Co.

1
Co. Marketing Strategy Partnering to Build
Customer Relationships

• Main Focus
• Marketing Mix (Disney)
• Strategic Planning
• Mission Statements
• Company Objectives Goals
• Business Portfolio

2
Where Should the Focus Be?

• Customer Relationships

• Disney Theme Parks
• Cleanliness
• Friendliness of Staffregardless of job title
• Rules and Regulations
• Customer is always right
• Disney World its self-policing policies

• Walt Disney Mission"To make people happy"
• No cynicism
• Nurturing and promulgation of "wholesome American
  values"
• Creativity, dreams and imagination
• Fanatical attention to consistency and detail
• Preservation and control of the Disney "magic"

3
Strategic Planning

• What is it?

• Developing maintaining a strategic fit between
  organizations goals and capabilities its
  changing marketing opportunities

• It sets the stage for the rest of the firms
  planning
• Defines the purpose the mission
• The mission then produces detailed supporting
  objectives that guide the whole company

4
The Strategic Marketing Process

• At the Corporate Level
• Firstdefine the mission
• SecondSet obj. goals
• ThirdBusiness Portfolio

• At Business Unit, product market level
• Plan marketing
• All other functional strategies

5
Example

• IBM - if you'd asked top managers at IBM 10 years
  ago what business are you in?, they might well
  have answered, "We sell computer hardware and
  software." a heavily product-focused IBM lost
  sight of its customers' needs

• Theyve been transformed beginning in 1993 -
  Lou Gerstner, CEObrought a renewed focus on
  customer, who were demanding solutions to
  increasingly more difficult problems

• Today, if you ask almost any IBM manager to
  define the business, they would tell you that,
  "We deliver solutions to customers' information
  technology problems."

6
Vision Statements

• Visionpushes the association toward some future
  goal or achievement (Drohan, 1999)it describes
  the future

• Together, the Vision and Mission statements
  provide direction for the business by focusing
  their attention on doing things day-to-day to
  accomplish your mission, while taking steps to
  pursue your vision of the future your long-term
  business intent (Skelton-Star, Inc.)

• Without a vision statement, firms lose their
  focus on direction and flounder or fail

7
Defining a Market-Oriented Mission

• What is our business?
• Who is the customer?
• What do customers value?
• What should our business be?
• The first step in the strategic planning process
  is defining the company mission.

8
The Mission Statement

• Missiona mission statement guides current,
  critical, strategic decision makingits a
  statement of the organizations purpose --- what
  it wants to accomplish in the larger
  environment(here are some examples not in your
  text)

an enduring statement of purpose for an
organization that identifies the scope of its
operations in product and market terms, and
reflects its values and priorities," (Abrahams,
1995)
"A good mission statement captures an
organizations unique and enduring reason for
being, and energizes stakeholders to pursue
common goals. It also enables a focused
allocation of organizational resources because it
compels a firm to address some tough questions
What is our business? Why do we exist? What are
we trying to accomplish?" (Bart, 1998).
"Corporate mission statements...are the
operational, ethical, and financial guiding
lights of companies. They are not simply mottoes
or slogans they articulate the goals, dreams,
behavior, culture, and strategies of companies,"
(Stone, 1996).

• a mission statement is designed to say exactly
  what the organization anticipates it will
  achieve.
• A mission statement gives everyone the
  opportunity to know what the organization is
  about and what it is not about ("Thinking Ahead,"
  1998)

9
Mission Statements (Contd)

• A well-developed mission statement offers several
  potential benefits

• Direction-what the organization does and what it
  wants to be successful in

• Focus-concentrates on the companys strengths and
  competitive advantages and tells people how to
  obtain them

• Policy-a guideline of what a company finds
  acceptable and unacceptable and states
  organizational values

• Meaning-shows what a company strives to achieve
  and why they wish to do so

• Challenge-setting up of goals and measurements of
  achievement for employees

• Passion-makes everyone involved with the
  organization show feelings of enthusiasm, pride,
  and commitment ("Thinking Ahead,"1998).

• Just remembera mission is only as good as the
  employees knowledge of itif the mission is
  unclear, so become the rest of your benefits
  listed above and the business normally will
  flounder or fail
• Budweiser Wagon
• Outrigger Canoe

10
What is Important to a Mission Statement?

• Basic Elements

• Target audience important (Abrahams, 1995).
• to whom the mission statement will be directed
  to
• what groups are to be considered (employees,
  stockholders, customers, the community)

• Length of the mission statement - "All thats
  necessary is that the mission be long enough to
  reach the target audience," (Abrahams, 1995)

• Tone - use appropriate language that is directed
  to the target audience and reflects the makeup of
  the organization (Abrahams, 1995)

• Should be written to encourage commitment and
  to energize all employees toward fulfilling the
  mission" (Stone, 1996).

