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Marketing Strategy for Customer Growth

Chapter Two of 'Principles of Marketing' discusses company and marketing strategy, focusing on building customer relationships. It introduces concepts such as strategic business units (SBUs), growth strategies like market penetration, market development, product development, and diversification, as well as the process of downsizing. The chapter emphasizes the importance of strategic planning in managing a company's business portfolio.

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Mohamed Zakarya
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12 views10 pages

Marketing Strategy for Customer Growth

Chapter Two of 'Principles of Marketing' discusses company and marketing strategy, focusing on building customer relationships. It introduces concepts such as strategic business units (SBUs), growth strategies like market penetration, market development, product development, and diversification, as well as the process of downsizing. The chapter emphasizes the importance of strategic planning in managing a company's business portfolio.

Uploaded by

Mohamed Zakarya
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Ch 2 -0 Copyright © 2011 Pearson Education

0
Principles of Marketing,
Arab World Edition
Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed
Tolba
Presentation prepared by Annelie Moukaddem Baalbaki

CHAPTER TWO
Company and Marketing
Strategy:
Partnering to Build Customer
Relationships

Lecturer: Marina Badie

Ch 1
Ch 2 -1
-1 Copyright
Copyright © 2011
© 2011 Pearson
Pearson Education
Education
Designing The Business Portfolio
a. 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

Ch 2 -9 Copyright © 2011 Pearson Education


Companywide Strategic Planning:
The Boston Consulting Group Approach

Ch 2 -11 Copyright © 2011 Pearson Education


Companywide Strategic Planning
b. Developing Strategies for Growth and Downsizing

Product/market expansion grid is a portfolio planning


tool for identifying company growth opportunities through:
• market penetration
• market development
• product development
• diversification

Ch 2 -13 Copyright © 2011 Pearson Education


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 identifying and


developing new market segments for current products.

Ch 2 -14 Copyright © 2011 Pearson Education


Companywide Strategic Planning
Developing Strategies for Growth and Downsizing

Product development is a growth strategy through offering


new or modified products to current market segments.

Diversification is a growth strategy through starting up or


acquiring businesses outside the company’s current products
and markets.

Ch 2 -15 Copyright © 2011 Pearson Education


Companywide Strategic Planning
Developing Strategies for Growth and Downsizing

Downsizing is the reducing of the business portfolio by


eliminating products or business units that are not profitable
or that no longer fit the company’s overall strategy.

Ch 2 -16 Copyright © 2011 Pearson Education


Managing the Marketing Effort

Ch 2 -25 Copyright © 2011 Pearson Education


This work is protected by local and international copyright laws and is provided solely for
the use of instructors in teaching their courses and assessing student learning.
Dissemination or sale of any part of this work (including on the World Wide Web) will
destroy the integrity of the work and is not permitted. The work and materials from this site
should never be made available to students except by instructors using the accompanying
text in their classes. All recipients of this work are expected to abide by these restrictions
and to honor the intended pedagogical purposes and the needs of other instructors who rely
on these materials.

Ch 2 -31 Copyright © 2011 Pearson Education

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