marketing strategy

1. Chapter Two
Company and Marketing Strategy
Partnering to Build Customer
Relationships

2. Company and Marketing Strategy
Topic Outline
• Companywide Strategic Planning: Defining
Marketing’s Role
• Designing the Business Portfolio
• Planning Marketing: Partnering to Build Customer
Relationships
• Marketing Strategy and the Marketing Mix
• Managing the Marketing Effort
• Measuring and Managing Return on Marketing
Investment

3. Companywide
Strategic Planning
Strategic Planning
Strategic planning is the process of
developing and maintaining a
strategic fit between the
organization’s goals and capabilities
and its changing marketing
opportunities.

4. Companywide Strategic Planning
Steps in Strategic Planning

5. • A Mission Statement defines the company's
business, its objectives and its approach to
reach those objectives.
• A Vision Statement describes the desired
future position of the company. Elements of
• Mission and Vision Statements are often
combined to provide a statement of the
company's purposes, goals and values.

6. GSK: DO MORE, FEEL BETTER, AND LIVE LONGER
HAMDARD LABORATORIES (WAQF) PAKISTAN:
“An institution of eastern system of medicine
dedicated for health care and education and a
movement for the promotion of morality,
science and culture”

7. • The mission statement is
the organization’s
purpose, what it wants to
accomplish in the larger
environment
• Market‐oriented mission
statement defines the
business in terms of
satisfying basic customer
needs
Companywide Strategic Planning
Defining a Market‐Oriented Mission
We help you organize the
world’s information and make it
universally accessible and useful.

8. MISSION STATEMENTS
Distribution of products with excellence in price, quality
and variety to professional customers, offering those
advantages and opportunities of growth
Vitality is at the heart of everything we do. It's in our
brands, our people and our approach to business
Our aim to become trend setters in promoting healthy
living through providing quality food products
To be the best cellular option for U

9. GOAL, OBJECTIVE, MISSION, VISION
Goal is a state of affairs, or a state of concrete activity,
which an organization or system wishes to achieve or
obtain.
Objective is the plan, to involve and implement specific
actions which must be taken to close the gap between
the current realities and the ideal state.
Mission is the process of defining objectives and
developing strategies to reach those objectives.
Vision involves the foresight needed to acquire the
necessary expertise to organize existing resources, to
accomplish the desired results.

10. Companywide Strategic Planning

11. Difference of Goals & Objectives
• Goals are:
• Primary and important goals
Large in size
The end
The result
The whole
Longer term
Objectives are:
• Sub-goals
Medium or small in size
The means to the end
The steps
Part of the whole
Shorter term

12. Goals Vs Objectives
GOAL OBJECTIVE
Plan: Broad plan Narrow plan
Action: Generic action Specific action
Example:
I want to achieve success
in the field of genetic
research and do what no
one has ever done.
I want to complete this
thesis on genetic research
by the end of this month.
Measure:
Goals may not be strictly
measurable or tangible.
Must be measurable and
tangible.
Time frame: Longer term Short to medium term
Meaning:
The purpose toward which
an endeavor is directed.
Something that one's
efforts or actions are
intended to attain or
accomplish; purpose;
target.
Principle: Based on ideas Based on fact

13. Companywide Strategic Planning
Setting Company Objectives and Goals

14. Companywide Strategic Planning
Designing the Business Portfolio
The business portfolio is the collection of
businesses and products that make up the
company
Portfolio analysis is a major activity in
strategic planning whereby management
evaluates the products and businesses that
make up the company

15. Companywide Strategic Planning
Analyzing the Current Business Portfolio
Strategic business unit (SBU) is a unit of the
company that has a separate mission and
objectives that can be planned separately
from other company businesses
• Company division
• Product line within a division
• Single product or brand

16. Companywide Strategic Planning
Analyzing the Current Business Portfolio

17. Companywide Strategic Planning:

18. • Stars – Stars are high growth businesses or products competing in markets where they are
relatively strong compared with the competition. They are typically at the peak of their
product life cycle. Stars generate large amounts of cash because of their strong relative
market share, but also consume large amounts of cash because of their high growth rate.
Often they need heavy investment to sustain their growth. Eventually their growth will slow
and will become cash cows.
• Cash Cows – Cash cows are low-growth businesses or products with a relatively high market
share. These are mature, successful businesses with relatively little need for investment. They
typically bring in far more money than is needed to maintain their market share. In this
decline stage of their life cycle, these products are “milked” for cash that will be invested in
new question marks.
• Question marks – Question marks are businesses or products with low market share but
which operate in higher growth markets. Question marks are growing rapidly and thus
consume large amounts of cash, but because they have low market shares they do not
generate much cash. A question mark (also known as a “problem child”) has the potential to
gain market share and become a star, and eventually a cash cow when the market growth
slows. If the question mark does not succeed in becoming the market leader, then after years
of cash consumption it will degenerate into a dog when the market growth declines.
Management have to think hard about “question marks” – which ones should they invest in?
Which ones should they allow to fail or shrink?
• Dogs – Dogs have low market share and a low growth rate and thus neither generate nor
consume a large amount of cash. However, dogs are cash traps because of the money tied up
in a business that has little potential. Such businesses are candidates for divestiture.

