1. Chapter Two Company and Marketing Strategy
Partnering to Build Customer Relationships

2. Company and Marketing Strategy
Topic Outline
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

3. 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

4. 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. 4 4

5. Companywide Strategic Planning
Defining a Market-Oriented Mission
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

6. Characteristics of good mission statement6

7. 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. 7

8. Market-oriented business definition:
Product oriented definition:
We provide online service
2) We make cosmetics
Market Oriented product
definition:
We create customer
connectivity,
Any time any where
We sell lifestyle and self
Expression ,success and
Status, memories ,
Hopes and dream. 8

9. Companywide Strategic Planning
Setting Company Objectives and Goals
Business objectives
Build profitable customer relationships
Invest in research
Improve profits
Marketing objectives
Increase market share
Create local partnerships
Increase promotion

10. Companywide Strategic Planning
Designing the Business Portfolio
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

11. Analyzing the Current Business Portfolio
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 brand
Boston Consulting Approach:
Using the Boston consulting group a companies classifies all its SBU’s according to growth share matrix

12. Companywide Strategic Planning
Analyzing the Current Business Portfolio
Identify key businesses (strategic business units, or SBUs) that make up the company
Assess the attractiveness of its various SBUs
Decide how much support each SBU deserves

13. 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. 13

14. Companywide Strategic Planning:

15. Analyzing Current SBU’s Boston Consulting Group Approach
Relative Market Share
High Low
Stars
High growth & share
Profit potential
May need heavy
investment to grow
Question Marks
High growth, low share
Build into Stars/ phase out
Requires cash to hold
market share
Market Growth Rate
Low High
Cash Cows
Low growth, high share
Established, successful
SBU’s
Produces cash
Dogs
Low growth & share
Low profit potential 15

16. Companywide Strategic Planning
Problems with Matrix Approaches
Difficulty in defining SBUs and measuring market share and growth
Time consuming
Expensive
Focus on current businesses, not future planning

17. Companywide Strategic Planning
Developing Strategies for Growth and Downsizing
Product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification

18. Companywide Strategic Planning
Developing Strategies for Growth and Downsizing Product/Market Expansion Grid Strategies
Market penetration
Market development
Product development
Diversification

19. Companywide Strategic Planning
Developing Strategies for Growth and Downsizing
Product/market expansion grid strategies

20. Companywide Strategic Planning
Developing Strategies
for Growth and Downsizing
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

21. Companywide Strategic Planning
Developing Strategies
for Growth and Downsizing
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

22. Companywide Strategic Planning
Developing Strategies
for Growth and Downsizing
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

23. Partnering to Build Customer Relationships
Planning Marketing
Partnering 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

24. Partnering to Build Customer Relationships
Planning Marketing
Partnering 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

25. Marketing Strategy and the Marketing Mix

26. Marketing Strategy and the Marketing Mix
Customer-Driven Marketing Strategy
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

27. Marketing Strategy and the Marketing Mix
Customer-Centered Marketing Strategy
Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

28. 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

29. Marketing Strategy and the Marketing Mix
Developing an Integrated 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

30. Price Product Promotion Place
Marketing Mix- The Four P’s The marketing is the set of controllable ,tactical marketing tools that the firm blend to produce the response it wants in the target market
Price
Amount of money
that consumers
have to pay to obtain
the product
Product
“Goods-and-service”
combination that a
company offers a
target market
Target
Customers
Intended
Positioning
Activities that
persuade target
customers to buy
the product
Promotion
Company activities
that make the
product available
Place 30

31. Product Customer solution Acceptability
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 C’s 4A’s
Product Customer solution Acceptability
Price Customer cost Affordability
Place Convenience Accessibility
Promotion Communication Awareness’
In service marketing there is another 3P these are
People
Physical evidence
Process 31

32. Marketing Strategy and the Marketing Mix
Developing an Integrated Marketing Mix

33. Managing the Marketing Effort

34. Managing the Marketing Effort
Marketing Analysis – SWOT Analysis

35. Managing the Marketing Effort
Market Planning—Parts of a Marketing Plan
Executive summary
Marketing situation
Threats and opportunities
Objective and issues
Marketing strategy
Action programs
Budgets
Controls

36. Managing the Marketing Effort
Marketing Implementation
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

37. Managing the Marketing Effort
Marketing Department Organization
Functional organization
Geographic organization
Product management organization
Market or customer management

38. Managing the Marketing Effort
Marketing Control
Controlling is the measurement and evaluation of results and the taking of corrective action as needed
Operating control
Strategic control

39. 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.

40. GOOD LUCK 40