CHAPTER : 2
COMPANY AND MARKETING STRATEGY:
PARTNERING TO BUILD
CUSTOMER
RELATIONSHIPS
PARTNERING TO BUILD
RELASHIONSHIP
4. Describe elements of
customer-driven marketing
1. Explain strategic planning strategy and marketing mix
LEARNING
GOALS
2. Describe business portfolios and
growth strategies
5. List the marketing
management functions
3. Detail marketing’s role in
strategic planning
WHAT IS
STRATEGIC PLANNING?
The process of developing and
maintaining a strategic fit
between the organization’s
goals and capabilities and its
changing marketing
opportunities
STEPS IN
STRATEGIC PLANNING:
STEP 1 STEP 2 STEP 3 STEP 4
BUSINESS UNIT,
CORPORATE LEVEL PRODUCT AND
MARKET LEVEL
Defining the Setting Designing Planning
Company company the business marketing,
Mission objectives portfolio and other
and goals functional
Strategies
MISSION
STATEMENT:
A statement of the organization’s
purpose- what it wants to
accomplish in the larger
environment.
A mission statement asks..
•What is our business?
•Who is the customer?
•What do consumers value?
•What should our business be?
DEFINING A
MARKET-ORIENTED MISSION:
MARKET ORIENTED Characteristics
of a Good
Mission
REALISTIC
Statement:
SPECIFIC
FIT MARKET
ENVIRONMENT
DISTINCTIVE COMPETENCES
MOTIVATING
1
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:
STEP 1 STEP 2
Analyzing the current Shaping the future
business portfolio and portfolio by
decide which businesses developing strategies
should receive more, less for growth and
or no investment. downsizing.
2
GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES
BOSTON CONSULTING GROUP APPROACH:
2
GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES
ANALYZING CURRENT
BUSINESS PORTFOLIO:
1▪ Build 2▪ Harvest
▪ Increase market share ▪ Increases short-term
cash flow
▪ Divest
3▪ Hold 4 ▪ Sell or liquidate
▪ Preserve market share
2
GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES
DEVELOPING STRATEGIES
FOR GROWTH:
PRODUCT/ MARKET EXPANSION GRID
Current Product New Product
Current MARKET PRODUCT
Market PENETRATION DEVELOPMENT
New MARKET
Market DIVERSIFICATION
DEVELOPMENT
2
GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES
PRODUCT/ MARKET
EXPANSION GRID:
MARKET
PENETRATION Making more sales to current
customers without changing its
MARKET products.
DEVELOPMENT
• How? Add new stores in
PRODUCT
DEVELOPMENT current market areas,
improve advertising, prices,
service or store design.
DIVERSIFICATION
2
GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES
PRODUCT/ MARKET
EXPANSION GRID:
MARKET
PENETRATION
Develop new markets for its
MARKET
DEVELOPMENT current products
PRODUCT • How? Identify new
DEVELOPMENT demographic or geographic
markets.
DIVERSIFICATION
2
GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES
PRODUCT/ MARKET
EXPANSION GRID:
MARKET
PENETRATION
offering modified or new products
MARKET to current markets.
DEVELOPMENT
PRODUCT • How? New styles, flavors,
DEVELOPMENT colors, or modified
products.
DIVERSIFICATION
2
GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES
PRODUCT/ MARKET
EXPANSION GRID:
MARKET
PENETRATION
MARKET
DEVELOPMENT
PRODUCT
DEVELOPMENT New products for new markets.
DIVERSIFICATION
• How? Start up or buy new
businesses.
2
GOAL 2: DESCRIBE BUSINESS PORTFOLIOS AND GROWTH STRATEGIES
MARKETING’s ROLE
IN STRATEGIC PLANNING:
❑ Provide a guiding philosophy
❑ Identify attractive opportunities
❑ Design effective strategies
❑ Build strong value chains
❑ Form superior value delivery networks
3
GOAL 3: DETAIL MARKETING’s ROLE IN STRATEGIC PLANNING
CUSTOMER DRIVEN
MARKETING
STRATEGY:
MARKET SEGMENT (S)
■ A group of consumers who respond in a
similar way to a given set of marketing effort
TARGETING (T)
■ Evaluating each segment’s attractiveness and
selecting one or more segments to enter.
POSITIONING(P)
■ Arranging for a product to occupy a clear,
distinctive, and desirable place relative to
competing products in the minds of target
consumers.
3
GOAL 3: DETAIL MARKETING’s ROLE IN STRATEGIC PLANNING
MARKETING MIX:
❑ The marketing mix includes controllable and tactical
marketing tools knows as the 4P’s
❑ The 4P’s include
▪ Product
▪ Place
▪ Promotion
▪ Price
4
GOAL 4: DESCRIBE ELEMENTS OF CUSTOMER-DRIVEN STRATEGY
DEVELOPING THE:
MARKETING MIX:
PRODUCT PRICE
Variety List price
Quality Discounts
Design Allowances
Features Payment
Brand name TARGET period
Packaging CUSTOMERS Credit terms
services
INTENDED
POSITIONING PLACE
PROMOTION Channels
Advertising Coverage
Personal selling Assortments
Sales Promotion Locations
Public relations Inventory
Transportation
Logistics
4
GOAL 4: DESCRIBE ELEMENTS OF CUSTOMER-DRIVEN STRATEGY
THE 4P’s & 4C’s OF THE
MARKETING MIX:
4
GOAL 4: DESCRIBE ELEMENTS OF CUSTOMER-DRIVEN STRATEGY
MANAGING THE
MARKETING EFFORT:
Marketing Functions
ANALYSIS
SWOT Analysis
PLANNING
• Finding opportunities
• Avoiding threats
IMPLEMENTATION • Understanding strengths
• Analyzing weaknesses
CONTROL
5
GOAL 5: LIST THE MARKETING MANAGEMENT FUNCTIONS
MANAGING THE
MARKETING EFFORT:
Marketing Functions
ANALYSIS
Marketing plans include:
Executive summary
Current market situation
PLANNING Threats and opportunities
analysis
Objectives and issues
IMPLEMENTATION Marketing strategy
Action programs
Budget
CONTROL Controls
5
GOAL 5: LIST THE MARKETING MANAGEMENT FUNCTIONS
MANAGING THE
MARKETING EFFORT:
Marketing Functions
ANALYSIS
PLANNING
• Plans are turned into action
with day-to-day activities
IMPLEMENTATION • Good implementation is a
challenge
CONTROL
5
GOAL 5: LIST THE MARKETING MANAGEMENT FUNCTIONS
MANAGING THE
MARKETING EFFORT:
Marketing Functions
ANALYSIS
• Evaluation of the results of
PLANNING marketing strategies and
plans
IMPLEMENTATION • Checks for differences
between goals and
performance
CONTROL
• Corrective actions
5
GOAL 5: LIST THE MARKETING MANAGEMENT FUNCTIONS
