Principles of Marketing
Kotler and Armstrong
Chapter 2:
Company and Marketing
Strategy
Partnering to Build Customer
Engagement, Value, and
Relationships
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Company and Marketing Strategy
Learning Objectives
• Objective 1: Explain company-wide strategic planning
and its four steps.
• Objective 2: Discuss how to design business portfolios
and develop growth strategies.
• Objective 3: Explain marketing’s role in strategic
planning and how marketing works with its partners to
create and deliver customer value.
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Company and Marketing Strategy
Learning Objectives
• Objective 4: Describe the elements of a
customer value-driven marketing strategy and
mix, and the forces that influence it.
• Objective 5: List the marketing management
functions, including the elements of a marketing
plan, and discuss the importance of measuring
and managing marketing return on investment.
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Why did Gojek and
Tokopedia decide to
join? what are the
advantages for both?
4
Company and Marketing Strategy
Learning Objective 1
• Explain company-wide strategic planning and its four
steps.
Company-Wide Strategic Planning: Defining
Marketing’s Role
- Strategic Planning
- Steps in Strategic Planning
- Defining a Market-Oriented Mission
- Setting Company Objectives and Goals
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Company-Wide Strategic Planning
Strategic Planning
Strategic planning is 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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Selecting Marketing-Oriented Strategy vs.
Production-Oriented Strategy
Production-oriented manager sees Marketing-oriented manager sees
everyone as basically similar and everyone as different and
practices “mass marketing” practices “target marketing”
Company and Marketing Strategy
Learning Objective 1
Steps in strategic Planning:
Business Unit, product and
Corporate level Marketing Level
Designing the Setting Company Designing the Planning Marketing and
Company Objective and Goals Business other function strategies
Mission Portfolio
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Company and Marketing Strategy
Learning Objective 1
• Defining a Market Orientation Mission:
Mission Statement
A statement of the organizational purpose – what it wants
to accomplish the larger environment
• Mission Statement should answer:
• Who is our business?
• Who is the customer?
• What do customer value?
• What should our business do?
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Company and Marketing Strategy
Learning Objective 1
Example Astra Honda Motor Mission Statement
AHM ingin menjadi pemimpin pasar sepeda motor di Indonesia dan
menjadi pemain kelas dunia, dengan mewujudkan impian konsumen,
menciptakan kegembiraan bagi konsumen dan berkontribusi kepada
masyarakat Indonesia melalui menciptakan solusi mobilitas bagi
masyarakat dengan produk dan pelayanan terbaik.
2-10
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Company and Marketing Strategy
Learning Objective 1
• Mission statements should . . .
• Serve as a guide for what the organization wants to accomplish.
• Be “market-oriented” rather than “product-oriented”.
• Realistic and specifics.
• Fit with the market environment.
• Be motivating.
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Company and Marketing Strategy
Learning Objective 1
• 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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Company and Marketing Strategy
Learning Objective 2
• Discuss how to design business portfolios and
develop growth strategies.
Designing the Business Portfolio
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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.
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Designing the Business Portfolio
Strategic business units can be a
• Company division
• Product line within a division
• Single product or brand
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Designing the Business Portfolio
Analyzing the Current Business Portfolio
Growth-share matrix is a portfolio-planning
method that evaluates a company’s SBUs in
terms of market growth rate and relative
market share.
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Designing the Business Portfolio
Analyzing the Current Business Portfolio
BCG Growth-share matrix
High Question
Market Stars
Marks
Growth
Low Cash
Dogs
Market Cows
Growth
High Relative Low Relative
Market Share Market Share
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Designing the Business Portfolio
• Determine the future role of each SBU
and choose the appropriate resource
allocation strategy:
• Build Question Mark
• Hold Star
• Harvest Cash Cow
• Divest Dog
• SBUs change positions over time
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Designing the Business Portfolio
Problems with Matrix Approaches
• Difficulty in defining SBUs and measuring market
share and growth
• Time consuming
• Expensive
• Focus on current businesses, not future planning
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Designing the Business Portfolio
Developing Strategies for Growth and Downsizing
Product/market expansion grid looks at new products,
existing products, new markets, and existing markets
for company growth opportunities.
