Chapter 2: Company and Marketing Strategy: Partnering to Build Customer Relationships

 

Objectives
  • •Understand company-wide strategic planning and its four steps.
  • •Learn how to design business portfolios and develop strategies for growth and downsizing.
  • •Understand marketing’s role in strategic planning and how marketers partner with others.
 
  • •Be able to describe the marketing process and the forces that influence it.
  • •Learn the marketing management functions, including the elements of the marketing plan.

 

 

Please Open The Following Figures In Different Windows and Leave Them Open:

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Animated Table 2-02  .

 

Case Study
Walt Disney Company
  • •Known for films, animation, theme parks and customer orientation
  • •Parks offer a variety of attractions as well as cleanliness, order, and warmth
 

 
  • •Satisfying the customer is everyone’s job
  • •Disney has grown via diversification
  • •Sales and net income have fallen

 

Discussion:  How Can Disney Recover?

 

 

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.”

 

 

Strategic Planning
•Planning activities occur at the business unit, product, and market levels, and include:
  • §Defining the purpose and mission
  • §Setting objectives and goals
  • §Designing the business portfolio
  • §Developing detailed marketing and departmental plans
 

 

 

Strategic Planning
•Mission statements should . . .
  • §serve as a guide for what the organization wants to accomplish.
  • §be “market-oriented” rather than “product-oriented”.
  • §be neither too narrow, nor too broad.
  • §fit with the market environment.
  • §be motivating.
 

 

 

Strategic Planning
•Mission statements guide the development of objectives and goals.
  • §Objectives are developed at each level in the organization hierarchy.
  • §Strategies are developed to accomplish these objectives.
 

 

 

Strategic Planning
  • •Business portfolio:
    “the collection of businesses
    and products that make up
    the company.”

     

  • •Designing the business portfolio
    is a key element of the strategic planning process.

 

 

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 growth-share matrix classifies SBUs into one of four categories using the:
  • Market growth rate
  • SBU’s relative market share within the market.
 

 

 

 

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
 

 

 

 

 

Strategic Planning
•Matrix approaches to formal planning share many problems:
  • §Difficult, time-consuming, and costly to implement.
  • §Focus only on current businesses.
  • §Too strongly emphasize market share growth or growth via diversification.
 

 

 

Strategic Planning
•Designing the business portfolio also involves:
  • §Developing strategies for growth by identifying, evaluating, and selecting promising new market opportunities.
  •  Product/market expansion grid
  • §Developing strategies for downsizing the business portfolio.

 

 

 

 

Planning Marketing
  • •Marketing plays a key role in the strategic planning process.
  • •Marketers must practice CRM and Partner Relationship Management.
  • §Partnering with other departments in the company as well as other firms in the marketing system helps to build a superior value delivery-network.
 

 

 

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.

 

 

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 determines which segment(s) are pursued.
  • •The market positioning for the product is then determined.
 

 

 

 

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 by way of the marketing mix:
  • §The “Four Ps” – product, price, place, promotion (seller viewpoint)
  • §The “Four Cs” – customer solution, cost, convenience, and communication (customer viewpoint)
 

 

 

 

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
v        Marketing audit
 

 

 

 

Chapter 2: Company and Marketing Strategy: Partnering to Build Customer Relationships

Study Guide
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Study Guide
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  • Chapter Outline

 

 
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Chapter 2: Company and Marketing Strategy: Partnering to Build Customer Relationships

 

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