Correction of Final Exam Day
• Final Exam is on 12/9 (Friday): 9:10-11:10.
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MARKETING AN INTRODUCTION
Company and Marketing
Armstrong/Kotler
Strategy
Partnering to Build Customer Relationships
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Outline
• Corporate level planning: Business missions vs.
marketing objectives
• Analyze business portfolio: BCG Approach
• Marketing Strategy and the Marketing Mix
– STP Process
– Marketing Mix
• Managing the Marketing Effort
• Measuring and Managing Return on Marketing
Investment
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Strategic Planning
A fit between
marketing
opportunities
and
organizational
goals and
capabilities
Marketing
opportunities
Organizational
capabilities and
goals
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Companywide Strategic Planning
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Defining a Market-Oriented Mission
Market oriented and
based on satisfying
customer needs
Meaningful and
specific yet
motivating
Mission
Statement
Emphasize company’s
strengths in the
market
Should NOT be stated
in sales or profits
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Market-oriented business definitions
Company
Product-oriented
Charles Schwab
We are a brokerage firm.
Nike
We sell athletic shoes and
apparel
Revlon
We make cosmetics
Market-oriented
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Market-oriented business definitions
Company
Product-oriented
Market-oriented
Charles Schwab
We are a brokerage firm.
We are the guardian of
our customers’ financial
dreams.
Nike
We sell athletic shoes and We bring inspiration and
apparel
innovation to every
athelete in the world. (f
you have a body, you are
an athlete.)
Revlon
We make cosmetics
We sell lifestyle and selfexpression; success and
status; memories, hopes
and dreams.
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Which of the following mission statements is
market-oriented?
1.Revlon: We sell cosmetics
2.Disney: We run theme parks
3.Wal-Mart: We deliver value through low
prices
4.Xerox: We make copy, fax, and other office
machines
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
©2011 Pearson Education, Inc. publishing
as Prentice Hall
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Which of the following mission statements is
market-oriented?
1.Disney: We run theme parks
2.Revlon: We sell cosmetics
3.Wal-Mart: We deliver value through low
prices
4.Xerox: We make copy, fax, and other office
machines
Market-oriented mission statements are defined
in terms of customer needs, rather than
products or technologies.
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©2011 Pearson Education, Inc. publishing
as Prentice Hall
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Business Mission of Ebay
• What does e-bay offer?
• Comparing with other selling’s website, what
makes ebay more competitive?
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Business Missions: Ebay
• eBay – We help people trade practically
anything on earth. We will continue to
enhance the online trading experiences of allcollectors, dealers, small business, unique
item seekers, bargain hunters, opportunity
sellers, and browsers.
• www.ebay.com
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Setting Company Objectives and Goals
What Marketing Objectives?
Build profitable
business
relationships
Marketing
Objective?
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Marketing Objective
• A statement of what is to be accomplished
through marketing activities
• Realistic, measurable, and time specific
• Examples of marketing objective statements
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Example of Marketing Objective
• Our objective is to be a
leader in the industry in
terms of new-product
development.
• Our objective is to spend
12 percent of sales
revenue between 2007
and 2008 on research and
development in an effort
to introduce at least five
new products in 2008
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Designing the Business Portfolio
The Business Portfolio is the collection of
businesses and
products that
make up the
company
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The Boston Consulting Group Approach
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Analyze Apple’s Product Portfolio
Market Growth Rate
High
low
Star
?
(iphone,ipad)
Apple TV
Cashcow
(ipod)
High
Relative Market Share
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Mac
low
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Strategies for Growth and Downsizing
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Market-Product Strategies: Ben and Jerry
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Video case: Live Nation
• What is Live Nation’s mission?
• Based on the product/market expansion grid,
what strategy is Live Nation pursuing
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Outline
• Course Id to access mymktlab: CRSCDD5258730
– IE web browser preferred
• Marketing strategy
– STP Process
– Return on marketing investment
• Class activity 1
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Marketing Strategy and the
Marketing Mix
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Schwinn Bicycle Company wants to grow by
diversification. To accomplish this, Schwinn will:
1.Introduce new bicycle models
2.Introduce modifications to its existing
bicycle products
3.Identify new market segments for its
current products
4.Start up or acquire businesses outside of
its current products and markets
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©2011 Pearson Education, Inc. publishing
as Prentice Hall
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Schwinn Bicycle Company wants to grow by
diversification. To accomplish this, Schwinn will:
1.Introduce new bicycle models
2.Introduce modifications to its existing
bicycle products
3.Identify new market segments for its
current products
4.Start up or acquire businesses outside
of its current products and markets
Diversification is the riskiest strategy as it
requires that businesses develop new
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as Prentice Hall
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Procter & Gamble once had more that ten
different brands of laundry detergent but now
markets only six. This is an example of:
• Downsizing
• Diversification
• Market contraction
• Market penetration
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©2011 Pearson Education, Inc. publishing
as Prentice Hall
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Procter & Gamble once had more that ten
different brands of laundry detergent but now
markets only six. This is an example of:
1.Downsizing
2.Diversification
3.Market contraction
4.Market penetration
Downsizing is reducing the business portfolio
by eliminating products of business units that
are not profitable or that no longer fit the
company’s overall strategy.
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©2011 Pearson Education, Inc. publishing
as Prentice Hall
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Marketing Strategy
Segmentation
Targeting
Positioning
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Customer Driven Marketing Strategy
Market segmentation is the process of dividing a
market into distinct groups of buyers who have
different needs, characteristics, or behaviors,
and who might require
separate products or
marketing programs
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Segmentation
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Customer Driven Marketing Strategy
Market targeting
involves evaluating each
market segment’s
attractiveness
and selecting
one or more
to enter
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Customer Driven Marketing Strategy
Positioning is arranging for a product to
occupy a clear
distinctive,
and desirable
place relative to
competing
products in the
minds of the
customer.
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Discussion: Mapping SUVs
• Position these brands on a 2-dimension map (Price vs.
performance)
–
–
–
–
–
–
–
Range Rover
Hummer H1
Hummer H2
Lexus LX 470
Lincoln Navigator
Land Cruiser
Escalade
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Discussion: Mapping SUVs
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The Gap Example
What is Gap’s STP strategy?
•How do they segment the market?
•What are their target markets
•How do they position the brand?
Summary
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Developing an Integrated Marketing Mix
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Managing the Marketing Effort
Marketing Analysis
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Marketing Analysis
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Marketing Control
Set
marketing
goals
Measures
performance
Evaluates
causes of
differences
Take
corrective
actions
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Measuring and Managing Return on Marketing
Investment
Return on marketing
investment
(marketing ROI) is
the net return from
a marketing
investment divided
by the costs of the
marketing
investment.
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Class activity one
Product Portfolio Analyze
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