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Company and Marketing Strategy: Partnering to Build Customer Relationships: 

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

Objectives: 

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.

Objectives: 

Objectives 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.

Case Study: 

Case Study 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 Walt Disney Company Discussion: How Can Disney Recover?

Strategic Planning: 

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: 

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: 

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: 

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: 

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: 

Strategic Planning 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. Portfolio Design

Strategic Planning: 

BCG Growth-Share Matrix Strategic Planning High Relative Market Share High Market Growth Low Market Growth Stars Cash Cows Question Marks Dogs Low Relative Market Share

Strategic Planning: 

Strategic Planning 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 Portfolio Design

Strategic Planning: 

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: 

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.

Strategic Planning: 

Product/Market Expansion Grid Strategic Planning Existing Products New Products Existing Markets New Markets Market Penetration Market Development Product Development Diversification

Planning Marketing: 

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: 

The Marketing Process 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. Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort Key Elements

The Marketing Process: 

The Marketing Process 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. Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort Key Elements

The Marketing Process: 

The Marketing Process 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) Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort Key Elements

The Marketing Process: 

The Marketing Process 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 Marketing audit Analyzing marketing opportunities Selecting target markets Developing the marketing mix Managing the marketing effort Key Elements