1. The document discusses principles of marketing and company strategy, including defining a market-oriented mission, setting objectives and goals, designing business portfolios, and developing functional plans. 2. It also covers customer-driven marketing strategies involving market segmentation, targeting, positioning, and differentiation. The marketing mix of product, price, place, and promotion is explained. 3. Factors influencing consumer behavior are also summarized, such as culture, subculture, social class, social factors like groups and family, and consumer characteristics.

1. PRINCIPLES OF MARKETING BY KOTLER & ARMSTRONG
Company and Marketing
Strategy

2. COMPANY-WIDE STRATEGIC PLANNING:
DEFINING MARKETING’S ROLE
 Strategic planning
 The process of developing and maintaining a
strategic fit between the organization’s goals and
capabilities and its changing marketing
opportunities.

3. 4 STEPS IN COMPANY-WIDE STRATEGIC
PLANNING
1. Defining a Market-Oriented Mission
 Mission statement. A statement of the
organization’s purpose—what it wants to
accomplish in the larger environment.

4. EXAMPLES OF MARKET-ORIENTED DEFINITIONS

5. MCDONALD’S MISSION

6. 2. Setting Company Objectives and Goals
 This broad mission leads to a hierarchy of
objectives, including business objectives and
marketing objectives.
 Research is expensive and must be funded
through improved profit, so improving profits
becomes another major objective for a
company.

7. 3. Designing the Business Portfolio
Business portfolio. The collection of
businesses and products that make up the
company.

8. WHAT IS MARKETING STRATEGY?
 The marketing logic by which the company
hopes to create customer value and achieve
profitable customer relationships.

9. 4. Developing Functional Plans
 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
ofcurrent 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 current products and markets.

10. CUSTOMER-DRIVEN MARKETING STRATEGY

11. FOUR MAJOR STEPS IN DESIGNING A CUSTOMER-DRIVEN
MARKETING STRATEGY

12. 1. Market segmentation. Dividing a market into
distinct groups of buyers who have different
needs, characteristics, or behaviors, and who
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.
2. Market targeting. The process of evaluating
each market segment’s attractiveness and
selecting one or more segments to enter.

13. WALMART STORES AT CHINA

14. WALMART STORE AT DIFFERENT PLACES

15. WALMART STORE AT DIFFERENT PLACES

16. 3. Positioning. Arranging for a product to
occupy a clear, distinctive, and desirable place
relative to competing products in the minds of
target consumers.
4. Differentiation. Actually differentiating the
market offering to create superior customer
value.

18. DUNKIN ~ STARBUCKS 

19.  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.
 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 includes company activities that make the
product available to target consumers.
 Promotion means activities that communicate the
merits of the product and persuade target customers
to buy it.

21. MANAGING THE MARKETING EFFORT
 Marketing Analysis
 SWOT analysis. An overall evaluation of the
company’s strengths (S), weaknesses (W),
opportunities (O), and threats (T).
 Strengths. Internal capabilities that may help the company
reach its objectives
 Weaknesses. Internal limitations that may interfere with the
company’s ability to achieve its objectives.
 Opportunities. External factors that the company may be
able to exploit to its advantage
 Threats. Current and emerging external factors that may
challenge the company’s performance.

22.  Marketing Planning
 A marketing strategy consists of specific
strategies for target markets, positioning, the
marketing mix, and marketing expenditure
levels.

23. MARKETING IMPLEMENTATION
 Marketing implementation. Turning
marketing strategies and plans into
marketing actions to accomplish strategic
marketing objectives.

24. CONSUMER MARKETS AND
CONSUMER BUYER BEHAVIOR
 Consumer buyer behavior. The buying
behavior of final consumers—individuals and
households that buy goods and services for
personal consumption.
 Consumer market. All the individuals and
households that buy or acquire goods and
services for personal consumption.

25. MODEL OF CONSUMER BEHAVIOR

26. Lets take a look at APPLE

28. IPOD
 Besides the unique look and high capacity, the
idea of a portable jukebox that could nearly
instantly jump to any point in its catalog with a
flick of a scroll wheel was revolutionary.
 When eventually paired with the iTunes Store
and 99-cent downloads, it was an unstoppable
force. Apple still sells plenty of iPods, especially
the current favorite iPod Touch, but the device's
legacy may be in how there's now an "iPod" app
built into every iPhone and iPad.

30. IMAC
 A quirky novelty at first, the iMac line is today
nearly unrecognizable compared with the
original versions. Each generation evolves,
shifting the design and features, and the
current look--a wide-screen monitor
connected to an aluminum foot and not much
else--has helped make the all-in-one
category of desktops the default for almost
anyone not buying a laptop.

32. IPHONE
 The original iPhone hit in 2007 like a
hurricane, instantly changing what mobile
phones were expected to do, from the edge-
to-edge glass screen, to the colorful icons, to
the most responsive touch screen that many
had ever used.

33. CHARACTERISTICS AFFECTING CONSUMER
BEHAVIOR

34. 1. Cultural Factors. Cultural factors exert a
broad and deep influence on consumer
behavior. Marketers need to understand the
role played by the buyer’s culture, subculture,
and social class.
 Culture. The set of basic values,
perceptions,wants, and behaviors learned by a
member of society from family and other
mportant institutions.
 Subculture. A group of people with shared value
systems based on common life experiences and
situations.

35. BURGER KING TARGETING HISPANICS

36. AFRICAN-AMERICAN CONSUMERS

37. ASIAN-AMERICAN CONSUMERS

38.  Social classes are society’s relatively
permanent and ordered divisions whose
members share similar values, interests, and
behaviors.

39. AMERICAN SOCIAL CLASSES

40. SOCIAL FACTORS
 Social Factors. A consumer’s behavior also is
influenced by social factors, such as the
consumer’s small groups, family, and social
roles and status.

41.  Group. Two or more people who interact to
accomplish individual or mutual goals.
 Online social networks. Online social
communities—blogs, social networking Web sites, or
even virtual worlds—where people socialize or
exchange information and opinions.
 Family. The family is the most important consumer
buying organization in society. Husband-wife
involvement varies widely by product category and by
stage in the buying process.
 Roles and Status. A role consists of the activities
people are expected to perform according to the
people around them. Each role carries a status
reflecting the general esteem given to it by society.