Principles of Marketing

Chapter II
Marketing Strategy and Corporate Strategy

Chapter 2- slide 1
 Corporate and Marketing Strategy
Topic Outline

• Understand the Marketing role in the companywide

strategic planning.

Francois Gaucher - Principals of Marketing Chapter 2- slide 2

 Corporate and Marketing Strategy
Strategic Planning and Marketing Strategy

Corporate Strategic planning:

 The process of determining a company's long-term goals and
identifying the best approach for achieving those goals by
considering the environment opportunities and threats and the
firm’s strengths and weaknesses.
 “Long Term” oriented (Time is culture-bound term)

 3 to 5 years (western countries)

 Beyond 10 years in Asian countries

Francois Gaucher - Principals of Marketing Chapter 2- slide 3

 Corporate and Marketing Strategy
Strategic Planning and Marketing Strategy

Marketing Strategy:
 Defines the selected customers to target, the product
positioning, and the ideal product mix (product, price,
promotion, place), and other action programs to reach corporate
goals.
 The marketing strategy is set out in a marketing plan.

Francois Gaucher - Principals of Marketing Chapter 2- slide 4

 Corporate and Marketing Strategy
Strategic Planning and Marketing Strategy

Corporate Level Functional Level

Functional Srategies:
Corporate Strategic Marketing Strategy, HR Strategy,
Planning IT Strategy, Production Strategy,
etc.

Francois Gaucher - Principals of Marketing Chapter 2- slide 5

 Corporate and Marketing Strategy
Strategic Planning and Marketing Strategy

Business objectives Marketing objectives

•Increase market •Increase promotion
share by 10% with budget
new products •Hire new sales force
•Invest in R&D to •Increase pricing of
develop new products slow moving items
•Improve profits by 2% •Invest in social media
and CRM to innovate
through crowd
sourcing.

Francois Gaucher - Principals of Marketing Chapter 2- slide 6

 Marketing Organization and Strategy
Marketing Department Organization

Functional Organization

Mixed Organization
Geographic Organization

Business Unit / Product Organization

Market /Customer Organization

Francois Gaucher - Principals of Marketing Chapter 2- slide 7

 Marketing Organization and Strategy
Marketing Department Organization
• The most common form of marketing organization is the
functional organization. Under this organization functional
specialists head the various marketing activities.

Chief Marketing
Officer
Supermarkets

Stores
Category
CRM Pricing Simulations Promotions location and
Management
Layouts

Referencing

Francois Gaucher - Principals of Marketing Chapter 2- slide 8

 Principals of Marketing
Components of Marketing Strategy

Francois Gaucher - Principals of Marketing Chapter 2- slide 9

 Marketing Organization and Strategy
Developing the Marketing Strategy

The Marketing Strategy is defined by the STP model and

the 4 Ps model

STP model 4Ps model

Marketing Strategy is about segmenting the market, targeting the right customers,
and positioning your products/services correctly on the targeted market.

Francois Gaucher - Principals of Marketing Chapter 2- slide 10

 Marketing Organization and Strategy
Developing the Marketing Strategy
Market Segmentation
• Identify bases for Segmentation
Identify your market segments “you
• Determine important characteristics of each cannot please everyone”
market segments

Market Targeting
zero in on the segments that you feel will be
• Evaluate attractiveness of each segments
• Select one or more segments
the most profitable for your business

Market Positioning how to place your product effectively in

• Develop detailed product positioning for each
segments
• Develop a marketing Mix for each segment
front of the market segments you selected?
How your product stands out from
competitors?

Francois Gaucher - Principals of Marketing Chapter 2- slide 11

 Marketing Organization and Strategy
Developing the Marketing Mix

• Product positioning must be supported by the

marketing mix

Francois Gaucher - Principals of Marketing Chapter 2- slide 12

 Marketing Organization and Strategy
Developing the Marketing Mix

• Marketing mix: One of the major

concepts in modern marketing
• Marketing mix is the set marketing
tools under the firm control: Product,
Price, Place, and Promotion.
• The firm blends these variables to
produce the response it wants in the
target market

Francois Gaucher - Principals of Marketing Chapter 2- slide 13

 Marketing Organization and Strategy
Developing the Marketing Mix

• Product. the goods-and-services combination the company

offers to the target market.
• Price. the amount of money customers pay to obtain the
product.
• Place. company activities that make the product available
to target consumers.
• Promotion. activities that communicate the merits of the
product and persuade target customers to buy it.

Francois Gaucher - Principals of Marketing Chapter 2- slide 14

 Marketing Organization and Strategy
Developing the Marketing Mix

PRODUCT PRICE PLACE PROMOTION

Quality List Price Channels Advertising
Design Discounts Coverage Personal selling
Brand name Credit Terms Transportation Direct Marketing
Features Entrance into the Locations Sales Promotion
Packaging market Logistics Public relations
Services

Francois Gaucher - Principals of Marketing Chapter 2- slide 15

 Marketing Organization and Strategy
The Marketing Process
Create Manage Capture
Value Relationships Value
1 2 3 4 5

Understand
Design a Construct the Build Capture
the Customer
Marketing Marketing Customer
and Value
Strategy Plan Relationships
Marketplace

Analyzing the Segmenting & Product and Service Customer

Marketing Targeting design Create Satisfied,
Relationship
Environment Loyal customers
Management
Pricing
Research Value Proposition: Partners
Differentiating and Capture Customer
Place Relationship
Positioning Lifetime Value
Marketing (Distribution) Management
Information System Promotion: Increase share of
communicate the Market and share of
value proposition Customer

Francois Gaucher - Principals of Marketing Chapter 2- slide 16