Chapter-2: Company and

Marketing Strategy
 Learning Objectives
1.Discuss different stages of strategic planning process
2.Describe the way to evaluate business portfolio and formulate
tactics growth or divesting
3.Explain the role of marketers in strategic planning and making
collaboration with others inside and outside the firm
4.Discuss the marketing process its components
5.Point out the functions of marketing management
6.Prepare a marketing plan that is essential for business
development
 Strategic Planning

Strategic Planning: strategic planning is the

process of developing and maintaining a
strategic fit between organization’s goal and
capabilities and the changing marketing
requirements and opportunities” (Kotler and
Armstrong, 2016, p. 43)

Strategic planning includes the steps the

company is undertaking to take the
advantages of opportunities in the rapidly
changing environment.
Strategic planning process.

Corporate level
Business unit & market and
product

Defining the company Setting company Designing Planning marketing

mission objectives & goals the business & other functional
portfolio strategies
Mission: Starting Point of Forming a Strategic Plan
Mission Statement: A mission statement portrays what a business does in large environment. A
mission statement sets out the company's strategy and aims to define the boundaries of the company's
current operations.

A strategically revealing and market-oriented mission statement should have three components:
 Mentioning the needs that is satisfied
 Whose need being fulfilled (Customer groups)
 How the need being fulfilled by the company (competencies and technologies used)
 Mission: Starting Point of Forming a Strategic Plan
• Realistic: , for example if an organization’s mission statement is “We sell
lands in the moon” may not be believable or realistic.
• Market oriented: ACI Ltd. In their annual report of year 2000 changed the
mission statement as follows:
• “ACI mission is to play a leading role in enhancing the quality of life and
will-being of the people of Bangladesh through responsible application of
knowledge and skills.”

• Motivational (or encouraging): The mission statement of an NGO,

Thengamara Mohila Sabuj Sangha (TMSS) is “to provide best efforts in
bringing the poor women folk’s life/living conditions at a dignified level in
the family and society through their capacity building, optimum use of
their own/available resources, participation of their development activities
and fulfillment of their legitimate rights”, which automatically paints a
more positive picture about the organization
Mission: Starting Point of Forming a Strategic Plan
1.Specific in nature: This means mission can be of two types namely broad and
narrow mission statement.

The mission statement of Human Resource division in

BEXIMCO is “to contribute to organizational success by
developing effective leaders, creating high performance
teams, and maximizing the potential of individuals”.
Examples of broad and narrow mission statements

Broad Mission/Definition Narrow Mission/Definition

•We are in furniture business •Cane furniture business
•We are in telco business •Mobile telecommunication service
•We are engaged in beverage business provider
•Global mail delivery is our business •Soft drink business
•Travel and tourism services are our •Overnight package delivery business
business •Inland water cruise business
 Vision
Vision: Vision is the future portrait of the business. That means, the position which the company
envisages to be in, after a certain time period is the main theme of vision.

“We see business as a means to the wellbeing of

the investors, employees and the society at large,
leading to accretion of wealth through financial
and moral gains as a part of the process of the
human civilization” is the vision statement of
SQUARE Pharmaceuticals
 Setting Company Objectives and Goals:
Objective: Objective is an explicit job/task which needs to be completed within a
timeframe.
Two major components are there:
(1) Task must be specified
(2) The time to accomplish the task should also be specified.

Square Pharmaceuticals says “Our objectives are

to conduct transparent business operations
within the legal & social framework with aims to
attain the mission reflected by our vision”
 Financial and strategic objectives
Financial Objectives
•Revenue Growth
•Earnings enhancement
•Bigger dividends and stock price
•Bigger return on investment capital
•Striking financial value addition
•Worthy credit ratings
•Significant profit margin
•Attractive/sustainable increase in MVA
•Acknowledgement as a rising company
Strategic Objectives
•Bigger market share
•Better product quality in the industry
•Low-cost leader in the industry
•Extended product line than rivals
•Efficient delivery support
•Stringer brand than rivals
•Higher customer services
•Wider geographic coverage
•Stronger global distribution
 Designing the Business Portfolio: The Third Direction Setting Task
Business portfolio: “Business portfolio is the
combination of businesses and products that make up
the company” (Kotler and Armstrong, 2016).

