Case Study Disney What are its challenges?

Transcription

1 Case Study Disney What are its challenges? Chapter 2 Company and Marketing Strategy: Partnering to Build Customer Relationships Disney has grown via diversification. Is it too large? Originally known for films, animation, theme parks. Will consumers/investors accept new businesses? Satisfying the customer is everyone s job. Is this culture changing? What can it do during travel and economic downturns? 2-2 What is Strategic Planning? Steps in Strategic Planning Figure 2.1 Strategic Planning Defined The process of developing and maintaining a strategic fit between the organization s goals and capabilities and its changing marketing opportunities

2 1) Market-Oriented Mission Market-Oriented Mission A mission statement asks.. What is our business? Who is the customer? What do consumers value? What should our business be? A mission statement should be: An invisible hand Neither too narrow nor too broad Fitting of market environment Based on distinctive competencies Motivating 2-5 Click on screenshot for website 2-6 Discussion Questions Mission Statements Under what circumstances would you suggest a company change its mission? What challenges might it encounter as it implements a change in its mission? Strategic Planning Company Objectives must tie to Marketing Objectives Company Mission Business Objectives Marketing Objectives

3 The Business Portfolio A business portfolio is the collection of businesses and products that make up the company Business portfolio planning involves two steps: 1. Analyzing the current business portfolio 2. Shaping the future portfolio by developing strategies 2-9 The Business Portfolio BCG Matrix Figure The Business Portfolio BCG Matrix Build Increase market share Works well for question marks Hold Preserve market share Good for cash cow Harvest Increases shortterm cash flow Good for weak cash cows, question marks and dogs Divest Sell or liquidate Good for dogs and question marks

4 Product/Market Expansion Grid Figure 2.3 The Business Portfolio Which strategy is this? Market penetration Market development Product development Diversification The Business Portfolio Which strategy is this? Market penetration Market development Product development Diversification Marketing s Role in Strategic Planning Provide a guiding philosophy Identify attractive opportunities Design effective strategies Build strong value chains Form superior value delivery networks Partnering to build customer relationships

5 Marketing Strategy Figure 2.4 Marketing Strategy Strategy 1. Market Segmentation 2. Target marketing 3. Market Positioning Customers grouped by: Geographic Demographic Psychographic Behavioral Market segment is a group of consumers who respond in similar ways to marketing efforts 2-17 Goal 4: Describe elements of customer-driven strategy 2-18 Market Segmentation Marketing Strategy Clinique for Men products are designed for a segment of men who will pay more for skin care products. Strategy 1. Market Segmentation 2. Target marketing 3. Market Positioning Evaluation of each segment s attractiveness Selection of segments with greatest long-term profitability A company can choose one or several segments to target 2-19 Goal 4: Describe elements of customer-driven strategy

6 Target Markets Lucky Magazine is targeted to younger women who are shoppers Strategy Marketing Strategy 1. Market Segmentation 2. Target marketing 3. Market Positioning The place the product occupies in the consumer s mind Products are positioned relative to competing products Marketers look for clear, distinctive and desirable places in positioning 2-21 Goal 4: Describe elements of customer-driven strategy 2-22 Saturn Corporation Product Positioning Saturn Corporation Product Positioning Created in 1985 Saturn s mission was to create a Different Kind of Company Realized people dreaded the purchase process and established nohassle, no haggle pricing policy Works to build loyalty from consumer 2-23 By 1990 Saturn was winning awards from Popular Science, Popular Mechanics, AAA, MotorWeek. First Saturn Homecoming in 1994 at its manufacturing complex had 38,000 Saturn owners attending

7 Marketing Mix The Marketing Mix Figure 2.5 The marketing mix includes controllable and tactical marketing tools knows as the 4P s The 4P s include Product Place Promotion Price Video Snippet Starbucks product is the coffee house experience as much as the coffee Managing the Marketing Effort Managing the Marketing Effort Marketing Functions Analysis Planning Implementation Control Finding opportunities Avoiding threats Understanding strengths Analyzing weaknesses Marketing Functions Analysis Planning Implementation Control Marketing plans include: Executive summary Analysis of current situation Objectives Targets and positioning Marketing mix Budget Controls Goal 5: List the marketing management functions 2-27 Goal 5: List the marketing management functions

8 Managing the Marketing Effort Marketing Functions Analysis Planning Implementation Control Plans are turned into action with day-to-day activities Good implementation is a challenge Managing the Marketing Effort Marketing Functions Analysis Planning Implementation Control Evaluation of the results of marketing strategies Checks for differences between goals and performance Goal 5: List the marketing management functions 2-29 Goal 5: List the marketing management functions 2-30 The Relationship Between Analysis Planning Implementation and Control Figure 2.6 Measuring Effectiveness Return on marketing (marketing ROI) The net return from a marketing investment divided by the costs of the investments