Company and Marketing
             Strategy


            Chapter 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
Objectives


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

5 magazine publishing groups
5 music labels
19 Internet groups
Disney Interactive
The Disney Store
Disney Cruise Lines
Two sports Franchises
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.”
BusinessNow

                Nervewire Video Clip

                                        Consultants may
                                        offer valuable
                                        services and
                                        expertise during
                                        the strategic
Click the picture above to play video   planning process.
Figure 2-1:
       Steps in the
Strategic Planning Process
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.
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
Discussion Question

Google.com is one of
the leading Internet
search engines.

Construct a market-
oriented mission
statement that fits
this business.
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
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
Figure 2-2:
Growth-Share Matrix
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
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
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.
Figure 2-3:
Product / Market
 Expansion Grid
Marketing plays a key role in
the strategic planning process.
Figure 2-4:
The Marketing Process
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
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.
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?
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)
Figure 2-5:
The Marketing Mix
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
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
Figure 2-6:
 Managing the
Marketing Effort

Chapter 2s

  • 1.
    Company and Marketing Strategy Chapter 2
  • 2.
    Objectives Understand companywide strategic planningand 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 todescribe 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 cablenetworks  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 5magazine publishing groups 5 music labels 19 Internet groups Disney Interactive The Disney Store Disney Cruise Lines Two sports Franchises
  • 7.
    Strategic Planning Strategic planningis 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 statementsshould . . .  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 statementsguide 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 isone of the leading Internet search engines. Construct a market- oriented mission statement that fits this business.
  • 14.
    Strategic Planning Business portfolio: “thecollection 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.
  • 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 approachesto 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 thebusiness 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 akey role in the strategic planning process.
  • 22.
  • 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 notrestricted 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.
  • 28.
    The Marketing Mix Visitthe 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: Managingthe Marketing Effort

Editor's Notes

  • #29 Clicking the WWW icon will open your web browser and link to the web site pictured in the screen shot.