Company & Marketing Strategy: Partnering to Build Customer Relationships Lesson Plan #2 1 Company and Marketing Strategy Explain companywide strategic planning and its four steps. Discuss how to design business portfolios and develop growth strategies. Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value. Describe the elements of a customer-driven marketing strategy and mix and the forces that influence it. List the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring and managing return on marketing investment. Objectives 2 Companywide 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 Strategic Planning Note to Instructor: Strategic planning sets the stage for the rest of the planning in the firm. 3 Companywide Strategic Planning Steps in Strategic Planning 4 Companywide Strategic Planning 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. A clear mission statement acts as an “invisible hand” that guides people in the organization. Defining a Market-Oriented Mission What might be Google’s mission statement? Note to Instructor: A mission statement should: Not be myopic in product terms Meaningful and specific Motivating Emphasize the company’s strengths Contain specific workable guidelines Not be stated as making sales or profits Discussion Question: Google Starbucks Mission statement, ask your students if it would help define the actions of individuals from the average barista to the CEO 5 Companywide Strategic Planning Defining a Market-Oriented Mission We help you organize the world’s information and make it universally accessible and useful. Note to Instructor: A mission statement should: Not be myopic in product terms Meaningful and specific Motivating Emphasize the company’s strengths Contain specific workable guidelines Not be stated as making sales or profits Discussion Question: Google Starbucks Mission statement, ask your students if it would help define the actions of individuals from the average barista to the CEO 6 Companywide Strategic Planning CompanyProduct-Oriented DefinitionMarket-Oriented DefinitionAmazon.comWe sell books, videos, CDs, toys, consumer electronics and other products onlineWe make the Internet buying experience fast, easy, and enjoyable— we’re the place where you can find and discover anything you want to buy onlineDisneyWe run theme parksWe create fantasies—a place where dreams come true and America still works the way it’s supposed toNikeWe sell athletic shoes and apparelWe bring inspiration and innovation to every athlete* in the world .

1. Company & Marketing Strategy: Partnering to Build Customer
Relationships
Lesson Plan #2
1
Company and Marketing Strategy
Explain companywide strategic planning and its four steps.
Discuss how to design business portfolios and develop growth
strategies.
Explain marketing’s role in strategic planning and how
marketing works with its partners to create and deliver customer
value.
Describe the elements of a customer-driven marketing strategy
and mix and the forces that influence it.
List the marketing management functions, including the
elements of a marketing plan, and discuss the importance of
measuring and managing return on marketing investment.
Objectives
2
Companywide 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
Strategic Planning

2. Note to Instructor:
Strategic planning sets the stage for the rest of the planning in
the firm.
3
Companywide Strategic Planning
Steps in Strategic Planning
4
Companywide Strategic Planning
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.
A clear mission statement acts as an “invisible hand” that
guides people in the organization.
Defining a Market-Oriented Mission
What might be Google’s mission statement?
Note to Instructor:

3. A mission statement should:
Not be myopic in product terms
Meaningful and specific
Motivating
Emphasize the company’s strengths
Contain specific workable guidelines
Not be stated as making sales or profits
Discussion Question: Google Starbucks Mission statement, ask
your students if it would help define the actions of individuals
from the average barista to the CEO
5
Companywide Strategic Planning
Defining a Market-Oriented Mission
We help you organize the world’s information and make it
universally accessible and useful.
Note to Instructor:
A mission statement should:
Not be myopic in product terms
Meaningful and specific
Motivating
Emphasize the company’s strengths
Contain specific workable guidelines
Not be stated as making sales or profits
Discussion Question: Google Starbucks Mission statement, ask
your students if it would help define the actions of individuals

