Principles of Marketing
Eighteenth Edition, Global Edition
Chapter 2
Company and Marketing
Strategy Partnering to Build
Customer Engagement, Value,
and Relationships
Learning Objectives
2.1 Explain company-wide strategic planning and its four steps.
2.2 Discuss how to design business portfolios and develop
growth strategies.
2.3 Explain marketing’s role in strategic planning and how
marketing works with its partners to create and deliver
customer value.
2.4 Describe the elements of a customer value-driven marketing
strategy and mix and the forces that influence them.
2.5 List the marketing management functions, including the
elements of a marketing plan, and discuss the importance of
measuring and managing marketing return on investment.
Copyright © 2021 Pearson Education Ltd.
Company-Wide Strategic Planning
The mission statement is the organization’s purpose; what
it wants to accomplish in the larger environment.
CVS Health’s overall mission is to be
a “pharmacy innovation company,”
one that is “helping people on their
way to better health.” Its marketing
strategies and programs must
support this mission.
Copyright © 2021 Pearson Education Ltd.
Example: Airbnb’s Mission
Belong Anywhere–Don’t Stay There. Live There.
Airbnb’s mission is to help create a world where you can belong anywhere and
where people can live in a place instead of just traveling to it. The brand’s bélo
logo is “the universal symbol of belonging.” Copyright © 2021 Pearson Education Ltd.
Company-Wide Strategic Planning
What is the difference ???
Product-Oriented Business
Market-Oriented Business
Copyright © 2021 Pearson Education Ltd.
Company-Wide Strategic Planning
Product- versus Market-Oriented Business Definitions
Company Product-Oriented Definition Market-Oriented Definition
Starbucks We sell coffee and snacks. We sell “The Starbucks
Experience,” one that
enriches people’s lives in
one moment, one human
being, one extraordinary cup
of coffee at a time.
Panera We sell fast-casual food in our We give customers “Food
restaurants. as it should be”: food that
tastes good; food that feels
good; food that does good
things for them and the
world around them.
Copyright © 2021 Pearson Education Ltd.
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.
Strategic business units (SBU) can be a
• Company division
• Product line within a division
• Single product or brand
Mars Inc. is not only the world’s number-one
candy maker; it is also a world-leading pet
nutrition and health-care company. Copyright © 2021 Pearson Education Ltd.
Designing The Business Portfolio
Figure 2.2 The BCG Growth-Share Matrix
Copyright © 2021 Pearson Education Ltd.
Designing The Business Portfolio
The best-known portfolio-planning method is the now-classic Boston Consulting
Group (BCG) approach. The growth-share matrix defines four types of SBUs.
• Stars are high-growth, high-share businesses or products requiring heavy
investment to finance rapid growth. They will eventually turn into cash cows.
• Cash cows are low-growth, high-share businesses or products that are established
and successful SBUs requiring less investment to maintain market share.
• Question marks are low-share business units in high-growth markets requiring a
lot of cash to hold their share.
• Dogs are low-growth, low-share businesses and products that may generate
enough cash to maintain themselves but do not promise to be large sources of
cash.
Copyright © 2021 Pearson Education Ltd.
Managing the Marketing Effort
Examples
???
What are internal – external factors?
What are positive – negative factors?
Copyright © 2021 Pearson Education Ltd.
Managing the Marketing Effort
Figure 2.7 SWOT Analysis
Copyright © 2021 Pearson Education Ltd.