Chapter Two
Company and Marketing Strategy
Partnering to Build Customer
Relationships
Copyright 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 2- slide 1
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.
Publishing as Prentice Hall
Chapter 2- slide 2
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
Copyright 2010 Pearson Education, Inc.
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Chapter 2- slide 3
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
Copyright 2010 Pearson Education, Inc.
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Chapter 2- slide 4
Companywide Strategic Planning
Setting Company Objectives and Goals
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Chapter 2- slide 5
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
Copyright 2010 Pearson Education, Inc.
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Chapter 2- slide 6
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
Copyright 2010 Pearson Education, Inc.
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Chapter 2- slide 7
Companywide Strategic Planning
Analyzing the Current Business Portfolio
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 2- slide 8
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
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 2- slide 9
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
Copyright 2010 Pearson Education, Inc.
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Chapter 2- slide 10
Companywide Strategic Planning
Developing Strategies for Growth and Downsizing
Product/Market Expansion Grid Strategies
Copyright 2010 Pearson Education, Inc.
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Chapter 2- slide 11
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
Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter 2- slide 12
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
Copyright 2010 Pearson Education, Inc.
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Chapter 2- slide 13
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
Copyright 2010 Pearson Education, Inc.
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Chapter 2- slide 14
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
Copyright 2010 Pearson Education, Inc.
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Chapter 2- slide 15
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
Copyright 2010 Pearson Education, Inc.
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Chapter 2- slide 16
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
Copyright 2010 Pearson Education, Inc.
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Chapter 2- slide 17
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
Copyright 2010 Pearson Education, Inc.
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Chapter 2- slide 18
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
Copyright 2010 Pearson Education, Inc.
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Chapter 2- slide 19
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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Chapter 2- slide 20
Managing the Marketing Effort
Market PlanningParts of a Marketing Plan
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Chapter 2- slide 21
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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Chapter 2- slide 22
Managing the Marketing Effort
Marketing Department Organization
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Chapter 2- slide 23
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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Chapter 2- slide 24
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.
Publishing as Prentice Hall
Chapter 2- slide 25
