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Ch 2 -0

Copyright 2011 Pearson Education

Principles of Marketing,
Arab World Edition

Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed


Tolba
Presentation prepared by Annelie Moukaddem Baalbaki

CHAPTER TWO
Company and Marketing Strategy:
Partnering to Build Customer
Relationships
Lecturer: Insert your name here

Ch 1
2 -2
-1
Ch

Copyright
2011
Pearson
Education
Copyright
2011
Pearson
Education

Company and Marketing Strategy


Topic Outline

2.1 Companywide Strategic Planning: Defining Marketings


Role
2.2 Designing the Business Portfolio
2.3 Planning Marketing: Partnering to Build Customer
Relationships
2.4 Marketing Strategy and the Marketing Mix
2.5 Managing the Marketing Effort
2.6 Measuring and Managing Return on Marketing Investment

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Companywide Strategic Planning


Strategic Planning

Strategic planning is the process of developing and


maintaining a strategic fit between the organizations goals
and capabilities and its changing marketing opportunities.

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Companywide Strategic Planning

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Companywide Strategic Planning


Defining a Market-Oriented Mission

The mission statement is the organizations purpose; what it


wants to accomplish in the larger environment.
A market-oriented mission statement defines the business
in terms of satisfying basic customer needs.

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Companywide Strategic Planning

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Companywide Strategic Planning


Setting Company Objectives and Goals

The company needs to turn its mission statement into


detailed supporting objectives for each level of
management.

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Designing the Business Portfolio

The business portfolio is the collection of businesses and


products that make up the company.
Portfolio analysis is a major activity in strategic planning,
whereby management evaluates the products and businesses
that make up the company.

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Designing The Business Portfolio


Analyzing the Current Business Portfolio

Strategic business unit (SBU) is a unit of the company that


has a separate mission, and objectives that can be planned
separately from other company businesses.

Company division

Product line within a division

Single product or brand

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Companywide Strategic Planning


Analyzing the Current Business Portfolio

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Companywide Strategic Planning:


The Boston Consulting Group Approach

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Companywide Strategic Planning


Problems with Matrix Approaches

Difficulty in defining SBUs and measuring market share and


growth

Time consuming

Expensive

Focus on current businesses, not future planning

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Companywide Strategic Planning


Developing Strategies for Growth and Downsizing

Product/market expansion grid is a portfolio planning tool for


identifying company growth opportunities through:

market penetration

market development

product development

diversification

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Companywide Strategic Planning


Developing Strategies for Growth and Downsizing

Market penetration is a growth strategy increasing sales to


current market segments without changing the product.
Market development is a growth strategy identifying and
developing new market segments for current products.

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Companywide Strategic Planning


Developing Strategies for Growth and Downsizing

Product development is a growth strategy through offering


new or modified products to current market segments.
Diversification is a growth strategy through starting up or
acquiring businesses outside the companys current products
and markets.

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Companywide Strategic Planning


Developing Strategies for Growth and Downsizing

Downsizing is the reducing of the business portfolio by


eliminating products or business units that are not profitable
or that no longer fit the companys overall strategy.

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Planning Marketing: Partnering to Build Customer


Relationships
Partnering with Other Company Departments

Value chain is a series of departments that carry out valuecreating activities to design, produce, market, deliver, and
support a firms products.

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Planning Marketing
Partnering with Others in the Marketing System

Value delivery network is made up of the company,


suppliers, distributors, and ultimately the customers who
partner with each other to improve performance of the
entire system.

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Marketing Strategy and the Marketing Mix

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Marketing Strategy and the Marketing Mix


Customer-Driven Marketing Strategy

Market segmentation is the division of a market into distinct


groups of buyers who have distinct needs, characteristics, or
behavior and who might require separate products or
marketing mixes.
Market segment is a group of consumers who respond in a
similar way to a given set of marketing efforts.

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Marketing Strategy and the Marketing Mix


Customer-Driven Marketing Strategy

Market targeting is the process of evaluating each market


segments attractiveness and selecting one or more
segments to enter.
Market positioning is the arranging for a product to occupy a
clear, distinctive, and desirable place relative to competing
products in the minds of the target consumer.

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Marketing Strategy and the Marketing Mix


Developing an Integrated Marketing Mix

Marketing mix is the set of controllable tactical marketing


toolsproduct, price, place, and promotionthat the firm
blends to produce the response it wants in the target market.

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Marketing Strategy and the Marketing Mix


Developing an Integrated Marketing Mix

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Managing the Marketing Effort

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Managing the Marketing Effort

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Managing the Marketing Effort


Market Planning

Parts of a Marketing Plan

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Managing the Marketing Effort


Marketing Implementation

Implementing is the process that turns marketing plans into


marketing actions to accomplish strategic marketing
objectives.
Successful implementation depends on how well the company
blends its people, organizational structure, its decision and
reward system, and company culture into a cohesive action
plan that supports its strategies.

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Managing the Marketing Effort


Marketing Department Organization

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Managing the Marketing Effort


Marketing Control

Marketing Control is the process of measuring and evaluating


the results of marketing strategies and plans and taking
corrective action to ensure that objectives are achieved.

Operating control

Strategic control

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Measuring and Managing Return on Marketing


Investment
Return on Marketing Investment (Marketing ROI)

Return on marketing investment (Marketing ROI) is the net


return from a marketing investment divided by the costs of the
marketing investment.
Marketing ROI provides a measurement of the profits
generated by investments in marketing activities.

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