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COMPANY AND MARKETING STRATEGY:
PARTNERING TO BUILD CUSTOMER RELATIONSHIPS
Md. Afnan HossainLecturer, School of Business & Economics
Chapter 2
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Objective 1
•Company-Wide Strategic Planning and its Four Steps
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Companywide Strategic Planning
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A strategy is a theory about how to gain competitive advantages.
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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Steps in Strategic Planning
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• The mission statement is the organization’s purpose, whatit wants to accomplish in the larger environment.
• Market-oriented mission statement defines the business in terms of satisfying basic customer needs.
We help you organize the world’s information and make it universally
accessible and useful.
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Defining a Market-Oriented Mission
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Product Orientation vs. Market Orientation
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Company Product Market
Missouri-Pacific Railroad We run a railroad We are a people- and-goods mover
Xerox We make copying equipment
We improve office productivity
Standard Oil We sell gasoline We supply energy
Columbia Pictures We make movies We entertain people
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Objective 2
•Design Business Portfolio and Develop Growth Strategies
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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.
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Analyzing the Current Business Portfolio
Strategic business units can be
•Company division (e.g. Unilever – Food and drink, Home Care,
Personal Care, Water Purifier)
•Product line within a division (e.g. Personal Care)
• Single product or brand
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Analyzing Current SBU’s:
Boston Consulting Group Approach
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Question Marks
• High growth, low share • Build into Stars or phase out • Require cash to hold and grow
market share.
Stars
• High growth & share• Profit potential • May need heavy
investment to grow
Cash Cows
• Low growth, high share• Established, successful
SBU’s•Produce cash
Dogs
• Low growth & share • Low profit potential
Relative Market ShareHigh Low
Mark
et
Gro
wth
Rate
Low
H
igh ?
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Problems with Matrix Approaches
•Difficulty in defining SBUs and measuring market share and growth
•Time consuming
•Expensive
•Focus on current businesses, not futureplanning
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Developing Strategies for Growth and Downsizing
• 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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Ansoff’s Product/Market Expansion Grid
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Existing products New products
Existing Markets
New Markets
Market penetration strategy Product development strategy
Market development
strategy
Diversification strategy
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Example - Ben & Jerry’s (Product/Market
Expansion Grid)
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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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Objective 3
•Marketing’s Role in Strategic Planning and How Marketing Works With the Partners to Create and Deliver Customer Value
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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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Partnering to Build Customer Relationships
Value delivery network is made up of the company, suppliers, distributors, and ultimately customers - to improve performance of the entire system.
Throughout the world, McDonald’s finely tuned value delivery system delivers a high standard of QSCV.
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Objective 4
•Describe the Elements of a Customer-driven Marketing Strategy and Mix and the Forces that Influence it
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Marketing Strategy and the Marketing Mix
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Market segmentation is the division of a market into distinct groups of buyers who have different needs, characteristics, or behavior and who might require separate products or marketing mixes.
Market segment is a group of consumers who respond in asimilar way to a given set of marketing efforts.
Customer-Driven Marketing Strategy
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Customer-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 the
target consumer.
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Marketing Strategy and the Marketing Mix
Marketing mix is the set of controllable 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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Developing an Integrated Marketing Mix
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Developing an Integrated Marketing Mix
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Objective 5
•Discussion on Marketing Management Functions: Analysis, Planning, Implementation, Control and the Importance of Measuring ROI
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Managing the Marketing Effort
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Marketing Analysis – SWOT Analysis
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Managing the Marketing Effort
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Return on Marketing Investment (Marketing ROI)
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Return on marketing investment (Marketing ROI) is the net 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 activities.
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