Strategic Marketing

Kotler Keller

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Corporate Headquarters’ Planning Activities

Define the corporate missionEstablish SBUsAssign resources to each SBUAssess growth opportunitiesFeedback & Control

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Good Mission Statements

Focus on limited number of goals Stress major policies and values Define major competitive spheres

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Major Competitive Spheres

Industry Products Competence

Market segment Geographical

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Rubbermaid Commercial Products, Inc.

“Our vision is to be the Global Market ShareLeader in each of the markets we serve. We will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, cost-effective and environmentally responsible products. We will add value to these products by providing legendary customer service through our uncompromising Commitment to Customer Satisfaction.”

Defining the business

Business must be viewed as customer satisfying process , not a goods-producing process. Products are transient. Needs & Customer group endure forever.

Ex: Transportation is a need , automobile, the airline & the truck are products

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Motorola

“The purpose of Motorola is to honorablyserve the needs of the community by providingproducts and services of superior quality at a fair price to our customers; to do this so as toearn an adequate profit which is required forthe total enterprise to grow; and by doing so, provide the opportunity for our employees andshareholders to achieve their personal objectives.”

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eBay

“We help people trade anything on earth.We will continue to enhance the onlinetrading experiences of all – collectors, dealers, small businesses, unique itemseekers, bargain hunters, opportunitysellers, and browsers.”

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Characteristics of SBUs

It is a single business or division or product

It has its own set of competitors It has a leader responsible for:

Strategic planningProfitabilityEfficiency

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Strategic Business Unit Analysis(BCG Matrix)

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Business Unit Strength

The horizontal axis of the GE / McKinsey matrix is the strength of the business unit. Some factors that can be used to determine business unit strength include:

Market share, Growth in market share, Brand equity, Distribution channel access, Production capacity, Profit margins relative to competitors

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Industry Attractiveness

The vertical axis of the GE / McKinsey matrix is industry attractiveness, which is determined by factors such as the following:

Market growth rate, Market size, Demand variability, Industry profitability, Industry rivalry, Global opportunities, Macro environmental factors

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Market Opportunity Analysis (MOA) Can the benefits involved in the opportunity

be articulated convincingly to a defined target market?

Can the target market be located and reached with cost-effective media and trade channels?

Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?

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Market Opportunity Analysis (MOA)_2 Can the company deliver the benefits

better than any actual or potential competitors?

Will the financial rate of return meet or exceed the company’s required threshold for investment?

Assessing Growth Opportunities

If there is a gap between future desired sales & projected sales, corporate management will have to develop or acquire new businesses to fill it.

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Growth Strategies

Current Products New Products

Current Markets Market Penetration Strategy

Product Development Strategy

New Markets Market Development Strategy

Diversification

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Porter’s Generic Strategies

Overall cost leadership Differentiation Focus

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Categories of Marketing Alliances

Product or Service Alliances Licensing other company to produce

Promotional Alliances Logistics Alliances Pricing collaborations One or more companies join in a special pricing

collaboration

Feedback & Control

Whether an environment changes faster or slower but change in consistent with varying intensity.

The market place will change, when it does, a company will need to review its implementation programs, strategies or even objectives

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