company and marketing strategy - wikispaces of marketing 02... · company and marketing strategy...

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Company and Marketing Company and Marketing StrategyStrategy

Chapter 2Chapter 2

Objectives

Understand companywide strategic Understand companywide strategic planning and its four steps.planning and its four steps.Learn how to design business Learn how to design business portfolios and develop strategies for portfolios and develop strategies for growth and downsizinggrowth and downsizing

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growth and downsizing.growth and downsizing.Understand marketing’s role in Understand marketing’s role in strategic planning and how strategic planning and how marketers partner with others.marketers partner with others.

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Objectives

Be able to describe the Be able to describe the marketing process and the marketing process and the forces that influence it.forces that influence it.Understand the marketing Understand the marketing

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management functions, management functions, including the elements of the including the elements of the marketing plan.marketing plan.

Strategic Planning

Strategic planning is defined as:Strategic planning is defined as:“The process of developing and “The process of developing and maintaining a strategic fit between maintaining a strategic fit between the organization’s goals and the organization’s goals and capabilities and itscapabilities and its

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capabilities and its capabilities and its changing marketing changing marketing opportunities.”opportunities.”

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Figure 2-1:

Steps in the Strategic Planning ProcessStrategic Planning Process

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Strategic Planning

Mission statements should . . .Mission statements should . . .serve as a guide for what the serve as a guide for what the organization wants to accomplish.organization wants to accomplish.be “marketbe “market--oriented” rather than oriented” rather than “product“product oriented”oriented”

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productproduct--oriented .oriented .be neither too narrow, nor too broad.be neither too narrow, nor too broad.fit with the market environment.fit with the market environment.be motivating.be motivating.

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Strategic Planning

Mission statements guide the Mission statements guide the development of objectives and development of objectives and goals.goals.

Objectives are developed at each Objectives are developed at each

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level in the organization hierarchy.level in the organization hierarchy.Strategies are developed to Strategies are developed to accomplish these objectives.accomplish these objectives.

Discussion Question

Google.comGoogle.com is one of is one of the leading Internet the leading Internet search engines. search engines.

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Construct a marketConstruct a market--oriented mission oriented mission statement that fits statement that fits this business.this business.

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Strategic Planning

Business portfolio:Business portfolio:“the collection of businesses “the collection of businesses and products that make and products that make up the company.”up the company.”

D i i th b iD i i th b i

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Designing the businessDesigning the businessportfolio is a key step in portfolio is a key step in the strategic planning the strategic planning process.process.

Strategic PlanningIdentify strategic Identify strategic Portfolio DesignPortfolio Design

Step 1: Step 1: Analyze the Analyze the current business current business portfolioportfolio

business units (SBUs)business units (SBUs)Assess each SBU:Assess each SBU:

The BCG growthThe BCG growth--share matrix share matrix classifies SBUs classifies SBUs into one of four into one of four

Portfolio DesignPortfolio Design

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po t o opo t o oStep 2: Step 2: Shape the future Shape the future business business portfolioportfolio

categories using:categories using:Market growth rate Market growth rate The SBU’s relative The SBU’s relative market share within market share within the market.the market.

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Figure 2-2:

Growth-Share Matrix

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Strategic PlanningDetermine the future Determine the future Portfolio DesignPortfolio Design

Step 1: Step 1: Analyze the Analyze the current business current business portfolioportfolio

role of each SBU and role of each SBU and choose the choose the appropriate resource appropriate resource allocation strategy:allocation strategy:

BuildBuildHoldHold

Portfolio DesignPortfolio Design

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po t o opo t o oStep 2:Step 2:Shape the future Shape the future business business portfolioportfolio

HarvestHarvestDivestDivest

SBUs change SBUs change positions over timepositions over time

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Strategic Planning

Matrix approaches to formal Matrix approaches to formal planning share many problems:planning share many problems:

Difficult, timeDifficult, time--consuming, consuming, and costly to implement.and costly to implement.Focus only on current Focus only on current

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businesses.businesses.Too strongly emphasize Too strongly emphasize market share growth or market share growth or growth via diversification.growth via diversification.

