Professional Documents
Culture Documents
Chapter 2
Company and Marketing Strategy
Partnering to Build Customer
Relationships
PEARSON
Objective Outline
Companywide Strategic Planning: Defining
Marketings Role
1 Explain company-wide strategic planning and its four
steps.
Business Marketing
objectives objectives
Build profitable Increase market
customer share
relationships Create local
Invest in partnerships
research Increase
Improve profits promotion
Designing the Business Portfolio
The business portfolio is the collection of busine
sses and products that make up the company.
Business portfolio planning involves two steps:
Build Hold:
It can invest more in the It can invest just enough
business unit. to share at the current
level.
Harvest Divest
It can harvest the SBU, It can divest the SBU by
milking its short-term selling it or phasing it
cash. out and using the
resources elsewhere.
Problems with Matrix Approaches
It have some limitations:
Difficulty in defining SBUs and measuring market share and
growth
Time consuming
Expensive
Focus on current businesses, not future planning
Methods to improve:
Dropped formal matrix methods in favor of more customized
approaches that better suit their specific situations
Todays strategic planning has been decentralized
Developing Strategies for Growth and Dow
nsizing
Market development Companies can grow by developing new markets
for existing products. For example, Starbucks is expanding rapidly in
China, which by 2015 will be its second-largest market, behind only the
United
Product/market
States. expansion grid is a portfolio-pl
anning tool for identifying company growth oppo
Diversification Through diversification, companies can grow by
rtunities
starting through
or buying market
businesses penetration,
outside their currentmarket deve For
product/markets.
lopment,
example, product
Starbucks development,
is entering the health or
anddiversification.
wellness market with
stores called Evolution By Starbucks.
Developing Strategies for Growth a
nd Downsizing
Planning Marketing: Partnering to Build C
ustomer Relationships
Marketing plays a key role in the companys strategic pla
nning in several ways:
First, marketing provides a guiding philosophythe marketing
conceptthat suggests the company strategy should revolve
around building profitable relationships with important consumer
groups.
Marketing Strategy:
It outlines how the Marketi
Marketi
company intends to ng
ng
strategy
strategy
create value for target
customers in order to
capture value in return.
Marketing Implementation
Marketing implementation is the process that turns mar
keting plans into marketing actions to accomplish strategi
c marketing objectives.
Whereas marketing planning addresses:
what
Many managers think that doing things right (implementation)
why
is as important as, or even more important than, dong the right
things(strategy). who
where
when
how
Marketing Department Organization
Marketing Control
Marketing control is the measuring and evaluating the r
esults of marketing strategies and plans and taking correct
ive action to ensure that the objectives are achieved.
Four steps of
marketing
control:
Measuring and Managing Return on Mark
eting Investment
Return on marketing investment (or marketing ROI) i
s the net return from a marketing investment divided by t
he costs of the marketing investment.
It measures the profits generated by investments in marke
ting activities.
Many companies are assembling such measures into mark
eting dashboards meaningful sets of marketing perform
ance measures in a single display used to monitor strategi
c marketing performance.
Measuring and Managing Return on Mark
eting Investment
The End