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Company and Marketing Strategy
Topic Outline
• Companywide Strategic Planning: Defining
Marketing’s Role
• Designing the Business Portfolio
Chapter Two • Planning Marketing: Partnering to Build Customer
Planning Marketing: Partnering to Build Customer
Relationships
Company and Marketing Strategy • Marketing Strategy and the Marketing Mix
Partnering to Build Customer • Managing the Marketing Effort
Relationships • Measuring and Managing Return on Marketing
Investment
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Companywide Strategic Planning Companywide Strategic Planning
Strategic Planning
Steps in Strategic Planning
Strategic planning is the process of
developing and maintaining a strategic fit
g g
between the organization’s goals and
capabilities and its changing marketing
opportunities
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Companywide Strategic Planning Companywide Strategic Planning
Defining a Market‐Oriented Mission Company Product-Oriented
Definition
Market-Oriented
Definition
Amazon.com We sell books, videos, We make the Internet
• The mission statement is CDs, toys, consumer
electronics and other
buying experience fast,
easy, and enjoyable—
the organization’s products online we’re the place where
purpose, what it wants to you can find and
discover anything you
accomplish in the larger
accomplish in the larger want to buy online
environment We help you organize the world’s
Disney We run theme parks We create fantasies—
a place where dreams
• Market‐oriented mission information and make it come true and America
universally accessible and useful.
statement defines the still works the way it’s
supposed to
business in terms of Nike We sell athletic shoes We bring inspiration
satisfying basic customer and apparel and innovation to every
needs athlete* in the world
(* if you have a body,
you are an athlete)
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Companywide Strategic Planning
Companywide Strategic Planning
Setting Company Objectives and Goals Designing the Business Portfolio
The business portfolio is the collection of
Business Marketing
objectives objectives businesses and products that make up the
p y
company
•BBuild
ild profitable
fi bl • IIncrease
customer market share Portfolio analysis is a major activity in
relationships • Create local strategic planning whereby management
• Invest in partnerships evaluates the products and businesses that
research • Increase
• Improve profits promotion make up the company
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Companywide Strategic Planning Companywide Strategic Planning
Analyzing the Current Business Portfolio Analyzing the Current Business Portfolio
Strategic business unit (SBU) is a unit of the Identify key businesses (strategic
company that has a separate mission and business units, or SBUs) that make
up the company
j p p
objectives that can be planned separately y
from other company businesses
Assess the attractiveness of its
• Company division various SBUs
• Product line within a division
Decide how much support each
• Single product or brand SBU deserves
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Companywide Strategic Planning: Companywide Strategic Planning
Problems with Matrix Approaches
• Difficulty in defining SBUs and measuring
market share and growth
• Time consuming
Time consuming
• Expensive
• Focus on current businesses, not future
planning
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Companywide Strategic Planning Companywide Strategic Planning
Developing Strategies for Growth and Downsizing Developing Strategies for Growth and Downsizing
Product/Market Expansion Grid Strategies
Product/market expansion grid is a tool for
de t y g co pa y g o t oppo tu t es
identifying company growth opportunities Market Market
penetration development
through market penetration, market
development, product development, or
diversification
Product
Diversification
development
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Companywide Strategic Planning
Companywide Strategic Planning
Developing Strategies
Developing Strategies for Growth and Downsizing for Growth and Downsizing
Product/market expansion grid strategies
Market penetration is a
growth strategy increasing
sales to current market
sales to current market
segments without changing
the product
Market development is a
growth strategy that
identifies and develops new
market segments for current
products
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Companywide Strategic Planning Companywide Strategic Planning
Developing Strategies Developing Strategies
for Growth and Downsizing for Growth and Downsizing
Product development is a growth strategy
that offers new or modified products to Downsizing is the reduction of the business
existing market segments
i i k portfolio by eliminating products or
portfolio by eliminating products or
Diversification is a growth strategy through business units that are not profitable or
starting up or acquiring businesses outside that no longer fit the company’s overall
the company’s current products and strategy
markets
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Planning Marketing
Planning Marketing
Partnering to Build Customer Relationships
Partnering to Build Customer Relationships
Value delivery network is
Value chain is a series of made up of the
departments that carry company, suppliers,
out value‐creating di t ib t
distributors, and
d
ultimately customers
activities to design, who partner with each
produce, market, other to improve
deliver, and support a performance of the
firm’s products entire system
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Marketing Strategy and the Marketing Marketing Strategy and the
Mix Marketing Mix
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 Strategy and the Marketing
Marketing Mix Mix
Customer‐Centered Marketing Strategy
Customer‐Centered Marketing Strategy
Market targeting is the process of evaluating Market positioning is the arranging for a
each market segment’s attractiveness and product to occupy a clear, distinctive, and
selecting one or more segments to enter
selecting one or more segments to enter d i bl l
desirable place relative to competing
l i i
products in the minds of the target
consumer
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Marketing Strategy and the Marketing
Mix Marketing Strategy and the Marketing
Mix
Developing an Integrated Marketing Mix Developing an Integrated Marketing Mix
Marketing mix is the set of controllable
g
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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Managing the Marketing Effort Managing the Marketing Effort
Marketing Analysis – SWOT Analysis
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Managing the Marketing Effort Managing the Marketing Effort
Marketing Implementation
Market Planning—Parts of a Marketing Plan
Implementing is the process that turns
marketing plans into marketing actions to
Executive Marketing Threats and
summary y situation opportunities accomplish strategic marketing objectives
• Successful implementation depends on how
Objective Marketing Action
and issues strategy programs
well the company blends its people,
organizational structure, decision and reward
Budgets Controls
system, and company culture into a cohesive
action plan that supports its strategies
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Managing the Marketing Effort Managing the Marketing Effort
Marketing Department Organization
Marketing Control
Functional organization • Controlling is the measurement and
evaluation of results and the taking of
Geographic
g p organization
g corrective action as needed
• Operating control
Product management organization
• Strategic control
Market or customer management
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Measuring and Managing
Return on Marketing Investment
Return on Marketing Investment (Marketing ROI)
Return on marketing investment
(Marketing ROI) is the net
return from a marketing
return from a marketing
investment divided by the
costs of the marketing
investment. Marketing ROI
provides a measurement of
the profits generated by
investments in marketing
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activities.
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