Company and Marketing Strategy: Partnering to Build Customer Relationships

1
Company and Marketing Strategy Partnering to
Build Customer Relationships

• Chapter 2

2
Road Map Previewing the Concepts

• Explain companywide strategic planning and its
  four steps.
• Discuss how to design business portfolios and
  growth strategies.
• Explain marketings role in strategic planning
  and how marketing works with its partners to
  create and deliver customer value.

3
Road Map Previewing the Concepts

• Describe the elements of a customer-driven
  marketing strategy and mix, and the forces that
  influence it.
• List the marketing management functions,
  including the elements of a marketing plan.

4
Strategic Planning

• The process of developing and maintaining a
  strategic fit between the organizations goals
  and capabilities and its changing marketing
  opportunities.

5
Steps in Strategic Planning

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

6
The Mission Statement

• A statement of the organizations purpose
• What it wants to accomplish in the larger
  environment
• Should be market oriented and defined in terms of
  customer needs.

7
Mission Statement Should

• Be realistic
• Be specific
• Fit the market environment
• Be based on distinctive competencies
• Be motivating

8
Designing the Business Portfolio

• The business portfolio is the collection of
  businesses and products that make up the company.
• The company must
• analyze its current business portfolio or
  Strategic Business Units (SBUs),
• decide which SBUs should receive more, less, or
  no investment,
• develop growth strategies for growth or
  downsizing.

9
Portfolio Analysis

• An evaluation of the products and business making
  up the company.
• Resources are directed to more profitable
  businesses and weaker ones are phased down or
  dropped.

10
Strategic Business Unit (SBU)

• A unit of the company that has a separate mission
  and objectives and that can be planned
  independently from other company businesses.
• Can be a company division, a product line within
  a division, or sometimes a single product or
  brand.

11
BCG Growth-Share Matrix

• Stars
• Cash Cows
• Question Marks
• Dogs

12
Problems with Matrix Approaches

• Can be difficult, time consuming, and costly to
  implement
• Difficult to define SBUs and measure market share
  and growth
• Focus on current business, not future planning
• Can place too much emphasis on growth
• Can lead to poorly planned diversification

13
Product/Market Expansion Grid

• Market Penetration
• Product Development
• Market Development
• Diversification

14
Marketings Role in Strategic Planning

• Provide a guiding philosophy
• Provide inputs to strategic planners
• Design strategies to reach objectives

15
Value Delivery Network

• Companys value chain
• Distributors
• Suppliers
• Customers

16
Market Segmentation

• The process of dividing a market into distinct
  groups of buyers with different needs,
  characteristics, or behavior who might require
  separate products of marketing programs.
• A market segment consists of consumers who
  respond in a similar way to a given set of
  marketing efforts.

17
Target Marketing

• Involves evaluating each market segments
  attractiveness and selecting one or more segments
  to enter.
• Target segments that can sustain profitability.

18
Market Positioning

• Arranging for a product to occupy a clear,
  distinctive, and desirable place relative to
  competing products in the minds of target
  consumers.
• Begins with differentiating the companys
  marketing offer so it gives consumers more value.

19
The Marketing Mix

• The set of controllable, tactical marketing tools
  that the firm blends to produce the response it
  wants in the target market.

• Consists of the 4 Ps
• Product
• Price
• Place
• Promotion

20
The 4 Ps the 4 Cs of theMarketing Mix

• 4 Ps - Sellers View
• Product
• Price
• Place
• Promotion

• 4 Cs - Buyers View
• Customer Solution
• Customer Cost
• Convenience
• Communication

21
Sections of Product/Brand Plan

• Executive summary
• Current marketing situation
• Analysis of threats and opportunities
• Objectives for the brand
• Marketing strategy
• Action programs
• Marketing budget
• Controls

22
Marketing Department Organization

• Functional Organization
• Geographic Organization
• Product Management Organization
• Market or Customer Organization
• Combination

23
Marketing Control Process

• Set Goals
• Measure Performance
• Evaluate Performance
• Take Corrective Action

24
Rest Stop Reviewing the Concepts

• Explain companywide strategic planning and its
  four steps.
• Discuss how to design business portfolios and
  develop strategies growth and downsizing.
• Assess marketings role in strategic planning and
  explain how marketers partner with others inside
  and outside the firm to build profitable customer
  relationships.

25
Rest Stop Reviewing the Concepts

• Describe the elements of a customer-driven
  marketing strategy and mix, and the forces that
  influence it.
• List the marketing management functions,
  including the elements of a marketing plan.