Fluent Essays

Introduction about Marketing stratergy and Marketing plans - 100 Words  Also, provide a graduate-level response to each of the following questions: - 450 words Think of  a company you’d like to interview with, and list 1-2 specific factors for each of porter’s five forces.  Pick your favorite brand and look at the 5Cs for that company. What is the brand’s “situation analysis”? Based on that assessment and what you know of the brand, what recommendations would you make to the company regarding that brand or its business?    [Your initial post should be  in APA format (including Times New Roman with font size 12 and double spaced). Please use outside references and attached PPT for additional references. © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. 1 16 Marketing Strategy © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. 2 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. 2 Marketing Framework 3 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Discussion Question #1 How can companies become more profitable? 4 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Marketing Goals Profit = Sales Revenue – Costs   Sales Revenue = Sales Volume  Price Costs = Variable Costs + Fixed Costs Thus, Profit = (Sales Volume  Price) – [Variable Costs (Unit Cost  Sales Volume) + Fixed Costs] Growing profit is the ultimate marketing goal 5 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Increasing Profitability To increase profitability, companies can Increase sales volume Change prices Decrease costs 6 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Profitability: Growing Sales (slide 1 of 2) To grow sales volume, companies can Grow the overall market or grow the company’s market share Up-sell current customers to more expensive offerings Get customers to buy more frequently Steal customers from competitors Pursue another segment 7 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Profitability: Growing Sales (slide 2 of 2) To grow sales volume, companies can, (continued) Create new products Reduce brand switching by enhancing brand Raise customer satisfaction Add value through a loyalty program Raise switching costs so leaving brand is unattractive 8 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Profitability: Changing Prices To change prices, companies can Cut prices May bring volume in short term, but may damage brand image/equity May create price wars Lower price necessitates higher volume Raise prices Yields greater margins Cues high quality May need to shift to a more upscale target 9 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Profitability: Decreasing Variable Costs To decrease variable costs, companies can Find less expensive suppliers Outsource parts of the business to partners who are more efficient Become a niche provider to keep units down and price higher for special customers 10 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Profitability: Decrease Fixed Costs To decrease fixed costs, companies can Spend less on R&D Spend less on advertising Be more creative and efficient with spending Milk the brand Don’t spend on continued development or maintenance 11 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Marketing Strategies Ansoff’s product-market growth matrix BCG matrix General Electric model Porter strategies Treacy and Wiersema strategies 12 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Ansoff’s Growth Matrix (slide 1 of 3) 13 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Ansoff’s Growth Matrix (slide 2 of 3) Market penetration: current products, current markets e.g., Convincing our current users to drink Pepsi for breakfast Market development: current products, new markets e.g., Selling chalk not only to schools, but also to kids 14 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Ansoff’s Growth Matrix (slide 3 of 3) Product development: new products, current markets e.g., Selling dry-erase boards to customers to whom you are currently selling dry-erase markers Diversification: New products, new markets e.g., A bookstore selling music 15 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Ansoff’s Growth Matrix Questions Describe how Apple could implement a Market penetration strategy Product development strategy Market development strategy Diversification strategy Which strategy do you think Apple primarily uses? 16 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. BCG Matrix Brands or products are classified according to whether each has a strong or weak market share and slow or growing market Star: high share, high growth Cash cow: high share, low growth Question mark: low share, high growth Dog: low share, low growth 17 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. 17 BCG Matrix Questions Give examples of A star A cash cow A question mark A dog 18 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. BCG Matrix Strategies Stars: Optimize or hold Cash cows: Milk Question marks: Invest or divest Dogs: Minimize or divest If stars and cash cows are sufficiently profitable, companies can carry question marks and dogs 19 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. General Electric Model (slide 1 of 3) Measures market attractiveness and business strength Weights: How important dimension is Constrain to 1.0 Rating: How the company is doing 1 = awful and 5 = outstanding 20 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. General Electric Model (slide 2 of 3) 21 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. General Electric Model (slide 3 of 3) 22 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Porter’s Strategies Porter’s strategies Companies can dominate in 1 of 3 ways Cost leadership Produce more efficiently than competition Differentiation Distinguish one’s products as unique Focused Do one thing very well 23 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Treacy and Wiersema’s Strategies Operational excellence: Deliver products smoothly, reliably e.g., IKEA, TurboTax Product leadership: Excellent quality; innovation e.g., Apple, BMW Customer intimacy: Knowledge of customer needs e.g., Amazon, Home Depot 24 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Doing Strategy Company must