11
Basic Elements of a Mission Statement (contd)

• Endurance - "Mission statements should serve to
  guide and inspire the organization for many
  years," (Stone, 1996)

• Remain current - When the competitive
  environment changes the mission should be revised
  (Stone, 1996)

• consist of an element of uniqueness - It should
  portray the individuality of the company (Stone,
  1996)

• Research shows that there is a strong correlation
  between performance and well-developed mission
  statements

• Effective mission statements can be a great asset
  to an organization

12
Examples of Mission Statements

• Powerful sample mission statements
• PEPSI - "Beat Coke"
• HONDA - "We will crush, squash, and slaughter
  Yamaha"
• NIKE - "Crush Reebok"

• Older sample mission statements that are quite
  grandiose in scale
• Wal-Mart (1990) "Become a 125 billion company
  by the year 2000"
• Sony (1950's) "Become the company most known for
  changing the worldwide poor-quality image of
  Japanese products"
• Boeing (1950) "Become the dominant player in
  commercial aircraft and bring the world into the
  jet age"
• Ford Motor Company (early 1900's) "Ford will
  democratize the automobile"

• One-line sample mission statements
• Wal-Mart - "To give ordinary folk the chance to
  buy the same thing as rich people."
• Mary Kay Cosmetics "To give unlimited
  opportunity to women."
• 3M "To solve unsolved problems innovatively"

13
Turning the Mission into Objectives Goals

• The companys mission needs to be turned into
  detailed supporting objectives for each level of
  management
• Each manager should have objectives and be
  responsible for reaching them
• This mission leads to a hierarchy of objectives,
  including Business Marketing objectives
• Marketing strategies must be developed to support
  these marketing objectives
• (exampleMonsantofor foreign expansion)
• increase its products availability and promotion
  
• more salespeople and more advertising
• cut prices and target large farms abroad

14
Turning the Mission into Objectives Goals

• The major activity in strategic planning is
  business portfolio analysis, whereby management
  evaluates the products and businesses making up
  the company
• identify the key businesses making up the company
  (SBUStrategic Business Unit)
• assess the attractiveness of its various SBUs and
  decide how much support each deserves
• The purpose of strategic planning is to find ways
  in which the company can best use its strengths
  to take advantage of attractive opportunities in
  the environment
• Evaluation by
• attractiveness of the SBUs market or industry
• strength of the SBUs position in that market or
  industry

15
Designing a Business Portfolio

• The 3rd step in the strategic planning process is
  designing the business portfolio (def. a
  collection of businesses products that make up
  the company)
• The best portfolio is the one that best fits the
  companys strengths and weaknesses to
  opportunities in the environment
• To design a portfolio, a business must
• Analyze its current portfolio and decide which
  business should receive more, less, or no
  investment
• Shape the future portfolio by developing
  strategies for growth and downsizing

16
Analyzing the Current Business Portfolio

• The major activity in strategic planning is
  business portfolio analysis
• Step 1 identify the key businesses (SBUs
  strategic business
• Step 2 Assess attractiveness of its various
  SBUs and decide how much support each deserves
• BCG Matrix

17
BCG Growth Share Matrix(Approach to Strategic
Planning)

• Question Marks- low-share business units
• In high-growth markets
• Need lots of cash to hold share of
• Market
• Managerial decisions need to be
• Made on whether to drop or build up

• Dogs low-growth, low-share businesses
• And products
• May be self sustaining cash sources
• Not good bet on large cash sources

• Stars high growth, high-share businesses or
  products
• Heavily financed (loans stocks bonds)

• Cash Cows low-growth, high-share businesses or
  products
• Established and successful SBUs
• Less investment to hold market sharethereby
  producing lots of cash

Beware of the problems involved with formal
matrix methods
18
Strategies for Growth Downsizing

• Marketings main objective achieving profitable
  growth for the company

• It must identify, evaluate, select market
  opportunities
• It must set strategies for capturing these
  opportunities

- Identifies growth opportunities, such as

• Market penetration increasing sales to current
  customers without changing products

• Market Development developing new markets for
  current products

• Product Development new or modified products
  to current markets

Product/Market Expansion Grid

• Diversification expand beyond current
• Products or business units

Downsizing reverse growth strategies
19
Strategies for Growth Downsizing

• Product/market expansion grid another tool for
  portfolio planning that identifies company growth
  opportunities thru
• Market Penetration
• Market Development
• Product Development
• Diversification

20
Strategies for Growth Downsizing

• Develop downsizing strategies too!
• Experts agreeboth small and large companies
  benefit from strategic planning
• Put out less fires by planning
• Long-term growth will be more difficult without
  long-term planning
• Strategic planning can help small business
  managers to anticipate difficult situations and
  prevent or handle them.

