1. Company and Marketing
Strategy
Chapter 2

2. Objectives
Understand companywide strategic
planning and its four steps.
Learn how to design business
portfolios and develop strategies for
growth and downsizing.
Understand marketing’s role in
strategic planning and how

3. Objectives
Be able to describe the
marketing process and the
forces that influence it.
Understand the marketing
management functions,
including the elements of the

4. Walt Disney
c
Known for films, Satisfying the
animation, theme customer is
parks and customer
everyone’s job
orientation
Parks offer a variety Disney has grown
of attractions as well via diversification
as cleanliness, order, Sales and net
and warmth How Can Disney Recover?
Discussion: income have fallen

5. Disney companies
ABC
16 cable networks
 ESPN, Disney Channel, Toon Disney,
SoapNET, A&E, the History Channel,
Lifetime Television, E! Entertainment
4 TV production companies
8 movie production companies
 Walt Disney, Touchstone Pictures,
Hollywood Pictures, Miramax Films

6. More Disney companies
5 magazine publishing groups
5 music labels
19 Internet groups
Disney Interactive
The Disney Store
Disney Cruise Lines
Two sports Franchises

7. Strategic Planning
Strategic 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.”

8. BusinessNow
Nervewire Video Clip
Consultants may
offer valuable
services and
expertise during
the strategic
Click the picture above to play video planning process.

9. Figure 2-1:
Steps in the
Strategic Planning Process

11. Strategic Planning
Mission 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.

12. Strategic Planning
Mission statements guide the
development of objectives and
goals.
 Objectives are developed at each
level in the organization hierarchy.
 Strategies are developed to

13. Discussion Question
Google.com is one of
the leading Internet
search engines.
Construct a market-
oriented mission
statement that fits
this business.

14. Strategic Planning
Business portfolio:
“the collection of businesses
and products that make
up the company.”
 Designing the business
portfolio is a key step in
the strategic planning

15. Strategic Planning
Portfolio 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

16. Figure 2-2:
Growth-Share Matrix

17. Strategic Planning
Portfolio 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

18. Strategic Planning
Matrix approaches to formal
planning share many problems:
 Difficult, time-consuming,
and costly to implement.
 Focus only on current
businesses.
 Too strongly emphasize
market share growth or

19. Strategic Planning
Designing the business
portfolio also involves:
 Developing strategies for growth
by identifying, evaluating, and
selecting promising new market
opportunities.
 Developing strategies for
downsizing the business portfolio.

20. Figure 2-3:
Product / Market
Expansion Grid

21. Marketing plays a key role in
the strategic planning process.

22. Figure 2-4:
The Marketing Process

23. The Marketing Process
The strategic planning
Key Elements and business portfolio
analysis processes
Analyzing marketing help to identify and
opportunities evaluate marketing
Selecting target opportunities.
markets The purpose of the
Developing the marketing process is
marketing mix to help the firm plan
how to capitalize on
Managing the these opportunities.
marketing effort

24. The Marketing Process
The segmentation
Key Elements process divides the
total market into
Analyzing marketing market segments.
opportunities Target marketing
Selecting target chooses which
markets segment(s) are
pursued.
Developing the
marketing mix Market positioning
for the product is
Managing the
marketing effort then determined.

25. Positioning
Market positioning
is not restricted to
physical goods.
Identify the “competing
products” of relevance
to the Marble Collegiate
Church.
What clear, distinctive,
and desirable place in
the consumer’s mind
does the ad at left
attempt to create?

26. The Marketing Process
Competitor analysis
Key Elements guides competitive
marketing strategy
development.
Analyzing marketing Strategy leads to tactics
opportunities 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, and
Managing the communication
marketing effort (customer viewpoint)

27. Figure 2-5:
The Marketing Mix

28. The Marketing Mix
Visit the Hill’s Pet
Nutrition site.
How are the 4 C’s or
the 4 P’s presented
within the site?
Hill’s Pet
Nutrition

29. The Marketing Process
Marketing analysis
Key Elements  Provides information
helpful in planning,
implementation, and
Analyzing marketing control
opportunities Marketing planning
Selecting target  Strategies and tactics
markets Marketing
implementation
Developing the  Turns plans into action
marketing mix
Marketing control
Managing the  Operating control
marketing effort  Strategic control

30. Figure 2-6:
Managing the
Marketing Effort