Chap 02 - Company and Marketing Strategy - Partnering To Build Customer Relationships

Ch 2 -0
Copyright 2011 Pearson Education
Principles of Marketing,
Arab World Edition
Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed

Tolba
Presentation prepared by Annelie Moukaddem Baalbaki
CHAPTER TWO
Company and Marketing Strategy:
Partnering to Build Customer
Relationships
Lecturer: Insert your name here
Ch 1
2 -2
-1
Ch
Copyright
2011
Pearson
Education
Copyright
2011
Pearson
Education
Company and Marketing Strategy

Topic Outline
2.1 Companywide Strategic Planning: Defining Marketings

Role
2.2 Designing the Business Portfolio
2.3 Planning Marketing: Partnering to Build Customer
Relationships
2.4 Marketing Strategy and the Marketing Mix
2.5 Managing the Marketing Effort
2.6 Measuring and Managing Return on Marketing Investment
Ch 2 -2
Companywide Strategic Planning

Strategic Planning
Strategic planning is the process of developing and

maintaining a strategic fit between the organizations goals
and capabilities and its changing marketing opportunities.
Ch 2 -3
Ch 2 -4

Defining a Market-Oriented Mission
The mission statement is the organizations purpose; what it

wants to accomplish in the larger environment.
A market-oriented mission statement defines the business
in terms of satisfying basic customer needs.
Ch 2 -5
Ch 2 -6

Setting Company Objectives and Goals
The company needs to turn its mission statement into

detailed supporting objectives for each level of
management.
Ch 2 -7
Designing the Business Portfolio
The business portfolio is the collection of businesses and

products that make up the company.
Portfolio analysis is a major activity in strategic planning,
whereby management evaluates the products and businesses
that make up the company.
Ch 2 -8
Designing The Business Portfolio

Analyzing the Current Business Portfolio
Strategic business unit (SBU) is a unit of the company that

has a separate mission, and objectives that can be planned
separately from other company businesses.
Company division
Product line within a division
Single product or brand
Ch 2 -9

Analyzing the Current Business Portfolio
Ch 2 -10
Companywide Strategic Planning:

The Boston Consulting Group Approach
Ch 2 -11

Problems with Matrix Approaches
Difficulty in defining SBUs and measuring market share and

growth
Time consuming
Expensive
Focus on current businesses, not future planning
Ch 2 -12

Developing Strategies for Growth and Downsizing
Product/market expansion grid is a portfolio planning tool for

identifying company growth opportunities through:
market penetration
market development
product development
diversification
Ch 2 -13

Market penetration is a growth strategy increasing sales to

current market segments without changing the product.
Market development is a growth strategy identifying and
developing new market segments for current products.
Ch 2 -14

Product development is a growth strategy through offering

new or modified products to current market segments.
Diversification is a growth strategy through starting up or
acquiring businesses outside the companys current products
and markets.
Ch 2 -15

Downsizing is the reducing of the business portfolio by

eliminating products or business units that are not profitable
or that no longer fit the companys overall strategy.
Ch 2 -16
Planning Marketing: Partnering to Build Customer

Relationships
Partnering with Other Company Departments
Value chain is a series of departments that carry out valuecreating activities to design, produce, market, deliver, and
support a firms products.
Ch 2 -17
Planning Marketing
Partnering with Others in the Marketing System
Value delivery network is made up of the company,

suppliers, distributors, and ultimately the customers who
partner with each other to improve performance of the
entire system.
Ch 2 -18
Marketing Strategy and the Marketing Mix
Ch 2 -19

Customer-Driven Marketing Strategy
Market segmentation is the division of a market into distinct

groups of buyers who have distinct needs, characteristics, or
behavior and who might require separate products or
marketing mixes.
Market segment is a group of consumers who respond in a
similar way to a given set of marketing efforts.
Ch 2 -20

