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Chapter 2- slide 1
Chapter Two
Company and Marketing StrategyPartnering to Build Customer
Relationships
Chapter 2- slide 2Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Company and Marketing Strategy
• Companywide Strategic Planning: Defining Marketing’s Role
• Designing the Business Portfolio• Planning Marketing: Partnering to Build Customer
Relationships• Marketing Strategy and the Marketing Mix• Managing the Marketing Effort• Measuring and Managing Return on Marketing
Investment
Topic Outline
Chapter 2- slide 3Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Companywide Strategic Planning
Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities
Strategic Planning
Chapter 2- slide 4Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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Strategic Planning Process:
This process involves:– Defining a Mission: Statement of an organization’s
purpose; should be market oriented.– Setting Company Objectives: Supporting goals and
objectives to guide the entire company.– Designing a Business Portfolio: Collection of businesses
and products that make up the company.– Planning Functional Strategies: Detailed planning for
each department designed to accomplish strategic objectives.
Chapter 2- slide 5Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Companywide Strategic Planning
• The mission statement is the organization’s purpose, what it wants to accomplish in the larger environment
• Market-oriented mission statement defines the business in terms of satisfying basic customer needs
Defining a Market-Oriented Mission
Chapter 2- slide 6Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Characteristics of good mission statement
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Copyright 1998 Prentice Hall
2-32-3
MarketOrientedMarket
Oriented
Fit Market EnvironmentFit Market
Environment
MotivatingMotivating RealisticRealistic
DistinctiveCompetencies
DistinctiveCompetencies
SpecificSpecific
Characteristicsof Good Mission
Statements
Characteristicsof Good Mission
Statements
Mission StatementsMission Statements
Chapter 2- slide 7Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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Mission statement of Some Company:Prime Bank: To Build Prime Bank ltd an efficient, market
driven, customer focus institution with good corporate governance structure.
Dhaka bank: To be the premier financial institution in the country providing high quality products and services backed by latest technology and a team of highly motivated personnel to deliver Excellence in Banking
Unilever: As a responsible corporate entity, Unilever Bangladesh aims to play its part in addressing environmental and social concerns through local actions and in partnership with local government and organizations.
Chapter 2- slide 8Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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Market-oriented business definition:
Product oriented definition:Product oriented definition:
1)1)We provide online serviceWe provide online service
2) We make cosmetics2) We make cosmetics
Market Oriented product definition:
We create customer connectivity,Any time any where
We sell lifestyle and self Expression ,success andStatus, memories ,Hopes and dream.
Chapter 2- slide 9Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Companywide Strategic Planning
Setting Company Objectives and Goals
Chapter 2- slide 10Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Companywide Strategic Planning
The business portfolio is the collection of businesses and products that make up the company
Portfolio analysis is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company
Designing the Business Portfolio
Chapter 2- slide 11Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Strategic business unit (SBU) is a unit of the company that has a separate mission and objectives that can be planned separately from other company businesses
• Company division• Product line within a division• Single product or brandBoston Consulting Approach:Using the Boston consulting group a companies
classifies all its SBU’s according to growth share matrix
Analyzing the Current Business Portfolio
Chapter 2- slide 12Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Companywide Strategic Planning
Analyzing the Current Business Portfolio
Chapter 2- slide 13Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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Growth share matrix:
A portfolio planning method that evaluates a company ‘s strategic business units in terms of their market growth share and relative maket share. SBU’s classifies as star, cash cow, question marks and dog.
As the time passes, SUB change their position in the growth share matrix. Each SBU has a life cycle. Many SBU’s start out as a question marks and moves into the star category if the successes. they later become cash cows as market growth falls, then finally die off or turn into dogs toward the end of their life cycle.