Strategic Planning

Designing the business Designing the business portfolio also involves:portfolio also involves:

Developing strategies for growth Developing strategies for growth by identifying, evaluating, and by identifying, evaluating, and selecting promising new marketselecting promising new market

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selecting promising new market selecting promising new market opportunities.opportunities.Developing strategies for Developing strategies for downsizing the business portfolio.downsizing the business portfolio.

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Figure 2-3:

Product / Market Expansion Gridpa s o G d

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Marketing plays a key role in Marketing plays a key role in the strategic planning process.the strategic planning process.

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Planning Marketing

Marketers must Marketers must practice Customer practice Customer Relationship Relationship Management Management (CRM)(CRM) andand PartnerPartner

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(CRM) (CRM) andand Partner Partner Relationship Relationship Management.Management.

Planning Marketing

Partner Relationship ManagementPartner Relationship ManagementPartnering with other departments Partnering with other departments in the company in the company Partnering with other firms in the Partnering with other firms in the marketing systemmarketing system

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marketing system marketing system Partner Relationship Management Partner Relationship Management helps to build a superior helps to build a superior value value deliverydelivery--networknetwork..

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Figure 2-4:

The Marketing Process

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The strategic planning The strategic planning Key ElementsKey Elements g p gg p gand business portfolio and business portfolio analysis processes analysis processes help to identify and help to identify and evaluate marketing evaluate marketing opportunities.opportunities.The purpose of the The purpose of the

Key ElementsKey Elements

Analyzing marketing Analyzing marketing opportunitiesopportunitiesSelecting target Selecting target marketsmarkets

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p pp pmarketing process is marketing process is to help the firm plan to help the firm plan how to capitalize on how to capitalize on these opportunities.these opportunities.

Developing the Developing the marketing mixmarketing mixManaging the Managing the marketing effortmarketing effort

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Key ElementsKey Elements The segmentation The segmentation


Key ElementsKey Elements process divides the process divides the total market into total market into market segments.market segments.Target marketingTarget marketingchooses which chooses which segment(s) aresegment(s) are

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segment(s) are segment(s) are pursued.pursued.Market positioningMarket positioningfor the product is for the product is then determined.then determined.

The Marketing ProcessCompetitor analysis Competitor analysis

id titiid titiKey ElementsKey Elements guides competitive guides competitive marketing strategy marketing strategy development.development.Strategy leads to tactics Strategy leads to tactics via the marketing mix: via the marketing mix:

The “Four Ps” The “Four Ps” –– product, product, price, place, promotion price, place, promotion ( ll i i t)( ll i i t)



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(seller viewpoint)(seller viewpoint)The “Four Cs” The “Four Cs” ––customer solution, cost, customer solution, cost, convenience, and convenience, and communication communication (customer viewpoint)(customer viewpoint)


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Figure 2-5:

The Marketing Mix

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The Marketing Mix

Visit the Hill’s Pet Nutrition site.

How are the 4 C’s or the 4 P’s presented within the site?

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Hill’s PetNutrition

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The Marketing ProcessMarketing analysisMarketing analysisKey ElementsKey Elements Provides information Provides information

helpful in planning, helpful in planning, implementation, and implementation, and controlcontrol

Marketing planningMarketing planningStrategies and tacticsStrategies and tactics

Marketing Marketing



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ggimplementationimplementation

Turns plans into actionTurns plans into actionMarketing controlMarketing control

Operating controlOperating controlStrategic controlStrategic control


Figure 2-6:

Managing the Marketing Efforta e g o

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Positioning

Market positioning is not restricted to physical goods.

Identify the “competing products” of relevance to the Marble Collegiate Church.

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What clear, distinctive, and desirable place in the consumer’s mind does the ad at left attempt to create?

cWalt DisneyWalt Disney

Known for films, Known for films, animation, theme animation, theme parks and customer parks and customer orientationorientationParks offer a variety Parks offer a variety of attractions as wellof attractions as well

Satisfying the Satisfying the customer is customer is everyone’s jobeveryone’s jobDisney has grown Disney has grown via diversificationvia diversification

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of attractions as well of attractions as well as cleanliness, order, as cleanliness, order, and warmthand warmth

Sales and net Sales and net income have fallenincome have fallen

Discussion:Discussion: How Can Disney Recover?How Can Disney Recover?

company and marketing strategy - wikispaces of marketing 02... · company and marketing strategy...

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