Chapter Two

Company and Marketing Strategy

Partnering to Build Customer
Relationships

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Chapter 2- slide 1
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 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

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Chapter 2- slide 2
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 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

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Chapter 2- slide 3
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 Companywide Strategic Planning
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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Chapter 2- slide 4
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 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
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Chapter 2- slide 5
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 Companywide Strategic Planning
Developing Strategies for Growth

Product/market expansion grid is a tool

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

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Chapter 2- slide 6
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 Portfolio Growth Strategies

Product/ Market Expansion Grid

Existing New
Products Products
Existing 1. Market 3. Product
Markets Penetration Development

New 2. Market
4. Diversification
Markets Development

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Chapter 2- slide 7
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 BCG MATRIX
Relative Market Share
High Low
Stars Question
QuestionMarks
Marks
Market Growth Rate
High

• High growth & share ••High

Highgrowth,
growth,low
lowshare
share
• Profit potential ••Build
Build into Stars/ phaseout
into Stars/ phase out
• May need heavy ••Requires cash to hold
Requires cash to hold
investment to grow market
marketshare
share
Mobilink Telenor
Telenor

Cash
CashCows
Cows Dogs
Dogs
••Low • Low
Lowgrowth
growth&&share
Lowgrowth,
growth,high
highshare
share ••Low share
Low

••Established, profit potential

Established,successful
successful ••Small
Low profit potential
SBU’s
SBU’s •Smalltextile
textileunits
units
MTM,
MTM,interloop
interloop

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Chapter 2- slide 8
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 Product/ Market Expansion Grid
• Market Penetration:
Penetration increase sales to present customers
with current products. How? Cut prices, increase
advertising, get products into more stores.

• Market Development:
Development develop new markets with current
products. How? Identify new demographic or
geographic markets.

• Product Development:
Development offering modified or new products
to current customers. How? New styles, flavors, colors,
or modified products.

• Diversification:
Diversification new products for new markets. How?
Start up or buy new businesses.

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Chapter 2- slide 9
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 Managing the Marketing Effort

Marketing
Marketing Analysis
Analysis of
of Company’s
Company’s Situation
Situation

Control
Marketing
MarketingPlanning
Planning Marketing
Marketing
Implementation
Implementation Measure
Develop
DevelopMarketing
Marketing Results
Strategies
Strategiesto
to Turn
TurnMarketing
MarketingPlans
Plans
Achieve
AchieveMarketing
Marketing into
into Evaluate
Objectives
Objectives Action
ActionPlans
Plans Results
to
toAchieve
Achieve
Develop
Develop Marketing
Marketing
Marketing Objectives Take
Marketing Objectives Corrective
Plans
Plans&&Budget
Budget Action

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Chapter 2- slide 10
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 Marketing Control & Audit
Set
Set Marketing
Marketing Goals
Goals

Measure
Measure
Performance
Performance

Evaluate
Evaluate
Performance
Performance

Take
Take Corrective
Corrective
Action
Action

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Chapter 2- slide 11
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 Situation Analysis
SWOT Analysis
Strength
Internal
Weakness
Opportunities
External
Threats
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Chapter 2- slide 12
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 Managing the Marketing Effort
Marketing Department Organization

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Chapter 2- slide 13
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