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.

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Inc. 2-27
Company and Marketing
Strategy
Learning Objective 3

Explain marketings role in strategic


planning and how marketing works with
its partners to create and deliver
customer value.
Planning Marketing: Partnering to Build Customer
Relationships
- Partnering with Other Company Departments
- Partnering with Others in the Marketing System

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Inc.
Company and Marketing
Strategy
Learning Objective 4

Describe the elements of a customer


value-driven marketing strategy and
mix, and the forces that influence it

Marketing Strategy and the Marketing


Mix

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2-29
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Marketing Strategy and the
Marketing Mix

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Inc.
Marketing Strategy and the
Marketing Mix
Customer Value-Driven Marketing
Strategy

Marketing strategy is the marketing


logic by which the company hopes
to create customer value and achieve
profitable customer relationships.

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Inc.
Marketing Strategy and the Marketing Mix

Customer Value-Driven Marketing


Strategy
Market segmentation is the division of a
market into distinct groups of buyers who
have different needs, characteristics, or
behaviors and who might require
separate products or marketing mixes.

Market segment is a group of consumers


who respond in a similar way to a given
set of marketing efforts.

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Inc.
Marketing Strategy and the
Marketing Mix
Customer Value-Driven Marketing Strategy

Market targeting is the process of


evaluating each market segments
attractiveness and selecting one or more
segments to enter.

Market positioning is the arranging for


a product to occupy a clear, distinctive,
and desirable place relative to competing
products in the minds of target
consumers.
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2-33
Marketing Strategy and the
Marketing Mix Marketing Strategy
Customer Value-Driven

Positioning: The 100-


year-old Del Monte brand
positions itself as
Bursting with Life: Made
in America. Picked and
packed at the peak of
ripeness.
Same essential
- Del Monte Corporation

ingredients as fresh.

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Marketing Strategy and the Marketing Mix

Developing an Integrated Marketing Mix

Marketing mix is the set of controllable,


tactical marketing toolsproduct, price,
place, and promotionthat the firm
blends to produce the response it wants
in the target market.

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Marketing Strategy and the
Marketing Mix
Developing an Integrated
Marketing Mix

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Inc.
Company and Marketing
Strategy
Learning Objective 4
Describe the elements of a customer value-
driven marketing strategy and mix and the
forces that
influence it.
Marketing Strategy and the Marketing
Mix
-Customer Value-Driven Marketing
Strategy
-Developing an Integrated Marketing
Mix
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Company and Marketing
Strategy
Learning Objective 5
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


Measuring and Managing Return on Marketing
Investment

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Managing the Marketing Effort
Marketing Analysis

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Managing the Marketing Effort

Marketing Analysis SWOT


Analysis

Internal

External

Positive Negative

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Managing the Marketing Effort

Market PlanningParts of a
Marketing Plan

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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

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Managing the Marketing
Effort
Marketing Department
Organization

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Managing the Marketing Effort

Marketing Control

Evaluating results
Taking corrective
action
Operating control
Strategic control

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Return on Marketing
Investment

Return on Marketing Investment


(Marketing ROI)
Net return from a marketing investment
divided by the costs of the marketing
investment

Measurement of the profits generated by


investments in marketing activities

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Return on Marketing
Investment

Copyright 2016 Pearson Education, 2-46


Company and Marketing
Strategy
Learning Objective 5
List the marketing management functions,
including the elements of a marketing plan,
and discuss the importance of measuring
and managing marketing return on
investment.
-Analysis (SWOT)
-Planning
-Implementation
-Department Organization
-Control
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Principles of Marketing
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