Company and

Marketing Strategy
Chapter 2
Partnering to build customer
engagement, value and relationships
 Learning Objectives

1 2 3 4 5
Explain company- Discuss how to Explain marketing Describe the List the marketing
wide strategic design business role in strategic elements of a management
planning and its portfolios and planning and how customer-driven functions, including
marketing works marketing strategy marketing analysis,
four steps develop growth
with its partners to and mix and the planning,
strategies create and deliver forces that influence implementation and
customer value it control
Learning Objective 1

Explain company-wide
strategic planning and its
four steps
 STRATEGIC PLANNING
“The process of developing and maintaining a strategic fit between the organization’s goals and
capabilities and its changing marketing opportunities.”
Companies prepare:
◦ Annual plans
deals with company’s current business and how to keep them going
◦ Long-range plans
◦ Strategic plans involves adapting the firm to take advantage of opportunities in its constantly changing
environment

Planning
Setting company
Defining the Designing the marketing and
objectives and
company mission business portfolio other functional
goals
strategies

STEPS IN STRATEGIC PLANNING

 A statement of the
organization’s purpose-
what it wants to
accomplish in the larger
environment

1. Mission statements:
• Should be market oriented and not product oriented (myopic)
• Should be meaningful and specific yet motivating.
• Should not be stated as making more sales and profits- profits are
only a reward for creating value for customers.
 A MISSION
DEFINING THE STATEMENT
COMPANY addresses:
MISSION • What is our business?
• Who is the customer?
• What do customers value?
• What should our business
be?
Product vs Market Oriented Business Definitions
 ❖Goals tell you where you want to
go; objectives tell you exactly how to get there.
❖Goals can increase your
effectiveness; objectives back your goals and
make you more efficient.
❖Goals are typically described in
2. SETTING words; objectives often come with numbers
and specific dates.

COMPANY • Example:

OBJECTIVES • Increase the market share. (Goal)

• To increase the sale of product by 10% at each
outlet. (Objective)
AND GOALS
• To increase awareness of product among
customers (Goal)
• Placing two billboards in Islamabad (objective)
• Distribute brochures in university this week
(objective)
Learning
Objective 2
Discuss how to design business
portfolios and develop growth
strategies
 ANALYZING THE
CURRENT BUSINESS CURRENT BUSINESS
PORTFOLIO

PORTFOLIO

3. DESIGNING
THE BUSINESS
PORTFOLIO Business portfolio: Portfolio analysis: the
process by which
Strategic business unit
(SBUs): it is the first
Growth-share matrix:
A portfolio-planning
the collection of
businesses and management step to identify the method that evaluates
evaluates the key business that a company’s strategic
products that make products and make up the company. business units in
up the company. businesses that make SBU can be company terms of its market
up the company. division, a product growth and relative
line within a division market share. SBUs
or a single product or are classified as stars,
brand. cash cows, question
marks, or dogs.
ANALYZING THE CURRENT BUSINESS PORTFOLIO

SBU Strategies:

• Build
• Hold
• Harvest
• Divest
3. DESIGNING ◦ Product/market expansion grid: A portfolio-planning tool for identifying
company growth opportunities through market penetration, market development,
THE BUSINESS product development, or diversification.
PORTFOLIO Products

Product
Market M
Expansion a
Grid r
k
e
t
s
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.
• Product development: A strategy for company growth by offering modified or
new products to current market segment.
• Diversification: A strategy for company growth through starting up or
acquiring business outside the company’s current products and markets.
• Downsizing: Reducing the business portfolio by eliminating products of
business units that are not profitable or that no longer fit the company’s overall
strategy.
Learning Objective 3

Explain marketing role in

strategic planning and how
marketing works with its
partners to create and deliver
customer value
4.Planning marketing: Partnering to build
customer relationship
Value chain: the series of internal
departments that carry out value-
PARTNERING WITH OTHER COMPANY
creating activities to design, produce,
DEPARTMENTS
market, deliver, and support a firm’s
products.

Value delivery network: The network

made up of the company, suppliers,
PARTNERING WITH OTHERS IN THE distributors, and ultimately, customers
MARKETING SYSTEM who partner with each other to
improve the performance of the entire
system.
Value chain
example
• https://www.youtube.com/w
atch?v=QU3dRhXmC_8
Learning
Objective 4
Describe the elements of a
customer-driven marketing
strategy and mix and the forces
that influence it
Customer Value-Driven Marketing Strategy
 MARKET SEGMENTATION: MARKET TARGETING:
CUSTOMER- “Dividing a market into distinct “The process of evaluating
DRIVEN groups of buyers who have different
needs, characteristics, or behaviors,
each market segments
attractiveness and selecting
and who might require separate
MARKETING marketing strategies or mixes.” one or more segments to
enter.”
Consumers can be grouped and
STRATEGY served in various ways based on
geographic, demographic,
Example of Outfitters:
psychographic, and behavioral • Outfitter junior for kids
factors.
• Ethnic for ladies
• Outfitters for youngsters
• Market Segment: A group of
consumers who respond in a
similar way to a given set of
marketing efforts.
CUSTOMER-DRIVEN MARKETING STRATEGY

“Arranging for a product to

occupy a clear, distinctive, and
POSITIONING desirable place relative to
competing products in the
minds of target consumers.”

“Actually differentiating the

DIFFERENTIATION: market offering to create
superior customer value”
INTEGRATED MARKETING MIX
“The set of controllable tactical marketing tools (product, price, place, and promotion) that the firm
blends to produce the response it wants in the target market.”

Product: Price: Place: Promotion:

The goods and It is the amount of It includes company Activities that communicate
service combination money customers activities that make the merits of the product
the company offers must pay to obtain the product available and persuade target
to the target market the product. to target customers. customers to buy it.
Developing
an Integrated
Marketing
Mix
INTEGRATED
MARKETING MIX 4Ps 4As

• 4Ps concept takes the

Product Acceptability
seller view of the
market, not the Price Affordability
buyer’s view. From
buyer’s perspective Place Accessibility
4Ps can be described
as 4As Promotion Awareness
Learning
Objective 5
List the marketing management
functions, including marketing
analysis, planning, implementation
and control
MARKETING ANALYSIS
 • Starbucks SWOT Analysis example
• https://www.youtube.com/watch?v=mR9eIC
QJLXA

SWOT • Read SWOT analysis and sustainable

Analysis business planning An IKEA case study
Marketing Planning
• Strategic planning helps the company to decide what it
wants to do with each business unit.

• Marketing plan involves deciding on marketing strategies

that will help the company to attain its overall strategic
objectives.
Implementation and Control
• Marketing Implementation
The process that turns marketing strategies and plans into
marketing actions in order to accomplish strategic marketing
objectives.

• Marketing Control
The process of measuring and evaluating the results of
marketing strategies and plans and taking corrective actions
to ensure that objectives are achieved