Principles of
Marketing - I
Module 2
Dr. Neha Singh Agarwal
Module 2 – Company & Marketing Strategy
Defining a Market –Oriented Mission
Designing the Business Portfolio
Marketing Strategy and Marketing Mix
How Starbucks
Became An $80B
Business
[Link]
Discussion Questions
• What does Starbucks
really sell?
• What core values do you • Should a company change its
think Starbucks holds mission when the business
most strongly? expands globally and
digitally? Why or why not?
• How does Starbucks’
mission show up in its
actions during the 2008 • If Starbucks says their mission
crisis? is about human connection
over coffee, how do things
like mobile ordering or store
saturation conflict with or
support this mission?
4
[Link]
us/company-information/mission-
statement
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.
Steps in Strategic Planning
Marketing Planning at the Business Level must SUPPORT the overall Corporate Strategy
1. Defining a Market
Oriented Mission
Step 1. Defining a Market Oriented Mission
The mission statement is the organization’s purpose; what it
wants to accomplish in the larger environment.
Why do we need Mission
Statements?
Difference between Mission &
Vision.
Market – Oriented Mission Statements
Example
Social scrapbooking site Mission statements should be market
Pinterest doesn’t define itself oriented and defined in terms of satisfying
as just an online place to post
pictures basic customer needs.
Its mission is to give people a Products and technologies eventually become
social media platform for outdated, but basic market needs may last forever
collecting, organizing, and
sharing things they love
Activity
• Choose a Company of your preference
• Write down the Mission Statement (official website)
• Make a comment on if you think it is product- oriented or market - oriented
Step 2. Setting Company Objectives and Goals
Business Goals Business Objectives
Become the most recognized coffee brand in the world. Open 300 new stores in Asia by the end of next year.
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Step 3. Designing The Business Portfolio
The business portfolio is the collection of businesses
and products that make up the company.
Analyzing The Business
Portfolio
Portfolio analysis is an activity in strategic
planning whereby management evaluates the
products and businesses that make up the
company.
BCG Matrix – Introduction
Boston Consulting Group's (BCG's) growth-share matrix is commonly used for analyzing portfolios.
The BCG made this matrix in the 1970s. This technique is used for the portfolio management of
different business units.
Large companies whose business organisation is in SBUs face a major problem of distributing
resources between these units.
The BCG matrix is made up of different business units of a company. These are plotted on a graph of
market growth vs market share relative to the company's rivals.
Resources are given to business units on the basis of their position on the graph.
BCG Matrix – Diagram
The Four Quadrants of the BCG Matrix
Stars are business units that have a large market share in a
fast-growing industry.
Stars may generate cash, but due to the rapidly growing
market, these business units require continuous
high
high
investments.
Market Growth Rate
Stars
Cash cows are business units with a large market share in a
mature and slow-growing industry.
low
Cash cows require little investment and generate cash that
can be used to invest in other business units.
Cash Cows
high low
Relative Market Share
BCG Matrix – Diagram
The Four Quadrants of the BCG Matrix This type of business unit is also known as the problem
Relative Market Share child.
Question marks are business unit with a low market share
high low
in a high-growth market.
The company needs to invest in these businesses to grow
its market share, but whether the investment will become
a star (enjoy increased relative market share) is unknown.
high
Market Growth Rate
Stars Question Marks These business units have a small market share in a mature
industry.
A dog may not require substantial cash, but it ties up
capital that could be invested elsewhere.
low
Unless a dog has some special strategic purpose, it should
be liquidated if there is little potential to increase its
Cash Cows Dogs market share.
Example – Apple 2024 Revenue by Segments
Plot the following products of Apple on the BCG Matrix.
1. Iphones
2. Macbook
3. Ipad
4. Ipod
5. Airpods
6. Apple Watch
7. HomePod
8. Vision Pro
9. Apple Tv
10. Apple Pay
Example – Apple
Stars Cash Cow Question Mark Dog
Apple tv Apple tv+
Apple Apple iPhone iPod
Airpods Watch
iPad
Macbook Apple
Apple Pay Vision Pro
HomePod
Activity
Research about the Product Portfolio of the
chosen brand.
Create a BCG matrix for the company that you
chose at the beginning of this Module.
The Ansoff Matrix
Market Development is one of the four main growth strategies defined by Igor Ansoff in the Ansoff Matrix
Present Product New Product
Present Market
These four growth strategies were identified by
Ansoff using a 2×2 matrix (known as the Ansoff
Matrix) and was made up of new or existing
Market Product products on one axis and new and existing markets
Penetration Development on the other.
New Market
The Ansoff matrix is a tool for strategic planning
which is commonly used.
Market
Diversification
Development
Market
Penetration
Market Development
PRODUCT DEVELOPMENT
RELATED DIVERSIFICATION
UNRELATED
DIVERSIFICATION
ngh Agarwal
Activity
How can your chosen brand leverage:
1. Market Penetration
2. Market Development
3. Product Development &
4. Diversification Strategy
To increase its current portfolio?
Step 4. Planning
Marketing and
other functional
strategies
Marketing Strategy
and Marketing Mix
Marketing strategy is the
marketing logic by which the
company hopes to create
customer value and achieve
profitable customer relationships.
Product
Which
Customers
Segmentation will we
serve?
Customer
Value and Price
Promotion Positioning
Relationships
Targeting
How will we
create value Differentiation
for them?
Place
The ‘STP’
Strategy
Customer Value-Driven Marketing Strategy
Market segmentation is the
division of a market into Market segment is a group of
distinct groups of buyers consumers who respond in a
who have different needs, similar way to a given set of
characteristics, or behaviors marketing efforts.
and who might require
separate products or
marketing mixes.
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.
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.
Developing an Integrated marketing mix