Company & Marketing Strategy
Chapter 02
Partnering to Build Customer Engagement, Value, and Relationships — a
comprehensive guide to strategic planning and the marketing mix.
Learning Objectives: Company & Marketing Strategy
01 02 03
Explain company-wide strategic planning and Discuss how to design business portfolios and Explain marketing's role in strategic planning
its four steps. develop growth strategies. and how marketing works with its partners to
create and deliver customer value.
04 05
Describe the elements of a customer value–driven marketing strategy List the marketing management functions, including the elements of a
and mix, and the forces that influence it. marketing plan, and discuss the importance of measuring and
managing marketing return on investment.
What Is Strategic Planning?
Definition Why It Matters
Strategic planning is the process of developing and maintaining a Annual plans address the company's current business operations,
strategic fit between the organization's goals and capabilities and while the strategic plan helps the firm adapt and capitalize on
its changing marketing opportunities. It is the long-run game plan opportunities in a constantly changing market environment. It sets
for survival and growth. the stage for all other planning within the firm.
The Four Steps of Strategic Planning
Step 1 Step 2
Define a market-oriented mission Set company objectives and goals
Step 3 Step 4
Design the business portfolio Plan marketing and functional strategies
Each step builds upon the previous one, creating a coherent and integrated plan that guides the entire organization toward long-term
competitive success.
Step 1: Defining the Mission
A mission statement defines the organization's purpose — what it wants to
accomplish in the larger environment. Every effective mission must answer four
fundamental questions:
What is our Who are our What do
business? customers? customers
value?
What should our business be?
Product-Oriented vs. Market-Oriented Mission
A mission should be market-oriented — defined in terms of customer needs and value, not the products a company makes. The contrast below illustrates why this distinction matters profoundly.
The market-oriented definition opens broader opportunities and keeps the company aligned with the deeper motivations of its customers, enabling more resilient long-term strategy.
Five Characteristics of Effective Mission Statements
Realistic Specific Market Environment
Grounded in what the organization can Clear enough to guide decisions and Oriented toward the market and customer
genuinely achieve priorities needs
Distinctive Competencies Motivating
Reflects what the organization does uniquely well Inspires employees and stakeholders to act with purpose
CVS Health Example: "Helping people on their path to better health." — Realistic, specific, market-oriented, and deeply motivating.
Step 2: Setting Company
Objectives & Goals
Setting objectives means translating the broad mission into specific, supporting
objectives for each level of management. Goals cascade from the corporate level
down through divisions and departments, ensuring that every part of the
organization pulls in the same direction.
Business Objective
Increase access to healthcare, lower patient costs, and improve quality of care
— the overarching goal of CVS Health.
Marketing Objective
Expand pharmacy services into new communities and grow digital health
engagement year over year.
Step 3: Designing the Business Portfolio
What Is a Business Portfolio? Two Key Steps
The business portfolio is the collection of businesses and products
1 Analyze the Current Portfolio
that make up the company. Example: Pran-RFL Group includes Pran
Foods, RFL Plastics, Pran-RFL Healthcare, and many others. Decide which businesses should receive more, less, or no
investment.
Strategic Business Unit (SBU)
An SBU is a key business unit within a company. It can be a division, 2 Develop Strategies for Growth & Downsizing
a product line, or even a single brand. Examples: Disney's SBUs
include Studio Entertainment, Media Networks, Consumer Products, Shape the future portfolio with targeted growth or strategic
and Parks & Resorts. reduction.
The BCG Growth-Share Matrix
Developed by the Boston Consulting Group, the growth-share matrix classifies all SBUs by two dimensions — market growth rate and relative market share — to guide investment decisions across
the portfolio.
Understanding the Four BCG Categories
⭐Stars ⭐Cash Cows ⭐ Question Marks ⭐Dogs
High-growth, high-share units. Low-growth, high-share units. High-growth, low-share units. Low-growth, low-share units.
Require heavy investment. Generate surplus cash that Require large cash inputs. Generate little return. Often
Eventually slow and become cash supports other SBUs with less Management must decide candidates for divestment or
cows. Examples: Grameenphone, investment needed. Examples: whether to build or phase out. elimination. Example: Local
bKash Square, BAT Example: Pathao mobile operators
The Ansoff Matrix: Growth Strategies
The Product/Market Expansion Grid (Ansoff Matrix) is a portfolio-planning tool for identifying company growth opportunities across four strategic directions.
Four Pathways to Growth
Market Penetration Market Development
Increase sales of current products in current markets — through Bring current products to new markets — new geographies,
better advertising, pricing, or service. Example: Coca-Cola's new demographics, or segments. Example: Coca-Cola expanding into
packaging formats. new countries.
Product Development Diversification
Offer new or modified products to current markets. Example: Enter entirely new businesses outside current products and
Coke Zero targeting health-conscious consumers. markets. Example: Coca-Cola acquiring Vitamin Water.
Downsizing the Portfolio
Downsizing is the strategic reduction of the business portfolio by eliminating
products or business units that are no longer profitable or no longer align with the
company's overall strategy.
When to Downsize
When an SBU consistently underperforms, drains resources from stronger
units, or no longer fits the evolving strategic direction of the firm.
Why It Matters
Pruning weak units frees capital, management attention, and operational
resources — allowing the firm to invest more decisively in Stars and
promising Question Marks.
