Company and Marketing

Strategy: Partnering to Build

Customer Engagement, Value, and
Relationships

Chapter 2
 Strategic
Planning
ORGANIZATIONAL
MARKETING
CAPABILITIES AND
OPPORTUNITIES
GOALS
 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.”

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 Steps in the
Strategic Planning Process

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 Marketing Management
Market-Oriented Mission
A mission A mission statement
statement asks.. should be:
 What is our  An “invisible hand”
business?  Neither too narrow nor
 Who is the too broad
customer?  Fitting of market
 What do environment
consumers value?  Based on distinctive
 What should our competencies
business be?  Motivating

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 Sample Mission

“We help you organize the world’s

information and make it universally
accessible and useful.”
Disney
“We create fantasies—
a place where dreams
come true and
America still works the
way it’s supposed to”
 Strategic Planning
Company Objectives must tie
to Marketing Objectives

Company Mission
Business Objectives

Marketing Objectives
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 Analyze Portfolio
Business portfolio:
“the collection of businesses and products that make up the
company.”
 Strategic Planning

 Designing the business

portfolio is a key step in
the strategic planning
process.
 The best portfolio is the one that best
fits the company’s strengths and
weaknesses to opportunities in the
environment.

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 The Business Portfolio
Business portfolio planning involves two
steps:
1. Analyzing the current business
portfolio
2. Shaping the future portfolio by
developing strategies

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 Strategic Planning
Identify strategic
Portfolio Design business units (SBUs)
Assess each SBU:
Step 1:
 The BCG growth-
Analyze the share matrix
current business classifies SBUs
portfolio into one of four
categories using:
Step 2:
 Market growth rate
Shape the future
 The SBU’s relative
business market share within
portfolio the market.
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 SBUs
A strategic business unit (SBU) is a
unit of the company that has a
separate mission and objectives and
that can be planned independently
from other company businesses.
Portfolio analysis calls for
management to assess the
attractiveness of its various SBUs and
decide how much support each
deserves.
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 Portfolio - BCG Matrix
HIGH
Market Growth Rate

$
LOW

HIGH LOW
Relative Market Share
Growth-Share Matrix

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 Analyzing Current SBU’s:
GE’s Strategic Business-Planning Grid

Business Strength
Industry Attractiveness

Strong Average Weak

C
High
A
Medium
B D

Low

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 Analyzing the Current
Marketing Management
Business Portfolio
 Build  Harvest
 Increase market  Increases short-
share term cash flow
 Good for weak
 Works well for
cash cows,
question marks question marks
 Hold and dogs
 Preserve market  Divest
share  Sell or liquidate
 Good for cash cow  Good for dogs and
question marks

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 Strategic Planning
Determine the future
Portfolio Design role of each SBU and
choose the
Step 1: appropriate resource
Analyze the allocation strategy:
current business  Build
portfolio  Hold
Step 2:  Harvest
 Divest
Shape the future
business SBUs change
positions over time
portfolio
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Strategic Planning

Develop Growth Strategies

Product / Market
Expansion Grid

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 The Marketing Process
The strategic planning
Key Elements and business portfolio
analysis processes
Analyzing marketing help to identify and
opportunities evaluate marketing
Selecting target opportunities.
markets The purpose of the
Developing the marketing process is
marketing mix to help the firm plan
how to capitalize on
Managing the
these opportunities.
marketing effort
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 The Marketing Process
The segmentation
Key Elements process divides the
total market into
Analyzing marketing market segments.
opportunities Target marketing
Selecting target chooses which
markets segment(s) are
Developing the pursued.
marketing mix
Market positioning
Managing the for the product is
marketing effort then determined.
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The Value Delivery Process

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 Marketing Strategy

Strategy  Customers grouped

by:
1. Market  Geographic

Segmentation  Demographic
 Psychographic
2. Target marketing
 Behavioral
3. Market  Market segment is a
Positioning groups of consumers
who respond in
similar ways to
marketing efforts.

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 Marketing Strategy

Strategy  Evaluation of each

segment’s
1. Market attractiveness
Segmentation  Selection of
2. Target marketing segments with
3. Market greatest long-term
Positioning profitability
 A company can
choose one or
several segments
to target
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 Marketing Strategy

Strategy  The place the product

occupies in the
consumer’s mind
1. Market
Segmentation  Products are
positioned relative to
2. Target marketing competing products
3. Market  Marketers look for
Positioning clear, distinctive and
desirable place in
positioning

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 The Marketing Process
Competitor analysis
Key Elements guides competitive
marketing strategy
development.
Analyzing marketing Strategy leads to tactics
opportunities via the marketing mix:
Selecting target  The “Four Ps” – product,
markets price, place, promotion
(seller viewpoint)
Developing the  The “Four Cs” –
marketing mix customer solution, cost,
convenience, and
Managing the communication
marketing effort (customer viewpoint)

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 Marketing Mix

The marketing mix includes controllable

and tactical marketing tools knows as the
4P’s
The 4P’s include
Product
Place
Promotion
Price

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The Marketing Mix

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 The Marketing Process
Marketing analysis
Key Elements  Provides information
helpful in planning,
implementation, and
Analyzing marketing control
opportunities Marketing planning
Selecting target  Strategies and tactics
markets Marketing
implementation
Developing the
 Turns plans into action
marketing mix
Marketing control
Managing the  Operating control
marketing effort  Strategic control

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 Managing the
Marketing Effort
Marketing Functions  Finding
opportunities
• Analysis  Avoiding threats
• Planning  Understanding
strengths
• Implementation
 Analyzing
• Control weaknesses

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Marketing Analysis

S W
Strengths Weaknesses
INTERNAL

O T
Opportunities Threats
EXTERNAL

POSITIVE NEGATIVE
 Managing the
Marketing Effort
Marketing Functions  Marketing plans include:
 Executive summary
 Analysis of current
• Analysis situation
• Planning  Objectives
• Implementation  Targets and positioning
 Marketing mix
• Control
 Budget
 Controls

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 Managing the
Marketing Effort
Marketing Functions  Plans are turned
into action with
• Analysis day-to-day
activities
• Planning
 Good
• Implementation implementation is
• Control a challenge

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 Managing the
Marketing Effort
Marketing Functions  Evaluation of the
results of
• Analysis marketing
strategies
• Planning
 Checks for
• Implementation differences
• Control between goals and
performance

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 Managing the
Marketing Effort

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The Marketing Process

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 Thank You
for
Attending the Session

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