Lecture-3: Company and Marketing

LECTURE-3
Company and Marketing

Strategy
Partnering to Build
Customer Relationships
Copyright © 2012 Pearson Education, Inc.

1- 1
Publishing as Prentice Hall
Topic Outline
• Companywide Strategic Planning:

Defining Marketing’s Role
• Planning Marketing: Partnering to Build

Customer Relationships
• Marketing Strategy and the Marketing

Mix
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
Steps in Strategic Planning

Defining a Market-Oriented Mission
• The mission statement
is the organization’s
purpose, what it wants
to accomplish in the
larger environment We help you organize the world’s
• Market-oriented mission information and make it
statement defines the universally accessible and useful.
business in terms of
satisfying basic
customer needs
Good Mission Statements
• Focus on a limited number of goals

• Stress major policies and values
• Define major competitive spheres
• Take a long-term view
• Short, memorable, meaningful
Rubbermaid Commercial Products, Inc.
“Our vision is to be the Global Market Share

Leader in each of the markets we serve. We
will earn this leadership position by
providing to our distributor and end-user
customers innovative, high-quality, cost-
effective and environmentally responsible
products. We will add value to these products
by providing legendary customer service
through our Uncompromising Commitment
to Customer Satisfaction.”
Motorola
“The purpose of Motorola is to honorably

serve the needs of the community by providing
products and services of superior quality at a
fair price to our customers; to do this so as to
earn an adequate profit which is required for
the total enterprise to grow; and by doing so,
provide the opportunity for our employees and
shareholders to achieve their personal
objectives.”
eBay
“We help people trade anything on earth.

We will continue to enhance the online
trading experiences of all—collectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.”
Setting Company Objectives and Goals
Business Marketing
objectives objectives
●
Build profitable ●
Increase market
customer share
relationships ●
Create local
●
Invest in research partnerships
●
Improve profits ●
Increase promotion
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
Analyzing the Current Business Portfolio
Strategic business units can be

• Company division
• Product line within a division
• Single product or brand
Analyzing the Current Business Portfolio
Assess
Identify the
key businesses
(strategic business units,
attractiveness
or SBUs) that make upof
its company
the various SBUs
De
cid
e
ho
w
m
uc
h
su
pp
ort
ea
ch
S
B
U
de
se
rv
es
BCG Matrix
 Stars are high growth,
high businesses or
products, they often
need heavy investment
to finance their rapid
growth.
 Cash cows are low-
growth, high share
businesses or
products, they need
less investment to hold
their market share.
BCG Matrix
 Question marks are low-
share business units in
high growth markets,
they need lot of cash to
hold their share.
 Dogs are low-growth,

low-share businesses
and products. They may
generate enough cash
to maintain themselves
but don't promise to be
large sources of cash.
Problems with Matrix Approaches
• Difficulty in defining SBUs and measuring

market share and growth
• Time consuming
• Expensive
• Focus on current businesses, not future
planning
Developing Strategies for Growth and Downsizing
Product/Market Expansion Grid
Market Market
penetratio developm
a tool for identifying n ent
company growth
opportunities Product
Diversifica
developm
tion
ent
Ansoff’s Product-Market Expansion Grid
Developing Strategies
for Growth and Downsizing
Market penetration growth by increasing sales to
current market segments without changing the
product
Market development growth by identifying and
developing new market segments for current
products
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
Downsizing prune, harvest or divest

businesses that are unprofitable or that
no longer fit the strategy
What is the Value Chain?
The value chain is a tool for identifying

ways to create more customer value
because every firm is a synthesis of
primary and support activities performed to
design, produce, market, deliver, and
support its product.
Value Chain Analysis
The way in which primary and support

activities are combined in providing goods
and services and increasing profit margins.
Identifying Resources and Capabilities That Can Add Value
Support
Activities
Primary Activities
Support
Activities
Logistics
Inbound
Primary Activities
Support
Activities
Operations
Logistics
Inbound
Primary Activities
Support
Activities
Operations
Outbound
Logistics
Logistics
Inbound
Primary Activities
Support
Activities
Operations
Outbound
Marketing
Logistics
Logistics
Inbound
& Sales
Primary Activities
Support
Activities
Service
Operations
Outbound
Marketing
Logistics
Logistics
Inbound
& Sales
Primary Activities
Support
Activities
Procurement
Service
Operations
Outbound
Marketing
Logistics
Logistics
Inbound
& Sales
Primary Activities
Support
Activities
Technological Development
Procurement
Service
Operations
Outbound
Marketing
Logistics
Logistics
Inbound
& Sales
Primary Activities
Support Human Resource Management

Activities
Procurement
Service
Operations
Outbound
Marketing
Logistics
Logistics
Inbound
& Sales
Primary Activities
Firm Infrastructure
Support Human Resource Management

Activities
Procurement
Service
Operations
Outbound
Marketing
Logistics
Logistics
Inbound
& Sales
Primary Activities
Firm Infrastructure
Support Human Resource ManagementMA

R
Activities
G
Technological Development IN
Procurement
Service
Operations
Outbound
Marketing
Logistics
Logistics
Inbound
& Sales
IN
G
R
A
M
Primary Activities
Bibliography
 Principles of Marketing by Philip Kotler & Gary Armstrong
Fifteenth Edition, Published by Prentice Hall
 Marketing Management – A South Asian Perspective

by Philip Kotler, Kevin Lane Keller, Abraham Koshy &
Mithileshwar Jha, 13th Edition, Published by Pearson
Education, Inc.
 Principles and Practices of Marketing by Jobber, D. 4th
edition, McGraw Hill International.
 Principles of Advertising & IMC by Tom Duncan 2nd

Edition, Published by McGraw-Hill Irwin.
The End
"The secret of getting started is

breaking your complex,
overwhelming tasks into small
manageable tasks, and then
starting on the first one.“
Mark Twain

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LECTURE-3

Company and Marketing

Copyright © 2012 Pearson Education, Inc.

• Companywide Strategic Planning:

• Planning Marketing: Partnering to Build

• Marketing Strategy and the Marketing

Steps in Strategic Planning

• Focus on a limited number of goals

“Our vision is to be the Global Market Share

“The purpose of Motorola is to honorably

“We help people trade anything on earth.

Strategic business units can be

 Dogs are low-growth,

• Difficulty in defining SBUs and measuring

Product development is a growth

Downsizing prune, harvest or divest

The value chain is a tool for identifying

The way in which primary and support

Support Human Resource Management

Support Human Resource Management

Support Human Resource ManagementMA

 Marketing Management – A South Asian Perspective

 Principles of Advertising & IMC by Tom Duncan 2nd

"The secret of getting started is

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