Company and

Marketing Strategy:
Partnering to Build
Customer Relationships
Chapter 2
2 - 2
Strategic Planning
The process of developing and
maintaining a strategic fit between
the organizations goals and
capabilities and its changing
marketing opportunities.
2 - 3
Steps in Strategic Planning
1. Defining the company mission
2. Setting company objectives and
goals
3. Designing the business portfolio
4. Planning marketing and other
functional strategies
2 - 4
The Mission Statement
A statement of the organizations
purpose
What it wants to accomplish in the
larger environment

Should be market oriented and
defined in terms of customer needs.
2 - 5
Mission Statement Should:
Be realistic
Be specific
Fit the market environment
Be based on distinctive competencies
Be motivating
Few Mission Statements
Pepsi
"We have absolute clarity about what we do
WE SELL HIGH QUALITY FOOD AND
BEVERAGE PRODUCTS.
Our success will ensure: customers will
build their business, employees build their
futures, and shareholders build their
wealth."
2 - 6
Few Mission Statements
Google

To make the world's information
universally accessible and useful"
2 - 7
Few Mission Statements
Amazon

"To build a place where people can
come to find and discover anything
they might want to buy online"
2 - 8
Few Mission Statements
Sony

"To experience the joy of advancing
and applying technology for the
benefit of the public."
2 - 9
Few Mission Statements
Ford

"We are a global family with a proud
heritage passionately committed to
providing personal mobility for
people around the world."
2 - 10
Few Mission Statements
Disney

"We create happiness by providing the
finest in entertainment
for people of all ages, everywhere."
2 - 11
Setting Company Objectives and
Goals
2 - 12
Business objectives
Build profitable
customer
relationships
Invest in research
Improve profits
Marketing objectives
Increase market
share
Create local
partnerships
Increase
promotion
2 - 13
Designing the Business Portfolio
The business portfolio is the collection of
businesses and products that make up the
company.
The company must:
analyze its current business portfolio or Strategic Business
Units (SBUs),
decide which SBUs should receive more, less, or no
investment,
develop growth strategies for growth or downsizing.
2 - 14
Portfolio Analysis
An evaluation of the products and
business making up the company.
Resources are directed to more
profitable businesses and weaker
ones are phased down or dropped.
2 - 15
Strategic Business Unit (SBU)
A unit of the company that has a separate
mission and objectives and that can be
planned independently from other company
businesses.
Can be a company division, a product line
within a division, or sometimes a single
product or brand.
2 - 16
BCG Growth-Share Matrix
Stars

Cash Cows

Question Marks

Dogs

2 - 17






















Question Marks

High growth, low share
Build into Stars/ phase out
Requires cash to hold
market share

Stars

High growth & share
Profit potential
May need heavy
investment to grow
Cash Cows

Low growth, high share
Established, successful
SBUs
Produces cash


Dogs

Low growth & share
Low profit potential
Relative Market Share
High Low
M
a
r
k
e
t

G
r
o
w
t
h

R
a
t
e


L
o
w




















H
i
g
h

2 - 18
Problems with Matrix Approaches
Can be difficult, time consuming, and
costly to implement
Difficult to define SBUs and measure
market share and growth
Focus on current business, not future
planning
Can place too much emphasis on growth
Can lead to poorly planned diversification
2 - 19
Product/Market Expansion Grid
Market Penetration

Product Development

Market Development

Diversification
2 - 20
1. Market
Penetration
2. Market
Development
3. Product
Development
4. Diversification
Existing
Markets
New
Markets
Existing
Products
New
Products
Product/ Market Expansion Grid
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

2 - 21
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 companys current
products and markets
2 - 22
2 - 23
Marketings Role in Strategic
Planning
Provide a guiding philosophy
Provide inputs to strategic planners
Design strategies to reach objectives
2 - 24
Value Delivery Network
Companys value chain
Distributors
Suppliers
Customers