Company and Marketing

Strategy: Partnering to Build

Customer Relationships

Chapter 2
 Learning Goals
1. Explain strategic planning
2. Describe business portfolios and
growth strategies
3. Detail marketing’s role in strategic
planning
4. Describe elements of customer-
driven marketing strategy
5. List the marketing management
functions
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 What is Strategic
Planning?
Strategic Planning Defined:
 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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Goal 1: Explain strategic planning
 Marketing Management
Market-Oriented Mission
A mission A mission statement
statement asks.. should be:
 What is our  An “invisible hand”
business?  Neither too narrow nor
 Who is the too broad
customer?  Fitting of market
 What do environment
consumers value?  Based on distinctive
 What should our competencies
business be?  Motivating

2-4
Goal 1: Explain strategic planning
 The Business Portfolio

A business portfolio is the collection

of businesses and products that
make up the company
Business portfolio planning involves
two steps:
1. Analyzing the current business portfolio
2. Shaping the future portfolio by
developing strategies
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Goal 2: Describe business portfolios and growth strategies
 Analyzing the Current
Marketing Management
Business Portfolio
The Boston Group Approach

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Goal 2: Describe business portfolios and growth strategies
 Analyzing the Current
Marketing Management
Business Portfolio
 Build  Harvest
 Increase market  Increases short-
share term cash flow
 Works well for  Good for weak
cash cows,
question marks question marks
 Hold and dogs
 Preserve market  Divest
share  Sell or liquidate
 Good for cash cow  Good for dogs and
question marks
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Goal 2: Describe business portfolios and growth strategies
Companywide Strategic Planning
Marketing Management
Defining Marketing’s Role
Developing Strategies for Growth and Downsizing

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Goal 2: Describe business portfolios and growth strategies
 Marketing Strategy
Strategy  Customers grouped
by:
• Geographic
1. Market • Demographic
Segmentation • Psychographic
• Behavioral
2. Target marketing  Market segment is a
3. Market groups of consumers
Positioning who respond in
similar ways to
marketing efforts.

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Goal 4: Describe elements of customer-driven strategy
 Marketing Strategy
Strategy  Evaluation of each
segment’s
1. Market attractiveness
 Selection of
Segmentation segments with
2. Target marketing greatest long-term
profitability
3. Market  A company can
Positioning choose one or
several segments to
target

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Goal 4: Describe elements of customer-driven strategy
 Marketing Strategy
Strategy  The place the
product occupies in
1. Market the consumer’s mind
 Products are
Segmentation positioned relative
2. Target marketing to competing
products
3. Market  Marketers look for
Positioning clear, distinctive and
desirable place in
positioning

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Goal 4: Describe elements of customer-driven strategy
 Managing the
Marketing Effort
Marketing Functions  Finding
opportunities
• Analysis  Avoiding threats
 Understanding
• Planning
strengths
• Implementation  Analyzing
• Control weaknesses

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Goal 5: List the marketing management functions
 Managing the
Marketing Effort
• Analysis • Strengths and
 S= Strengths weakness are
 W= Weakness internal
 O= Opportunity • Opportunity and
 T= Threats threats are
external

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 Managing the
Marketing Effort
Marketing Functions  Marketing plans include:
• Executive summary
• Analysis of current
• Analysis situation
• Objectives
• Planning • Targets and positioning
• Marketing mix
• Implementation • Budget
• Controls
• Control

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Goal 5: List the marketing management functions
 Managing the
Marketing Effort
Marketing Functions  Plans are turned
into action with
• Analysis day-to-day
activities
• Planning  Good
• Implementation implementation is
• Control a challenge

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Goal 5: List the marketing management functions
 Managing the
Marketing Effort
Marketing Functions  Evaluation of the
results of
• Analysis marketing
strategies
• Planning  Checks for
• Implementation differences
• Control between goals
and performance

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Goal 5: List the marketing management functions
Measuring Effectiveness

Return on marketing (marketing

ROI)
 The net return from a marketing
investment divided by the costs of
the investments

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Goal 5: List the marketing management functions
 Activity
• You are a owner of business
 The target market
• Why it is attractive to you
• How it is profitable
 Market Positioning
• The place the product occupies in the
consumer’s mind
• How the product is positioned relative to
competing products
• How your product have clear, distinctive and
desirable place in consumer mind

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 Assignment #1

• Select an organization Mission

Statement and explain in terms of
what mission statement ask…
Or
• Explain the SWOT Analysis of any
Organization

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