UNIT 3: Company and marketing strategy

Chapter 2: Parteningto createustomerengagement, valueand relationships.

Mg. Gabriela Lazzatti
Steps in strategic panning
• The process of developing and maintaining a strategic fit between the
organization’s goals and capabilities and its changing marketing
opportunities.
The mission statement
• The organization’s purpose. What it wants to accomplish in the larger
environment. It should be market oriented and defined in terms of
customer needs.
Setting company objectives and goals
• The company needs to turn its broad mission into detailed supporting
objectives for each level of management.
Designing the Business Portfolio
• The collection of businesses and products that make up the company.

Business
units can be a
division, a
product line
within a
division, or a
single
product or
brand.
Portfolio analysis
• A major activity whereby management evaluates the products and
businesses that make up the company
• Two steps:
1. The company must analyze its current business portfolio and
determine which businesses should receive more, less, or no
investment.
2. It must shape the future portfolio.

How would you do that?

BCG Matrix: The Boston Consulting Group Approach
• To analyse current portfolio:

But, what about the

future?
ANSOFF’s product – market grid
• To analyse future portfolio:
• Market penetration involves making more
sales to current customers without
changing its original product such as by
adding new stores in current market areas
• Market development involves identifying
and developing new markets for its
current products; for instance the seniors
market or the Australian market
• Product development involves offering
modified or new products to current
markets such as by moving into new
product categories
• Diversification involves starting up or
buying businesses beyond its current
products and markets, that is new
products and new markets
Other issues to consider…
• Firms might want to abandon
products or markets
• The market environment might
change, making some products or
markets less profitable
• Or some products or business units
simply age and die
• Downsizing is when a company
must prune, harvest, or divest
businesses that are unprofitable or
that no longer fit the strategy
Marketing planning
• Partnering to build customer relationships: Marketing alone can’t
create superior customer value.
• Under the company-wide strategic plan, marketers must work
closely with other departments to form an effective internal
company value chain.
The value chain
• The series of internal departments that carry out value-creating
activities to design, produce, market, deliver, and support a firm’s
products.
Managing the Marketing effort
• 4 steps: Analysis, planning, implementation and control.
1

2 3 4
1. Analysis
• Managing the marketing function begins with a complete analysis
of the company’s situation.

Can we build Coca-Cola´s

SWOT matrix?
2. Planning
• Parts of a Marketing Plan:
3. Implementation
• Turning marketing strategies and plans into marketing actions to
accomplish strategic marketing objectives.
• Addresses who, where, when, and how.
4. Control
• Measurement of the
profits generated by
investments in
marketing activities.
• Return Over Investment
(ROI): Net return from a
marketing investment
divided by the costs of
the marketing
investment.
Chapter3:AnalyzingtheMarketing Environment

Mg. Gabriela Lazzatti

https://khni.kerry.com/trends-and-insights/ten-key-health-and-nutrition-trends-of-this-year/
A Company’s Marketing Environment
• It includes the actors and forces outside marketing that affect marketing
management’s ability to build and maintain successful relationships with
target customers.
• MICROENVIRONMENT: the actors close to the
company that affect its ability to serve its
customers: the company, suppliers, marketing
intermediaries (retailers, wholesalers, etc.),
customer markets, competitors, and “publics”
(stakeholders: financial, media, governments,
citizen action, communities, etc.)
• MACROENVIRONMENT: the larger societal forces
that affect the microenvironment: demographic,
economic, natural, technological, political, and
cultural forces.
Analysis of the Macroenvironment (PESTEL in Spanish)
• Six major forces in the company’s macroenvironment. Even the most
dominant companies can be vulnerable to the often turbulent and
changing forces in the marketing environment. Some of these forces are
unforeseeable and uncontrollable. Others can be predicted and handled
through skillful management.
1. Demographic environment
• Demography is the study of
human populations: size, density,
location, age, gender, race,
occupation, and other statistics.
• Demographic environment
involves people, and people
make up markets.
• Demographic trends include
changing age and family
structures, geographic
population shifts, educational
characteristics, and population
diversity. SOURCE: https://www.populationpyramid.net/es/argentina/2022/
1. Demographic environment - Population

What about these?

Source:
www.populationpyramid.net
1. Demographic environment - Population

What about these?

Source: Africa - 2017 Europe - 2019 Japan - 2019

www.populationpyramid.net
1. Demographic environment - Generations

Source: https://medium.com/@oliveirarod/marketing-to-new-generations-919edf810c52
1. Demographic environment – Families and gender
2. Economic environment
• Value marketing involves offering financially cautious buyers greater value,
the right combination of quality and service at a fair price.
• Income distribution: Over the past several decades, the rich have grown
richer, the middle class has shrunk, and the poor have remained poor.
ECONOMIC TRENDS:

✓ Developed and underdeveloped

economies.
✓ Emerging markets - BRICS (Brazil,
Russia, India, China, South Africa).
✓ Global economic crises.
Natural environment
• The natural environment is the physical environment and the natural
resources that are needed as inputs by marketers or that are affected by
marketing activities.

ENVIRONMENTAL TRENDS:

✓ Growing shortages of raw materials

✓ Increased pollution
✓ Increased government intervention
✓ Developing strategies that support
environmental sustainability: developing
strategies and practices that create a world
economy that the planet can support
indefinitely.
Technological environment
• Most dramatic force in changing the marketplace
• New products and opportunities
• Concern for the safety of new products
Political and social environment
• Legislation regulating business is intended to protect:
✓ companies from each other
✓ consumers from unfair business practices
✓ the interests of society against unrestrained
business behavior

As a consequence:
✓Increased emphasis on ethics
✓Socially responsible behavior
✓Cause-related marketing
Chapter 18: Creatingcompetitiveadvantage

Mg. Gabriela Lazzatti

Competitive advantage
• An advantage over competitors gained by offering consumers
greater value.
Competitor Analysis
Basic Competitive Strategies
Competitive positions
• Market leader: The firm in an industry with the largest market
share.
• Market challenger: A runner-up firm that is fighting hard to
increase its market share in an industry.
• Market follower: A runner-up firm that wants to hold its share
in an industry without rocking the boat.
• Market nicher: A firm that serves small segments that the other
firms in an industry overlook or ignore.
Balancing Customer and Competitor Orientations
• Market-centered companies understand both customers and
competitors. They build profitable customer relationships by delivering
more customer value than competitors do.
For next class…
Read on youselves: Kotler. Chapters 3 & 4
Cultural environment
• Institutions and other forces that affect a society’s basic values,
perceptions, and behaviors.
• Cultural factors strongly affect how people think and how they consume,
so marketers are keenly interested in cultural forces.

✓ Core beliefs and values are persistent and

are passed on from parents to children and
are reinforced by schools, churches,
businesses, and Government.
✓ Secondary beliefs and values are more open
to change and include people’s views of
themselves, others, organizations, society,
nature, and the universe.
For next class…
Read: Kotler. Chapter 4