Company and Marketing
Strategy: Partnering to Build
Customer Relationships
Chapter 2
Learning Goals
1. Explain strategic planning
2. Describe business portfolios and
growth strategies
3. Detail marketing’s role in strategic
planning
4. Describe elements of customer-
driven marketing strategy
5. List the marketing management
functions
2-2
What is Strategic
Planning?
Strategic Planning Defined:
The process of developing and
maintaining a strategic fit between
the organization’s goals and
capabilities and its changing
marketing opportunities
2-3
Goal 1: Explain strategic planning
Marketing Management
Market-Oriented Mission
A mission A mission statement
statement asks.. should be:
What is our An “invisible hand”
business? Neither too narrow nor
Who is the too broad
customer? Fitting of market
What do environment
consumers value? Based on distinctive
What should our competencies
business be? Motivating
2-4
Goal 1: Explain strategic planning
The Business Portfolio
A business portfolio is the collection
of businesses and products that
make up the company
Business portfolio planning involves
two steps:
1. Analyzing the current business portfolio
2. Shaping the future portfolio by
developing strategies
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Goal 2: Describe business portfolios and growth strategies
Analyzing the Current
Marketing Management
Business Portfolio
The Boston Group Approach
2-6
Goal 2: Describe business portfolios and growth strategies
Analyzing the Current
Marketing Management
Business Portfolio
Build Harvest
Increase market Increases short-
share term cash flow
Works well for Good for weak
cash cows,
question marks question marks
Hold and dogs
Preserve market Divest
share Sell or liquidate
Good for cash cow Good for dogs and
question marks
2-7
Goal 2: Describe business portfolios and growth strategies
Companywide Strategic Planning
Marketing Management
Defining Marketing’s Role
Developing Strategies for Growth and Downsizing
2-8
Goal 2: Describe business portfolios and growth strategies
Marketing Strategy
Strategy Customers grouped
by:
• Geographic
1. Market • Demographic
Segmentation • Psychographic
• Behavioral
2. Target marketing Market segment is a
3. Market groups of consumers
Positioning who respond in
similar ways to
marketing efforts.
2-9
Goal 4: Describe elements of customer-driven strategy
Marketing Strategy
Strategy Evaluation of each
segment’s
1. Market attractiveness
Selection of
Segmentation segments with
2. Target marketing greatest long-term
profitability
3. Market A company can
Positioning choose one or
several segments to
target
2 - 10
Goal 4: Describe elements of customer-driven strategy
Marketing Strategy
Strategy The place the
product occupies in
1. Market the consumer’s mind
Products are
Segmentation positioned relative
2. Target marketing to competing
products
3. Market Marketers look for
Positioning clear, distinctive and
desirable place in
positioning
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Goal 4: Describe elements of customer-driven strategy
Managing the
Marketing Effort
Marketing Functions Finding
opportunities
• Analysis Avoiding threats
Understanding
• Planning
strengths
• Implementation Analyzing
• Control weaknesses
2 - 12
Goal 5: List the marketing management functions
Managing the
Marketing Effort
• Analysis • Strengths and
S= Strengths weakness are
W= Weakness internal
O= Opportunity • Opportunity and
T= Threats threats are
external
2 - 13
Managing the
Marketing Effort
Marketing Functions Marketing plans include:
• Executive summary
• Analysis of current
• Analysis situation
• Objectives
• Planning • Targets and positioning
• Marketing mix
• Implementation • Budget
• Controls
• Control
2 - 14
Goal 5: List the marketing management functions
Managing the
Marketing Effort
Marketing Functions Plans are turned
into action with
• Analysis day-to-day
activities
• Planning Good
• Implementation implementation is
• Control a challenge
2 - 15
Goal 5: List the marketing management functions
Managing the
Marketing Effort
Marketing Functions Evaluation of the
results of
• Analysis marketing
strategies
• Planning Checks for
• Implementation differences
• Control between goals
and performance
2 - 16
Goal 5: List the marketing management functions
Measuring Effectiveness
Return on marketing (marketing
ROI)
The net return from a marketing
investment divided by the costs of
the investments
2 - 17
Goal 5: List the marketing management functions
Activity
• You are a owner of business
The target market
• Why it is attractive to you
• How it is profitable
Market Positioning
• The place the product occupies in the
consumer’s mind
• How the product is positioned relative to
competing products
• How your product have clear, distinctive and
desirable place in consumer mind
2 - 18
Assignment #1
• Select an organization Mission
Statement and explain in terms of
what mission statement ask…
Or
• Explain the SWOT Analysis of any
Organization
2 - 19
