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Company and Marketing Strategy

Nikes outstanding
success results from
much more than just
making good sport
products. The iconic
companys strategy is to
build engagement and a
sense of community with
and between the Nike
brand and its customers

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! Companywide Strategic Planning:

Defining Marketings Role
! Marketing Strategy and the Marketing
Mix
! Managing the Marketing Effort
! Measuring and Managing Return on
Marketing Investment

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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Steps in Strategic Planning

First step- Defining a Market-Oriented Mission

! The mission statement is

the organizations
purpose, what it wants to We help you organize the worlds
accomplish in the larger information and make it universally
accessible and useful
environment
! Market-oriented mission
statement defines the
business in terms of
satisfying basic customer
needs Our aim is to delight customers by offering
luxury wrapped in trust with the help of a team
of dedicated professionals

We help people to live better by bringing wellbeing and

the joy of eating into their every day life

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Step two - Setting Company Objectives and Goals

Business Marketing
objectives objectives

Build profitable Increase market

customer share
relationships Create local
Invest in partnerships
research Increase
Improve profits promotion

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Step two - 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.

http://www.orogel.it/chi_siamo

H.J. Heinz Company

Step three -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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Step three - Analyzing the Current Business Portfolio

Strategic business units can be

! Company division (Bakery Vs. Meal Solutions
at Barilla)
! Product line within a division (detergent Vs.
fabric softener at Procter & Gamble)
! Single product or brand (Benetton Vs. Sisley)

Step three - Analyzing the Current Business Portfolio

Identify key businesses (strategic

business units, or SBUs) that make up the
company

Assess the attractiveness of its various

SBUs

Decide how much support each SBU

deserves

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Market attractiveness

The size of the circles

indicates the annual sales

Company strength/competitiveness

Problems with Matrix Approaches

! Difficulty in defining SBUs and measuring

market share and growth
! Time consuming
! Expensive
! Focus on current businesses, not future
planning

Many companies use more customized approaches that

better suit their specific situations

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Step three - Developing Strategies for Growth and

Downsizing

Existing New
The product/market products products

expansion grid looks at

new products, Existing Market Product
existing products, new markets penetration development
markets and existing
markets for company
growth opportunities
New Market
markets Diversification
development

Developing Strategies for Growth and Downsizing

Downsizing reduce, harvest or divest

businesses that are unprofitable or that no
longer fit the strategy

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Marketing is all about

creating customer
Marketing strategy involves value and profitable
two key questions: which customer relationships
customers we will serve?
and How we will create
value for them?
Then the company designs
a marketing program the
4 Ps that delivers the
intended value to the
targeted customers

Market segmentation is the division of a market

into distinct groups of buyers who have
different needs, characteristics, or behavior
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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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 the
target consumer

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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
ingredients as fresh
- Del Monte Corporation

Differentiation begins the positioning process

Whole marketing plan supports the positioning
strategy

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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

Developing an Integrated Marketing Mix

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4 Ps 4 Cs

Product Customer solution

Price Customer cost

Place Covenience (comfort)

Promotion Communication

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Market PlanningParts of a Marketing Plan

Executive Marketing Threats and

summary situation opportunities

Objective Marketing Action

and issues strategy programs

Budgets Controls

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Marketing Implementation

Implementing
! Turns marketing plans into marketing
actions to accomplish strategic
marketing objectives
! Addresses who, where, when, how

Marketing Department Organization

Functional organization

Geographic organization

Product management organization

Market or customer management

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Marketing Control

Controlling
! Evaluating of results
! Taking of corrective action to achieve objectives
! Operating control
! Strategic control

Return on Marketing Investment (Marketing ROI)

Return on marketing investment

! is net return from a marketing
investment divided by the costs
of the marketing investment.
! provides a measurement of the
profits generated by
investments in marketing
activities.

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