9/7/2022

Chapter Two

Company and Marketing Strategy

Partnering to Build Customer
Engagement, Value, and
Relationships
Copyright © 2009 Pearson Education, Inc.
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Publishing as Prentice Hall

Company and Marketing Strategy

Topic Outline

• Companywide Strategic Planning:

Defining Marketing’s Role
• Designing the Business Portfolio
• Planning Marketing: Partnering to Build
Customer Relationships
• Marketing Strategy and the Marketing
Mix
• Managing the Marketing Effort
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Companywide Strategic Planning

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

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Developing marketing strategies

Where do we want to be?

Where are we?

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Companywide Strategic Planning

Defining a Market-Oriented Mission

• 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

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Examples
• IBM (UK) - “We shall increase the pace of change.
Market driven quality is our aim. It means listening
and responding to our customers. It means
eliminating defects and errors, speeding up all our
processes, measuring everything we do against a
common standard, and it means involving employees
totally in our aims.”
• Boise YMCA (USA)- “The Boise Family YMCA is a
not-for-profit association dedicated to building self-
esteem and enriching body, mind and spirits for
persons of all ages and economic levels. The YMCA
addresses community needs through wellness,
leadership and family strengthening activities.”
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Companywide Strategic Planning

Setting Company Objectives and Goals

Business Marketing
objectives objectives
• Build profitable • Increase
customer market share
relationships • Create local
• Invest in partnerships
research • Increase
• Improve profits promotion

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Objective Setting

• Specific - Be precise about what you are going

to achieve
• Measurable - Quantify your objectives
• Achievable - Are you attempting too much?
• Realistic - Do you have the resource to make
the objective happen (men, money, machines,
materials, minutes)?
• Timed - State when you will achieve the
objective (within a month? By Dec 2022?)

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Practise: setting objectives

Profitability Objectives
• To achieve a 20% return on capital employed by
November 2022.
Market Share Objectives
• To gain 25% of the market for sports shoes by
November 2022
Promotional Objectives
• To increase awareness of the dangers of AIDS from
12% to 25% by Dec 2022.
Objectives for Branding
• To make Y brand of bottled beer the preferred brand
of 18-25 year old females by Dec 2022.

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Companywide Strategic Planning

Designing the Business Portfolio

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
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Companywide Strategic Planning

Analyzing the Current Business Portfolio

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
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BCG Product Portfolio Matrix

Relative market share & profitability

HIGH Problem
Star
Child

Market
growth
rate

Cash cow Dog

LOW
HIGH LOW

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Companywide Strategic Planning

Analyzing the Current Business Portfolio

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

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Companywide Strategic Planning

Developing Strategies for Growth and
Downsizing

Product/market expansion grid (Ansoff)

is a tool for identifying company growth
opportunities through market penetration,
market development, product
development, or diversification

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Ansoff's Product/Market Matrix

M A R K E T

Existing New

P Penetration Market development

R Increase market share
O
Existing Same product/
steal competitor’s new market
D business
U
C
T Product development Diversification
New Same market/ New market/
new product new product

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Companywide Strategic Planning

Developing Strategies
for Growth and Downsizing

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

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Companywide Strategic Planning

Developing Strategies
for Growth and Downsizing
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

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Companywide Strategic Planning

Developing Strategies
for Growth and Downsizing

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

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Group Assignment

• Select a product/service for developing

a marketing plan

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Managing the Marketing Effort

Market Planning—Parts of a Marketing Plan

Executive Marketing Threats and

summary situation opportunities

Objective and
Action programs Budgets
issues

Controls

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