know its 5 Cs and understand its identity Reasons to revisit strategic planning To revisit assumptions To launch new initiatives When contextual issues change When financial performance changes 25 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. SWOT SWOT: Strengths, weaknesses, opportunities, threats 26 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. SWOT: Strengths and Weaknesses Understand identity in marketplace Is the company Innovative or conservative? Offensive or defensive? Leaders, followers, quick followers, also-rans, or barely-in-the-games? Companies may behave differently in different industries Company approach may vary with product lifecycle, 5 Cs, etc. 27 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. SWOT: Opportunities and Threats Consider opportunities and threats in marketplace e.g., New competitors, economy decline, changes in regulations Strategies Do nothing Do nothing differently Do something different 28 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Do Something Differently (slide 1 of 2) Let’s make more money State sales objectives in terms of currency, market share, units, change from last year or quarter, region, growth, ROI, ROE, ROM, etc. Let’s delight our customers Enhance customer satisfaction, create loyalty program, reward customers, offer personalization, etc. 29 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Do Something Differently (slide 2 of 2) Let’s reposition our brand Must integrate all 4Ps Change product, place, price, and/or promotion Goals beyond marketing Charitable or community contributions Boosting stability of local employment Demonstrating leadership in environmentally friendly business practices, etc. 30 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Marketing Metrics (slide 1 of 3) Measure what matters e.g., Profitability, sales, share, average prices, levels of awareness, customer satisfaction, employee satisfaction 31 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Marketing Metrics (slide 2 of 3) Dashboard 32 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Marketing Metrics (slide 3 of 3) 33 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. Managerial Recap Before making strategy changes, conduct a self-assessment Consider what to change: target segments, product, price, place, or promotion There are many ways to increase profitability, and some may fit corporate culture and strengths; there are goals beyond profitability 34 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  16. © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. 1 17 Marketing Plans © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. 2 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. 2 Marketing Framework 3 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Discussion Question #1 What do you think goes into a marketing plan? 4 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Marketing Plan Overview #1 The sections of a marketing plan follow the marketing framework 5 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Situational Analysis Situation analysis: 5Cs 6 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. 5Cs: Company Example 7 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. 5Cs: Customer Example Begin with secondary research, then primary research 8 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. 5Cs: Context Example 9 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. 5Cs: Collaborators Example 10 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. 5Cs: Competitors Example 11 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Marketing Plan Overview #2 Market analysis and strategies (STP) 12 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Segmentation Example Identify segmentation variables that are relevant to the product 13 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Targeting Example Find targets that Fit well with company Are profitable Are actionable 14 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Positioning Example Positioning is executed via the 4Ps Write a positioning statement 15 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Discussion Questions #2 Assume you are marketing a new designer clothing line List appropriate segmentation variables. Choose one target market. Write a positioning statement. 16 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Marketing Plan Overview #3 Tactical plans: 4Ps 17 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Product Example 18 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Pricing Example 19 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Promotion Example 20 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Place Example 21 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. 4P Considerations Make sure that your 4Ps are consistent with one another e.g., Exclusive distribution with heavy promotion is inconsistent Make sure that your 4Ps are what your target desires 22 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Discussion Questions #3 For a new designer clothing line, what would be your Product mix decisions? Price decisions? Promotion decisions? Distribution decisions? What factors would you utilize to justify your decisions above? 23 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Spending Time and Money Establish a time line for actions Establish cost estimates 24 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Appendices 25 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Better Marketing Plans Better marketing plans Have more refined detail Have precise estimates Shed light on weaknesses of the plan 26 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Managerial Recap (slide 1 of 2) When completing a marketing plan, remember the 5Cs, STP, and the 4Ps The marketing plan reminds the company of its goals and serves as a guide to achieve those goals Marketing strategy/planning is iterative 27 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17. Managerial Recap (slide 2 of 2) Marketing plans are works in progress As situations change, plans change More detailed plans are better Massage the plan to be readable 28 © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  17.