mktg L2

Building Customer Value

• Customer value is critical for developing effective marketing strategies.

• Marketing strategies are crafted to identify the right customers and position products effectively.

Understanding Marketing Strategy

• Focus on the definition and process of crafting and implementing a marketing strategy.

• Previous discussions centered around the importance of placing the customer at the heart of the strategy, with the marketing mix as an implementation tool.

• Four P's for products and Seven P's for services enhance value creation.

Importance of Integration with Other Business Functions

• Marketing does not operate independently; it interacts with other business functions such as:

  • Production

  • Finance

  • Human Resources

• All functions should align with the organization's mission and vision.

Mission Statements

• Mission statements should be broad and relevant over time to avoid becoming outdated.

• Key Focus: Consumer well-being and happiness as a goal of organizations.

• Shift from product-oriented to market-oriented mission statements to fulfill customer needs and wants.

Strategic Planning Process for Marketing Strategy

Steps in Crafting Marketing Strategy:

1. Understanding the Mission & Vision of the organization.

2. Understanding the Strategic Planning Process:

   • Organizations usually set yearly goals, alongside medium-term (1-5 years) and long-term (10+ years) goals.

   • Both yearly and longer-term plans need synergy for portfolio growth.

Growth and Analysis

• Analyzing the effectiveness of strategies involves tracking:

  • Return on Investment (ROI)

  • Customer Satisfaction

BCG Matrix (Boston Consulting Group Matrix)

• A strategic marketing planning tool to understand business portfolios and investment needs.

Key Components:

• Growth Markets: Require investment for brand/product success.

• Cash Cows: Products that generate stable income with little investment required from leading market position.

  • Remember that cash cows are essential for funding investments in new growth opportunities.