Customer-Driven Marketing Strategy
Market targeting is the process of evaluating each market

segments attractiveness and selecting one or more
segments to enter.
Market positioning is the arranging for a product to occupy a
clear, distinctive, and desirable place relative to competing
products in the minds of the target consumer.
Ch 2 -21

Developing an Integrated Marketing Mix
Marketing mix is the set of controllable tactical marketing

toolsproduct, price, place, and promotionthat the firm
blends to produce the response it wants in the target market.
Ch 2 -22

Developing an Integrated Marketing Mix
Ch 2 -23
Managing the Marketing Effort
Ch 2 -24
Ch 2 -25

Market Planning
Parts of a Marketing Plan
Ch 2 -26

Marketing Implementation
Implementing is the process that turns marketing plans into

marketing actions to accomplish strategic marketing
objectives.
Successful implementation depends on how well the company
blends its people, organizational structure, its decision and
reward system, and company culture into a cohesive action
plan that supports its strategies.
Ch 2 -27

Marketing Department Organization
Ch 2 -28

Marketing Control
Marketing Control is the process of measuring and evaluating

the results of marketing strategies and plans and taking
corrective action to ensure that objectives are achieved.
Operating control
Strategic control
Ch 2 -29
Measuring and Managing Return on Marketing

Investment
Return on Marketing Investment (Marketing ROI)
Return on marketing investment (Marketing ROI) is the net

return from a marketing investment divided by the costs of the
marketing investment.
Marketing ROI provides a measurement of the profits
generated by investments in marketing activities.
Ch 2 -30
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Ch 2 -31

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Ch 2 -0

Copyright 2011 Pearson Education

Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed

Company and Marketing Strategy

2.1 Companywide Strategic Planning: Defining Marketings

Copyright 2011 Pearson Education

Companywide Strategic Planning

Strategic planning is the process of developing and

Copyright 2011 Pearson Education

Companywide Strategic Planning

Copyright 2011 Pearson Education

Companywide Strategic Planning

The mission statement is the organizations purpose; what it

Copyright 2011 Pearson Education

Companywide Strategic Planning

Copyright 2011 Pearson Education

Companywide Strategic Planning

The company needs to turn its mission statement into

Copyright 2011 Pearson Education

Designing the Business Portfolio

The business portfolio is the collection of businesses and

Copyright 2011 Pearson Education

Designing The Business Portfolio

Strategic business unit (SBU) is a unit of the company that

Product line within a division

Single product or brand

Copyright 2011 Pearson Education

Companywide Strategic Planning

Copyright 2011 Pearson Education

Companywide Strategic Planning:

Copyright 2011 Pearson Education

Companywide Strategic Planning

Difficulty in defining SBUs and measuring market share and

Focus on current businesses, not future planning

Copyright 2011 Pearson Education

Companywide Strategic Planning

Product/market expansion grid is a portfolio planning tool for

Copyright 2011 Pearson Education

Companywide Strategic Planning

Market penetration is a growth strategy increasing sales to

Copyright 2011 Pearson Education

Companywide Strategic Planning

Product development is a growth strategy through offering

Copyright 2011 Pearson Education

Companywide Strategic Planning

Downsizing is the reducing of the business portfolio by

Copyright 2011 Pearson Education

Planning Marketing: Partnering to Build Customer

Copyright 2011 Pearson Education

Value delivery network is made up of the company,

Copyright 2011 Pearson Education

Marketing Strategy and the Marketing Mix

Copyright 2011 Pearson Education

Marketing Strategy and the Marketing Mix

Market segmentation is the division of a market into distinct

Copyright 2011 Pearson Education

Marketing Strategy and the Marketing Mix

Market targeting is the process of evaluating each market

Copyright 2011 Pearson Education

Marketing Strategy and the Marketing Mix

Marketing mix is the set of controllable tactical marketing

Copyright 2011 Pearson Education

Marketing Strategy and the Marketing Mix