Company and Marketing
Strategy: Partnering to
Build Customer
Relationships
Strategic Planning
• Strategic planning is defined as:
“The process of developing and
maintaining a strategic fit between
the organization’s goals and
capabilities and its changing
marketing opportunities.”
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Strategic Planning
• Planning activities occur at the business
unit, product, and market levels, and
include:
Defining the purpose and mission
Setting objectives and goals
Designing the business portfolio
Developing detailed marketing and
departmental plans
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Strategic Planning
• Mission statements should . . .
serve as a guide for what the
organization wants to accomplish.
be “market-oriented” rather than
“product-oriented”.
be neither too narrow, nor too broad.
fit with the market environment.
be motivating.
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Strategic Planning
• Mission statements guide the
development of objectives and
goals.
Objectives are developed at each
level in the organization hierarchy.
Strategies are developed to
accomplish these objectives.
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Strategic Planning
• Business portfolio:
“the collection of businesses
and products that make up
the company.”
• Designing the business portfolio
is a key element of the strategic
planning process.
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Strategic Planning
• Identify strategic
Portfolio Design business units (SBUs)
• Assess each SBU:
• Step 1: The BCG growth-share
Analyze the current matrix classifies SBUs
business portfolio into one of four
categories using the:
• Step 2: Market growth rate
Shape the future SBU’s relative market
share within the
business portfolio market.
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Strategic Planning
BCG Growth-Share Matrix
High
Market Stars Question
Growth Marks
Low Cash Dogs
Market Cows
Growth
High Relative Low Relative
Market Share Market Share
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Strategic Planning
• Determine the future
Portfolio Design role of each SBU and
choose the appropriate
• Step 1: resource allocation
strategy:
Analyze the current
Build
business portfolio Hold
• Step 2: Harvest
Divest
Shape the future
• SBUs change positions
business portfolio
over time
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Strategic Planning
• Matrix approaches to formal
planning share many problems:
Difficult, time-consuming, and costly
to implement.
Focus only on current businesses.
Too strongly emphasize market share
growth or growth via diversification.
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Strategic Planning
• Designing the business portfolio also
involves:
Developing strategies for growth by
identifying, evaluating, and selecting
promising new market opportunities.
Product/market expansion grid
Developing strategies for downsizing
the business portfolio.
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Strategic Planning
Product/Market Expansion Grid
Existing Products New Products
Existing Market Product
Markets Penetration Development
New Market Diversification
Markets Development
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Planning Marketing
• Marketing plays a key role in the
strategic planning process.
• Marketers must practice CRM and
Partner Relationship Management.
Partnering with other departments in
the company as well as other firms in
the marketing system helps to build a
superior value delivery-network.
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The Marketing Process
• The strategic planning
Key Elements and business portfolio
analysis processes help to
• Analyzing marketing identify and evaluate
opportunities marketing opportunities.
• Selecting target • The purpose of the
markets marketing process is to
• Developing the help the firm plan how to
marketing mix capitalize on these
opportunities.
• Managing the
marketing effort
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The Marketing Process
• The segmentation process
Key Elements divides the total market
into market segments.
• Analyzing marketing
• Target marketing
opportunities determines which
• Selecting target segment(s) are pursued.
markets • The market positioning
• Developing the for the product is then
marketing mix determined.
• Managing the
marketing effort
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The Marketing Process
Key Elements • Competitor analysis guides
competitive marketing strategy
development.
• Analyzing marketing • Strategy leads to tactics by
opportunities way of the marketing mix:
• Selecting target The “Four Ps” – product,
markets price, place, promotion (seller
viewpoint)
• Developing the The “Four Cs” – customer
marketing mix solution, cost, convenience,
and communication (customer
• Managing the viewpoint)
marketing effort
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The Marketing Process
Key Elements • Marketing analysis
Provides information helpful
in planning, implementation,
• Analyzing marketing and control
opportunities • Marketing planning
• Selecting target Strategies and tactics
markets • Marketing implementation
Turns plans into action
• Developing the
• Marketing control
marketing mix
Operating control
• Managing the Strategic control
marketing effort Marketing audit
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