1. Company and marketing strategy: partning to build customer relationshp
Chapter 2
Company and marketing strategy: partning to build customer relationshp

2. Objectives Explain strategic planning
Describe business portfolios and growth strategies
Detail marketing’s role in strategic planning
Describe elements of customer-driven marketing strategy
List the marketing management functions

3. Understanding the market place and customer needs and wants
Design a customer-driven marketing strategy
Construct marketing program that deliver superior value
Build profitable relationship and create customer delight
Capture value from the customers to create profits
Marketing Process
Research customer and the market place
Managing marketing information and customer data
Select customer to serve: market segmentation and targeting
Decide on value proposition: differentiation and positioning
Product and service design: building a strong brand
Price Create real value
Distribution
manage demand and supply chain
Promotion
Communicating the value
Customer relationship management: build strong relationship with chosen customers
Partner relationship management : build a strong relationship with marketing partners
Create satisfied loyal customer
Capture customer life time value
Increase share of market and share of customer

4. Company Wide Strategy Planning: Defining Marketing’s Role
Strategic Planning Defined:
The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities
Strategic planning sets the stage for the rest of the planning of the firm.
Defining the company mission
Setting company objectives and goals
Designing the business portfolio
Planning marketing and other functional strategy

5. Market Oriented-Mission
A mission statement asks..
What is our business?
Who is the customer?
What do consumers value?
What should our business be?
A mission statement should be:
serve as a guide for what the organization wants to accomplish.
be “market-oriented” rather than “product-oriented”.
(Example: eBay’s mission statement isn’t simply to hold online trading. Instead, it connect individual buyers to sellers in “the world’s online marketplace”
be neither too narrow, nor too broad.
fit with the market environment.
be motivating.
A mission statement is:
“ A statement of the organization purpose – what it want to accomplish in a larger environment.”

6. Setting Company Objectives and Goals
The company’s mission needs to be turned into detailed supporting objectives for each level of management.
The mission leads to a hierarchy of objectives, including business objectives and marketing objectives.
Marketing strategies and programs must be developed to support these objectives.

7. Setting Company Objectives and Goals

8. Designing The Business Portfolio
The business portfolio is:
The collection of businesses and products that make up the company.
Business portfolio planning involves two steps:
Analyzing the current business portfolio & Determine what role each SBU will play in the future
designing strategies for growth and downsizing.

9. Designing The Business Portfolio
Step 1:
Analyze the current 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.

10. Designing The Business Portfolio
BCG Growth – Share Matrix
High Market Growth
Low Market Growth
High Relative Market Share
Low Relative Market Share
Stars
Cash Cows
Question Marks
Dogs

11. Designing The Business Portfolio
B. Determine the future role of each SBU and choose the appropriate resource allocation strategy:
Build
Increase market share
Works well for question marks
Hold
Preserve market share
Good for cash cow
Harvest
Increases short-term cash flow
Good for weak cash cows, question marks and dogs
Divest
Sell or liquidate
Good for dogs and question marks
SBUs change positions over time

12. Designing The Business Portfolio
Step 2:
Designing strategies for growth and downsizing.
Developing strategies for growth by identifying, evaluating, and selecting promising new market opportunities.
Product/market expansion grid
Developing strategies for downsizing the business portfolio.
“ Reducing the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy”

13. Designing The Business Portfolio
Product/Market Expansion Grid
Existing Products
New Products
Existing Markets
New Markets
Market Penetration
A strategy for company growth by increasing sales of current products to current market segment without changing the product
Product Development
A strategy for company growth by offering modified or new product to current market segments
Market Development
A strategy for company growth by identifying and developing new market segments for current company product
Diversification
A strategy for company growth through starting up or acquiring businesses outside the company’s current products and markets

14. Marketing’s Role in Strategic Planning
Marketing plays a key role in the strategic planning process.
Provide a guiding philosophy (the marketing concept)
Identify attractive opportunities
Design effective strategies for reaching unit’s objectives.
Build strong value chains
Form superior value delivery networks

15. Marketing Strategy and The Marketing Mix
Marketing Intermediary
Profitable customer relationship
- Market Segmentation
- Target Marketing
- Market Positioning
4 Ps
- Product
- Price
- Promotion
- Place
- Marketing Analysis
- Marketing Planning
- Marketing Implementation
- Marketing Control
Competitors
suppliers
Public

16. Marketing Strategy Strategy Market segmentation Target marketing
Market positioning
The segmentation process divides the total market into market segments.
Market segment is a groups of consumers who respond in similar ways to marketing efforts.
Customers grouped by:
Geographic
Demographic
Psychographic
Behavioral

17. Marketing Strategy Strategy valuation of each segment’s attractiveness
Market segmentation
Target marketing
Market positioning
valuation of each segment’s attractiveness
Selection of segments with greatest long-term profitability
A company can choose one or several segments to target

18. Marketing Strategy Strategy
Market segmentation
Target marketing
Market positioning
The place the product occupies in the consumer’s mind
Products are positioned relative to competing products
Marketers look for clear, distinctive and desirable place in positioning

19. Marketing Mix
The marketing mix includes controllable and tactical marketing tools knows as the 4P’s
The 4P’s include
Product
Price
Promotion
place

20. Marketing Mix Promotion Advertising Personal selling Sales promotion
Intended positioning
Target customer
Promotion
Advertising
Personal selling
Sales promotion
Public relation
Product
Varity Quality
Design Features
Brand name Service
Packaging
Price
List price
Discount
Allowances
Payment period
Credit terms
Place
Channels Coverage
Assortment Location
Transportation logistics
Inventory

21. Marketing Mix The marketing mix from buyer’s viewpoint Four Ps Four Cs
Product
Customer solution
Price
Customer cost
Place
Convenience
Promotion
Communication

22. Managing The Marketing Effort
Managing the marketing process require four marketing management function
Analysis
Planning
Develop a strategic plane
Develop Marketing Plane
Implementation
Carry out the plans
Control
Measure result
Evaluate Result
Take corrective actions

23. Internal capabilities that may help a company reach its objectives
Market Analysis
Strength
Internal capabilities that may help a company reach its objectives
Weaknesses
Internal limitation that may interfere with the company’s ability to achieve its objectives
Opportunities
External Factors that the company may be able to exploit to its advantage
Threats
Current and emerging external factors that may challenge the company’s performance
Internal
External
Positive
Negative

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

25. Managing the Marketing Effort
Marketing Functions
Marketing plans include:
Executive summary
Analysis of current situation
Objectives
Targets and positioning
Marketing mix
Budget
Controls
Analysis
Planning
Implementation
Control

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

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