Discuss how to design business portfolios and develop growth strategies 3. Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value 4. Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence it 5. List the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring return on marketing investment Chapter
Accompanied Strategic Planning: Defining Marketing’s Role 2. Marketing Strategy and the Marketing Mix 3. Managing the Marketing Effort 4. Measuring and Managing Return on Marketing Investment Accompanied Strategic Planning: Defining Marketing’s Role Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. Defining a Market-Relented Mission Mission statement: The organization’s purpose, what It wants to accomplish In the larger environment.
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Market-oriented mission statement: Defines the business in terms of satisfying basic customer needs. Setting Company Objectives and Goals Business objectives ; Marketing objectives The business portfolio Is the collection of businesses and products that make up the company evaluates the products and businesses making up the company Steps in Analyzing the Current Business Portfolio 1. Identify key businesses making up the company 2. Assess the attractiveness of its various Sables 3. Decide how much support each SIBS deserves Identify key businesses making up the company
Strategic business unit (SUB) is a unit of the company that has a separate mission and objectives that can be planned separately from other company businesses ; Company division Product line within a division Single product or brand Assess the attractiveness of various Subs and decide how much support each deserves Analyzing the Current Business Portfolio The Boston Group Approach Growth share matrix is a portfolio planning method that evaluates a company’s strategic business units in terms of their market growth rate and relative share Strategic business units are classified as: Stars
Functional organization: This is the most common form of marketing organization with different marketing functions headed by a functional specialist ; Sales manager Market research manager Customer service manager New product manager Geographic organizations: Useful for companies that sell across the country or internationally. Managers are responsible for developing strategies and plans for a specific region. Product Management: Useful for companies with different products or brands. Managers are responsible for developing strategies and plans for a specific product or band. Market or customer management organization: Useful for impasses with one product line sold to many different markets and customers. Managers are responsible for developing strategies and plans for their specific markets or customers.
Customer management involves a customer focus and not a product focus for managing customer profitability and customer equity Marketing Control Controlling is measuring and evaluating results and taking corrective action as needed ; Operating control Strategic control Operating control involves checking ongoing performance against annual plan and taking corrective action as needed Strategic control involves looking at whether the Meany’s basic strategies are well matched to its opportunities Marketing audit is a comprehensive, systematic, independent, and periodic examination of a company’s environment, objectives, strategies, and activities to determine problem areas and opportunities Measuring and Managing Return on Marketing Investment Return on marketing investment (ROI) is the net return from a marketing investment divided by the costs of the marketing investment. Marketing ROI provides a measurement of the profits generated by investments in marketing activities. Customer acquisition Customer retention Customer lifetime value