A Analyzing the Current Business Portfolio:

Management’s evaluation of the products and

business of the company is called portfolio analysis.
Strategic Business Unit : strategic business unit is a
division of a company that has its own mission and
vision. It can also plan independently from other
units.
 The Boston Consulting Group (BCG)
• Cash cows: Cash cows are units that have high market share in a mature
industry. They are typically managed for continuous growth and cash
flow generation.
• Dogs: Dogs are typically slow-growing businesses that have little or no
market share. They are typically worthless to investors as they cannot
generate enough cash to maintain their market share.
• Question Marks: Question marks are businesses that have low market
share due to an internal problem, but which can still grow in higher-
growth markets.
• Stars: A star unit is a high-growth business that has a strong market
share in a fast-moving industry. It usually requires heavy investment to
sustain its growth, and eventually, it will become the next cash cow.
 Making an investment decision
As per BCG matrix the balanced portfolio
would be:

•Stars business is good for the future and

best for the company;
•Cash cow businesses can supply
additional fund to other categories; and
•Question mark businesses can be
transformed to star with proper fund and
strategy.
 Developing Strategies for Growth and Downsizing

(1) Build Share: ideal plan to invest in the star to enhance market share
(2) Hold: more investment may not be required. Keeping the same investment
decision as it is doing now.
(3) Harvest: Some investment can be reduced especially from the less performing
products to increase the short term cash flow. However, this strategy can turn star
into cash cow.
(4) Divest: in this strategy it is preferred to sell the company or liquidate the
assets. This strategy particularly applicable for dog type business.
 Product Market Expansion grid
Ansoff Product/Market Grid Markets
Existing New

Products Market penetration Market development

Existing (Cosco Soap) (Persona Adams, Sharif
Melamine, Frozen
Foods)

Product development Diversification

(Banglalink Internet, (Scholastica Furniture,
New Teletalk 4G, KFC BRAC Nursery, Square
Crushers, Resort Consumer Goods,
Atlantis by Concord, Maasranga TV)
Glow & Lovely
 Developing Strategies for Growth and Downsizing

Market Penetration:

Market penetration refers to strategies that are used to change the

clients of a given company. This usually involves introducing new
clients, changing the names of existing clients, and increasing the
number of clients that are heavy clients.

Product/service Development :

Company strategies that are focused on product development often

involve trying to sell other products to existing clients.

• ‘LUX’ is an example of the application of product development

strategy. Lifebuoy liquid soap has introduced more advanced and
powerful liquid soap. Banglalink has introduced 4G technology.
 Developing Strategies for Growth and Downsizing

Market Development :

Market development strategies often try to lure clients

away from their competitors or introduce new
products in a new market.
Diversification
Many companies in Bangladesh follow a strategy
based on diversification. This is the type of strategy
that is considered the riskiest.
 The Marketing Process
The marketing process is a series of steps that includes identifying and selecting target
markets, planning and executing the marketing efforts, and analyzing the results and
opportunities presented to the organization.

• Analyzing Marketing Opportunities:

Most of the time, an organization should try to find ways to utilize these opportunities as it
suits their capabilities and position.

For example, a currency devaluation of Bangladeshi Taka beneficial for those who export
their products to overseas markets. In Bangladesh, government’s education programs can be
favorable to the private institutes in getting more students for the undergraduate and post-
graduate programs.
 Market Segmenting and Target Marketing
 Market segmentation: Market segmentation is a process
that involves identifying a target market and determining the
kinds of products and services that will appeal to that market
segment.

• A company may choose to have a different choice of

segmentation variable depending on the products or services
it will offer.