Step 4: Planning Marketing & Functional Strategies
PARTNERING INTERNALLY
The Value Chain
The value chain is the series of internal departments that carry out value-creating activities — designing, producing, marketing, delivering, and
supporting a firm's products. A firm's success depends not just on how well each department performs its own work, but on how well
departments coordinate together.
PARTNERING EXTERNALLY
The Value Delivery Network
The value delivery network extends beyond the firm — it includes the company, its suppliers, distributors, and customers, all partnering to
improve the performance of the entire system in delivering superior customer value.
CHAPTER BREAK
Marketing Strategy & the
Marketing Mix
Marketing strategy is the marketing logic by which the company hopes to create
customer value and achieve profitable customer relationships. It guides every
decision about how to reach, serve, and retain customers in a competitive
marketplace.
Customer Value-Driven Marketing Strategy
Targeting Differentiation
Select the most attractive Create superior value vs.
segments to pursue. competitors.
Segmentation Positioning
Divide market into distinct Claim a clear place in
buyer groups. consumers' minds.
These four interconnected tasks form the foundation of a customer-centric marketing strategy — moving from broad market understanding down to a precise competitive position in the consumer's mind.
Segmentation, Targeting, Differentiation & Positioning
1 2
Market Segmentation Target Marketing
Dividing a market into distinct groups with different needs, Evaluating each segment's attractiveness — size, growth,
characteristics, or behaviors. Bases include age, income, profitability, fit — and selecting one or more segments to serve.
geography, lifestyle, and behavior.
3 4
Differentiation Positioning
Actually differentiating the market offering to deliver superior Arranging for the product to occupy a clear, distinctive, and
customer value versus competitors in the chosen segments. desirable place relative to competing products in the minds of
target consumers.
The Marketing Mix: The 4 Ps
The marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the desired response in the target market. It
encompasses everything the firm can do to engage consumers and deliver customer value.
Product Price
The goods and services combination the company offers to the target The amount of money customers pay to obtain the product — including
market — including quality, design, features, branding, and packaging. list price, discounts, payment terms, and perceived value.
Place Promotion
Company activities that make the product available to target Activities that communicate the merits of the product and persuade
consumers — channels, coverage, logistics, and inventory management. target customers to buy — advertising, PR, personal selling, and digital
marketing.
CHAPTER BREAK
Managing the Marketing Effort
Effective marketing management requires four integrated activities: analysis,
planning, implementation, and control. Together, they form a continuous cycle
that keeps strategy aligned with market realities and organizational objectives.
Marketing Analysis: SWOT Framework
A SWOT analysis provides a comprehensive evaluation of the company's internal capabilities and external environment — the essential foundation for any marketing plan.
Marketing Planning: The Marketing Plan
Marketing planning involves choosing strategies that help the company attain its overall strategic objectives. A well-structured marketing plan
contains eight essential elements:
01 02
Executive Summary Current Marketing Situation
A brief overview of the plan's main goals and recommendations for Analysis of the market, competition, distribution channels, and macro
senior management. environment.
03 04
Threats & Opportunities Analysis Objectives & Issues
Key external factors that may affect the company's marketing Specific financial and marketing goals and the challenges the plan
performance. must address.
05 06
Marketing Strategies Action Programs, Budgets & Controls
The broad marketing logic defining how the objectives will be achieved. Specific programs, resource allocations, and performance monitoring
mechanisms.
Marketing Implementation
Marketing implementation is the process of turning marketing strategies and
plans into marketing actions to accomplish strategic marketing objectives. Even the
best strategy fails without disciplined, effective execution.
The Challenge Marketing Department
Structure
Many firms struggle more with
implementation than with strategy • CMO — Chief Marketing Officer:
design — doing things right is as leads marketing strategy
important as choosing the right • CFO — Chief Financial Officer:
things to do. aligns budgets and ROI
• COO — Chief Operating Officer:
ensures operational delivery
Marketing Control
Marketing control involves measuring and evaluating the results of marketing strategies and plans, then taking corrective action to ensure that objectives are achieved. Control closes the loop between planning and performance.
Measure Performance Evaluate Results
Collect data and track actual Compare outcomes against
results. set objectives.
Set Objectives Take Corrective Action
Define clear, measurable
marketing targets.
Adjust strategy or execution
as needed.
Without a structured control process, firms cannot distinguish effective strategies from ineffective ones, nor allocate future resources with confidence.
Marketing Return on Investment (ROI)
Definition Why Marketing ROI Matters
Marketing ROI is the net return from a marketing investment divided • Justifies marketing budget to senior leadership
by the costs of that marketing investment. It quantifies the financial • Identifies the highest-performing channels and campaigns
value generated by marketing activities relative to what was spent. • Enables smarter, data-driven resource allocation
• Links marketing activity directly to business outcomes
Companies increasingly demand measurable proof that marketing
expenditures generate business outcomes — revenue growth,
customer acquisition, and brand equity.
Key Takeaways: Chapter 02
Strategic Planning Mission & Objectives Portfolio Management
A four-step process aligning A market-oriented mission cascades into BCG and Ansoff frameworks guide where
organizational goals with market specific goals that guide every level of to invest, grow, maintain, or divest across
opportunities for long-run survival and management decision-making. the business portfolio.
growth.
Marketing Mix Managing Effort & ROI
The 4 Ps — Product, Price, Place, Promotion — are the tactical tools Effective marketing requires analysis, planning, implementation,
that deliver the marketing strategy to target markets. and control — measured by marketing ROI.