Chapter Two
Company and Marketing Strategy
Partnering to Build Customer
Relationships
Copyright 2009 Pearson Education, Inc.
Chapter 2- slide 1
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Company and Marketing Strategy
Topic Outline
Companywide Strategic Planning:
Defining Marketings Role
Designing the Business Portfolio
Planning Marketing: Partnering to Build
Customer Relationships
Marketing Strategy and the Marketing
Mix
Managing the Marketing Effort
Copyright 2010 Pearson Education, Inc.
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Companywide Strategic Planning
Strategic Planning
Strategic planning is the process of
developing and maintaining a strategic
fit between the organizations goals and
capabilities and its changing marketing
opportunities
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Companywide Strategic Planning
Defining a Market-Oriented Mission
The mission statement is the
organizations purpose, what it wants to
accomplish in the larger environment
Market-oriented mission statement
defines the business in terms of
satisfying basic customer needs
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Companywide Strategic Planning
Setting Company Objectives and Goals
Business Marketing
objectives objectives
Build profitable Increase
customer market share
relationships Create local
Invest in partnerships
research Increase
Improve profits promotion
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Companywide Strategic Planning
Designing the Business Portfolio
The business portfolio is the collection
of businesses and products that make
up the company
Portfolio analysis is a major activity in
strategic planning whereby
management evaluates the products
and businesses that make up the
company
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Companywide Strategic Planning
Analyzing the Current Business Portfolio
Strategic business unit (SBU) is a unit
of the company that has a separate
mission and objectives that can be
planned separately from other company
businesses
Company division
Product line within a division
Single product or brand
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Companywide Strategic Planning
Analyzing the Current Business Portfolio
Identify key businesses (strategic
business units, or SBUs) that make
up the company
Assess the attractiveness of its
various SBUs
Decide how much support each
SBU deserves
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Companywide Strategic Planning
Problems with Matrix Approaches
Difficulty in defining SBUs and
measuring market share and growth
Time consuming
Expensive
Focus on current businesses, not future
planning
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Companywide Strategic Planning
Developing Strategies for Growth and
Downsizing
Product/market expansion grid is a tool
for identifying company growth
opportunities through market
penetration, market development,
product development, or diversification
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Companywide Strategic Planning
Developing Strategies for Growth and Downsizing
Product/Market Expansion Grid Strategies
Market Market
penetration development
Product
Diversification
development
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Companywide Strategic Planning
Developing Strategies
for Growth and Downsizing
Market penetration is a growth strategy
increasing sales to current market
segments without changing the product
Market development is a growth strategy
that identifies and develops new market
segments for current products
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Companywide Strategic Planning
Developing Strategies
for Growth and Downsizing
Product development is a growth
strategy that offers new or modified
products to existing market segments
Diversification is a growth strategy for
starting up or acquiring businesses
outside the companys current products
and markets
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Companywide Strategic Planning
Developing Strategies
for Growth and Downsizing
Downsizing is the reduction of the
business portfolio by eliminating
products or business units that are not
profitable or that no longer fit the
companys overall strategy
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Planning Marketing
Partnering to Build Customer
Relationships
Value chain is a series of departments
that carry out value-creating activities to
design, produce, market, deliver, and
support a firms products
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Planning Marketing
Partnering to Build Customer
Relationships
Value delivery network is made up of
the company, suppliers, distributors,
and, ultimately, customers who partner
with each other to improve performance
of the entire system
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Marketing Strategy and the
Marketing Mix
Customer-Driven Marketing Strategy
Market segmentation is the division of a
market into distinct groups of buyers
who have distinct needs,
characteristics, or behavior, and who
might require separate products or
marketing mixes
Market segment is a group of consumers
who respond in a similar way to a given
set of marketing efforts
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Marketing Strategy and the
Marketing Mix
Customer-Centered Marketing Strategy
Market targeting is the process of
evaluating each market segments
attractiveness and selecting one or
more segments to enter
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Marketing Strategy and the Marketing
Mix
Customer-Centered Marketing Strategy
Market positioning is the arranging for a
product to occupy a clear, distinctive,
and desirable place relative to
competing products in the minds of the
target consumer
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Marketing Strategy and the Marketing
Mix
Developing an Integrated Marketing Mix
Marketing mix is the set of controllable
tactical marketing toolsproduct, price,
place, and promotionthat the firm
blends to produce the response it wants
in the target market
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Managing the Marketing Effort
Market PlanningParts of a Marketing Plan
Executive Marketing Threats and
summary situation opportunities
Objective and
Action programs Budgets
issues
Controls
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Managing the Marketing Effort
Marketing Implementation
Implementing is the process that turns
marketing plans into marketing actions to
accomplish strategic marketing objectives
Successful implementation depends on
how well the company blends its people,
organizational structure, decision and
reward system, and company culture into
a cohesive action plan that supports its
strategies
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Managing the Marketing Effort
Marketing Department Organization
Functional organization
Geographic organization
Product management organization
Market or customer management
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Managing the Marketing Effort
Marketing Control
Controlling is the measurement and
evaluation of results and the taking of
corrective action as needed
Operating control
Strategic control
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Measuring and Managing
Return on Marketing Investment
Return on Marketing Investment
(Marketing ROI)
Return on marketing investment (marketing
ROI) is the net return from a marketing
investment divided by the costs of the
marketing investment. Marketing ROI
provides a measurement of the profits
generated by investments in marketing
activities.
Copyright 2010 Pearson Education, Inc.
Chapter 2- slide 25
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