Chapter Two
Company and Marketing
Strategy
Partnering to Build Customer
Relationships
Chapter 2- slide 1
Company and Marketing Strategy
Topic Outline
• Companywide Strategic Planning:
Defining Marketing’s Role
• Designing the Business Portfolio
• Planning Marketing: Partnering to Build
Customer Relationships
• Marketing Strategy and the Marketing Mix
• Managing the Marketing Effort
• Measuring and Managing Return on
Marketing Investment
Chapter 2- slide 2
Companywide 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
Chapter 2- slide 3
Companywide Strategic Planning
Defining a Market-Oriented
Mission
• The mission statement is
the organization’s
purpose, what it wants
to accomplish in the
larger environment
• Market-oriented mission
statement defines the
business in terms of
satisfying basic
customer needs
Chapter 2- slide 4
Companywide Strategic Planning
Setting Company Objectives and
Goals
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
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
Chapter 2- slide 7
Companywide Strategic Planning
Analyzing the Current Business
Portfolio
Chapter 2- slide 8
Companywide Strategic Planning:
Chapter 2- slide 9
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
Chapter 2- slide 10
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
Chapter 2- slide 11
Companywide Strategic Planning
Developing Strategies for Growth and
Downsizing Product/Market Expansion Grid
Strategies
Chapter 2- slide 12
Companywide Strategic Planning
Developing Strategies for Growth and
Downsizing Product/market expansion grid
strategies
Chapter 2- slide 13
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
Chapter 2- slide 14
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 through
starting up or acquiring businesses
outside the company’s current products
and markets
Chapter 2- slide 15
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
company’s overall strategy
Chapter 2- slide 16
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 firm’s products
Chapter 2- slide 17
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
Chapter 2- slide 18
Marketing Strategy and the Marketing
Mix
Chapter 2- slide 19
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
Chapter 2- slide 20
Marketing Strategy and the
Marketing Mix
Customer-Centered Marketing Strategy
Market targeting is the process of
evaluating each market segment’s
attractiveness and selecting one or more
segments to enter
Chapter 2- slide 21
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
Chapter 2- slide 22
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
Chapter 2- slide 23
Marketing Strategy and the Marketing
Mix
Developing an Integrated Marketing Mix
Chapter 2- slide 24
Managing the Marketing Effort
Chapter 2- slide 25
Managing the Marketing Effort
Marketing Analysis – SWOT
Analysis
Chapter 2- slide 26
Managing the Marketing Effort
Market Planning—Parts of a Marketing
Plan
Chapter 2- slide 27
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 Chapter 2- slide 28
Managing the Marketing Effort
Marketing Department Organization
Chapter 2- slide 29
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
Chapter 2- slide 30
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.
Chapter 2- slide 31