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Designing the Business Portfolio
Developing Strategies for Growth and Downsizing
Existing Products New Products
Existing Market Penetration Product Development
Markets
New
Market Development Diversification
Markets
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Designing the Business Portfolio
Developing Strategies for Growth and Downsizing
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Designing the Business Portfolio
Developing Strategies for Growth and Downsizing
Downsizing is when a company must prune, harvest,
or divest businesses that are unprofitable or that no
longer fit the strategy.
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Company and Marketing Strategy
Learning Objective 3
• Explain marketing’s role in strategic planning and
how marketing works with its partners to create
and deliver customer value.
Planning Marketing: Partnering to Build
Customer Relationships
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Planning Marketing: Partnering to Build
Customer Relationships
Partnering with Other Company Departments
Value chain is a series of departments that carry
out value-creating activities to design, produce,
market, deliver, and support a firm’s products.
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Planning Marketing: Partnering to Build
Customer Relationships
Partnering with Other Company Departments
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Planning Marketing: Partnering to Build
Customer Relationships
Partnering with Other Company Departments
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Planning Marketing: Partnering to Build
Customer Relationships
Partnering with Others in the Marketing System
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.
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Planning Marketing: Partnering to Build
Customer Relationships
Partnering with Others in the Marketing System
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Company and Marketing Strategy
Learning Objective 4
• Describe the elements of a customer value-driven
marketing strategy and mix, and the forces that
influence it
Marketing Strategy and the Marketing Mix
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Marketing Strategy and the Marketing Mix
Customer Value-Driven Marketing Strategy
Marketing strategy is the marketing logic by
which the company hopes to create customer
value and achieve profitable customer
relationships.
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Marketing Strategy and the Marketing Mix
Customer Value-Driven Marketing Strategy
Market segmentation is the division of a market into distinct groups
of buyers who have different needs, characteristics, or behaviors
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.
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Marketing Strategy and the Marketing Mix
Customer Value-Driven Marketing Strategy
Market targeting is the process of evaluating each market segment’s
attractiveness and selecting one or more segments to enter.
Market positioning is the arranging for a product to occupy a clear,
distinctive, and desirable place relative to competing products in
the minds of target consumers.
Differentiation begins the positioning process.
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Marketing Strategy and the Marketing Mix
Developing an Integrated Marketing Mix
Marketing mix is the set of controllable, tactical marketing
tools—product, price, place, and promotion—that the
firm blends to produce the response it wants in the target
market.
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Marketing Strategy and the Marketing Mix
Developing an Integrated Marketing Mix
• Strategy leads to tactics by way of the marketing
mix:
• The “Four Ps” – product, price, place, promotion
(seller viewpoint)
• The “Four Cs” – customer solution, cost, convenience,
and communication (customer viewpoint)
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Marketing Strategy and the Marketing Mix
Developing an Integrated Marketing Mix
• Product means goods and services combination the company offers to
the target market
• Price amount of money customer have to pay to obtain the product
• Place include company activities that make the product available to
target market
• Promotion means activities that communication the merits of product
and persuade target customer to buy
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Marketing Strategy and
The Marketing Mix
Developing an Integrated Marketing Mix
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Company and Marketing Strategy
Learning Objective 5
• List the marketing management functions, including the
elements of a marketing plan, and discuss the importance
of measuring and managing marketing return on
investment.
Managing the Marketing Effort
Measuring and Managing Return on Marketing
Investment
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Managing the Marketing Effort
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Managing the Marketing Effort
SWOT analysis
A overall evaluation of the company’s Strength (S),
Weaknesses (W), Opportunity (O) and Threats (T)
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Managing the Marketing Effort
SWOT analysis
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Managing the Marketing Effort
Marketing Implementation
• Turning marketing strategies and plans into
marketing actions to accomplish strategic
marketing objectives
• Addresses what, who, where, when, and how
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Managing the Marketing Effort
Marketing Control
Process of measuring and evaluating the result of marketing
strategic and plan and taking correction action to ensure that
objective are achieved
• Evaluating results
• Taking corrective action
• Operating control
• Strategic control
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Managing the Marketing Effort
Marketing Audit
A comprehensive, systematic, independent and periodic
examination of a company’s environment, objective,
strategies and activity to determine problem areas and
opportunities and to recommend a plan of action to improve
the company’s marketing performance
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Measuring and Managing
Return on Marketing Investment
Return on Marketing Investment (Marketing ROI)
• Net return from a marketing investment divided by
the costs of the marketing investment
• Measurement of the profits generated by
investments in marketing activities
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Measuring and Managing
Return on Marketing Investment
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