Chapter 2 :
COMPANY AND MARKETING STRATEGY :
PARTNERING TO BUILD
Strategic planning : Process of
developing and maintaining strategic fit
between the organization’s goal and
statement of the organization purpose.
market oriented and defined in terms of satisfying
basic customer needs.
should be meaningful and specific yet motivating.
- To build profitable customer relationships
- Investing heavily in research
- Heavy investment must funded the improved profit
- Increase market share
- Increase product availability and promotion
- Collection of businesses and product that make up the
- Is the one that best fits the company strengths and
weaknesses to opportunities in the environment.
- Process by which management evaluates the products and
businesses that make up the company.
Business portfolio involve two steps:
1. Analyzing the current business portfolio.
2. Developing strategies for growth and
Difficult to define SBUs and measure market share
Costly to implement
Focus on classifying current business, provide little
advise for future planning.
Product / market expansion grid : a portfolio- planning tool for identifying
company growth opportunities through market penetration, market
development, product development or diversification.
Market penetration : company growth by increasing sales of current
products to current market segments without changing the product.
Market development: Company growth by identifying and developing new
market segments' for current company products.
Product development: Company growth by offering modified or new
products to current market segments.
Diversification : Company growth through starting up or acquiring
businesses outside the company’s products and markets.
i. Partnering with Other Company Departments.
ii. Partnering with Others in the Marketing System
Value Chain : The series of internal departments
that carry out value-creating activities to design,
produce, market, deliver and support a firm’s
Value delivery Network : The network made up of
the company, its suppliers, its distributors and
ultimately, Its customers who partner with each
other to improve the performance of the entire
● The marketing logic by which the company
hopes to create customer value and achieve
profitable customer relationship.
● The company designs an integrated
marketing mix made up of factors under its
control such as product, price, place and
● To succeed in today’s competitive marketplace,
companies must first understand customer needs and
● The process involves :
Dividing a market into distinct groups of buyers who
have different needs, characteristics, or behaviors, and
might require separate products or marketing programs
Market segment :
a group of consumers who respond in a similar way to
a given set of marketing efforts.
Market targeting :
The process of evaluating each market segment’s
attractiveness and selecting one or more segments to
Arranging for a product to occupy a clear, distinctive
and desirable place relative to competing products in the
minds of target consumers.
Actually differentiating the market offering to create
superior customer value.
• Marketing mix :
the set of tactical marketing tools that the firm blends
to produce the response it wants in the target market.
product – the goods and services combination the
company offers to the target market.
Price – the amount of money customers must pay to
obtain the product.
Place – company activities that make the product
available to target customers.
Promotion – activities that communicate the merits of
the product and persuade target customers to buy it.
MANAGING MARKETING :
ion & Control
Specifict strategies for target
markets,positioning,the marketing mix
and marketing expenditures levels.
Outlines that used to control monitor
progress,measure return on marketing
investment and take corrective action.
Is the process turning marketing
strategies and plans into marketing
actions to accomplish strategic
Marketing planning addresses the what
and why the marketing
the who,where,when and how.
Design marketing organizatios that can
carry out marketing strategies and plans.
Chief marketing officers(CMO) position :
head up the company marketing
operations & represent marketing on the
top management team.
Handle different marketing activities by specialities
a sale manager,advertising manager,marketing
research manager,customer services manager & new
Sales and marketing people assigned to specifics
country,regions and districts.
Product Management Organization
Manager of PMO develops and
implements a complete strategy and
marketing program for a specific
product or brand.
Market / Customer Management
Market managers are responsible
for developing marketing
strategies and plans for specifics
market or customers
Measuring & evaluating the results of marketing
strategies and plans and taking corrective action to
ensures that the objectives are achieved.
Checking ongoing performance against the annual plan
and taking corrective action when necessary.
Looking at wheter the company’s basic strategies are
well matched to its opportunity.