Marketing Course

1. By
Dr Md Tamhid Ul Islam
Developing Company
Strategies and Plans– (L2)

2. 2
Strategic Planning Defined:
 The process of developing and maintaining a strategic fit between the organization’s
goals & capabilities, and its changing marketing opportunities.
Md Tamhid Ul Islam
Goals
&
Capabilities
Changing
Marketing
opportunities
What is Strategic Planning?

3. 3
Md Tamhid Ul Islam
Goals
&
Capabilities
Changing
marketing
opportunities
What is Strategic Planning?

4. 4
What is Strategic Planning?
Md Tamhid Ul Islam
Goals
&
Capabilities
Changing
marketing
opportunities
In 1955, Ray Kroc, discovered a string of seven restaurants owned by Richard and Maurice McDonald. He saw McDonald’s brothers’ fast-food
concept as a perfect fit for America’s increasingly on-the-go, time-saving, family-oriented lifestyle! Kroc bought the small chain!!!

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Company and Marketing Department
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Corporate Office Factory

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Company and Marketing Department
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Other departments such as Finance, HR etc.
Top Management
Marketing
Department

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What is Strategic Planning?
Md Tamhid Ul Islam
Company Objectives
• Profitable customers
relationships
• Invest in research
• Improve profits
Business Portfolio
• Define all
products &
service to offer
Corporate / company level
Business unit,
product & Market
level
Define company
mission
Setting company
objectives and
goals
Designing
business portfolio
Planning
marketing and
other functional
strategies

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Mission Statement?
 A statement of the organization’s purpose- what it wants to
accomplish in the larger environment.
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Market-oriented Mission
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Market Oriented
Realistic
Fit Market Environment
Distinctive
Motivating
Specific
Characteristics of a
Good Mission
Statement:

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Mission Statement?
 New mission statement of Meta (Facebook)
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Define Company Objective
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 Company needs to turn its mission into detailed supporting objectives.
• Business objectives
• Marketing objectives
 Heinz’s overall objective is to build profitable customer
relationships by developing foods “superior in quality, taste, nutrition,
and convenience” that embrace its nutrition and wellness mission
• Heinz does this by investing heavily in research
• Another objective is to improve profit so that it can invest in
research
 Profit can be improved by increasing sales or reducing costs
 Sales can be improved by increasing promotion

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Business Portfolio
 A business portfolio is the collection of
businesses and products that make up
the company
• Strategic business units (SBUs)
• An SBU can be a company
division, a product line within a
division, or sometimes a single
product or brand.
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Company Divisions and sub-divisions

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Business Portfolio
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Product lines Products

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Portfolio Analysis
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 The process by which management evaluates the products
and businesses that make up the company
 Business portfolio planning involves two steps:
1. Analyzing the current business portfolio and decide
which businesses should receive more, less or no
investment.
2. Shaping the future portfolio by developing strategies for
growth and downsizing.

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Analyzing Current SBU’s:
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 Boston Consulting Group Approach

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Analyzing Current SBU’s:
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 Invest more to Build
 Increase market share
 Invest just enough to Hold
 Preserve market share
 Invest less to Harvest
 Increase short-term cash flow
 Divest
 Sell or liquidate or use
resources elsewhere

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Shaping Future Portfolio
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 Product/ Market Expansion Grid

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Product/Market Expansion Grid & Downsizing
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 Market Penetration: making more sales
to current customers without changing its
products.
– How? Add new stores in current
market areas, improve advertising,
prices, service or store design.
 Market Development: develop new
markets for its current products
– How? Identify new demographic
or geographic markets.
 Product Development: offering modified or
new products to current markets.
– How? New styles, flavors, colors, or
modified products.
 Diversification: new products for new
markets.
– How? Start up or buy new businesses
or create new SBU for new market.
Downsizing: abandoning products or markets

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What is Strategic Planning?
Md Tamhid Ul Islam
Company Objectives
• Profitable customers
relationships
• Invest in research
• Improve profits
Business Portfolio
• Define all
products &
service to offer
Corporate level
Business unit,
product & Market
level
Define company
mission
Setting company
objectives and
goals
Designing
business portfolio
Planning
marketing and
other functional
strategies

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Partnering to Create and Deliver Value
Md Tamhid Ul Islam
 Partnering with other company
departments
– Value chain: Series of internal
departments that carry out value-
creating activities to design,
produce, market, deliver, and
support a firm’s product
– From finance to customer service
to manufacturing, every employee
should see how their role plays a
part in the creating superior
customer value

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Partnering to Create and Deliver Value
Md Tamhid Ul Islam
 Partnering with others in the
marketing system
– Value delivery network:
A network composed of
the company, suppliers,
distributors, and ultimately
customers who partner
with each other to improve
the performance of the
entire system in delivering
customer value

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Marketing Strategies and the Marketing Mix
Md Tamhid Ul Islam
Marketing strategy:
The marketing logic by which the
company hopes to create customer
value and achieve profitable
customer
relationships
Marketing mix:
The set of tactical marketing tools—
product, price, place, and
promotion—
that the firm blends to produce the
response it wants in the target
market.

