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PRINCIPLES OF MARKETING
Tenth Edition
Philip Kotler and Gary Armstrong
Chapter
Chapter 22
Company and
Marketing Strategy
Copyright 1999 Prentice Hall
Strategic
Strategic Planning
Planning Process
Process
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• Strategic Planning involves developing an
overall company strategy for long-run
survival and growth.
• This process involves:
– Defining a Mission: Statement of an organization’s
purpose; should be market oriented.
– Setting Company Objectives: Supporting goals and
objectives to guide the entire company.
– Designing a Business Portfolio: Collection of businesses
and products that make up the company.
– Planning Functional Strategies: Detailed planning for each
department designed to accomplish strategic objectives.
Copyright 1999 Prentice Hall
Mission
Mission Statements
2- 33
2-3
Statements
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2-3
Market
Market
Oriented
Oriented
Motivating
Motivating Realistic
Realistic
Characteristics
Characteristics
of
of Good
Good Mission
Mission
Statements
Statements
Distinctive
Distinctive Specific
Specific
Competencies
Competencies
Fit
Fit Market
Market
Environment
Environment
Copyright
Copyright 1999
1998 Prentice
Prentice Hall
Hall
Designing
Designing the
the Business
Business Portfolio
Portfolio
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• The best portfolio is the one that best fits the
company’s strengths and weaknesses to the
opportunities in the environment.
• The company must:
– analyze its current business portfolio or Strategic
Business Units (SBU’s)
– decide which SBU’s should receive more, less, or no
investment
– develop growth strategies for adding new products or
businesses to the portfolio
Copyright 1999 Prentice Hall
Analyzing
Analyzing Current
Current SBU’s:
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SBU’s:
Boston
Boston Consulting
Consulting Group
Group
Approach
Approach
Relative Market Share
High Low
Stars Question
QuestionMarks
Marks
Market Growth Rate
High
• High growth & share ••High
Highgrowth,
growth,low
lowshare
share
• Profit potential ••Build
Buildinto
intoStars/
Stars/phase
phaseout
out
• May need heavy ••Requires
Requirescash
cashtotohold
hold
investment to grow market share
market share
Cash
CashCows
Cows Dogs
Dogs
••Low ••Low
Lowgrowth
growth&&share
Lowgrowth,
growth,high
highshare share
Low
share
••Established, ••Low
Lowprofit
profitpotential
Established,successful
successful potential
SBU’s
SBU’s
••Produces
Producescash
cash
Copyright 1999 Prentice Hall
Analyzing
Analyzing Current
Current SBU’s:
SBU’s:
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GE
GE Strategic
Strategic Business-Planning
Business-Planning
Grid
Grid
Business Strength
Industry Attractiveness
Strong Average Weak
C
High
A
Medium
B D
Low
Copyright 1999 Prentice Hall
Developing
Developing Growth
Growth Strategies
Strategies
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Product/ Market Expansion Grid
Existing New
Products Products
Existing 1. Market 3. Product
Markets Penetration Development
New 2. Market
4. Diversification
Markets Development
Copyright 1999 Prentice Hall
Product/
Product/ Market
Market Expansion
Expansion Grid
Grid
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• Market Penetration:
Penetration increase sales to present customers
with current products. How? Cut prices, increase
advertising, get products into more stores.
• Market Development:
Development develop new markets with current
products. How? Identify new demographic or
geographic markets.
• Product Development:
Development offering modified or new products
to current customers. How? New styles, flavors, colors,
or modified products.
• Diversification:
Diversification new products for new markets. How?
Start up or buy new businesses.
Copyright 1999 Prentice Hall
Marketing’s
Marketing’s Role
Role in
in Strategic
Strategic
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Planning
Planning
• Process of Selecting Target Consumers
– Market Segmentation:
Segmentation determining distinct groups of
buyers (segments) with different needs.
– Market Targeting:
Targeting evaluating and selecting which target
segments to enter.
– Market Positioning:
Positioning products distinctive and desirable
place in the minds of target segments compared to
competing products.
• Marketing Strategies for Competitive Advantage
– Market-Leader
– Market Challenger
– Market-Follower
– Market-Nicher
Copyright 1999 Prentice Hall
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The
The Marketing
Marketing Process
Process
10
Demographic- Marketing Technological-
Economic Intermediaries Natural
Environment Environment
ys n g
M lan
ar n
al eti
P
is
ke in
An ark
Product
tin g
M
g
Target
Suppliers Place Price Publics
Consumers
n
ti o
en ing
M Con
Promotion
ar tr
ta
em et
ke ol
pl rk
tin
Im Ma
g
Political- Social-
Legal Competitors Cultural
Environment Environment
Copyright 1999 Prentice Hall
Marketing
Marketing Mix-
Mix- The
The Four
Four P’s
P’s
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11
Price
Product
“Goods-and-service” Amount of money
combination that a that consumers
company offers a have to pay to obtain
target market the product
Target
Customers
Intended
Positioning
Activities that Company activities
persuade target that make the
customers to buy product available
the product
Promotion Copyright 1999 Prentice Hall Place
Managing
Managing the
the Marketing
Marketing Effort
Effort
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12
Marketing
Marketing Analysis
Analysis of
of Company’s
Company’s Situation
Situation
Control
Marketing
Marketing Planning
Planning Marketing
Marketing
Implementation
Implementation Measure
Develop
DevelopMarketing
Marketing Results
Strategies
Strategiesto
to Turn
Turn Marketing
Marketing Plans
Plans
Achieve
Achieve Marketing
Marketing into
into Evaluate
Objectives
Objectives Action
Action Plans
Plans Results
to
to Achieve
Achieve
Develop
Develop Marketing
Marketing
Marketing Objectives Take
Marketing Objectives Corrective
Plans
Plans&&Budget
Budget Action
Copyright 1999 Prentice Hall
Elements
Elements of
of aa Marketing
Marketing Plan
Plan
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13
Executive Summary
Current Marketing Situation
Threats and Opportunities
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls
Copyright 1999 Prentice Hall
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Marketing
Marketing Implementation
Implementation
14
Marketing
Marketing Strategy
Strategy
Decision
and Human
Organizational Reward
Resources
Structure
Action Climate and
Programs Culture
Implementation
Marketing
Marketing Performance
Performance
Copyright 1999 Prentice Hall
Marketing
Marketing Control
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Control
15
Set
Set Marketing
Marketing Goals
Goals
Measure
Measure
Performance
Performance
Evaluate
Evaluate
Performance
Performance
Take
Take Corrective
Corrective
Action
Action
Copyright 1999 Prentice Hall
Marketing
Marketing Audits
Audits
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16
Environment
Function Strategy
Types
Types
of
of Marketing
Marketing
Audits
Audits
Productivity Organization
Systems
Copyright 1999 Prentice Hall