21
Customer Relationship Mgmt Partner Relationship
Mgmt (CRM/PRM)

• CRM develops the relationship between the
  company the customer

PRM develops the relationship between the
company its suppliers partners (supply
chain) so that customer centricity becomes the
total focus
Both focus on creating value for the customer
and builds a value chain amongst and within
the companys departments partners for the
customerknown as the value-delivery network
22
Partnering with Others in the Company in the
Marketing System

• Value Chain
• Internal
• External
• Supply Chain

23
Marketing Process

• The process of

(1) analyzing marketing opportunities (2)
selecting target markets (3) developing the
marketing mix (4) managing the marketing
effort (goal is to build strong and profitable
relationships with customers)
Customer is centric (keysee fig 2.4 p 51)

• Segment the market consists of consumers who
  respond in a similar way to a given set of
  marketing efforts
• Target Market evaluation of each segments
  attractiveness and selecting one or more segments
  to enter
• Market Positioning where a product occupies a
  clear, distinctive, desirable place relative to
  competing products in the minds of targeted
  customers

24
Marketing Process

• The process of

(1) analyzing marketing opportunities (2)
selecting target markets (3) developing the
marketing mix (4) managing the marketing
effort (goal is to build strong and profitable
relationships with customers)
Customer is centric (keysee fig 2.4 p 51)

• Segment the market consists of consumers who
  respond in a similar way to a given set of
  marketing efforts
• Target Market evaluation of each segments
  attractiveness and selecting one or more segments
  to enter
• Market Positioning where a product occupies a
  clear, distinctive, desirable place relative to
  competing products in the minds of targeted
  customers

25
Marketing Strategies for Competitive Advantage

• Must be geared to the needs of consumers the
  strategies of competitors
• Designing competitive strategies
• Who are our competitors?
• What are their objectives and strategies?
• What are their strengths weaknesses?
• How will they react to our different strategies?
• Industry Positioning
• Market-leaders
• Market-challengers
• Market-followers
• Market-nichers

26
4 Ps of Marketing Mix
27
Trap Ease Case

• Questions for discussion
• Martha and the Trap-Ease America investors feel
  they face a once-in-a-lifetime opportunity. What
  information do they need to evaluate this
  opportunity? How do you think the group would
  write its mission statement? How would you write
  it?
• Has Martha identified the best target market for
  Trap-Ease? What other market segments might the
  firm target?
• How had the company positioned the Trap-Ease
  relative to the chosen target market? Could it
  position the product in other ways?
• Describe the current marketing mix for Trap-Ease.
  Do you see any problems with this mix?
• Who is Trap-Ease Americas competition?
• How would you change Trap-Eases marketing
  strategy? What kinds of control procedures would
  you establish for this strategy?

28
Trap Ease Case Discussion

• Martha and the Trap-Ease America investors feel
  they face a once-in-a-lifetime opportunity. What
  information do they need to evaluate this
  opportunity? How do you think the group would
  write its mission statement? How would you write
  it?

• Analyze the Markets Environments to find
  attractive opportunities avoid environmental
  threats (macro-environment demographics,
  economic, natural, technological, political,
  cultural task environment market size, growth,
  geographic distribution, profits, defining major
  markets, customer buying decisions, product
  rating by customer value/service/quality/efficienc
  y)

• Analyze company strengths weaknesses (SWOT)

• Analyze current and possible marketing actions to
  determine which opportunities it can best pursue

How do you think the group would write its
mission statement? How would you write it?
29
Trap Ease Case Discussion

• 2. Has Martha identified the best target market
  for Trap-Ease? What other market segments might
  the firm target?

• 3. How had the company positioned the
  Trap-Ease relative to the chosen target market?
  Could it position the product in other ways?

30
Trap Ease Case Discussion

• 4. Describe the current marketing mix for
  Trap-Ease. Do you see any problems with this mix?
  

31
Trap Ease Case Discussion

• 5. Who is Trap-Ease Americas competition?

6. How would you change Trap-Eases marketing
strategy? What kinds of control procedures would
you establish for this strategy?