Company and Marketing Strategy: Partnering to Build Customer Relationships

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.

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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.

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

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Steps in Strategic Planning

1. Analyzing opportunities & Threats, competitors 2. Researching & Selecting Target Markets (Defining the company mission, objectives and goals) 3. Designing the Marketing Strategy 4. Developing Tools 5. Organising & Controlling efforts

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.

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Mission Statement Should:

Be realistic
Be specific

Fit the market environment

Be based on distinctive competencies

Be motivating

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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.

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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.

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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.

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BCG Growth-Share Matrix

Stars Cash Cows Question Marks Dogs

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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
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Product/Market Expansion Grid

Market Penetration Product Development Market Development Diversification

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Marketings Role in Strategic Planning Provide a guiding philosophy

Provide inputs to strategic planners

Design strategies to reach objectives

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Value Delivery Network

Companys value chain
Distributors

Suppliers
Customers

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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.

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Target Marketing
Involves evaluating each market segments attractiveness and selecting one or more segments to enter.

Target segments that can sustain profitability.

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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.

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The Marketing Mix

The set of Consists of the 4 Ps controllable, 1. Product tactical marketing 2. Price tools that the firm 3. Place blends to produce 4. Promotion the response it wants in the target market.
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The 4 Ps & the 4 Cs of the Marketing Mix

4 Ps - Sellers View 4 Cs - Buyers View
Product Price Place Promotion Customer Solution Customer Cost Convenience Communication

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Sections of Product/Brand Plan

1. Executive summary

2. Current marketing situation

3. Analysis of threats and opportunities

4. Objectives for the brand

5. Marketing strategy 6. Action programs 7. Marketing budget 8. Controls
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Marketing Department Organization

Functional Organization
Geographic Organization

Product Management Organization

Market or Customer Organization

Combination

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Marketing Control Process

Set Goals
Measure Performance

Evaluate Performance
Take Corrective Action

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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.
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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.

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