Company and Marketing Strategy: Partnering to Build
Customer Relationships
Chapter 2Chapter 2
2- 2
Strategic Planning
•Strategic planning is defined Strategic planning is defined as:as: ““The process of developing and The process of developing and
maintaining a strategic fit maintaining a strategic fit between the organization’s between the organization’s goals and capabilities and its goals and capabilities and its changing marketing changing marketing opportunities.”opportunities.”
2- 3
Strategic Planning
• Planning activities occur at the Planning activities occur at the business unit, product, and business unit, product, and market levels, and include:market levels, and include: Defining the purpose and missionDefining the purpose and mission Setting objectives and goalsSetting objectives and goals Designing the business portfolioDesigning the business portfolio Developing detailed marketing Developing detailed marketing
and departmental plansand departmental plans
2- 4
Strategic Planning
• Mission statements should . . .Mission statements should . . . serve as a guide for what the serve as a guide for what the
organization wants to accomplish.organization wants to accomplish. be “market-oriented” rather than be “market-oriented” rather than
“product-oriented”.“product-oriented”. be neither too narrow, nor too be neither too narrow, nor too
broad.broad. fit with the market environment.fit with the market environment. be motivating.be motivating.
2- 5
Strategic Planning
•Mission statements guide Mission statements guide the development of the development of objectives and goals.objectives and goals. Objectives are developed at Objectives are developed at
each level in the organization each level in the organization hierarchy.hierarchy.
Strategies are developed to Strategies are developed to accomplish these objectives.accomplish these objectives.
2- 6
Strategic Planning
•Business portfolio: Business portfolio: “the collection of businesses “the collection of businesses and products that make up and products that make up the company.”the company.”
•Designing the business Designing the business portfolio portfolio is a key element of the is a key element of the strategic planning process.strategic planning process.
2- 7
Strategic Planning
• Step 1:Step 1: Analyze the Analyze the current business current business portfolioportfolio
• Step 2: Step 2: Shape the future Shape the future business portfoliobusiness portfolio
• Identify strategic Identify strategic business units (SBUs)business units (SBUs)
• Assess each SBU:Assess each SBU: The BCG growth-The BCG growth-
share matrix share matrix classifies SBUs into classifies SBUs into one of four categories one of four categories using the:using the:
Market growth rate Market growth rate SBU’s relative SBU’s relative
market share within market share within the market.the market.
Portfolio Portfolio DesignDesign
2- 8
BCG Growth-Share MatrixBCG Growth-Share Matrix
Strategic Planning
High RelativeHigh RelativeMarket ShareMarket Share
High High Market Market GrowthGrowth
Low Low Market Market GrowthGrowth
StarsStars
Cash Cash CowsCows
Question Question MarksMarks
DogsDogs
Low RelativeLow RelativeMarket ShareMarket Share
2- 9
Strategic Planning
• Step 1: Step 1: Analyze the Analyze the current business current business portfolioportfolio
• Step 2:Step 2: Shape the future Shape the future business portfoliobusiness portfolio
• Determine the Determine the future role of each future role of each SBU and choose SBU and choose the appropriate the appropriate resource allocation resource allocation strategy:strategy: BuildBuild HoldHold HarvestHarvest DivestDivest
• SBUs change SBUs change positions over timepositions over time
Portfolio Portfolio DesignDesign
2- 10
Strategic Planning
• Matrix approaches to formal Matrix approaches to formal planning share many problems:planning share many problems: Difficult, time-consuming, and Difficult, time-consuming, and
costly to implement.costly to implement. Focus only on current businesses.Focus only on current businesses. Too strongly emphasize market Too strongly emphasize market
share growth or growth via share growth or growth via diversification.diversification.
2- 11
Strategic Planning
• Designing the business Designing the business portfolio also involves:portfolio also involves: Developing strategies for growth Developing strategies for growth
by identifying, evaluating, and by identifying, evaluating, and selecting promising new market selecting promising new market opportunities.opportunities. Product/market expansion gridProduct/market expansion grid
Developing strategies for Developing strategies for downsizing the business portfolio.downsizing the business portfolio.
2- 12
Product/Market Expansion Product/Market Expansion GridGrid
Strategic Planning
Existing ProductsExisting Products New ProductsNew Products
Existing Existing MarketsMarkets
New New MarketsMarkets
Market Market PenetrationPenetration
Market Market DevelopmentDevelopment
Product Product DevelopmentDevelopment
DiversificatioDiversificationn
2- 13
Planning Marketing
• Marketing plays a key role in the Marketing plays a key role in the strategic planning process.strategic planning process.
• Marketers must practice CRM Marketers must practice CRM andand Partner Relationship Management.Partner Relationship Management. Partnering with other Partnering with other
departments in the company as departments in the company as well as other firms in the well as other firms in the marketing system helps to build a marketing system helps to build a superior superior value delivery-networkvalue delivery-network..
2- 14
The Marketing Process
• The strategic The strategic planning planning and business and business portfolio analysis portfolio analysis processes help to processes help to identify and identify and evaluate marketing evaluate marketing opportunities.opportunities.
• The purpose of the The purpose of the marketing process is marketing process is to help the firm plan to help the firm plan how to capitalize on how to capitalize on these opportunities.these opportunities.
• Analyzing marketing Analyzing marketing opportunitiesopportunities
• Selecting target Selecting target marketsmarkets
• Developing the Developing the marketing mixmarketing mix
• Managing the Managing the marketing effortmarketing effort
Key ElementsKey Elements
2- 15
The Marketing Process
• The segmentation The segmentation process divides the process divides the total market into total market into market segments.market segments.
• Target marketingTarget marketing determines which determines which segment(s) are segment(s) are pursued.pursued.
• The The market market positioningpositioning for the for the product is then product is then determined.determined.
• Analyzing marketing Analyzing marketing opportunitiesopportunities
• Selecting target Selecting target marketsmarkets
• Developing the Developing the marketing mixmarketing mix
• Managing the Managing the marketing effortmarketing effort
Key ElementsKey Elements
2- 16
The Marketing Process
• Competitor analysis Competitor analysis guides competitive guides competitive marketing strategy marketing strategy development.development.
• Strategy leads to tactics Strategy leads to tactics by way of the marketing by way of the marketing mix:mix: The “Four Ps” – product, The “Four Ps” – product,
price, place, promotion price, place, promotion (seller viewpoint)(seller viewpoint)
The “Four Cs” – The “Four Cs” – customer solution, cost, customer solution, cost, convenience, and convenience, and communication communication (customer viewpoint)(customer viewpoint)
• Analyzing marketing Analyzing marketing opportunitiesopportunities
• Selecting target Selecting target marketsmarkets
• Developing the Developing the marketing mixmarketing mix
• Managing the Managing the marketing effortmarketing effort
Key ElementsKey Elements
2- 17
The Marketing Process
• Marketing analysisMarketing analysis Provides information Provides information
helpful in planning, helpful in planning, implementation, and implementation, and controlcontrol
• Marketing planningMarketing planning Strategies and tacticsStrategies and tactics
• Marketing Marketing implementationimplementation Turns plans into actionTurns plans into action
• Marketing controlMarketing control Operating controlOperating control Strategic controlStrategic control
Marketing auditMarketing audit
• Analyzing marketing Analyzing marketing opportunitiesopportunities
• Selecting target Selecting target marketsmarkets
• Developing the Developing the marketing mixmarketing mix
• Managing the Managing the marketing effortmarketing effort
Key ElementsKey Elements
Top Related