19. Companywide Strategic Planning
Problems with Matrix Approaches
• Difficulty in defining SBUs and measuring
market share and growth
• Time consuming
• Expensive
• Focus on current businesses, not future
planning

20. Companywide Strategic Planning
Developing Strategies for Growth and Downsizing
Product/market expansion grid is a tool for
identifying company growth opportunities
through market penetration, market
development, product development, or
diversification

21. Companywide Strategic Planning
Developing Strategies for Growth and Downsizing
Product/Market Expansion Grid Strategies

22. Companywide Strategic Planning
Developing Strategies for Growth and Downsizing
Product/market expansion grid strategies

23. Companywide Strategic Planning
Developing Strategies
for Growth and Downsizing
Market penetration is a
growth strategy increasing
sales to current market
segments without changing
the product
Market development is a
growth strategy that
identifies and develops new
market segments for current
products

24. Companywide Strategic Planning
Developing Strategies
for Growth and Downsizing
Product development is a growth strategy
that offers new or modified products to
existing market segments
Diversification is a growth strategy through
starting up or acquiring businesses outside
the company’s current products and
markets

25. Companywide Strategic Planning
Developing Strategies
for Growth and Downsizing
Downsizing is the reduction of the business
portfolio by eliminating products or
business units that are not profitable or
that no longer fit the company’s overall
strategy

26. Planning Marketing
Partnering to Build Customer Relationships
Value chain is a series of
departments that carry
out value‐creating
activities to design,
produce, market,
deliver, and support a
firm’s products

27. Planning Marketing
Partnering to Build Customer Relationships
Value delivery network
is made up of the
company, suppliers,
distributors, and
ultimately customers
who partner with each
other to improve
performance of the
entire system

28. Marketing Strategy and the Marketing
Mix

29. Marketing Strategy and the
Marketing Mix
Customer‐Driven Marketing Strategy
Market segmentation is the division of a
market into distinct groups of buyers who
have distinct needs, characteristics, or
behavior and who might require separate
products or marketing mixes
Market segment is a group of consumers who
respond in a similar way to a given set of
marketing efforts

30. Marketing Strategy and the
Marketing Mix
Customer‐Centered Marketing Strategy
Market targeting is the process of evaluating
each market segment’s attractiveness and
selecting one or more segments to enter

31. Marketing Strategy and the Marketing
Mix
Customer‐Centered Marketing Strategy
Market positioning is the arranging for a
product to occupy a clear, distinctive, and
desirable place relative to competing
products in the minds of the target
consumer
Differentiation: Actually differentiating the
market offering to create superior
customer value.

32. Marketing Strategy and the Marketing
Mix
Developing an Integrated Marketing Mix
Marketing mix is the set of controllable
tactical marketing tools—product, price,
place, and promotion—that the firm blends
to produce the response it wants in the
target market

33. Marketing Strategy and the Marketing
Mix
Developing an Integrated Marketing Mix

34. Marketing Strategy and the Marketing
Mix
Developing an Integrated Marketing Mix
4Ps 4Cs
Product Customer Solution
Price Customer Cost
Place Convenience
Promotion Communication

35. Managing the Marketing Effort

36. Managing the Marketing Effort
Marketing Analysis – SWOT Analysis

37. Managing the Marketing Effort
Market Planning—Parts of a Marketing Plan

38. Managing the Marketing Effort
Marketing Implementation
Implementing is the process that turns
marketing plans into marketing actions to
accomplish strategic marketing objectives
• Successful implementation depends on how
well the company blends its people,
organizational structure, decision and reward
system, and company culture into a cohesive
action plan that supports its strategies

39. Managing the Marketing Effort
Marketing Department Organization

40. Managing the Marketing Effort
Marketing Control
• Controlling is the measurement and
evaluation of results and the taking of
corrective action as needed
• Operating control
• Strategic control

41. Measuring and Managing
Return on Marketing Investment
Return on Marketing Investment (Marketing ROI)
Return on marketing investment (Marketing
ROI) is the net return from a marketing
investment divided by the costs of the
marketing investment. Marketing ROI provides
a measurement of the profits generated by
investments in marketing activities.

42. Time: 15 Minutes
Don’t Forget to write:
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43. Time: 15 Minutes
1. Define BCG Matrix with examples
2. Differentiate between
Segmentation and Targeting and
give examples

44. • faiz@faizullahjawad.com
• 0321-2673418