Transcript Chapter – 2

Company and Marketing
Strategy: Partnering to Build
Customer Relationships
Chapter 2
Strategic
Planning
MARKETING
OPPORTUNITIES
ORGANIZATIONAL
CAPABILITIES AND
GOALS
Strategic Planning
Strategic planning is defined as:
 “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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Steps in the
Strategic Planning Process
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Marketing Management
Market-Oriented
Mission
A mission
statement asks..
 What is our
business?
 Who is the
customer?
 What do
consumers value?
 What should our
business be?
A mission statement
should be:
 An “invisible hand”
 Neither too narrow nor
too broad
 Fitting of market
environment
 Based on distinctive
competencies
 Motivating
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Sample Mission
“We help you organize the world’s
information and make it universally
accessible and useful.”
Disney
“We create fantasies—
a place where dreams
come true and
America still works the
way it’s supposed to”
Strategic Planning
Company Objectives must tie
to Marketing Objectives
Company Mission
Business Objectives
Marketing Objectives
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Analyze Portfolio
Business portfolio:
“the collection of businesses and products that make up the
company.”
Strategic Planning
 Designing the business
portfolio is a key step in
the strategic planning
process.
 The best portfolio is the one that best
fits the company’s strengths and
weaknesses to opportunities in the
environment.
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The Business Portfolio
Business portfolio planning involves two
steps:
1. Analyzing the current business
portfolio
2. Shaping the future portfolio by
developing strategies
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Strategic Planning
Portfolio Design
Step 1:
Analyze the
current business
portfolio
Step 2:
Shape the future
business
portfolio
Identify strategic
business units (SBUs)
Assess each SBU:
 The BCG growthshare matrix
classifies SBUs
into one of four
categories using:
 Market
growth rate
 The SBU’s relative
market share within
the market.
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SBUs
A strategic business unit (SBU) is a
unit of the company that has a
separate mission and objectives and
that can be planned independently
from other company businesses.
Portfolio analysis calls for
management to assess the
attractiveness of its various SBUs and
decide how much support each
deserves.
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HIGH
$
LOW
Market Growth Rate
Portfolio - BCG Matrix
HIGH
LOW
Relative Market Share
Growth-Share Matrix
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Analyzing Current SBU’s:
GE’s Strategic Business-Planning Grid
Industry Attractiveness
Business Strength
Strong
Average
High
Weak
C
A
Medium
B
D
Low
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Analyzing the Current
Marketing Management
Business Portfolio
 Build
 Increase market
share
 Works well for
question marks
 Hold
 Preserve market
share
 Good for cash cow
 Harvest
 Increases shortterm cash flow
 Good for weak
cash cows,
question marks
and dogs
 Divest
 Sell or liquidate
 Good for dogs and
question marks
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Strategic Planning
Portfolio Design
Step 1:
Analyze the
current business
portfolio
Step 2:
Shape the future
business
portfolio
Determine the future
role of each SBU and
choose the
appropriate resource
allocation strategy:




Build
Hold
Harvest
Divest
SBUs change
positions over time
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Strategic Planning
Develop Growth Strategies
Product / Market
Expansion Grid
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The Marketing Process
Key Elements
Analyzing marketing
opportunities
Selecting target
markets
Developing the
marketing mix
Managing the
marketing effort
The strategic planning
and business portfolio
analysis processes
help to identify and
evaluate marketing
opportunities.
The purpose of the
marketing process is
to help the firm plan
how to capitalize on
these opportunities.
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The Marketing Process
Key Elements
Analyzing marketing
opportunities
Selecting target
markets
Developing the
marketing mix
Managing the
marketing effort
The segmentation
process divides the
total market into
market segments.
Target marketing
chooses which
segment(s) are
pursued.
Market positioning
for the product is
then determined.
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The Value Delivery Process
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Marketing Strategy
Strategy
1. Market
Segmentation
2. Target marketing
3. Market
Positioning
 Customers grouped
by:
 Geographic
 Demographic
 Psychographic
 Behavioral
 Market segment is a
groups of consumers
who respond in
similar ways to
marketing efforts.
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Marketing Strategy
Strategy
1. Market
Segmentation
2. Target marketing
3. Market
Positioning
 Evaluation of each
segment’s
attractiveness
 Selection of
segments with
greatest long-term
profitability
 A company can
choose one or
several segments
to target
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Marketing Strategy
Strategy
1. Market
Segmentation
2. Target marketing
3. Market
Positioning
 The place the product
occupies in the
consumer’s mind
 Products are
positioned relative to
competing products
 Marketers look for
clear, distinctive and
desirable place in
positioning
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The Marketing Process
Key Elements
Analyzing marketing
opportunities
Selecting target
markets
Developing the
marketing mix
Managing the
marketing effort
Competitor analysis
guides competitive
marketing strategy
development.
Strategy leads to tactics
via the marketing mix:
 The “Four Ps” – product,
price, place, promotion
(seller viewpoint)
 The “Four Cs” –
customer solution, cost,
convenience, and
communication
(customer viewpoint)
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Marketing Mix
The marketing mix includes controllable
and tactical marketing tools knows as the
4P’s
The 4P’s include
Product
Place
Promotion
Price
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The Marketing Mix
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The Marketing Process
Key Elements
Analyzing marketing
opportunities
Selecting target
markets
Developing the
marketing mix
Managing the
marketing effort
Marketing analysis
 Provides information
helpful in planning,
implementation, and
control
Marketing planning
 Strategies and tactics
Marketing
implementation
 Turns plans into action
Marketing control
 Operating control
 Strategic control
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Managing the
Marketing Effort
Marketing Functions
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Analysis
Planning
Implementation
Control
 Finding
opportunities
 Avoiding threats
 Understanding
strengths
 Analyzing
weaknesses
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EXTERNAL
INTERNAL
Marketing Analysis
S
O
W
T
Strengths
Weaknesses
Opportunities
Threats
POSITIVE
NEGATIVE
Managing the
Marketing Effort
Marketing Functions  Marketing plans include:
 Executive
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Analysis
Planning
Implementation
Control
summary
 Analysis of current
situation
 Objectives
 Targets and positioning
 Marketing mix
 Budget
 Controls
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Managing the
Marketing Effort
Marketing Functions
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Analysis
Planning
Implementation
Control
 Plans are turned
into action with
day-to-day
activities
 Good
implementation is
a challenge
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Managing the
Marketing Effort
Marketing Functions
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Analysis
Planning
Implementation
Control
 Evaluation of the
results of
marketing
strategies
 Checks for
differences
between goals and
performance
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Managing the
Marketing Effort
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The Marketing Process
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