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Company and Marketing Strategy: Partnering to Build Customer Relationships

Chapter 2

Strategic Planning
Strategic planning:
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Developing a strategic fit between organizational goals and capabilities, and changing marketing opportunities

Steps in strategic planning:

Figure 2.1

Mission Statements
Mission statement:
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Company Revlon

Statement of an organizations purpose What it wants to accomplish in the larger environment Need to be specific, realistic, and motivating
Product-oriented definition We make cosmetics

Market-oriented definition Table 2.1 We sell lifestyle and selfexpression; tolerance of diversity, and a platform for the outrageous

Nike

We sell shoes

We help people experience the emotion of competition, winning and crushing competitors
We deliver low price every day and give ordinary folks the chance to buy the sam,e things as rich people 3

Wall-Mart

We run discount store

 Business portfolio Portfolio analysis Strategic business unit (SBU)

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BCG Growth-Share Matrix

Five forces driving profitability:

Barriers to entry Power of the customer Power of suppliers Presence of substitutes Competitive rivalry within industry

Figure 2.2

Strategies for SBUs

Porter:
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Overall cost leadership Differentiation Focus

Treacy and Wiersema:

Operational excellence Product leadership Customer intimacy
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Product-Market Expansion Grid

Product-market expansion grid:
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Portfolio planning tool for identifying company growth opportunities

Figure 2.3

Partnering to Build Customer Relationships

Marketings role in strategic planning:
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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

The Marketing Process

The marketing process: Analyzing marketing opportunities Selecting target markets Developing the marketing mix, and Managing the marketing effort Market segmentation Target marketing Market positioning
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Figure 2.4

The Four Ps of the Marketing Mix

The marketing mix: Set of controllable, tactical marketing tools
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Figure 2.5

Blended to produce the desired response in the target market

The Four Ps Versus Cs

Product
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Customer solution

Price

Customer cost

Place

Convenience

Promotion

Communication

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Managing the Marketing Effort

Four marketing management functions:
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Marketing analysis Marketing planning Implementation Control

Figure 2.6

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Contents of a Marketing Plan

Executive summary Current marketing situation
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Market description, product review, competition, and distribution

Threat and opportunity analysis Objectives and issues Marketing strategy Action program Budgets Controls
Table 2.2 12

The Control Process

Marketing control Marketing audit
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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?

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Marketing Plan (Assignment)

Executive Summery Current Marketing Situation Threats and Opportunities Objectives and Issues Marketing Strategy Action Programs Budgets Control
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