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Company and Marketing

Strategy:
Partnering to Build Customer
Relationships
Chapter 2

Strategic Planning Defined:

The process of developing and maintaining a strategic fit between


the organizations goals and capabilities and its changing marketing
opportunities
Keywords: Strategic Planning Process involves defining clear
company missions, setting objectives, designing business portfolio
and coordinating functional strategies.

Market-Oriented Mission

A mission statement asks..

What is our business?

Who is the customer?

What do consumers value?

What should our business


be?
Ex: Disney Company-the mission is
make people happy and IBM-from
Customer Solutions
Air Asia-Everyone can fly

A mission statement should be:

An invisible hand-guide
people in the company

Neither too narrow nor too


broad

Fitting of market environment

Based on distinctive
competencies

Motivating

Realistic

Specific

Objectives/Goals:

The companys mission needs to be turned into detailed supporting


objectives for each level of management

The Business Portfolio:


Business portfolio is the collection of businesses and products that make
up the company
Business portfolio planning involves two steps:
Step 1: Analyzing the current business portfolio
-Keyword: the best business portfolio is the one that best fits the
companys strengths and weaknesses to opportunities in the
environment
-Strategic Business Unit (SBU) is a unit of the company that has a
separate mission & objectives. The unit can be company division,
product line or single product or brand

-Strategies:
Build

Increase market share

Works well for question marks


Hold

Preserve market share

Good for cash cow


Harvest

Increases short-term cash flow

Good for weak cash cows, question marks and dogs


Divest

Sell or liquidate

Good for dogs and question marks

Step 2: Shaping the future portfolio by developing strategies


1.
Market penetration- making more sales to current customers without
changing its product/service. Ex: add new/additional stores in current
market (Giants), improvements in A&P, prices, menu selection or store
design (KFC-drive thru)
2.
Market development-identifying and developing new markets
(customer/places) for its current product. Ex: milk for infant, new
market-1 to 3 years old and 3 to 6 years old.
3.
Product development-offering modified or new product to current
market. Ex: Coffeebeans offering chocolate and fruit juices drink.
4.
Diversification-starting up or buying business outside of its current
product and market. Ex: Sunway College, Sunway Pyramid, Sunway
Lagoon

Marketing Process
Market Segmentation

Customers grouped by:


Geographic
Demographic
Psychographics
Behavioral
Market segment is a groups of consumers who respond in similar
ways to marketing efforts.

Target Marketing

Evaluation of each segments attractiveness


Selection of segments with greatest long-term profitability
A company can choose one or several segments to target

Market Positioning

The place the product occupies in the consumers mind


Products are positioned relative to competing products
Marketers look for clear, distinctive and desirable place in
positioning

Managing the
Marketing Effort
Analysis

Finding opportunities
Avoiding threats
Understanding strengths
Analyzing weaknesses
Keywords: SWOT Analysis
Ex: strengths (extra budget-open more stores), weaknesses (limited
store)-internal environment, opportunities (alliance with foreigners,
loan from bank for SME), threats (fierce competition from
foreigners)-external environment

Planning

Marketing plans include:


Executive summary
Analysis of current situation
Objectives
Targets and positioning
Marketing mix
Budget
Controls

Implementation

Marketing plans are turned into action with day-to-day activities


Good implementation is a challenge
Keywords: whereas marketing plan addresses what and why of
marketing activities, implementation addresses the who, where,
when and how.

Control

1.
2.
3.

4.

Evaluation of the results of marketing strategies


Checks for differences between goals and performance
Keywords: marketing control involves 4 steps:
Set specific marketing goals (what do we want to achieve?)
Measure the performance in marketplace (what is happening?)
Evaluates the causes of any difference between expected and
actual performance (why is it happening?)
Management takes corrective action to close gaps between goals
and its performance (what should we do about it?)