Company

&
marketing
strategy
TOPIC OUTLINE
• Companywide Strategic Planning: Defining
Marketing’s Role
• Designing the Business Portfolio
• Planning Marketing
• Marketing Strategy and the Marketing Mix
• Managing the Marketing Effort
• Measuring and Managing Return on
Marketing Investment
STRATEGIC PLANNING

• Strategic planning: the process of developing

and maintaining a strategic fit between the
organization’s goals and capabilities and its
changing marketing opportunities.
STRATEGIC PLANNING

• Strategic planning sets the stage for the rest

of the planning in the firm.

• Companies usually prepare annual plans,

long-range plans, and strategic plans.
STRATEGIC PLANNING
• The annual and long-range plans deal with
the company’s current businesses and how
to keep them going.

• The strategic plan involves adapting the

firm to take advantage of opportunities in
its constantly changing environment.
STRATEGIC PLANNING

• This mission is then turned into detailed

supporting objectives that guide the whole
company.
STRATEGIC PLANNING

• Next, senior managers at the corporate

level decide what portfolio of businesses and
products is best for the company and how
much support to give each one.
STRATEGIC PLANNING
• Steps in Strategic Planning
DEFINING A MARKET-ORIENTED MISSION

• Forging a sound mission begins with the

following questions:

What is our business? Who is the customer?

What do consumers value? What should our
business be?
DEFINING A MARKET-ORIENTED MISSION
• These simple-sounding questions are among
the most difficult the company will ever
have to answer.

• Successful companies continually raise these

questions and answer them carefully and
completely.
DEFINING A MARKET-ORIENTED MISSION
• A mission statement is a statement of the
organization’s purpose and what it wants to
accomplish in the larger environment.

• A clear mission statement acts as an

“invisible hand” that guides people in the
organization.
DEFINING A MARKET-ORIENTED MISSION
• Some companies define their missions in
product or technology terms :
- “We make and sell 3G smartphones”
- “We are a chemical-processing firm”

and then run into problems when the nature

of the market changes.
DEFINING A MARKET-ORIENTED MISSION

• Theodore Levitt calls this problem

“marketing myopia” and suggests that
mission statements should be market
oriented and defined in terms of satisfying
basic customer needs.
DEFINING A MARKET-ORIENTED MISSION

We help you organize the world’s

information and make it
universally accessible and useful.
DEFINING A MARKET-ORIENTED MISSION

• Products and technologies eventually

become outdated, but basic market needs
may last forever.
DEFINING A MARKET-ORIENTED MISSION
DEFINING A MARKET-ORIENTED MISSION

• The mission should focus on customers and

the customer experience the company
seeks to create.
DEFINING A MARKET-ORIENTED MISSION
• Buffalo Wild Wings sports bar chain started
in Ohio in 1982 and now has more than
1000 locations in the U.S., Canada, and
Mexico, but doesn’t even mention wings in
its mission statement.
TASK TO DO
Present product-oriented business definitions
and market-oriented business definitions for
5 Tunisian companies.
(ZEN, Baguette & Baguette, Aziza, Tunisie
Booking, Le Sportif, BIAT, Electro Nabli, El
Mouradi, Spiga, Farm Ranch, Délice, El
Mazraa, etc.)
SETTING COMPANY OBJECTIVES & GOALS

• The company needs to turn its mission into

detailed supporting objectives for each level
of management. Each manager should have
objectives and be responsible for reaching
them.
SETTING COMPANY OBJECTIVES & GOALS

Business objectives Marketing objectives

• Increase market • Build profitable

share customer
• Invest in research relationships
• Improve profits • Create local
partnerships
• Increase promotion
DESIGNING THE BUSINESS PORTFOLIO
• Guided by the company’s mission statement
and objectives, management must plan its
business portfolio which is the collection of
businesses and products that make up the
company.
• The best business portfolio is the one that
best fits the company’s strengths and
weaknesses.
DESIGNING THE BUSINESS PORTFOLIO
• Most large companies have complex
portfolios of businesses and brands.

• Strategic and marketing planning for such

business portfolios can be a daunting but
critical task.
DESIGNING THE BUSINESS PORTFOLIO

• Portfolio analysis is a major activity in

strategic planning whereby management
evaluates the products and businesses that
make up the company
 REAL CASE EXAMPLE
Rogers is a large and diversified communications and media company
that operates a number of businesses. The company operates in four
main areas: it is Canada’s largest provider of wireless communications
services and runs a chain of retail stores; it provides cable television and
high-speed Internet services; it offers business telecom, data networking,
and IP solutions to small, medium, and large enterprises and government
customers; and it owns large-scale media assets, including television
stations, radio stations, the Toronto Blue Jays and Rogers Centre, the
Shopping Channel, and dozens of publications in English and French,
including Chatelaine, Maclean’s, Flare, Marketing, Canadian Business,
Today’s Parent, and Sportsnet, in both print and digital formats. Managing
this vast business portfolio profitably requires a combination of diligence,
skill, and talent.
REAL CASE EXAMPLE
ANALYZING THE CURRENT BUSINESS
PORTFOLIO

