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C2 Company & Marketing Strategy (Designing the Business Portfolio…
C2 Company & Marketing Strategy
Company-Wide Strategic Planning: Defining
Marketing’s Role
Defining a Market-Oriented Mission
Setting Company Objectives and Goals
turn its broad mission into detailed supporting objectives for each
level of management
Designing the Business Portfolio
Analyzing the Current Business Portfolio
The Boston Consulting Group Approach
Problems with Matrix Approaches
difficult, time consuming, and costly to implement
difficult to
define SBUs and measure market share and growth
focus on
classifying current businesses but provide little advice for future planning
Group Share Matrix
Cash Cow
LOW GROWTH, HIGH MARKET SHARE
produce a lot of the cash that the company uses to pay its bills and support other SBUs
that need investment.
Question Mark
HIGH GROWTH, LOW MARKET SHARE
think hard about which question marks it should try to build into stars and which should be phased out.
Star
HIGH GROWTH, HIGH MARKET SHARE
often need
heavy investments to finance their rapid growth
will eventually turn into cash cows
Dog
LOW GROWTH, LOW MARKET SHARE
generate enough cash to maintain themselves but do not promise to be large sources of cash
Developing Strategies for Growth and Downsizing
market
penetration
Existing products and markets
Growth by increasing sales of current products to current market segment without changing product
offers an ever-increasing
range of styles and colors in its original apparel lines
UNDER ARMOUR EXAMPLE
boosted its spending
on advertising and professional athlete
added direct-to-consumer distribution channels,
tripled sales over the past eight
years and now account for some 30 percent of total revenues
market development
Existing products and NEW market
Growth by identifying and developing new market segments for current products
review
new demographic markets
pursue new geographical
markets
rapidly making a name for itself in international markets, including Japan, Europe, Canada, and Latin America
opened its first-ever brand store
in China
diversification
NEW product and market
Growth through start up or acquiring business outside company's current product and market
expanded into the digital personal health and fitness tracking market by acquiring three fitness app companies—MapMyFitness, MyFitnessPal, and Endomondo
partnered with IBM to add artificial fitness tracking technologies that connect fitness, sleep, and nutrition to its products and bind consumers to the brand via technology and services rather than just apparel
product
development
NEW product and existing market
Growth by offering new product to current market segment
added athletic shoes to its apparel lines in 2006
introduce innovative new athletic-
footwear products
Planning Marketing: Partnering to Build Customer Relationships
Partnering with Other Company Departments
Partnering with Others in the Marketing System
Marketing Strategy and the Marketing Mix
Customer Value–Driven Marketing Strategy
Market Segmentation
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes
Market Targeting
evaluating each market segment’s attractiveness and
selecting one or more segments to enter.
Market differentiation and Positioning
Positioning
arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Differentiation
Actually differentiating the market offering
to create superior customer value.
Developing an Integrated Marketing Mix
The set of tactical marketing tools— product, price, place, and promotion— that the firm blends to produce the response it wants in the target market.
Place
company activities that make the product available to target consumers
Promotion
activities that communicate the merits of the product and persuade
target customers to buy it
Price
amount of money customers must pay to obtain the product
Product
goods-and-services combination the company offers to the target
market
Managing the Marketing Effort and Marketing Return on Investment
Managing the Marketing Effort
marketing Planning
choosing marketing strategies that will help the company
attain its overall strategic objectives
marketing plan
reviews major assessments, goals, and recommendations
states major objectives for the
brand and outlines the specifics of a marketing strategy for achieving them
marketing Analysis
Managing the marketing function begins with a complete analysis of the company’s situation.
marketing Implementation
Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.
marketing department organization
marketing control
Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.
Measuring and Managing Marketing Return on Investment
marketing return on
investment
the net return from a marketing investment
divided by the costs of the marketing investment
measures the profits generated
by investments in marketing activities