Summary Marketing Strategy 1 and 2 The Pennsylvania State University.

MARKETING STRATEGY 1:
 Strategic planning
 Steps in the strategy planning process
 Mission statement
 Company objectives and goals
 Business portfolio
 BCG Matrix
 The product/market expansion grid
 Strategy formulation


Strategy, Segmentation, Targeting & Positioning


Strategic Planning: strategy= a "matching process"
 Internal
 organization's goals & capabilities
 Internal Idea Sources: Company employees
 External
 Marketing opportunities
 External Idea Sources: Distributors, suppliers, competitors, customers,
outsourcing partners


Steps in Strategic Planning:
o Defining the Company Mission Statement (Corporate Level)
 Mission statement:
 A statement of the organizations purpose
 Take into account:
 What is our business?
 Who is the customer? What do they value?
 What are our core competencies?
 What should our business be?
 What do we want to accomplish?
o Answer: clear "invisible hand" that guides the organization.
 Examples of mission statements
 Nike and Under Armour:
o Under Armour; sweating; new fabrics
o Nike and Under Armour play in the same space.
o Nike social media vs Under Armour social media
o "to bring inspiration and innovation to every athlete in the
world. If you have a body, you are an athlete" Nike
o "make all athletes better through passion, design, and relentless
pursuit of innovation." Under Armour




o Everything should flow from the mission statement because
they are the starting point.
 Good Mission Statements are:
 Market-oriented
 Realistic
 Specific
 Motivating
 Illustrative of distinctive competencies.
o Another Example of mission statement:

, o Everything should flow from the mission statement because
they are the starting point.
 Good Mission Statements are:
 Market-oriented
 Realistic
 Specific
 Motivating
 Illustrative of distinctive competencies.
o Another Example of mission statement:
o Walmart VS Target
o Setting Company Objectives and Goals (Corporate Level)
 Mission statement leads to:
 Detailed supporting objectives for each level of management
o Must be measurable
o Designing the Business Portfolio (Corporate Level)
 A combination of businesses that has the potential of reaching objectives
 Which businesses to enter?
 Which to exit?
 How much to invest?
 Businesses may be called:
 Strategic business units (SBUs), divisions, markets, product lines, etc.
 BCG Growth Share Matrix:
 Star: high market growth rate, high relative market share. 2 MEDIUM
DIVISIONS. EX. Coke Cherry (flavor colas)
 Cash Cow: low market growth rate, high relative market share. 2 BIGGER
DIVISIONS. EX: Coca Cola
 Question Mark: high market growth rate, low relative market share. 3
SUPER SMALL DIVISONS. EX: Coke Zero
 Dog: low market growth rate, low relative market share. 3 SMALLER
DIVISIONS. EX:
 MARKET GROWTH RATE MEANS "market attractiveness"
 RELATIVE MARKET SHARE MEANS "company strength"
o Some Critics of the BCG Matrix:
 Limited number of variables used
 Ignores interrelationships between businesses (ex.
Disney movies are dogs)
 The placement of a business in the matrix is highly
dependent on definition of market.
 Product/ Market Expansion Grid:
 Used to identify growth opportunities
 Market Penetration: existing markets, existing products EX: Starbucks
o Strategy: to increase sales to current customers without
changing the products being sold
o Market penetration can be achieved by: price, place, and
promotion
 Market Development: new markets, existing products EX:
o Strategy: identify and develop new markets (geographic or
demographic) for current products.




o Demographic EX: teens, older people, kids, pets
o Geographic EX: China shift from tea to coffee
 Product Development: Existing markets, new products EX: unicorn
frappe from Starbucks
o Strategy: offering modified or new products to current markets
 Diversification: new markets, new products
o Strategy: start up or buy businesses outside of current products
and markets
o Planning Marketing and Other Functional Strategies (Business Unit, Product, and Market