Company and Marketing

Strategy

Chapter 2
 Objectives

Understand companywide strategic planning

and its four steps.
Learn how to design business portfolios and
develop strategies for growth and downsizing.
Understand marketing’s role in strategic
planning and how marketers partner with
others.

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 Objectives

Be able to describe the marketing

process and the forces that
influence it.
Understand the marketing
management functions, including
the elements of the marketing plan.
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 Walt Disney
c

Known for films, Satisfying the

animation, theme parks
and customer orientation
customer is
everyone’s job
Parks offer a variety of
attractions as well as Disney has grown via
cleanliness, order, and diversification
warmth Sales and net income
have fallen
Discussion: How Can Disney Recover?
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 Disney companies

ABC
16 cable networks
 ESPN, Disney Channel, Toon Disney,
SoapNET, A&E, the History Channel,
Lifetime Television, E! Entertainment
4 TV production companies
8 movie production companies
 Walt Disney, Touchstone Pictures,
Hollywood Pictures, Miramax Films

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More Disney companies

5 magazine publishing groups

5 music labels
19 Internet groups
Disney Interactive
The Disney Store
Disney Cruise Lines
Two sports Franchises

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 Strategic Planning

Strategic planning is defined as:

 “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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 BusinessNow

Nervewire Video Clip

Consultants may
offer valuable
services and
expertise during
the strategic
Click the picture above to play video planning process.
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 Figure 2-1:
Steps in the
Strategic Planning Process

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2 - 10
 Strategic Planning

Mission statements should . . .

 serve as a guide for what the organization wants
to accomplish.
 be “market-oriented” rather than “product-
oriented”.
 be neither too narrow, nor too broad.
 fit with the market environment.
 be motivating.
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 Strategic Planning

Mission statements guide the

development of objectives and goals.
 Objectives are developed at each level in
the organization hierarchy.
 Strategies are developed to accomplish
these objectives.

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 Discussion Question

Google.com is one of
the leading Internet
search engines.

Construct a market-
oriented mission
statement that fits
this business.
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 Strategic Planning

Business portfolio:
“the collection of businesses
and products that make
up the company.”
 Designing the business
portfolio is a key step in
the strategic planning
process.
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 Strategic Planning
Portfolio Design
Identify strategic business
units (SBUs)
Assess each SBU:
Step 1:  The BCG growth-share
Analyze the matrix classifies SBUs
current business into one of four
categories using:
portfolio  Market growth rate
Step 2:  The SBU’s relative market

Shape the future share within the market.

business portfolio
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 Figure 2-2:
Growth-Share Matrix

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 Strategic Planning
Portfolio Design
Determine the future role of
each SBU and choose the
appropriate resource
Step 1: allocation strategy:
 Build
Analyze the  Hold
current business  Harvest
portfolio  Divest
Step 2: SBUs change positions over
Shape the future time
business portfolio
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 Strategic Planning

Matrix approaches to formal planning

share many problems:
 Difficult, time-consuming,
and costly to implement.
 Focus only on current
businesses.
 Too strongly emphasize
market share growth or
growth via diversification.
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 Strategic Planning

Designing the business portfolio

also involves:
 Developing strategies for growth by
identifying, evaluating, and selecting
promising new market opportunities.
 Developing strategies for
downsizing the business portfolio.
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 Figure 2-3:
Product / Market
Expansion Grid

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Marketing plays a key role in the
strategic planning process.
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 Figure 2-4:
The Marketing Process

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 The Marketing Process
The strategic planning
Key Elements and business portfolio
analysis processes
Analyzing marketing help to identify and
opportunities evaluate marketing
Selecting target opportunities.
markets The purpose of the
Developing the marketing process is
marketing mix to help the firm plan
how to capitalize on
Managing the these opportunities.
marketing effort
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 The Marketing Process
The segmentation
Key Elements process divides the
total market into
Analyzing marketing market segments.
opportunities Target marketing
Selecting target chooses which
markets segment(s) are
Developing the pursued.
marketing mix
Market positioning
Managing the for the product is
marketing effort then determined.
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Positioning
Market positioning
is not restricted to
physical goods.

Identify the “competing

products” of relevance
to the Marble Collegiate
Church.

What clear, distinctive,

and desirable place in
the consumer’s mind
does the ad at left
attempt to create?

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 The Marketing Process
Competitor analysis
Key Elements guides competitive
marketing strategy
development.
Analyzing marketing Strategy leads to tactics
opportunities via the marketing mix:
Selecting target  The “Four Ps” – product,
markets price, place, promotion
(seller viewpoint)
Developing the  The “Four Cs” –
marketing mix customer solution, cost,
convenience, and
Managing the communication
marketing effort (customer viewpoint)

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 Figure 2-5:
The Marketing Mix

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 The Marketing Mix

Visit the Hill’s Pet

Nutrition site.

How are the 4 C’s or

the 4 P’s presented
within the site?

Hill’s Pet
Nutrition

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 The Marketing Process
Marketing analysis
Key Elements  Provides information
helpful in planning,
implementation, and
Analyzing marketing control
opportunities Marketing planning
Selecting target  Strategies and tactics
markets Marketing
implementation
Developing the
 Turns plans into action
marketing mix
Marketing control
Managing the  Operating control
marketing effort  Strategic control

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 Figure 2-6:
Managing the
Marketing Effort

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