• Understand the importance of strategic positioning and its relationship to the mix.
• Learn to maximize marketing potential by managing portfolios of activities & brands.
SESSION 1 (12/01/12)
Introduction to Strategic Marketing: Strategic segmentation
Strategic mission: (company website_The Coca Cola Company_Barilla)
Company mission: (company website _ About us)
• Values (shared by all associates), principals, “raison d’être” (quality)
• Fundamental questions:
o What business are we in?
o Who are our customers? (target)
o What do we do for them (products, services)
o What business will we be in, in the future?
o What should it be?
• Mission statement components:
o Define precise objectives (qualitative)
o State company values
o Identify competitive scope:
▪ Products & applications
▪ Customer segments
▪ Competences: capability to deliver something (resources; financial, human, technological…). Resources ( competence ( core competence ( competitive advantage (perceived value & relative cost)
▪ Position within the industry
▪ Geographic reach
Define scope activities: Products areas, brand policy, diversification, internationalization…
Market segmentation, targeting, product positioning
Strategic Business Units (SBUs)
Corporate strategy ( activities (
• A1 ( Strategic Business Unit 1(SBU)
• A2 ( Strategic Business Unit 2
• A3 ( Strategic Business Unit 3
Objectives of strategic segmentation:
• Contribute to the overall company strategy.
• Define the desired portfolio of activities of the company.
SBU: divides an organization into homogeneous sub parts based on various criteria.
Connection between strategic segmentation & marketing segmentation
| |Strategic segmentation |Marketing segmentation | |Level involved |Whole organization |SBU | |Segmentation basis |Form sub organizations based on homogeneous strategic |Form homogeneous consumer groups | | |activities | | |Segment types |SBU or strategic segment |Market segments | |Segmentation objective|Encourage analysis & strategic decision making |Chose one or several segments (targeting) | | |Identify opportunities for development or the need to |Offer products developed for the targets | | |withdraw from activities |Define the marketing mix for these products | |Segment definition |All the activities which relate to the same group of |Group of consumers exhibiting similar behavior in relation to | | |resources & competences (SBU) |the products & services offered by the organization. This | | | |group is supposed to answer in the same way to the offer | | | |(market segment) |
Defining the business:
• Needs: which needs to satisfy?
• Customer segment: who to satisfy?
• Technology: how to satisfy (core competences, invest in a specific area) ⇨ Defined according to consumer needs & not products....