Chapter Three
Company and Marketing Strategy
Partnering to Build Customer
Relationships
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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
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Companywide Strategic Planning
Strategic Planning Q
Strategic planning is the process of
developing and maintaining a strategic fit
between the organization’s goals and
capabilities and its changing marketing
opportunities
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Companywide Strategic Planning
Steps in Strategic Planning Q
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Companywide Strategic Planning
Defining a Market-Oriented Mission Q
• The mission statement is
the organization’s
purpose, what it wants to We help you organize the world’s
accomplish in the larger information and make it
environment universally accessible and useful.
•Management should avoid making its
• Market-oriented mission mission too narrow or too broad.
•Missions should be realistic, specific,
statement defines the fit the market environment, based on
business in terms of the company’s distinctive
competencies الكفاءات المميزة, and
satisfying basic customer motivating.
needs
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Companywide Strategic Planning
Company Product-Oriented Market-Oriented
Definition Definition
[Link] We sell books, videos, We make the Internet
CDs, toys, consumer buying experience fast,
electronics and other easy, and enjoyable—
products online we’re the place where
you can find and
discover anything you
want to buy online
Disney We run theme parks We create fantasies—
a place where dreams
come true and America
still works the way it’s
supposed to
Nike We sell athletic shoes We bring inspiration
and apparel and innovation to every
athlete* in the world
(* if you have a body,
you are an athlete)
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Companywide Strategic Planning
Setting Company Objectives and Goals Q
The mission leads to a hierarchy of objectives, including business objectives and marketing
objectives.
Marketing strategies and programs must be developed to support these marketing objectives.
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Vision, Mission, GOALS and
OBJECTIVES
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Companywide Strategic Planning
Designing the Business Portfolio Q
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
The best portfolio is the one that best fits the company’s strengths and
weaknesses to opportunities in the environment.
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Companywide Strategic Planning
Analyzing the Current Business Portfolio Q
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
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Establishing Strategic Business
Units: exp.
Chipotle was once an SBU of McDonalds
• A single business or a collection of related
businesses that can be planned for
separately from the rest of the company
• It has its own set of competencies
• It has a manager who is responsible for
strategic planning and profit performance& and
who controls most factors affecting profits.
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Companywide Strategic Planning
Analyzing the Current Business Portfolio
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Companywide Strategic Planning
The Boston Consulting Group’s (BCG)
:
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The Boston Consulting Group’s (BCG)
Growth-Share Matrix
• 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. (problem child)
• 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.
VIP [Link]
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The Boston Consulting Group’s (BCG)
Growth-Share Matrix With (PLC)
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Companywide Strategic Planning
Problems with Matrix Approaches Q
• Difficulty in defining SBUs and measuring
market share and growth
• Time consuming
• Expensive
• Focus on current businesses, not future
planning
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Companywide Strategic Planning
Developing Strategies for Growth and Downsizing Q
Product/market expansion grid is a tool for
identifying company growth opportunities
through market penetration, market
development, product development, or
diversification
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Companywide Strategic Planning
Developing Strategies for Growth and Downsizing Product/Market Expansion Grid Strategies
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Companywide Strategic Planning
Developing Strategies for Growth and Downsizing
Product/market expansion grid strategies Q
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Companywide Strategic Planning
Developing Strategies for Growth and Downsizing Q
Market penetration is a
growth strategy increasing
sales to current market
segments without changing
the product( price –opening
time- offers ….)
Market development is a
growth strategy that
identifies and develops new
market segments for current
products (Nike )
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Developing Strategies for Growth and
Downsizing
• Product development is a growth strategy that
offers new or modified products to existing
market segments ex. a product line extension is
when a company creates a new product in the same
product line of an existing brand. The strategy for an
extension could be a different color or size, and it may
have different ingredients or come in different flavors.
• Making a light version, creating a mint flavor, offering a snack version,
and creating a special Halloween orange and black cookie are types of
product line extensions.
• Diversification is a growth strategy through
starting up or acquiring businesses outside the
company’s current products and markets
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Companywide Strategic Planning
Developing Strategies
for Growth and Downsizing Q
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
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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
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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
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Marketing Strategy and the Marketing
Mix
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Marketing Strategy and the
Marketing Mix Q
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
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Marketing Strategy and the
Marketing Mix
Customer-Centered Marketing Strategy Q
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 the target
consumerيحتل مكانا واضحا ومميزا مرغوبا
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Marketing Strategy and the Marketing
Mix
Developing an Integrated Marketing Mix Q
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
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Marketing Strategy and the Marketing
Mix
Developing an Integrated Marketing Mix Q
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Managing the Marketing Effort
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Managing the Marketing Effort Q
Marketing Analysis – SWOT Analysis
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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 دمجits people,
organizational structure, decision and reward
system, and company culture into a cohesive
متماسكaction plan that supports its strategies
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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
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ASSINGMENT
• DEFINE THE FOLLWING :Strategic planning,
mission, The business portfolio , Strategic business
unit, Market segmentation , Market segment ,
Market positioning .
• There are different Strategies for Growth explain
in details?
• Discuss with explain the Boston Consulting Group’s
(BCG)and what are the Problems with Matrix
•
:
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