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c.Company and Marketing Strategy: Partnering

to Build Customer Relationships

•Chapter 2

•PowerPoint slides

•Express version

•Instructor name

•Course name

•School name

•Date

Principles of Marketing, Sixth Canadian Edition

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Learning Objectives

• After studying this chapter, you should be able to:– Explain company-wide strategic planning and its four steps

– Discuss how to design business portfolios and develop strategies for growth and downsizing

– Assess marketing’s role in strategic planning and explain how marketers partner with others inside and outside the firm to build profitable customer relationships

– Describe the marketing process and the forces that influence it

– List the marketing management functions, including the elements of a marketing plan

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Strategic Planning

• Strategic planning:– Developing a strategic fit between

– organizational goals and capabilities, and

– changing marketing opportunities

• Steps in strategic planning:Figure 2.1

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Mission Statements

• Mission statement:– Statement of an organization’s purpose

– What it wants to accomplish in the larger environment

– Need to be specific, realistic, and motivating

Table 2.1

Company Product-oriented definition Market-oriented definition

M.A.C Cosmetics We make cosmetics We sell lifestyle and self-expression; tolerance of diversity, and a platform for the outrageous

Canadian Tire We sell tools, home improvement items, and automotive parts and accessories

We provide advice and solutions that transform ham-handed people into Mr. and Mrs. Fixits

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BCG Growth-Share Matrix

• Business portfolio

• Portfolio analysis

• Strategic business unit (SBU)

• Five forces driving profitability:– Barriers to entry

– Power of the customer

– Power of suppliers

– Presence of substitutes

– Competitive rivalry within industry

Figure 2.2

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Strategies for SBU’s

• Porter:– Overall cost leadership

– Differentiation

– Focus

• Treacy and Wiersema:– Operational excellence

– Product leadership

– Customer intimacy

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Product-Market Expansion Grid

• Product-market expansion grid:– Portfolio planning tool for identifying company growth

opportunities

Figure 2.3

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Partnering to Build Customer Relationships

• Marketing’s role in strategic planning:– Provides a guiding philosophy

– Provide inputs to help identify marketing opportunities and assess potential for taking advantage of them

– Designs strategies for reaching objectives

• Partner relationship management

• Value chain

• Value delivery network

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The Marketing Process

• The marketing process:– Analyzing marketing

opportunities

– Selecting target markets

– Developing the marketing mix, and

– Managing the marketing effort

• Market segmentation

• Target marketing

• Market positioning

Figure 2.4

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The Four P’s of the Marketing Mix

• The marketing mix:– Set of controllable,

tactical marketing tools

– Blended to produce the desired response in the target market

Figure 2.5

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The Four P’s Versus C’s

Product

Price

Place

Promotion

Customer solution

Customer cost

Convenience

Communication

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Managing the Marketing Effort

• Four marketing management functions:– Marketing analysis

– Marketing planning

– Implementation

– ControlFigure 2.6

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Contents of a Marketing Plan

• Executive summary

• Current marketing situation– Market description, product review, competition, and distribution

• Threat and opportunity analysis

• Objectives and issues• Marketing strategy

• Action program

• Budgets

• Controls

Table 2.2

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The Control Process

• Marketing control

• Marketing audit

Figure 2.7

Set goals

What do we want to achieve?

Measureperformance

What is happening?

Evaluateperformance

Why is it happening?

Take correctiveaction

What should we do about it?

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In Conclusion…

• The learning objectives for this chapter were:– Explain company-wide strategic planning and its four steps

– Discuss how to design business portfolios and develop strategies for growth and downsizing

– Assess marketing’s role in strategic planning and explain how marketers partner with others inside and outside the firm to build profitable customer relationships

– Describe the marketing process and the forces that influence it

– List the marketing management functions, including the elements of a marketing plan