MARKETING STRATEGY O.C. FERRELL MICHAEL D. HARTLINE

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MARKETING STRATEGYO.C. FERRELL MICHAEL D.
HARTLINE
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Strategic Marketing Planning
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Marketing Strategy

• Def. Crafting moves to achieve marketing goals
  (e.g. market share, sales, brand awareness) by
  identifying target market and developing
  marketing mix

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Marketing Strategy Decision

• E.g. Who should Barbie target, young girls,
  collectors, overseas?

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Target Market Collectors
Aquarius Barbie Doll
Princess of the Renaissance Barbie Doll
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Marketing Strategy Decision

• Should Barbie
• Build/Grow
• Hold
• Harvest
• Prune reduce products offered
• Divestment sells off part of the business?
• If so, How?

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Corporate Growth Objectives
Current Products
New Products
Current Markets
New Markets
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When To Penetrate Existing Market

• If Market Share is Low
• Growth in industry is High
• Little competition
• Ability to differentiate product

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When To Develop New Markets

• Existing markets stagnant
• Early stages of PLC (many nonusers)

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When To Develop New Products

• Revive sales growth of sluggish products (new
  improved)
• Meet changing customer needs
• Utilize excess capacity
• Combat a competitive entry
• Exploit new technology
• Maintain position as product innovator

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When To Integrate Vertically

• To improve distribution
• To reduce uncertainty
• To increase control
• In high growth markets

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When To Diversify

• Mature products / mature markets
• Wish to stabilize fluctuating earnings
• Neutralize competitors integration move
• Gain access to financial markets by becoming
  larger firm

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Marketing Strategy

• Developed within the boundaries of the
  corporation and business unit where it resides.

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Exhibit 2.1
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Corporate Strategy

• Def. Blueprint for the long term development of
  a viable, profitable organization by establishing
  the markets to be served and the products to be
  offered.
• Determine types and number of business units
• Determine objectives for various business units
• Establish priorities and allocate resources

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Synopsis Mattels Corporate Strategy

• 1945 Ruth Elliot Handler Harold Matson
  launch company to produce picture frames in their
  garage
• 1955 Begin marketing toys through Mickey Mouse
  Club TV show
• 1959 Introduce Barbie product line
• 1968 Introduces HOT WHEELS die cast miniature
  vehicles
• 1968 Purchases Ringling Brothers and Barnum
  Bailey Circus
• 1977 Enters new rapidly growing electronics
  game field two years later introduces
  Intellivision television home video entertainment
  system.
• 1984 Begins to reduce the size scope of its
  Mattel Electronics business.
• 1988 Purchases a privately owned manufacturer
  of collector-quality dolls based in France
• 1997 Merges with Tyco Toys, makers of MATCHBOX
  cars
• 1999 Merges with the Learning Company, a top
  maker of software products
• 2000 Agrees to sell the Learning Company
  Division

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Mattels Corporate Strategy Today
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Corporate Strategy Begins with Mission Statement

• Elements of the Mission Statement Include
• Who are we?
• Who are our customers
• What is our operating philosophy?
• What are our core competencies or competitive
  advantages?
• What are our concerns and interests related to
  our employees, our community, society in general
  and our environment?

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Mission Statement Criteria

• Achievable
• Motivational
• Specific (?)

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Ben Jerrys 3 Part Mission
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Cal Poly Pomona Mission

• Cal Poly Pomonas mission is to advance learning
  and knowledge by linking theory and practice in
  all disciplines and to prepare students for
  lifelong learning, leadership and careers in a
  changing multicultural world,

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Larger Firms Find It Beneficial to Develop
Strategies for each Strategic Business Unit

• Def. Organizational unit that has a defined
  strategy and manager with sales and profit
  responsibility Can be formed at brand level
  (Barbie) or category level (girls toys)
• Distinct mission
• Identifiable external competitors
• Controls own functions

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Business Unit Strategy Decisions

• Determine how the SBU should compete in specific
  segment
• Determine objectives
• Allocate resources among various brands

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Business Unit Strategy Decision

• E.g. Should efforts to expand Barbie
  internationally increase? (In 1999, sales outside
  U.S. fell 6.)

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To Execute Strategy You Need A Plan

• Marketing Plan
• a written document that provides the blueprint
  or outline of the organizations marketing
  activities, including the implementation,
  evaluation, and control of those activities.

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Marketing Plan Structure

• Should be well organized
• A good marketing plan outline is
• Comprehensive
• Flexible
• Consistent
• Logical

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Marketing Plan Structure
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Major Problems in Developing and Implementing the
Marketing Plan
Exhibit 2.4
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Marketing Strategy in Action

• As this 1946 ad demonstrates, railways were once
  a prominent way to travel across the country.
• What Happened?