4. from the average barista to the CEO
6
Companywide Strategic Planning
CompanyProduct-Oriented DefinitionMarket-Oriented
DefinitionAmazon.comWe sell books, videos, CDs, toys,
consumer electronics and other products onlineWe make the
Internet buying experience fast, easy, and enjoyable— we’re the
place where you can find and discover anything you want to buy
onlineDisneyWe run theme parksWe create fantasies—a place
where dreams come true and America still works the way it’s
supposed toNikeWe sell athletic shoes and apparelWe bring
inspiration and innovation to every athlete* in the world
(* if you have a body, you are an athlete)
Instructor’s Note:
This is a great opportunity to begin the discussion on
positioning. Google “Under Armour” mission statement and
compare it to Nike’s mission
7
Companywide Strategic Planning
Setting Company Objectives and Goals
8
Business objectives

5. Build profitable customer relationships
Invest in research
Improve profits
Marketing objectives
Increase market share
Create local partnerships
Increase promotion
Companywide Strategic Planning
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.

6. The best business portfolio is the one that best fits the
company’s strengths and weaknesses to opportunities in the
environment.
Designing the Business Portfolio
9
LVMH EMPIRE
NOTE:
Under fashion, LVMH owns several luxury fashion brands:
Dior, Givenchy, Fendi and Céline to name but a few.
10
Companywide Strategic Planning
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
Analyzing the Current Business Portfolio
Note to Instructor
This Web link is to LVMH. Have students explore the different

7. business and product offerings by LVMH
Discussion Question
Which product categories might be growing markets, slower
markets, and emerging markets.
11
Companywide Strategic Planning
Analyzing the Current Business Portfolio
12
Identify key businesses (strategic business units, or SBUs) that
make up the company
Assess the attractiveness of its various SBUs
Decide how much support each SBU deserves

8. Companywide Strategic Planning
Difficulty in defining SBUs and measuring market share and
growth
Time consuming
Expensive
Focus on current businesses, not future planning
Problems with Matrix Approaches
13
Companywide Strategic Planning
Product/market expansion grid is a tool for identifying
company growth opportunities through market penetration,
market development, product development, or diversification
Developing Strategies for Growth and Downsizing
14
Companywide Strategic Planning
Developing Strategies for Growth and Downsizing
Product/Market Expansion Grid Strategies

9. 15
Market penetration
Market development
Product development
Diversification
Companywide Strategic Planning
Developing Strategies for Growth and Downsizing
Product/market expansion grid strategies
16
Companywide Strategic Planning
Market penetration is a growth strategy increasing sales to
current market segments without changing the product

10. Market development is a growth strategy that identifies and
develops new market segments for current products
Developing Strategies
for Growth and Downsizing
NOTES:
Crocs and KFC.
Click on picture to see the collaboration with KFC.
17
Companywide Strategic Planning
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
Developing Strategies
for Growth and Downsizing
Note to Instructor
This Web link leads to the homepage for Virgin. This is a great
company to discuss as they provide examples of market
development, product development and diversification. Their
homepage lists all their industries and products including
tourism, leisure, shopping, media, finance, and healthcare.
18

11. Companywide Strategic Planning
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
Developing Strategies
for Growth and Downsizing
NOTES:
Tommy Hilfiger once had an athletic division. Due to overall
poor performance, the line was discontinued.
19
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
20
Mission Statement and Marketing Strategy
Marketing Strategy and the Marketing Mix
So we have our company’s mission statement, and have a
marketing strategy, but what’s missing?
At the center of it all is our profitable customer relationship.

12. http://www.shutterstock.com/pic-45761482/stock-photo-happy-
customers-at-the-reception-of-a-hotel.html
21
Marketing Strategy and the Marketing Mix
Market segmentation is the division of a market into distinct
groups of buyers who have distinct needs, characteristics, or
behaviour 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
Customer-Driven Marketing Strategy
22
Marketing Strategy and the Marketing Mix
Market targeting is the process of evaluating each market
segment’s attractiveness and selecting one or more segments to
enter
Customer-Centered Marketing Strategy
http://www.shutterstock.com/pic-31135552/stock-photo-an-
arrow-hits-the-target-in-a-pyramid-of-balls-symolizing-
targeted-marketing.html

