Global Edition Chapter Two Company and Marketing Strategy Partnering to Build Customer Relationships Copyright ©2014 by Pearson Education
Company and Marketing Strategy Companywide Strategic Planning: Defining Marketing’s Role 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 Copyright ©2014 by Pearson Education
Companywide Strategic Planning Market penetration Market development Product development Diversification Developing Strategies for Growth and Downsizing Product/Market Expansion Grid Useful device for identifying growth opportunities is (Product/Market Expansion Grid): A tool for identifying company growth opportunities Copyright ©2014 by Pearson Education
A firm must be careful not to make growth itself an objective. The company objective must be to manage ( profitable growth). Q: what is marketing responsibility for achieving profitable growth for the company? Marketing needs to : identify-evaluate- and select market opportunities and establish strategy for capturing them. CREATED BY: AMANI B. AL-KAHTANI
Companywide Strategic Planning 1)Market penetration: growth by increasing sales to current market segments without changing the product. (existing products) – ( existing markets) Developing Strategies for Growth and Downsizing Copyright ©2014 by Pearson Education
2) Market development: growth by identifying and developing new market segments for current products. ( new markets) – ( review new demographic markets)
Companywide Strategic Planning 3) Product development : is a growth strategy that offers new or modified products to existing market segments. (new products) Developing Strategies for Growth and Downsizing Copyright ©2014 by Pearson Education
4)Diversification: is a growth strategy through starting up or acquiring businesses outside the company’s current products and markets.
Companywide Strategic Planning Downsizing: prune, harvest or divest businesses that are unprofitable or that no longer fit the strategy. Q: what are the reasons that firm might want to abandon products or markets? Developing Strategies for Growth and Downsizing Copyright ©2014 by Pearson Education CREATED BY: AMANI B. AL-KAHTANI
Copyright ©2014 by Pearson Education Planning Marketing Partnering to Build Customer Relationships Q: how does marketing paly role in the company’s strategic planning? 1- providing a guiding philosophy. 2- providing inputs to strategic planners. 3- within individual business units marketing designs (strategies) for reaching the unit’s objectives. CREATED BY: AMANI B. AL-KAHTANI
Copyright ©2014 by Pearson Education 1- partnering with other company departments: Value chain: is a series of departments that carry out value- creating activities to design, produce, market, deliver, and support a firm’s products.
Copyright ©2014 by Pearson Education 2- partnering with others in the marketing system: 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.
Copyright ©2014 by Pearson Education Marketing Strategy and the Marketing Mix The strategic plan is: the company’s overall mission and objectives. The marketing strategy: the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships. CREATED BY: AMANI B. AL-KAHTANI
Marketing Strategy and the Marketing Mix Copyright ©2014 by Pearson Education
Marketing Strategy and the Marketing Mix customer-driven marketing strategy: 1-Market segmentation: is the division of a market into distinct groups of buyers who have different 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 Copyright ©2014 by Pearson Education
Marketing Strategy and the Marketing Mix 2- Market targeting: is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter Copyright ©2014 by Pearson Education
Marketing Strategy and the Marketing Mix 3- 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 Whole marketing plan supports the positioning strategy Copyright ©2014 by Pearson Education
Marketing Strategy and the Marketing Mix 4- Market differentiation: is actually differentiating the market offering to create superior customer value. CREATED BY: AMANI B. AL-KAHTANI
Marketing Strategy and the Marketing Mix Differentiation begins the positioning process. Whole marketing plan supports the positioning strategy Copyright ©2014 by Pearson Education
END THE SECOND PART OF CHAPTER 2