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Principles of Marketing Chapter #2
1.
Chapter 2- slide
1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Two Company and Marketing Strategy Partnering to Build Customer Relationships
2.
Chapter 2- slide
2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
3.
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3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Defining a Market-Oriented Mission
4.
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4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Business objectives • Build profitable customer relationships • Invest in research • Improve profits Marketing objectives • Increase market share • Create local partnerships • Increase promotion Setting Company Objectives and Goals
5.
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5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall • Frances Haugen – https://www.franceshaugen.com/blog/b9xlswihkike 7639nn4ie23odz9eqy • Mark Zuckerberg denies claims that Facebook puts profits before people – BBC – Newshttps://www.youtube.com/watch?v=Q-Ooyi- 7tr8 • Revealed: 50 million Facebook profiles harvested for Cambridge Analytica in major data – breachhttps://www.theguardian.com/news/2018/m ar/17/cambridge-analytica-facebook-influence-us- election
6.
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6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Designing the Business Portfolio
7.
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7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
8.
Chapter 2- slide
8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning 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 Analyzing the Current Business Portfolio
9.
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9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Activity Aryan
10.
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10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
11.
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11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
12.
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12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
13.
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13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Developing Strategies for Growth and Downsizing Product/Market Expansion Grid Strategies Market penetration Market development Product development Diversification
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14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning 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 Developing Strategies for Growth and Downsizing
15.
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15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Companywide Strategic Planning Product development is a growth strategy that offers new or modified products to existing market segments Diversification is a growth strategy for starting up or acquiring businesses outside the company’s current products and markets Developing Strategies for Growth and Downsizing
16.
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16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
17.
Chapter 2- slide
17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Activity • How can we open oxford in Pakistan? When foreign students can come to study here • What your class can opened in IBA • Give a clue and forward • How to manage anger
18.
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18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Planning Marketing Value chain is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products Partnering to Build Customer Relationships
19.
Chapter 2- slide
19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Planning Marketing 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 Partnering to Build Customer Relationships
20.
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20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 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 Customer-Driven Marketing Strategy
21.
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21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
22.
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22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Strategy and the Marketing Mix 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 Customer-Centered Marketing Strategy
23.
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23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
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