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Company and Marketing Strategy Chapter 2
ObjectivesUnderstand companywide strategicplanning and its four steps.Learn how to design businessportfolios and develop strategies forgrowth and downsizing.Understand marketing’s role instrategic planning and how
ObjectivesBe able to describe themarketing process and theforces that influence it.Understand the marketingmanagement functions,including the elements of the
Walt Disney cKnown for films, Satisfying theanimation, theme customer isparks and customer everyone’s joborientationParks offer a variety Disney has grownof attractions as well via diversificationas cleanliness, order, Sales and netand warmth How Can Disney Recover? Discussion: income have fallen
Disney companiesABC16 cable networks ESPN, Disney Channel, Toon Disney, SoapNET, A&E, the History Channel, Lifetime Television, E! Entertainment4 TV production companies8 movie production companies Walt Disney, Touchstone Pictures, Hollywood Pictures, Miramax Films
More Disney companies5 magazine publishing groups5 music labels19 Internet groupsDisney InteractiveThe Disney StoreDisney Cruise LinesTwo sports Franchises
Strategic PlanningStrategic planning is defined as: “The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.”
BusinessNow Nervewire Video Clip Consultants may offer valuable services and expertise during the strategicClick the picture above to play video planning process.
Figure 2-1: Steps in theStrategic Planning Process
Strategic PlanningMission statements should . . . serve as a guide for what the organization wants to accomplish. be “market-oriented” rather than “product-oriented”. be neither too narrow, nor too broad. fit with the market environment.
Strategic PlanningMission statements guide thedevelopment of objectives andgoals. Objectives are developed at each level in the organization hierarchy. Strategies are developed to
Discussion QuestionGoogle.com is one ofthe leading Internetsearch engines.Construct a market-oriented missionstatement that fitsthis business.
Strategic PlanningBusiness portfolio:“the collection of businessesand products that makeup the company.” Designing the business portfolio is a key step in the strategic planning
Strategic PlanningPortfolio Design Identify strategic business units (SBUs) Step 1: Assess each SBU: Analyze the The BCG growth- share matrix current business classifies SBUs portfolio into one of four Step 2: categories using: Marketgrowth rate Shape the future The SBU’s relative business
Strategic PlanningPortfolio Design Determine the future role of each SBU and choose the Step 1: appropriate resource Analyze the allocation strategy: current business Build portfolio Hold Step 2: Harvest Shape the future Divest business SBUs change
Strategic PlanningMatrix approaches to formalplanning share many problems: Difficult, time-consuming, and costly to implement. Focus only on current businesses. Too strongly emphasize market share growth or
Strategic PlanningDesigning the businessportfolio also involves: Developing strategies for growth by identifying, evaluating, and selecting promising new market opportunities. Developing strategies for downsizing the business portfolio.
The Marketing Process The strategic planningKey Elements and business portfolio analysis processesAnalyzing marketing help to identify andopportunities evaluate marketingSelecting target opportunities.markets The purpose of theDeveloping the marketing process ismarketing mix to help the firm plan how to capitalize onManaging the these opportunities.marketing effort
The Marketing Process The segmentationKey Elements process divides the total market intoAnalyzing marketing market segments.opportunities Target marketingSelecting target chooses whichmarkets segment(s) are pursued.Developing themarketing mix Market positioning for the product isManaging themarketing effort then determined.
PositioningMarket positioningis not restricted tophysical goods.Identify the “competingproducts” of relevanceto the Marble CollegiateChurch.What clear, distinctive,and desirable place inthe consumer’s minddoes the ad at leftattempt to create?
The Marketing Process Competitor analysisKey Elements guides competitive marketing strategy development.Analyzing marketing Strategy leads to tacticsopportunities via the marketing mix:Selecting target The “Four Ps” – product,markets price, place, promotion (seller viewpoint)Developing the The “Four Cs” –marketing mix customer solution, cost, convenience, andManaging the communicationmarketing effort (customer viewpoint)
The Marketing MixVisit the Hill’s PetNutrition site.How are the 4 C’s orthe 4 P’s presentedwithin the site? Hill’s Pet Nutrition
The Marketing Process Marketing analysisKey Elements Provides information helpful in planning, implementation, andAnalyzing marketing controlopportunities Marketing planningSelecting target Strategies and tacticsmarkets Marketing implementationDeveloping the Turns plans into actionmarketing mix Marketing controlManaging the Operating controlmarketing effort Strategic control