Marketing Strategy | Customer Relationships | Company & Marketing Strategy | Chapter 2 A | Lecture 4 Video Lecture | Understand Marketing Strategy: Grow your Business - Sales

all right friends welcome back we are
now in Chapter two of technology based
marketing and in this chapter I am going
to talk to you about customer
relationships alright so in this video
for the customer relationships chapter
we're going to talk about company-wide
strategic planning defining marketing's
role so how if you have a company how
will you plan the marketing role for
your company it's like a strategic plan
and strategy plants are built by the
strategy department which is one of the
most senior most departments and the
most you know they are the brains behind
a company so in this department you
decide what kind of marketing will be
employed by the company okay and then
designing the business portfolio I'm
going to touch a little bit on business
pool portfolio as well planning
marketing partnering to build customer
relationships okay and how would you
build customer relationships and like
you know there is lots of software like
CRM customer resource management or
customer relationship management so
we're going to talk about a lot of
resources available for businesses that
want to build on
you know customer relationships then you
have marketing strategy and the
marketing mix which is the single most
important thing in any technology based
marketing and business course yeah
that's the marketing mix managing the
marketing effort like once you have a
marketing plan launched how are you
going to manage it or how are you going
to maintain it then you have measuring
and managing return on marketing
investment so once you have invested a
certain amount of money well by the way
when you do design a marketing strategy
you have to come up with the marketing
costs and once you have
the marketing launched we planned the
entire plan launched you need to make
sure that you get the return on your
investment which means if you have a
website that is selling products you
need to make or enough revenue from that
website which you know covers the cost
of your marketing in many such examples
so return on investment means that you
get the investment amount you get back
okay and then some profits so in this
chapter tube you're going to talk about
many such things so let's get started
okay so company-wide strategy planning
the strategy planning is the process of
developing and maintaining a strategic
fit between the organization's goals and
capabilities and it's changing market
opportunities so what does that mean
friends what does that mean a strategic
fit between the goals of the company and
its capabilities so you need to make
sure that you are able to measure the
strength opportunities weakness you know
and any kind of other problems that you
have you need to be able to measure all
of them and once you measure all of
these things you need to be able to make
sure that you are able to whatever you
have plans there is a direct
relationship between their plans and
implementation so you are able to
implement all the plans with the air of
skills experiences and expertise you
have in your organization okay
company-wide strategic planning involves
the following steps in defining the
company mission what is the mission of
the company for example you know if you
have retail store you want to be in the
number one retail store in the region
okay and corporate well it's a very very
wide goal now being number one is a very
good goal the answer to that question is
how can we be number one and this the
answer to this question is going to help
you define your key performance
indicators
where can you improve which areas are
your strengths and how you want to
maintain them and which areas are your
weaknesses on how you are going to
improve them so setting company
objectives and goals this comes when you
have a wide mission and then you try to
find out how to get that ambition how do
you take mission and in answering that
how question you come up with
company-wide objectives and goals okay
and these objectives and goals are
nothing but keep forming syndicators
designing the business portfolio which
would be nothing but trying to define
what your business would do the products
and services will be defined in your
business portfolio then business unit
product and market level this is where
planning marketing and other functional
strategies are carried out all right so
the next step here is company-wide
strategic planning in company-wide
strategy planning you are defining a
market-oriented mission okay now all
those steps I'm going to explain in
detail now let's look at them the
mission statement is the organization's
purpose what it wants to accomplish in a
larger environment okay so some
companies what they do is they not only
have a strong mission statement but they
also want to say that being number one
while also keeping carbon emissions low
or being number one while also promoting
education in the region being number one
while also reducing crime in the region
so they combine the positive
environmental giving back factor with
the mission so such companies are very
smart when they do it because people
really want to invest in companies that
are earth planet or community friendly
okay so the mission statement is go in a
larger environment market-oriented
mission statement defines the business
in terms of satisfying basic
summer needs and what are the basic
customer needs so a mission statement
should not be myopic okay in product
terms it should be meaningful and
specific it should be motivating it
should emphasize the company's trends
and it should contain specific workable
guidelines
it should not be stated as making sales
or profits up next we're going to talk
about company-wide strategy planning and
we're going to use this as an example I
have a list of examples here a list of
companies that I'm using as examples and
I'm going to explain it to you how there
is a product oriented mission and then
there is a market oriented definition of
the company so a great way to understand
this page is supposing you have your own
business ok you have a business in which
you want to be opening an online retail
store and you are opening an online
retail store for fishing ok for people
who are fishing fanatics they love
fishing and they enjoy fishing and as a
sport as a hobby and maybe as a business
so all of these people are you target
market supposing you have a business
like that what would be the product
oriented definition what would be the
market oriented definition ok so think
of your own business and try to define
the product as well as market oriented
definition for both what else is there
we have amazon.com with product oriented
definition for amazon.com is we sell
books videos series toys consumer
electronics hardware software pulse
bears and other products online ok so if
you have your own company for example
the fishing company you're going to say
we sell fishing lines a net bait boxes
hook oh no I'm not sure you know what
I'm trying to say you just have to
all the products the major products okay
the major products that you companies
selling that is the product oriented
definition then you have the market
oriented definition which is we make the
Internet buying experience fast easy and
enjoyable we are the place where you can
find and discover anything you want to
buy online so this is the market
oriented definition okay you can think
of product and market oriented in in
this way also the product oriented
definition is all about your business
the market oriented definition is all
about what you could provide to the
market or the consumer let's look at
another example era mix we enable and
facilitate regional and global create
commerce regional and global trade and
commerce okay for our mix okay market
oriented is we aim to be recognized as
one of the top five global logistics and
transportation companies okay if we're