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Customer Driven Marketing Strategy
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 Choose which customers to serve
• Market segmentation
• Market Targeting
 Differentiation and Positioning

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Segmentation
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Market segmentation: Dividing a market into distinct groups of buyers who have
different needs, characteristics, or behaviours and who might require separate
marketing strategies or mixes.
Market segment: A group of consumers who
respond in a similar way to a given set of
marketing efforts.
Market segmentation:
- Geographic segmentation
- Demographic segmentation
- Psychological segmentation
- Behavioral segmentation

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Market Targeting
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Market Targeting: Evaluating each segment’s attractiveness and selecting one or
more segments to enter.
 A company should target segments in which it
can profitably generate the greatest customer
value and sustain it over time.
 Most companies enter a new market by
serving a single segment; if this proves
successful, they add more segments.
 Square Toiletries Limited offer Meril
Petroleum Jelly for everyone at any age in
Bangladesh; on the other hand, Executive
Motors offer BMW cars to the high-income
segment of the country

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Market Targeting
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Differentiation and Positioning
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Differentiation: Differentiating the
market offering to create superior
customer value.
Positioning: Arranging for a
product to occupy a clear,
distinctive, and desirable place
relative to competing products in
the minds of target consumers.

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Md Tamhid Ul Islam
Coke Zero and Diet Coke: Virtually
identical drinks that are positioned
very differently
Both are sugar free and calorie free,
but Coca-Cola zero sugar looks and
tastes more like Coca-Cola original
taste, while Diet Coke has a different
blend of flavours which gives it a
lighter taste
Differentiation and Positioning

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Differentiation and Positioning

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Marketing Mix – 4P’s
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The marketing mix includes controllable and tactical marketing tools knows as the 4P’s
Product means the goods-and-services combination the company offers to the target
market.
Price is the amount of money customers must pay to obtain the product.
Place is the location where goods are distributed. It is usually associated with a
selection of channels or locations that are used to get the goods and services to the
consumers.
Promotion refers to activities that communicate the merits of the product and
persuade target customers to buy it.

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Marketing Mix – 4P’s
Md Tamhid Ul Islam
 The marketing mix includes controllable and tactical marketing tools knows as the 4P’s

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4P’s & 4C’s of the Marketing Mix
Product Customer Solution
Price Customer Cost
Place Convenience
Promotion Communication
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Managing Marketing Effort
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Managing Marketing Effort
 Marketing Analysis
 Marketing Planning
 Marketing Implementation
 Marketing Control

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Marketing Analysis
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SWOT Analysis
 Managing the marketing
function begins with a
complete analysis of the
company’s situation.
 The marketer should conduct
a SWOT analysis, by which it
evaluates the company’s
overall strengths (S),
weaknesses (W),
opportunities (O), and threats
(T)

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Managing Analysis
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Strength
(Build)
Weakness
(Mitigate)
Opportunities
(Capitalize)
Threat
(Identify)
Internal
External

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Marketing Planning
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 Marketing objectives
 Segmentation, target market
 Strategies for target market,
positioning
 Marketing mix, action programs
 Budget
 Controls

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Marketing Implementation
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 Turing marketing strategies and plans into marketing action programs to
accomplish strategic marketing objectives.
 Despite the various approaches used for developing a marketing plan, it is still very
important that the plan is being implemented properly by the marketing team.
 Many managers think that “doing things right” (implementation) is as important as,
or even more important than, “going to do the right things” (strategy).
 People at all levels of the marketing system must work together to implement
marketing strategies and plans.

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Marketing Control
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 Measuring and evaluating the results of marketing strategies and plans and
taking corrective action to ensure that the objectives are achieved.
Operating control involves checking ongoing
performance against the annual plan and
taking corrective action when necessary.
Strategic control involves looking at whether
the company’s basic strategies are well matched
to its strengths and opportunities.

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Attendance Time!
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40. Thanks
40
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