Introduction to Marketing

Lecture
Week 3

Course Instructor: Gaukhar Turganbekova

Company-wide and Marketing Strategy

• Company-Wide Strategic Planning: Defining

Marketing’s Role
• Marketing Strategy and the Marketing Mix
• Managing the Marketing Effort
 Strategic Planning

• Strategic planning – 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

3. 4. Planning
1. Defining
2. Setting Designing marketing
the
company the and other
company
objectives business functional
mission
portfolio strategies
 1. Defining a Market-Oriented Mission

• Mission statement – a statement of the organization’s purpose – what it

wants to accomplish in the larger environment.

Product-Oriented vs. Market-Oriented Business Definitions

Company Product-Oriented Market-Oriented Definition

Definition
Facebook We are an online social We connect people around the world and
network help them share important moments in
their lives

Revlon We make cosmetics We sell lifestyle and self-expression;

success and status; memories, hopes, and
dreams
Ritz-Carlton We rent rooms We create the Ritz-Carlton experience—a
memorable stay that far exceeds guests’
already high expectations
 2. Setting Company Objectives

• The company needs to turn its mission into

detailed supporting objectives, including
business objectives and marketing objectives.
• Marketing strategies and programs must be
developed to support the marketing objectives.
 3. Designing the Business Portfolio

• Business portfolio – the collection of businesses and

products that make up the company.

Steps in business portfolio planning

1. Analyzing the Current Business Portfolio
2. Developing Strategies for Growth and Downsizing
 3. Designing the Business Portfolio:

Analyzing the Current Business Portfolio

• Portfolio analysis - the process by which management
evaluates the products and businesses that make up the
company.
 to identify the key businesses that make up the
company, called strategic business units (SBUs)
 to assess the attractiveness of its various SBUs
 to decide how much support each deserves
* The Boston Consulting Group Approach (p. 71-73)
 3. Designing the Business Portfolio:
Developing Strategies for Growth and Downsizing
Product/market expansion grid – a portfolio-planning tool for
identifying company growth opportunities through market penetration,
market development, product development, or diversification.
• Market penetration – company growth by
increasing sales of current products to current
market segments without changing the
product.
• Market development – company growth by
identifying and developing new market
segments for current company products.
• Product development – company growth by
offering modified or new products to current
market segments.
• Diversification – company growth through
starting up or acquiring businesses outside the
company’s current products and markets.
 4. Planning Marketing
• Marketing must work closely with other departments to form an effective
internal company value chain and with other companies in the
marketing system to create an external value delivery network that
jointly serves.

• Value chain – the series of internal departments that carry out value-
creating activities to design produce, market, deliver, and support a firm’s
products.
• Value delivery network – the network made up of the company, its
suppliers, its distributors, and, ultimately, its customers who partner with
each other to improve the performance of the entire system.
 Marketing Strategy

• Marketing strategy – the marketing logic by which

the company hopes to create customer value and
achieve profitable customer relationships.

• To succeed in today’s competitive marketplace,

companies must be customer centered (customer-
driven marketing strategy).

• Companies must divide up the total market

(segmentation), choose the best segments (targeting),
and design strategies for profitably serving chosen
segments (differentiation and positioning).
 Marketing Mix

• Marketing mix – the set of tactical marketing tools –

product, price, place, and promotion – that the firm
blends to produce the response it wants in the target
market.

*4 Cs (p. 82)
 Marketing management functions
• Marketing analysis
– SWOT analysis – an overall evaluation of the company’s strengths (S),
weaknesses (W), opportunities (O), and threats (T).
• Marketing Planning
– Contents include Executive summary, Current marketing situation, Threats
and opportunities analysis, Objectives and issues, Marketing stratefy, Action
programs, Budgets, Controls.

• Implementation
– Marketing implementation – turning marketing strategies and plans into
marketing actions to accomplish strategic marketing objectives.
– * Marketing Department Organization (p. 85-86)

• Control
– Marketing control – measuring and evaluating the results of marketing
strategies and plans and taking corrective action to ensure that the objectives
are achieved.
SWOT Analysis
Managing Marketing Strategy
and the Marketing Mix