Chapter 2- slide 14Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Companywide Strategic Planning:
Chapter 2- slide 15Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Analyzing Current SBU’s Boston Consulting Group Approach
Analyzing Current SBU’s Boston Consulting Group Approach
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Question Marks
• High growth, low share • Build into Stars/ phase out • Requires cash to hold market share
Question Marks
• High growth, low share • Build into Stars/ phase out • Requires cash to hold market share
Stars
• High growth & share• Profit potential • May need heavy investment to grow
Cash Cows
• Low growth, high share• Established, successful SBU’s•Produces cash
Cash Cows
• Low growth, high share• Established, successful SBU’s•Produces cash
Dogs
• Low growth & share • Low profit potential
Dogs
• Low growth & share • Low profit potential
Relative Market ShareHigh Low
Mar
ket
Gro
wth
Rat
e L
ow
Hig
h
Chapter 2- slide 16Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Companywide Strategic Planning
• Difficulty in defining SBUs and measuring market share and growth
• Time consuming• Expensive• Focus on current businesses, not future
planning
Problems with Matrix Approaches
Chapter 2- slide 17Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Companywide Strategic Planning
Product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
Developing Strategies for Growth and Downsizing
Chapter 2- slide 18Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Companywide Strategic Planning
Developing Strategies for Growth and Downsizing Product/Market Expansion Grid Strategies
Chapter 2- slide 19Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Companywide Strategic Planning
Developing Strategies for Growth and Downsizing Product/market expansion grid strategies
Chapter 2- slide 20Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Companywide Strategic Planning
Market penetration is a growth strategy increasing sales to current market segments without changing the product
Market development is a growth strategy that identifies and develops new market segments for current products
Developing Strategies for Growth and Downsizing
Chapter 2- slide 21Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Companywide Strategic Planning
Product development is a growth strategy that offers new or modified products to existing market segments
Diversification is a growth strategy through starting up or acquiring businesses outside the company’s current products and markets
Developing Strategies for Growth and Downsizing
Chapter 2- slide 22Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Companywide Strategic Planning
Downsizing is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy
Developing Strategies for Growth and Downsizing
Chapter 2- slide 23Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Planning MarketingPartnering to Build Customer Relationships
Value chain is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products
Chapter 2- slide 24Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Planning MarketingPartnering to Build Customer Relationships
Value delivery network is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system
Chapter 2- slide 25Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Marketing Strategy and the Marketing Mix
Chapter 2- slide 26Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Marketing Strategy and the Marketing Mix
Market segmentation is the division of a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mixes
Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts
Customer-Driven Marketing Strategy
Chapter 2- slide 27Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Marketing Strategy and the Marketing Mix
Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter
Customer-Centered Marketing Strategy
Chapter 2- slide 28Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Marketing Strategy and the Marketing Mix
Customer-Centered Marketing Strategy
Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer
Chapter 2- slide 29Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Marketing Strategy and the Marketing Mix
Marketing mix is the set of controllable tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market
Developing an Integrated Marketing Mix
Chapter 2- slide 30Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Marketing Mix- The Four P’sThe marketing is the set of controllable ,tactical marketing tools that the firm blend to produce the response it wants in the target market
Marketing Mix- The Four P’sThe marketing is the set of controllable ,tactical marketing tools that the firm blend to produce the response it wants in the target market
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Target Customers
IntendedPositioning
Product“Goods-and-service”combination that a company offers a
target market
PriceAmount of moneythat consumers
have to pay to obtainthe product
Activities that persuade target
customers to buythe product
Promotion
Company activitiesthat make the
product available
Place
Chapter 2- slide 31Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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• 4ps takes the seller’s view of the market , not the buyer or customer view. From the customer point of view or buyer view 4 Ps can be describe as 4Cs and 4As which are shown in the following:
4P’s 4C’s 4A’sProduct Customer solution Acceptability
Price Customer cost AffordabilityPlace Convenience AccessibilityPromotion Communication Awareness’In service marketing there is another 3P these are
PeoplePhysical evidenceProcess
Chapter 2- slide 32Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Marketing Strategy and the Marketing Mix
Developing an Integrated Marketing Mix
Chapter 2- slide 33Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Managing the Marketing Effort
Chapter 2- slide 34Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Managing the Marketing Effort
Marketing Analysis – SWOT Analysis
Chapter 2- slide 35Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Managing the Marketing Effort
Market Planning—Parts of a Marketing Plan
Chapter 2- slide 36Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Managing the Marketing Effort
Implementing is the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives
• Successful implementation depends on how well the company blends its people, organizational structure, decision and reward system, and company culture into a cohesive action plan that supports its strategies
Marketing Implementation
Chapter 2- slide 37Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Managing the Marketing EffortMarketing Department Organization
Chapter 2- slide 38Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Managing the Marketing Effort
• Controlling is the measurement and evaluation of results and the taking of corrective action as needed
• Operating control• Strategic control
Marketing Control
Chapter 2- slide 39Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Measuring and Managing Return on Marketing Investment
Return on Marketing Investment (Marketing ROI)
Return on marketing investment (Marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment. Marketing ROI provides a measurement of the profits generated by investments in marketing activities.
Chapter 2- slide 40Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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GOOD LUCK