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Lecture 2bWeek 2b

BBA 2K10 (A)

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Class Today Marketings role in strategic planning and how

marketing works with its partners to create and delivercustomer value

Elements of a customer-driven marketing strategy andmix, and the forces that influence it

Marketing management functions, including theelements of a marketing plan, and the importance ofmeasuring return on marketing investment

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Planning Marketing: Partnering toBuild Customer Relationships

Par tner Relationshi p M anagement

Partner relationship management refers to

the process of working closely withpartners in other company departments toform an effective value chain that servesthe customer, as well as partnering

effectively with other companies in themarketing system to form a competitivelysuperior value-delivery network

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Planning Marketing: Partneringto Build Customer Relationships

Value chain is a series ofdepartments that carryout value-creatingactivities to design,

produce, market,deliver, and support afirms products

Par tner ing with Other Company Depar tments

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Planning Marketing: Partnering to Build

Customer Relationships

Value delivery network is

made up of the company,suppliers, distributors,and ultimately customerswho partner with each

other to improveperformance of the entiresystem

Par tner ing with Others in the M arketing System

http://www.toyota.com/about/operations

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Marketing Strategy and the MarketingMix

M arketing Strategy

Marketing strategy is the marketing logic bywhich the business unit hopes to achieveits marketing objectives

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Marketing Strategy and theMarketing Mix

Customer -Centered M arketing Str ategy

Market segmentation is the division of amarket into distinct groups of buyers whohave distinct needs, characteristics, orbehavior and who might require separateproducts or marketing mixes

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Marketing Strategy and the Marketing

Mix

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Marketing Strategy and theMarketing Mix

Customer -Centered M arketing Str ategy

Market segment is a group of consumerswho respond in a similar way to a given

set of marketing efforts

Target marketing is the process of evaluating

each market segments attractiveness andselecting one or more segments to enter

http://localhost/var/www/apps/conversion/tmp/scratch_2/Nike.wmv

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Marketing Strategy and the Marketing

Mix

Market positioning is thearranging for a product tooccupy a clear, distinctive,and desirable placerelative to competingproducts in the minds ofthe target consumer

BMW ultimate driving machine Mater Card Priceless experience

Customer -Centered M arketing Str ategy

http://usa.visa.com/

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Marketing Strategy and the MarketingMix

Developing the M arketing M ix

Marketing mix is the set of controllable

tactical marketing tools p roduct, p rice,p lace, and p romotion that the firmblends to produce the response it wantsin the target market

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Marketing Strategy and the Marketing

Mix

The four Ps P roduct

P rice

P lace

P romotion

Developing the M arketing M ix

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Marketing Strategy and the MarketingMix

Developing the M arketing M ixThe F our Ps

Product is the goods and services incombination that the company offers to thetarget market

Price is the amount of money customers haveto pay to obtain the product

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Marketing Strategy and the MarketingMix

Developing the M arketing M ixThe F our Ps

Place is the company activities that make theproduct available to target customers

Promotion is the activities that communicatethe merits of the product and persuadetarget customers to buy it

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Marketing Strategy and the MarketingMix

Developing the M arketing M ix

The 4 Ps versus The 4 Cs

Product CustomersolutionPrice Customer cost

Place ConveniencePromotion Communication

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Managing the Marketing Effort

Managing the marketing effort requires: AnalyzingPlanningImplementingControlling

The M arketing Eff or t

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Managing the Marketing Effort

The M arketing Eff or t

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Managing the Marketing Effort

M arketing Analysis

Analysis is the complete analysis of the

companys situation in a SWOT analysisthat evaluates the companys: S trengthsWeaknessesOpportunitiesThreats

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Managing the Marketing Effort

M arketing Analysis

S trengths include internal capabilities,resources, and positive situational factorsthat may help to serve companycustomers and achieve companyobjectives

Weaknesses include internal limitations andnegative situational factors that mayinterfere with company performance

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Managing the Marketing Effort

M arketing Analysis

Opportunities are favorable factors or trendsin the external environment that thecompany may be able to exploit to itsadvantage

Threats are unfavorable factors or trends thatmay present challenges to performance

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Managing the Marketing Effort

SWOT Analysis

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Managing the Marketing Effort

M arket Planni ng

Planning is the development of strategic andmarketing plans to achieve companyobjectives

Marketing strategy consists of the specificstrategies for target markets, positioning,the marketing mix, and marketingexpenditure levels

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Managing the Marketing Effort

Sections of a marketing

plan include:Executive summaryCurrent marketing situationThreats and opportunitiesObjective and issues

Action programsBudgetsControls

M arket Planning

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Managing the Marketing Effort

M arketing I mplementation

Implementing is the process that turns marketingplans into marketing actions to accomplishstrategic marketing objectives

Successful implementation depends on how well thecompany blends its people, organizational

structure, decision and reward system, andcompany culture into a cohesive action plan thatsupports its strategies

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Managing the Marketing Effort

M arketing Depar tment Organization

Functional organization

Geographic organizationProduct organizationMarket or customer management

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Managing the Marketing Effort

M arketing Department Organi zation

Functional organization: This is the mostcommon form of marketing organizationwith different marketing functions headedby a functional specialistSales managerMarket research managerCustomer service managerNew product manager

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Managing the Marketing Effort

M arketing Department Organi zation

Geographic organizations: Useful for companies thatsell across the country or internationally. Managersare responsible for developing strategies and plansfor a specific region.

Product management: Useful for companies withdifferent products or brands. Managers areresponsible for developing strategies and plans fora specific product or brand.

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Managing the Marketing Effort

M arketing Depar tment Organi zation

Market or customer managementorganization: Useful for companies withone product line sold to many differentmarkets and customers. Managers areresponsible for developing strategies andplans for their specific markets orcustomers.

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Managing the Marketing Effort

M arketing Department Organi zation

Customer management involves a customerfocus and not a product focus for managingcustomer profitability and customer equity

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Managing the Marketing Effort

M arketing Control

Controlling is the measurement andevaluation of results and the taking ofcorrective action as neededOperating control

Strategic control

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Managing the Marketing Effort

M arketing Control

Operating control involves checking ongoing

performance against an annual plan andtaking corrective action as needed

Strategic control involves looking at whether

the companys basic strategies are wellmatched to its opportunities

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Managing the Marketing Effort

M arketing Control

Marketing audit is a comprehensive,systematic, independent, and periodicexamination of a companys environment,objectives, strategies, and activities todetermine problem areas andopportunities

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Measuring and Managing Return on

Marketing Investment

Return on M arketing I nvestment (ROI )

Return on marketinginvestment (ROI) is the netreturn from a marketinginvestment divided by thecosts of the marketinginvestment. Marketing ROIprovides a measurement ofthe profits generated byinvestments in marketingactivities.

http://www.investor.sharehold.com/campbell/index.cfm

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Measuring and Managing Return on

Marketing Investment

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Measuring and Managing Return on

Marketing Investment

Customer-centered measures Customer acquisition

Customer retentionCustomer lifetime value

Standard measures Brand awareness

SalesMarket share