one of the top five which means that you
are you are the top five companies that
are being stated on the Google search
page definitely somebody's searching for
a logistics or transportation company
would definitely choose our mix because
they're one of the top five and if
they're the fifth one they'd be
definitely cheaper than the first four
you know what I mean so people are more
likely to go for a business with era mix
so which is why people have set very
high standards and aims for their
companies being top five being number
one we talked I'm top 7 etc I'm a
careful we don't discount stores and the
market oriented definition is we deliver
the best prices and best merchandise so
quality product at lower prices this
name we run theme parts market
orientation is we create fantasies apply
where dreams come true and the world
still works the way it's supposed to
Google we provide the world's best
online search engine okay and what's
market going to definition we help you
organize the world's information and
make it universally accessible and
useful
Nike we sell athletic shoes and apparel
that's what they sell but what are the
product and services they provided the
company they say we bring inspiration
and innovation to every athlete in the
world if you have a body you are an
athlete which means that they have a
target market all of these people or
everybody if you have a body you are an
athlete which means everybody is their
target market Revlon do you make
cosmetics market oriented definition we
sell lifestyle and self-expression
success and status memories hopes and
dreams ritz-carlton hotels we rent rooms
we create the Ritz Carlton experience
one that in live in the senses in cells
well-being and fulfills even the
unexpressed wishes and needs of our
guests which is amazing and second we
provide organic products we see curing
the environment via biodynamic
agriculture methods right providing
customers with a variety of organic and
healthy products do you realize how
important it is for us to look at the
best companies out there and see how
they define the business in terms of the
product and market so you need to be
able to appreciate the level of detail
they are providing and distinction there
providing between these two definitions
Zain we provide mobile telecommunication
services and then market oriented
world-class telecommunication services
now notice that market oriented is
usually an ambitious definition
world-class telecommunication services
is our business
innovation is how we achieve success
okay company-wide strategy planning the
company needs to turn its mission
statement into detailed supporting
objectives for each level of management
business objectives build profitable
customer relationships marketing
objectives increase market share
business objectives invest in research
marketing objectives create local
partnership business objectives improve
profits and marketing objectives
increase promotion so these are setting
company objectives and goals the company
needs to tone its mission statement into
details supporting objectives for each
level of management so like I said that
the mission statement
it could be product or business oriented
has to be very very broad and general
and then it needs to be redefined into
individual objectives that will help the
company to create their goals the mini
goals and objectives designing the
business portfolio comes thanks because
you want to to design what you will sell
our both how you will serve and the
value provided to the customer the
business portfolio is the collection of
businesses and products that make up the
company portfolio analysis is a major
activity in strategy planning whereby
management value a it's the products and
businesses that make up the company so
these are the different definitions of
business portfolio and portfolio
analysis portfolio analysis sometimes
outsourced or exports from external to
the organization they can come at
evaluate your products and services and
give you suggestions help you with
strategic planning web management
evaluates the products and businesses
that make up the company
alright designing the business portfolio
in
analyzing the current business portfolio
the strategic business unit just like I
said in the beginning the strategy unit
or strategic Department is one of the
senior most departments in an
organization so it's usually known as
the SBU the strategic business unit and
it's a given of the company or a
department that has separate mission and
objectives that can be planned
separately from other company businesses
ok so you have a company division you
have product line within a division and
you have a single product or a brand
this department is responsible for all
the decision-making the goals objectives
mission statement all these things they
make company White's logic planning
analyzing the current business portfolio
identified key business's strategic
business units or as be used that make
up the company assess the attractiveness
of its various BSB use decide how much
support each SBU deserves all right
company wise strategy planning the
Boston Consulting Group approach this is
something very very common strategic
business units are also responsible now
okay before you start thinking that
there is just one strategic business
unit I want you to think again in terms
of products and services so if you have
major products and services in your
organization you will have those number
of s beams so if we have three products
and two services ideally you should have
5s be news okay five strategic business
units amongst all these business units
you are supposed to be able to measure
which product or service is the star
which product service is a question mark
which one is a cash cow and which one is
a dog okay so you have a market growth
rate here and yeah this is the BCG
Boston Consulting Group approach BCG
growth-share matrix very very famous and
with the air of this matrix you are able
to analyze
whether it's a star it's a cash cow dog
or a question mark so you have market
growth rate and then you also have a
relative market share okay so if the
relative market share or is high and
market growth rate is also high which
means this is a star product it is one
of the best selling products it gives
you a lot of money as well okay and the
market growth rate is low and the
relative market share is high then it's
a cash cow
for example have you been to McDonald's
you know the kind the ice cream that is
available with McDonald's is usually
worth a dollar you know not more than a
dollar two dollars so what you need to
do is you need to make sure that you are
able to you know continue this kind of
popularity in this product and you are
also able to not just you know keep this
product with your within your
organization but you're also able to
give it its due importance that even if
the growth rate is slow but it brings in
the ice cream itself the cheap ice cream
itself brings in a lot of customers it
drives and a lot of customers to
McDonald's and which is why the ice
cream invariable he becomes the cash cow
then there is the dog and then there is
a question mark the dog is something
that you know the market relative market
share is also low and the market growth
rate is also low this is where you need
improvement if you feel that a product
or service is doing just okay so this is
very gonna focus on and this question
mark is also very even focus on question
mark means like I mean why do you even
have it relative market share is though
but market growth rate may be high but
you trying to find out why why is the
market chill whoa
relative
it's a low but growth rate high you need
to define that out and based on that you
need to take some strategic decisions
let's look at this further let's look at
the BCG growth matrix in the next video
all right I'm going to continue this in
the next video see you shortly
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