welcome to chapter 2 in this video series on the principles of marketing in this video we
will discuss company and marketing strategy partnering to build customer engagement value
and relationships let's get started there's no better corporate example to start with than nike
nike's success is more than just making great sports gear the company's strategy is to build
engagement and a sense of community between the brand and its customers this chapter will review
five learning objectives objective one explain company-wide strategic planning and its four steps
objective two discuss how to design business portfolios and develop growth strategies
objective three explain marketing's role in strategic planning and how marketing works
with its partners to create and deliver customer value objective four describe the elements of a
customer value driven marketing strategy and mix and the forces that influence it
objective five list the marketing management functions including the elements of a marketing
plan and discuss the importance of measuring and managing market return on investment now let's
spend some time reviewing each of these objectives in more detail starting with objective one
learning objective one explain company-wide strategic planning in its four steps as well
as marketing's role first what is a working definition of strategic planning it is the
process of developing and maintaining a fit between the organization's goals and capabilities
and it's changing marketing opportunities this figure illustrates the steps in strategic planning
step one define the company mission step two set company objectives and goals
step three design the business portfolio and step four plan marketing and other
functional strategies let's define the company mission the mission statement
is a company's organizational purpose it's what they want to accomplish in a larger environment
next let's set objectives and goals this includes both business and marketing objectives
business objectives include building profitable customer relationships investing in research and
improving profits marketing objectives include an increased market share creating local partnerships
and increasing promotions here's an example heinz ketchup's objective is to build profitable
customer relationships by developing foods that are superior in quality taste nutrition and
convenience that embrace the company's nutrition and wellness mission learning objective one
summary the four steps of company-wide strategic planning are strategic planning steps in strategic
planning defining a market-oriented mission and setting objectives and goals learning objective 2
designing the business portfolio and developing growth strategies the business portfolio is a
collection of businesses and products that make up the company portfolio analysis is a major activity
in strategic planning where management evaluates the products and businesses
that make up the company as part of the portfolio there are strategic business units or sbus they
can be a company division a product line within a division or a single product or brand as part of
the portfolio analysis the following processes are conducted identify strategic business units assess
how attractive the sbus are and describe how much support each sbu deserves the growth share matrix
is a portfolio planning method that evaluates the company's sbus in terms of market growth rates
and relative market share this figure identifies the bcg growth share matrix comparing marketing
growth rates with relative marketing share with a business approach there are problems with
matrix approaches and they include a difficulty in defining sbus and measuring its market share and
growth it's time consuming it's expensive and the focus is on current businesses not future planning
developing strategies for growth and downsizing a product market expansion grid looks at new
products existing products new markets and existing markets for company growth opportunities
this figure shows an example of the product market expansion grid it is divided into four quadrants
existing markets new markets existing products and new products when these quadrants merge
the following occurs existing markets plus existing products equals market penetration
existing products plus new markets equals market development existing markets plus
new products equals product development and new markets plus new products equals diversification
a great example of developing strategies and downsizing is starbucks they had the courage
to drop an entire line of premium tees when they no longer fit into the company mission and goals
downsizing is when a company must prune harvest or divest businesses that are unprofitable
or that no longer fit the strategy learning objective 2 summary in designing a business
portfolio analyze the current portfolio by using a growth share matrix and determine
strategies for growth and downsizing through a product market expansion grid
learning objective three company and marketing strategy explain marketing's role in strategic
planning and how marketing works with its partners to create and deliver customer value what is
planning marketing partnering to build customer relationships within planning marketing there is a
value chain which is a series of departments that carry out value-created activities to design
produce market deliver and support a firm's products partnering with other company departments
promotes the value of getting the products to the people and the value of understanding your
consumer partnering with others in the marketing system a 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 3 summary explain marketing's role in
strategic planning and how marketing works with its partners to create and deliver
customer value planning marketing is partnering to build customer relationships partnering with other
company departments and partnering with others in the marketing system learning objective 4 describe
the elements of a customer value-driven marketing strategy and mix and the forces that influence it
this figure identifies how to manage marketing strategies in the marketing mix in the center
is customer value and relationships the outer rings include characteristics such as product
price suppliers and marketing intermediaries there are four quadrants which include competitors
marketing intermediaries suppliers and the public customer value drives marketing strategy
a marketing strategy is the marketing logic by which the company hopes to create customer value
and achieve profitable customer relationships customer value driven marketing strategy marketing
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
customer value driven marketing strategy market targeting is a process of evaluating each market
segment's attractiveness and selecting one or more segments to enter market positioning
is arranging for a product to occupy a clear distinctive and desirable place
relative to competing products in the minds of target consumers
differentiation begins the positioning process customer value driven marketing strategy this is
an example of positioning the hundred-year-old del monte brand positions itself as bursting with life
made in america picked and packed at the peak of ripeness developing an integrated marketing mix
a marketing mix is a 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 developing
an integrated marketing mix this figure shows four quadrants related to target customers and intended
positioning this is blended into an integrated program that actually engages target customers and
delivers the intended value learning objective 4 summary this objective describes the elements of a
customer-driven marketing strategy and mix as well as the forces that influence it marketing strategy
and marketing mix includes a customer value-driven marketing strategy and development of an
integrated marketing mix learning objective five lists the marketing management functions including
the elements of a marketing plan and discuss the importance of measuring and managing marketing
return on investment objective 5 discusses managing the marketing effort and measuring
and managing the return on marketing investment managing the marketing effort marketing analysis
this figure identifies the three elements of analysis planning implementation and organization
and control this quadrant shows the swot analysis related to marketing it includes the following
internal positive attributes or strengths which can help companies reach their objective
internal negative attributes or weaknesses which are limitations that can interfere with company
objectives external positive attributes are opportunities which are factors that
can help companies exploit their advantages and external negative attributes are threats which
can challenge company performance the components of a marketing plan include the executive summary
marketing situation threats and opportunities objectives and issues marketing strategy
action programs budgets and controls marketing implementation includes turning marketing
strategies and plans into marketing actions to accomplish strategic marketing objectives
it addresses the who where when and how marketing department organization includes functional
geographic product management market and customer management managing the marketing effort
marketing control control includes the following characteristics evaluating results taking
corrective action operating control and strategic control return on marketing investment or roi
this is defined as a net return from a marketing investment divided by the costs of
the marketing investment it measures the profits generated by investments in marketing activities
return on marketing investment this chart explains return on marketing investment according to the
chart marketing investment includes the following marketing returns improved customer value and
engagement increase customer attraction increase customer retention increased customer lifetime
values and customer equity coupled with this is a cost of marketing investment these elements
equal the marketing return on investment learning objective 5 summary the following
are the elements related to marketing management functions explain them in detail analysis or swot
thank you for watching chapter 2. please review the other chapters
in this marketing series thank you very much