13. Note to Instructor
This link goes to the nike.com site. Start by asking the students,
“What if Nike only made one pair of shoes, would all of you be
wearing them?” Explore with the students the different
segments including gender Nike Women, psychographics (sports
centric including football), and age.
Discussion Questions (can include the topic of positioning
which is on the following slide).
Specific questions for the students:
How does Nike segment their market?
What appears to be their most important segments?
How does Nike position their products in the marketplace?
23
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.
http://www.shutterstock.com/pic-2415155/stock-photo-one-
white-stone-standing-out-among-gray-ones.html
24
Marketing Strategy and the Marketing Mix
Customer-Centered Marketing Strategy
Write down three words that describes each company.
WestJet
Air Canada
Starbucks

14. Tim Hortons
Would you say they are exactly the same as each other?
How about:
Nike
Adidas
Instructors Notes: The key here is to get people thinking about
positioning, differentiation and the place the product holds in
the consumers mind. You might want to ask who is a user of the
product or service and who purchases both.
25
Marketing Strategy and the 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.
Developing an Integrated Marketing Mix
26
Marketing Strategy and the Marketing Mix
Developing an Integrated Marketing Mix
27
Marketing Strategy and the Marketing Mix
Developing an Integrated Marketing Mix from the customer

15. point of view
4 P’s4 C’sProductCustomer
Solution
PriceCustomer CostPlaceConveniencePromotionCommunication
Seeing the 4 P’s from the customers perspective (example:
Promotion in terms of Communication) can help us understand
how we create value for our customers.
Note to Instructor
It is interesting to ask how to make the 4Ps more customer
centric? This leads to a redefining of the 4Ps to the 4Cs as
follows:
Product—Customer solution
Price—Customer cost
Place—Convenience
Promotion—Communication
28
Analysis (SWOT)
Planning

16. Implementation
Control
Finding opportunities
Avoiding threats
Understanding strengths
Analyzing weaknesses
Managing the Marketing Effort
Managing the Marketing Effort
Marketing Analysis – SWOT Analysis
SWOT Analysis
30
Analysis
Planning
Implementation
Control
Marketing plans include:

17. Executive summary
Analysis of current situation
Objectives
Targets and positioning
Marketing mix
Budget
Controls
Managing the Marketing Effort
Analysis
Planning
Implementation
Control
Process that turns strategies and plans into marketing actions
that accomplish strategic marketing objectives
Good implementation is a challenge
Marketing department organization
Managing the Marketing Effort
Managing the Marketing Effort
Implementing is the process that turns marketing plans into

18. 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
Marketing Implementation
33
Analysis
Planning
Implementation
Control
Involves Evaluating the results of marketing strategies and
plans and taking corrective action
Checks for differences between goals and performance
Operating control, strategic control, marketing audit
Managing the Marketing Effort

19. Managing the Marketing Effort
Controlling is the measurement and evaluation of results and the
taking of corrective action as needed.
Operating control
Strategic control
Marketing Control
Note to Instructor
Operating control involves checking ongoing performance
against an annual plan and taking corrective action as needed.
Strategic control involves looking at whether the company’s
basic strategies are well matched to its opportunities.
35
Measuring and Managing
Return on Marketing Investment
Return on Marketing Investment (Marketing ROI)

20. 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.
36
Managing the Marketing Effort
Marketing Control
From Ch. 2, Pg. 60, 8th CE
37
Homework Assignment #1
(Worth 10%)
Complete a detailed S.W.O.T analysis for a fashion company of
your choice. Under each heading, provide a minimum of 4 bullet

21. points. For example, “S” stands for Strengths: what are 4
strengths of the company?
Assignment Requirements:
To add interest to the assignment, create an interesting
chart/graphic (Google some possible templates you could use)
for your SWOT analysis.
The assignment can be completed in any program of your
choosing.
Remember to include a title page with your name, assignment #
and date.
DUE: next class.