 Target Marketing: After analyzing the attractiveness of

each market segment, the organization must then decide
which one or more of them should enter. This step is called
target marketing.
• For example, a real estate company does segmentation Target marketing: For Meril Petroleum Jelly,
considering on geographic location such as Dhaka metro, whole population is the target market.
Chattogram metro, Khulna metro and so on.
 Development of Marketing Mix

4 Ps 4 Cs

Product Customer Solution (How well is it solving the customers’ problem

Price Cost (What is the total cost in addition to the price

Place Convenience (How is the distribution making is easier to access the

customer)

Promotion Communication (How is it listening to the customer as well)

 4Ps
Product is a tangible good that can fulfill the needs of
the customers. For instance, Lux is a tangible product
which people can touch and see is offered by
Unilever-Bangladesh.

Price is the sum of money at which a product or

service must be sold for to own that. It is often linked
to the terms of credit and discounts. For most business
buyers, this type of deal is very important
Product: Walton offers android mobile
Place is the location where goods are distributed. It is phone with many features and designs as
usually associated with a selection of channels or locations can be seen in the advertisement.
that are used to get the goods and services to the consumers.
Place includes activities such as channel management,
assortment, inventory management, and transportation.
 4Ps
Promotional activities are done to notify, influence, and repeat potential customers about the offerings of a
given company. Doing so helps in increasing the awareness of the customer and improving the sales of the
company.

Typical marketing mix components:

Product Price Place Promotion

Usability Selling price Level of distribution Advertising
Physical presentation Price Reductions Incentives for distributors Use of sales force
Variety, Quality Payments Reach of the market Communication vehicle
Design, features Funding Places covered Sales promotion
Package Rental options Supply chain management Public relation
Branding Credit terms Service magnitude Reach of the media
Assurance Payment periods Assortments Frequency of exposure
During/After sales support Inventory, transportation
 Services marketing
 Service mix variable consists of the following such as branding, quality, service lines, warranty,
enabling goods, tangible clues, people related to service delivery, and the process of delivery. Since
services vary in their degree of tangibility, it is difficult to standardize them.
 Service pricing- Price is important as it may signal the quality of service before someone purchases it.
Therefore, price serves as a sign that indicates what the consumer may expect from the provider.
Premium tuition fee of North-South University is also in indication that this institute provides best
value compared
 Place- The goal of a distribution channel is to provide a variety of services to the customer. Different
types of service organizations can be utilized to carry out the same distribution strategy. Shundarban
Courier Service has branches all across Bangladesh to provide its customers with the same service.to
others in the industry.
 Promotion- The interaction with the target group is very important in promoting a good service. This
is because it influences the attitudes and behaviors of the customers.
 Services marketing
People- The contact personnel of an organization
play an integral role in the service delivery
process by delivering the organization's message
and offering the best possible service to its
customers.

People: Frontline service providers (people) are always the most

important aspect of advertisement campaigns of the service-oriented
organizations.
 Services marketing
Process - The customer experience is the Physical evidence- This marketing mix instrument is especially
heart of any service process, and it depends relevant to dealers, who maintain premises that are used for the
on the policies, procedures, and systems that sale or delivery of a service. The presence of physical evidence
are in place to provide the best possible in their office helps determine the credibility of their
service. The process should be planned
organization.
carefully to ensure that it is consistent and
delivers the expected quality.

Process: Grameenphone shows the process of activating a

specific service in their advertisement campaign.
 Managing the Marketing Effort

 The strategy stage involves developing a plan for the organization's target market.
This stage includes making a plan, implementing that, and having a controlling
mechanism. The planning part of the marketing plan involves the organization's
managers developing a strategy and implementing it.

 The marketing plan and strategies are then turned into marketing actions in
order to reach the organization's goals. This process is known as marketing
implementation. Despite the various approaches used for developing a
marketing plan, it is still very important that the plan is followed by the
marketing managers.
 Marketing Control

 The firm should think of addressing the issues that its marketing plan can't fix. This
step is called marketing control.
 It involves calculating and assessing the effectiveness of its plans. Operating control
involves monitoring and enhancing the efficacy of the company.
 This involves carrying out various tasks and activities that are related to the company's
annual plan and profitability. Strategic control refers to the process of choosing the
right strategy and the right people to implement it.