Partnering to Build

Customer Engagement,
Value, and Relationships

Chapter 2
 OUTLINE
01 Company-Wide Strategic Planning

02 Designing the Business Portfolio

03 Partnering to Build Customer Relationships

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 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.
• It involves defining a clear company mission, setting objectives,
designing a business portfolio and coordinating functional strategies.

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 1. Defining a Market-Oriented Mission

• The mission statement is the organization’s purpose; what it wants to

accomplish in the larger environment.
Ex: Walt Disney company “making people happy”;
Microsoft “information at your fingertips”
• It is market-oriented, not product-oriented
Ex: Facebook
We are an online social network (Product-Oriented Definition)
We connect people around the world and help them share important
moments in their lives (Market-Oriented Definition)
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 2. Setting Company Objectives and Goals

Mission statements guide

the development of
objectives and goals

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Mission statement

Principle of Marketing_ Ms. Dang Thi Uyen Thao

Mission statement

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Mission statement

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Goal
Expand Disney brand to new locations and
new markets

Objectives
Construct new Disney park in Shanghai
with attractions reflecting those movies
most successful in this market
“Authentically Disney, distinctly Chinese”

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 3. Designing the business portfolio

“Portfolio” meaning??
• The business portfolio is the collection of businesses and products
that make up the company.
• Business portfolio planning involves:
First, analyze its current business portfolio
Second, shape the future portfolio

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 First, analyzing the Current Business Portfolio

Identify strategic business units

(SBUs)

Assess the attractiveness of its

various SBUs

Decide how much support each SBU

deserves
** Strategic business units (SBUs) can be a: Company division,
Product line within a division, or Single product or brand
Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Growth-share matrix
(Boston Consulting Group (BCG)
approach)

The company classifies its SBUs to

determine what to do with them

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Growth-share matrix

market growth rate

(Boston Consulting Group (BCG)
approach)

evaluates a company’s SBUs in

terms of market attractiveness
(market growth rate) and company
strength in the market (relative
market share).
market share

Principle of Marketing_ Ms. Dang Thi Uyen Thao

• High market growth, low market share
• Cash absorbing: requiring a lot of cash
to hold their share
• Build

Known as the problem child(s). Unsure in

the next direction these products will go:
turning into stars or ending up as dogs.
HIGH market growth, LOW market share

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 • High market growth, high market share
• Products requiring heavy investment to
finance rapid growth.
• They will eventually turn into cash
cows.

These are well established products or

brands with fantastic opportunities to
generate large amounts of ROI.
HIGH market growth, HIGH market share

Principle of Marketing_ Ms. Dang Thi Uyen Thao

• Low market growth, high market share
• Cash generating
• Milk

These are well-established and

consistently produce cash, however the
growth opportunities are limited.

LOW market growth, HIGH market share

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 • Low market growth, low market share
• Generate enough cash to maintain
themselves but do not promise to be
large sources of cash.

Products which have little or no value. They

are a drain on resources and cash. It is
often difficult to make a profit from dogs.
LOW market growth, LOW market share

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Apple BCG Matrix
Coca cola BCG Matrix

Principle of Marketing_ Ms. Dang Thi Uyen Thao

Principle of Marketing_ Ms. Dang Thi Uyen Thao
 Have
a try

Vinamilk
Vingroup
Masan
Google
…

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Second, shape the future portfolio, and develop
strategies for growth and downsizing
Product/market expansion grid
is used to identify growth
opportunities for the company

Product/market expansion grid

looks at new products, existing
products, new markets, and
existing markets for company
growth opportunities.

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Google Product expansion grid- Ansoff matrix

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Downsizing is when a company must prune, harvest, or divest businesses
that are unprofitable or that no longer fit the strategy.

Ex: P&G has sold off dozens of major brands (from Right Guard
deodorant, Aleve pain reliever, CoverGirl cosmetics, Clairol hair care
products, etc) and its Iams and other pet food brands—allowing the
company to focus on household care and beauty and grooming products.

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 The BCG Matrix is a portfolio level of analysis. The two other types of analysis related
to this are the Ansoff Matrix and the product lifecycle.
Advanced: How do these forms of analysis Fit With Other?

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Planning Marketing: Partnering to Build
Customer Relationships
1. Partnering with Other Company Departments
Value chain is a series of departments that carry out value-creating activities to
design, produce, market, deliver, and support a firm’s products.
2. Partnering with Others in the Marketing System
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.
** Walmart’s success depends upon all departments. As if: Purchasing can’t
wring the lowest prices from suppliers, Operations can’t distribute merchandise at
the lowest costs, Marketing can’t deliver on its promise of lowest prices …
Principle of Marketing_ Ms. Dang Thi Uyen Thao
Walmart Operation

Principle of Marketing_ Ms. Dang Thi Uyen Thao

Walmart and P&G

Principle of Marketing_ Ms. Dang Thi Uyen Thao

Walmart Cross docking

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Marketing Strategy and
the Marketing Mix

Step 2: Customer Value-Driven Marketing Strategy (STDP)

Step 3: Developing an Integrated Marketing Mix (4 P’s)

Suppose you start a hamburger business.

Choose a target market and then develop the marketing mix?

Principle of Marketing_ Ms. Dang Thi Uyen Thao

 Managing the Marketing Effort

In order to put the marketing mix into action, 4 marketing management functions
are used:
• Analysis: SWOT Analysis
• Planning: A marketing plan includes Executive summary, Marketing situation,
Threats and opportunities, Objectives and issues, Marketing strategy, Action
programs, Budgets, Control
• Implementation: “doing things right” (implementation) is as important as, or
even more important than “doing the right things” (strategy)
• Control: Evaluating results (Marketing ROI, Brand awareness, Sales, Market
share), Taking corrective action, Operating control, Strategic control
Principle of Marketing_ Ms. Dang Thi Uyen Thao
Principle of Marketing_ Ms. Dang Thi Uyen Thao