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DR. HASSAN SOHAIB MURAD (Late)
 Principles of Marketing
Section QCA

CR
MUZAMIL KHAN
@ 0312 4228445
for updates

Email numan.aslam@umt.edu.pk
 Chapter Two

Company and Marketing

Strategy
Partnering to Build Customer
Relationships
Company and Marketing Strategy
Topic Outline
• Companywide Strategic Planning:
Defining Marketing’s Role
• Designing the Business Portfolio
• Planning Marketing: Partnering to Build
Customer Relationships
• Marketing Strategy and the Marketing Mix

Chapter 2- slide 5
Companywide Strategic Planning
Strategic Planning

Strategic planning is the process of

developing and maintaining a strategic
fit between the organization’s goals and
capabilities and its changing marketing
opportunities

Chapter 2- slide 6
Company-Wide Strategic Planning

Steps in Strategic Planning

2-7
 Strategic Planning Process:

This process involves:

– Defining a Mission: Statement of an
organization’s purpose; should be market
oriented.
– Setting Company Objectives: Supporting goals
and objectives to guide the entire company.
– Designing a Business Portfolio: Collection of
businesses and products that make up the company.
– Planning Functional Strategies: Detailed planning
for each department designed to accomplish
strategic objectives.
Chapter 2- slide 8
 Companywide Strategic Planning
Defining a Market-Oriented Mission
• The mission statement is the organization’s
purpose, what it wants to accomplish in
the larger environment

• Market-oriented mission statement defines

the business in terms of satisfying basic
customer needs

Chapter 2- slide 9
Companywide Strategic Planning

Setting Company Objectives and

Goals

Chapter 2- slide
 Companywide Strategic Planning
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

Chapter 2- slide
 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
Boston Consulting Approach:
Using the Boston consulting group a companies
classifies all its SBU’s according to growth
Chapter 2- slide 12
 Designing the Business Portfolio

Analyzing the Current Business Portfolio

Growth-share matrix is a portfolio-planning

method that evaluates a company’s SBUs in
terms of market growth rate and relative
market share.

2-13
Companywide Strategic Planning:

Chapter 2- slide 14
 Analyzing Current SBU’s Boston Consulting Group
Approach

Relative Market Share

High Low
Market Growth Rate

Stars Question Marks

High

• High growth & share • High growth, low share

• Profit potential • Build into Stars/ phase out
• May need heavy • Requires cash to hold
investment to grow market share

Cash Cows Dogs

• Low growth, high share • Low growth & share
Low

• Established, successful • Low profit potential

SBU’s
•Produces cash

Chapter 2- slide 15
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

Chapter 2- slide 16
 Companywide Strategic Planning
Developing Strategies for Growth and
Downsizing

Product/market expansion grid is a tool

for identifying company growth
opportunities through market
penetration, market development,
product development, or diversification

Chapter 2- slide 17
Companywide Strategic Planning
Developing Strategies for Growth and
Downsizing Product/market expansion grid
strategies

Chapter 2- slide 18
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 that

identifies and develops new market
segments for current products

Chapter 2- slide 19
 Companywide Strategic Planning
Developing Strategies
for Growth and
Downsizing
Product development is a growth
strategy that offers new or modified
products to existing market segments
Diversification is a growth strategy through
starting up or acquiring businesses
outside the company’s current products
and markets
Chapter 2- slide 20
 Companywide Strategic Planning
Developing Strategies
for Growth and
Downsizing

Downsizing is the reduction of the

business portfolio by eliminating
products or business units that are not
profitable or that no longer fit the
company’s overall strategy

Chapter 2- slide 21
Marketing Strategy and the Marketing
Mix

Chapter 2- slide 22
 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

Chapter 2- slide 23
 Marketing Strategy and the
Marketing Mix
Customer-Centered Marketing Strategy

Market targeting is the process of

evaluating each market segment’s
attractiveness and selecting one or more
segments to enter

Chapter 2- slide 24
 Marketing Strategy and the Marketing
Mix
Customer-Centered
Marketing Strategy
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

Chapter 2- slide 25
Marketing Strategy and the Marketing
Mix
Developing an Integrated Marketing Mix

Marketing mix is the set of controllable

tactical marketing tools—product, price,
place, and promotion—that the firm
blends to produce the response it wants
in the target market

Chapter 2- slide 26
4ps takes the seller’s view of the market ,
not the buyer or customer view. From the
customer point of view or buyer view 4 Ps
can be describe as 4Cs are shown in the
following
4P’s 4C’s
Produc Customer
t solution
Price Customer cost
Place Convenience
Promotio Communication
n Chapter 2- slide 27
Marketing Strategy and the Marketing
Mix
Developing an Integrated
Marketing Mix

Chapter 2- slide 28
Managing the Marketing Effort:Marketing
Analysis Swot Analysis

Marketing Analysis – SWOT

Analysis

Chapter 2- slide 29
 Planning Marketing
Partnering to Build Customer Relationships

Value chain is a series of departments

that carry out value-creating activities
to design, produce, market, deliver,
and support a firm’s products

Chapter 2- slide 30
 Planning Marketing
Partnering to Build Customer Relationships

Value delivery network is made up of the

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

Chapter 2- slide 31