TOPIC 2

COMPANY AND MARKETING STRATEGY

Definition: process of developing and maintaining the strategic adjustment between:

- The companies’ objectives
- The companies’ characteristics
- The opportunities and threats of the environment.
STRATEGIC PLAN: adapting the company to take advantage of the opportunities of the
changing environment. Something that is plan for a long time, take the best value and the
most profitable relations. Provide the best experience in terms of consumption.

STAGES OF STRATEGIC PLAN:

2.1 PLANNING MARKETING

1. DEFINING THE CORPORATE MISSION

- What is our business?
- Who is the customer?
- What is of value to the customer?
- What will our business be?
- What should our business be?
The MISSION is a statement of the organization’s purpose: what it wants to achieve in its
environment. The mission must be market oriented: defined according to the basic needs of
the client.
o Realistic
o Concrete
o Adjust to the environment
o Building on distinctive competencies
o Motivating

2. DEFINING OBJECTIVES

OBJECTIVES: explain how the mission will be developed.

BUSINESS OBJECTIVES: build profit relationships customers; invest in research; improve
benefits.

MARKETING OBJECTIVES: growth of market share; create local alliances; development of the
promotion.
 3. DEFINING BUSINESS PORTFOLIO

DEFINITION: set of business and products that constitute the company.

- Analysis of the current portfolio: analysis of the Business’ Units in terms of market
attractiveness and company strength.
- Analysis of future business portfolio: strategies of growth and reduction of business
areas.
Analysis of the current portfolio: Boston Consulting Group Matrix.

Analysis of future business portfolio: Ansoff’ matrix.

STRATEGIC PLAN: types of business that will carry out the company and objectives of each one
of them.

Marketing objective:
“profitable growth”: identify, evaluate and choose market opportunities + define strategies to
take advantage of them.
Take into account that each business’ unity has to design its own strategy for reaching the
proposed objectives.

2.2 MARKETING STRATEGY AND MARKETING MIX

4. MARKETING PLANNING AND OTHER FUNCTIONAL STRATEGIES
THE CENTRAL INSTRUEMENT FOR DIRECTING AND COORDINATING THE MARKETING EFFORT.

1. STRATEGIC

o Provides a guiding philosophy

o Assistance in identifying market opportunities and valuing the potential of the
company.
o Design objectives for each business unit

Selection of clients and markets: STRATEGIC LEVEL

1. Market segmentation:
- Divide the market into groups of customers to whom a marketing strategy can be
applied.
- A segment is made up of customers who respond in a similar way before the same
marketing stimulus.

2. Selection of target markets:

- Evaluating each segment and choosing the most interesting.

3. Differentiation
- After selecting the market, the company decides how it will differentiate its product.
- This differentiation is what justifies a price higher than a commodity.

4. Positioning
- It is the place that a product occupies in the mind of the consumer, with respect to its
competitors.
- The position should be clear, distinct and desirable.
2. TACTICAL

o Marketing mix implementation

1. Generation of value in the

client.
2. Selection of clients and
markets: STRATEGIC LEVEL.
3. Marketing tools: TACTICAL
LEVEL
4. Phases of the marketing
process: MANAGING THE
MARKETING EFFORT.

MARKETING TOOLS: TACTICAL LEVEL

Marketing mix integrated:
Definition: set of marketing tools
controllable by the company, to influence
the demand of the product
2.3 MANAGING THE MARKETING EFFORT

1.- MARKETING ANALYSIS: SWOT MATRIX (DAFO)

STRENGTHS: OPPORTUNITIES:
1. Existing brands 1. Cross-selling
2. Existing customer base 2. New markets
3. Existing distribution 3. New services
4.Alliances/ Co-branding
WEAKNESSES:

1. Brand perception THREATS:

2. Intermediary use 1. Customer choice
3. Technology/skills 2. New entrants
4. X-channel support 3. New competitive products
4.Channel conflicts.
STRENGTH+OPPORTUNITIES: leverage strengths to maximize opportunities: ATTACKING
STRATEGY

STRENGTH+THREATS: leverage strengths to minimize threats: DEFENSIVE STRATEGY

WEAKNESSES+OPPORTUNITIES: counter weaknesses through exploiting opportunities: BUILD

STRENGHTS FOR ATTACKING STRATEGY
WEAKNESSES+THREATS: counter weaknesses and threats: BUILD STRENGHTS FOR DEFENSIVE
STRATEGY

2.- MARKETING PLAN (as a physical document)

STRUCTURE OF MARKETING PLAN:

1. Executive summary
2. Corporate mission/objectives/strategy
3. External/ internal analysis (SWOT)
4. Marketing strategy (segmentation, competitive advantage, targeting, positioning)
5. Strategy marketing mix decisions (product strategies, promotional and branding
strategies, distribution strategies)
6. Implementation (scheduling, action, when, whom, resource allocation, budgets,
contingency)
7. Control and forecasting (benchmarks, costs, revenues)

EXECUTION OF MARKETING PLAN:

Translate marketing plans into marketing actions:

- Planning: what, why

- Execution: who, where, when, how.
The execution is as important as planning and strategy. Its result depend on: an
adequate organizational structure; an effective decision-making system; a good
incentive system for people and adapting to Organizational Culture.

MARKETING DEPARTMENT ORGANIZATION:

Types of organization:
- FUNCTIONAL: director of sales, advertising, customer service, etc.
- GEOGRAPHIC: sellers and other employees assigned to countries, regions, etc.
- PRODUCT LINE: a product manager + a team for each product
- MARKET/CLIENT: adaptation to a specific market or customer type.
Mixed organization as combination.
MARKETING CONTROL:
Process of measurement and evaluation of the results of plans and marketing strategies as
well as corrective actions to ensure that the objectives are achieved.

- Strategic control: check if the marketing plan fits with SWOT matrix and apply
marketing audit.
- Tactical control: review of the annual marketing plan.

There is often a concurrence between:

- What generated value to the company
- What generates value to society
Those that can have an ethical and socially responsible attitude.
- The managers of the companies when making their decisions.
- The administration, acting in favor of positive externalities and against negative ones.
- Consumers, buying the products of companies with greater ethical awareness.

Each company must define a philosophy of ethical and socially responsible behavior. Under the
social marketing concept, every manager must look beyond what is legal and what is allowed,
and develop standards based on personal integrity, corporate awareness and long-term
consumer well-being.