Strategic business units SBU can be

• Company division
• Product line within a division
• Single product or brand
ANALYZING THE CURRENT BUSINESS
PORTFOLIO
Identify key businesses (strategic business
units, or SBUs) that make up the company

Assess the attractiveness of its various

SBUs

Decide how much support each SBU

deserves
ANALYZING THE CURRENT BUSINESS PORTFOLIO

The best-known portfolio-planning method

was developed by the Boston Consulting
Group, a leading management consulting
firm.

Using the BCG approach, a company

classifies all its SBUs according to the
growth–share matrix
THE BOSTON CONSULTING GROUP APPROACH
Market attractiveness

Company strength
ANALYZING THE CURRENT BUSINESS PORTFOLIO

• Stars : Stars are high-growth, high-share

businesses or products. They often need
heavy investments to finance their rapid
growth. Eventually their growth will slow
down, and they will turn into cash cows.
ANALYZING THE CURRENT BUSINESS PORTFOLIO

• Cash Cows : Cash cows are low-growth,

high-share businesses or products. These
established and successful SBUs need less
investment to hold their market share. Thus,
they produce a lot of cash that the company
uses to pay its bills and support other SBUs
that need investment.
ANALYZING THE CURRENT BUSINESS PORTFOLIO

• Question Marks : Question marks are low-

share business units in high-growth markets.
They require a lot of cash to hold their
share, let alone increase it. Management has
to think hard about which question marks it
should try to build into stars and which
should be phased out.
ANALYZING THE CURRENT BUSINESS PORTFOLIO

• Dogs : Dogs are low-growth, low-share

businesses and products. They may generate
enough cash to maintain themselves but do
not promise to be large sources of cash.
TASK TO DO

Try to find the BCG of a well-known

company on Google and explain the
elements in the 4 strategic business units
(Stars, Cash Cows, Question Marks, Dogs).
DEVELOPING STRATEGIES FOR GROWTH AND
DOWNSIZING

• Beyond evaluating current businesses,

designing the business portfolio involves
finding businesses and products the
company should consider in the future.
DEVELOPING STRATEGIES FOR GROWTH AND
DOWNSIZING

• Companies need growth if they want to

compete more effectively, satisfy their
stakeholders, and attract top talent.
DEVELOPING STRATEGIES FOR GROWTH AND
DOWNSIZING

• A firm must be careful not to make growth

itself an objective. The company’s objective
must be to manage profitable growth.

• One useful device for identifying growth

opportunities is the product/market
expansion grid
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.
DEVELOPING STRATEGIES FOR GROWTH AND
DOWNSIZING
DEVELOPING STRATEGIES FOR GROWTH AND
DOWNSIZING
• Market penetration: A strategy for company
growth by increasing sales of current
products to current market segments
without changing the product.
• Market development: A strategy for
company growth by identifying and
developing new market segments for
current company products.
DEVELOPING STRATEGIES FOR GROWTH AND
DOWNSIZING

• Product development: A strategy for

company growth by offering modified or
new products to current market segments.
• Diversification: A strategy for company
growth through starting up or acquiring
businesses outside the company’s current
products and markets.
DEVELOPING STRATEGIES FOR GROWTH AND
DOWNSIZING
Example :
DEVELOPING STRATEGIES FOR GROWTH AND
DOWNSIZING

• Companies must not only develop strategies

for growing their business portfolios but also
strategies for downsizing them.

• There are many reasons why a firm might

want to abandon products or markets.
DEVELOPING STRATEGIES FOR GROWTH AND
DOWNSIZING

• The firm may have grown too fast or

entered areas where it lacks experience.

• The market environment might change,

making some of the company’s products or
markets less profitable.
DEVELOPING STRATEGIES FOR GROWTH AND
DOWNSIZING

• 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
DEVELOPING STRATEGIES FOR GROWTH AND
DOWNSIZING

• When a firm finds brands or businesses that

are unprofitable or that no longer fit its
overall strategy, it must carefully prune or
divest them.
DEVELOPING STRATEGIES FOR GROWTH AND
DOWNSIZING
Examples : Procter & Gamble (2012)

$2.7 Billion
In order to focus on household care and
beauty and grooming products.
DEVELOPING STRATEGIES FOR GROWTH AND
DOWNSIZING
Examples :
has pruned several underperforming brands
from its portfolio, including :
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
PARTNERING TO BUILD CUSTOMER RELATIONSHIPS

• 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