Company and Marketing Strategy: Partnering to Build Customer Relationships

Chapter 2 PowerPoint slides Express version

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Principles of Marketing, Sixth Canadian Edition

Learning Objectives
After studying this chapter, you should be able to:
Explain company-wide strategic planning and its four steps Discuss how to design business portfolios and develop strategies for 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 Describe the marketing process and the forces that influence it List the marketing management functions, including the elements of a marketing plan
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2.2

Principles of Marketing, Sixth Canadian Edition

Strategic Planning
Strategic planning:
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2.3

Developing a strategic fit between organizational goals and capabilities, and changing marketing opportunities

Steps in strategic planning:

Figure 2.1

Principles of Marketing, Sixth Canadian Edition

Mission Statements
Mission statement:
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2.4

Statement of an organizations purpose What it wants to accomplish in the larger environment Need to be specific, realistic, and motivating
Table 2.1

Company
M.A.C Cosmetics

Product-oriented definition
We make cosmetics

Market-oriented definition
We sell lifestyle and selfexpression; tolerance of diversity, and a platform for the outrageous We provide advice and solutions that transform hamhanded people into Mr. and Mrs. Fixits

Canadian Tire

We sell tools, home improvement items, and automotive parts and accessories

Principles of Marketing, Sixth Canadian Edition

BCG Growth-Share Matrix

Business portfolio Portfolio analysis Strategic business unit (SBU) Five forces driving profitability:
Barriers to entry Power of the customer Power of suppliers Presence of substitutes Competitive rivalry within industry

2.5

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Figure 2.2

Principles of Marketing, Sixth Canadian Edition

Strategies for SBUs

Porter:
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2.6

Overall cost leadership Differentiation Focus

Treacy and Wiersema:

Operational excellence Product leadership Customer intimacy

Principles of Marketing, Sixth Canadian Edition

Product-Market Expansion Grid

Product-market expansion grid:
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2.7

Portfolio planning tool for identifying company growth opportunities

Figure 2.3

Principles of Marketing, Sixth Canadian Edition

Partnering to Build Customer Relationships

Marketings role in strategic planning:
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2.8

Provides a guiding philosophy Provide inputs to help identify marketing opportunities and assess potential for taking advantage of them Designs strategies for reaching objectives

Partner relationship management Value chain Value delivery network

Principles of Marketing, Sixth Canadian Edition

The Marketing Process

The marketing process:
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2.9

Analyzing marketing opportunities Selecting target markets Developing the marketing mix, and Managing the marketing effort

Figure 2.4

Market segmentation Target marketing Market positioning

Principles of Marketing, Sixth Canadian Edition

The Four Ps of the Marketing Mix

The marketing mix:
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2.10

Figure 2.5

Set of controllable, tactical marketing tools Blended to produce the desired response in the target market

Principles of Marketing, Sixth Canadian Edition

The Four Ps Versus Cs

Product
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2.11

Customer solution

Price

Customer cost

Place

Convenience

Promotion

Communication

Principles of Marketing, Sixth Canadian Edition

Managing the Marketing Effort

Four marketing management functions:
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2.12

Marketing analysis Marketing planning Implementation Control

Figure 2.6

Principles of Marketing, Sixth Canadian Edition

Contents of a Marketing Plan

Executive summary Current marketing situation
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2.13

Market description, product review, competition, and distribution

Threat and opportunity analysis Objectives and issues Marketing strategy Action program Budgets Controls
Table 2.2

Principles of Marketing, Sixth Canadian Edition

The Control Process

Marketing control Marketing audit
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2.14

Figure 2.7

Set goals What do we want to achieve?

Measure performance
What is happening?

Evaluate performance
Why is it happening?

Take corrective action

What should we do about it?

Principles of Marketing, Sixth Canadian Edition

In Conclusion
The learning objectives for this chapter were:
Explain company-wide strategic planning and its four steps Discuss how to design business portfolios and develop strategies for 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 Describe the marketing process and the forces that influence it List the marketing management functions, including the elements of a marketing plan
Copyright 2005 Pearson Education Inc.

2.15

Principles of Marketing, Sixth Canadian Edition