1. Company and Marketing Strategy: Partnering to Build Customer Relationships
Chapter 2
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Principles of Marketing, Sixth Canadian Edition

2. Learning Objectives
After studying this chapter, you should be able to:
Explain company-wide strategic planning and its four steps
Discuss how to design business portfolios and develop strategies for growth and downsizing
Assess marketing’s role in strategic planning and explain how marketers partner with others inside and outside the firm to build profitable customer relationships
Describe the marketing process and the forces that influence it
List the marketing management functions, including the elements of a marketing plan
Principles of Marketing, Sixth Canadian Edition

3. Strategic Planning Strategic planning: Steps in strategic planning:
Developing a strategic fit between
organizational goals and capabilities, and
changing marketing opportunities
Steps in strategic planning:
Figure 2.1
Principles of Marketing, Sixth Canadian Edition

4. Product-oriented definition Market-oriented definition
Mission Statements
Mission statement:
Statement of an organization’s purpose
What it wants to accomplish in the larger environment
Need to be specific, realistic, and motivating
Table 2.1
Company
Product-oriented definition
Market-oriented definition
M.A.C Cosmetics
We make cosmetics
We sell lifestyle and self-expression; tolerance of diversity, and a platform for the outrageous
Canadian Tire
We sell tools, home improvement items, and automotive parts and accessories
We provide advice and solutions that transform ham-handed people into Mr. and Mrs. Fixits
Principles of Marketing, Sixth Canadian Edition

5. BCG Growth-Share Matrix
Business portfolio
Portfolio analysis
Strategic business unit (SBU)
Figure 2.2
Five forces driving profitability:
Barriers to entry
Power of the customer
Power of suppliers
Presence of substitutes
Competitive rivalry within industry
Principles of Marketing, Sixth Canadian Edition

6. Strategies for SBU’s Porter: Treacy and Wiersema:
Overall cost leadership
Differentiation
Focus
Treacy and Wiersema:
Operational excellence
Product leadership
Customer intimacy
Principles of Marketing, Sixth Canadian Edition

7. Product-Market Expansion Grid
Portfolio planning tool for identifying company growth opportunities
Figure 2.3
Principles of Marketing, Sixth Canadian Edition

8. Partnering to Build Customer Relationships
Marketing’s role in strategic planning:
Provides a guiding philosophy
Provide inputs to help identify marketing opportunities and assess potential for taking advantage of them
Designs strategies for reaching objectives
Partner relationship management
Value chain
Value delivery network
Principles of Marketing, Sixth Canadian Edition

9. The Marketing Process The marketing process: Market segmentation
Analyzing marketing opportunities
Selecting target markets
Figure 2.4
Developing the marketing mix, and
Managing the marketing effort
Market segmentation
Target marketing
Market positioning
Principles of Marketing, Sixth Canadian Edition

10. The Four P’s of the Marketing Mix
Set of controllable, tactical marketing tools
Figure 2.5
Blended to produce the desired response in the target market
Principles of Marketing, Sixth Canadian Edition

11. The Four P’s Versus C’s Product Customer solution Price Customer cost
Place
Convenience
Promotion
Communication
Principles of Marketing, Sixth Canadian Edition

12. Managing the Marketing Effort
Four marketing management functions:
Marketing analysis
Marketing planning
Implementation
Control
Figure 2.6
Principles of Marketing, Sixth Canadian Edition

13. Contents of a Marketing Plan
Executive summary
Current marketing situation
Market description, product review, competition, and distribution
Threat and opportunity analysis
Objectives and issues
Marketing strategy
Action program
Budgets
Controls
Table 2.2
Principles of Marketing, Sixth Canadian Edition

14. The Control Process Marketing control Marketing audit
Figure 2.7
Set goals
What do we
want to achieve?
Measure
performance
What is
happening?
Evaluate
performance
Why is it
happening?
Take corrective
action
What should
we do about it?
Principles of Marketing, Sixth Canadian Edition

15. In Conclusion… The learning objectives for this chapter were:
Explain company-wide strategic planning and its four steps
Discuss how to design business portfolios and develop strategies for growth and downsizing
Assess marketing’s role in strategic planning and explain how marketers partner with others inside and outside the firm to build profitable customer relationships
Describe the marketing process and the forces that influence it
List the marketing management functions, including the elements of a marketing plan
Principles of Marketing, Sixth Canadian Edition