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Chapter 2- slide 1

Chapter Two

Company and Marketing Strategy

Partnering to Build Customer

Relationships

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Chapter 2- slide 2Copyright 2010 Pearson Education, Inc.

Publishing as Prentice Hall

Company and Marketing Strategy

Companywide Strategic Planning: Defining

Marketings Role

Designing the Business Portfolio

Planning Marketing: Partnering to Build Customer

Relationships

Marketing Strategy and the Marketing Mix

Managing the Marketing Effort

Topic Outline

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Companywide Strategic Planning

Businessobjectives

Build profitablecustomerrelationships

Invest in

research Improve profits

Marketingobjectives

Increasemarket share

Create localpartnerships

Increasepromotion

Setting Company Objectives and Goals

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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.

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

Designing the Business Portfolio

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Identify key businesses (strategicbusiness units, or SBUs) that make

up the company

Assess the attractiveness of itsvarious SBUs

Decide how much support eachSBU deserves

Analyzing the Current Business Portfolio

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Companywide Strategic Planning:

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Copyright 2010 Pearson Education, Inc.



Marketing has the main responsibility for achievingprofitable growth for the company.

The useful tool for identifying growth opportunities is:

Product/market expansion grid is a tool for identifying

company growth opportunities through marketpenetration, market development, product development,

or diversification.

For example: National Foods, a leading company started in

1970 and introduced branded and packaged spice inPakistan. The first year revenue was not enough, so

marketing played a role in business expansion.

Developing Strategies for Growth and Downsizing

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Developing Strategies for Growth and DownsizingProduct/market expansion grid strategies

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Market penetration is a growth strategy increasing sales tocurrent market segments without changing the product byimprovements in the marketing mix. National introducedchili, coriander, kasuri, turmeric, achar gosht, biryani and

haleem, it established nation wide distribution system, itstarted communication with customers by internet.

Market development is a growth strategy that identifies anddevelops new market segments for current products. For

example national managers explored new geographicalmarkets and expanded into middle east and north America.In 2000 national entered Australia with raj spices a newbrand to suit their local taste buds. It also entered India.

Developing Strategies

for Growth and Downsizing

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Product development is a growth strategy that offers new or

modified products to existing market segments. For example

national added tomato ketchup, various Chinese sauces, jams

and jellies, custards and kheer mix and variety of pickles to its

product lines.Diversification is a growth strategy through starting up or

acquiring businesses outside the companyscurrent products

and markets. For socio economic pressures have brought

about major changes in the life styles of urban house holds.To address the needs of these consumers national has

introduced ronaq brands ready to eat meals including chicken

qorma, karahi, ginger.



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Chapter 2- slide 11Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall


Downsizing is the reduction of the business portfolio by eliminating

products or business units that are not profitable or that no

longer fit the companysoverall strategy.

Value chain is a series of departments that carry out value-creatingactivities to design, produce, market, deliver, and support a firms

products.

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 theMarketing Mix

Market segmentation is the division of a

market into distinct groups of buyers who

have distinct needs, characteristics, orbehavior and who might require separate

products or marketing mixes

Market targeting is the process of evaluating eachmarket segments attractiveness and selecting

one or more segments to enter

Customer-Driven Marketing Strategy

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Marketing Strategy and the MarketingMix

Customer-Centered Marketing StrategyMarket 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

Marketing mix is the set of controllable tactical

marketing toolsproduct, price, place, and

promotionthat the firm blends to produce theresponse it wants in the target market

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Marketing Strategy and the Marketing

MixDeveloping an Integrated Marketing Mix

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Managing the Marketing Effort

Market Planning

Parts of a Marketing Plan

Executive

summary

Marketing

situation

Threats and

opportunities

Objectiveand issues

Marketingstrategy

Actionprograms

Budgets Controls

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