2

Company and Marketing

Strategy: Partnering to Build
Customer Relationships
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.

2-2
Steps in Strategic Planning

2-3
Questions for a Mission Statement

What is our Business?

Who is the Customer?
What do Consumers Value?
What Should our Business Be?
The mission of The Walt Disney Company is to be one of the world's
leading producers and providers of entertainment and information.
Using our portfolio of brands to differentiate our content, services and
consumer products, we seek to develop the most creative, innovative
and profitable entertainment experiences and related products in the
world.
2-4
 Mission Statements Should…

Be Realistic

Be Specific

Fit the Market Environment

Be Based on Distinctive Competencies

Be Motivating

“Our mission is to organize the world’s

information and make it universally accessible
and useful.”
(? Company ?) 2-5
 Designing the Business Portfolio
• The business portfolio is the collection of businesses
and products that make up the company.
• The company must:
– analyze its current business portfolio or Strategic
Business Units (SBUs),
– decide which SBUs should receive more, less, or
no investment,
– develop growth strategies for growth or
downsizing.

2-6
 Analyzing Current SBU’s:
BCG Growth-Share Matrix
Question
Question Marks Stars
Marks ?
••Low
Lowshare
shareSBUs
SBUsininhigh growth • High growth & share
highgrowth
markets
markets • May need heavy
High
Market Growth Rate

••Require
Requirecash
cashto
tohold
hold investment to grow
market
marketshare
share • Eventually, growth will slow
••Build
Buildinto
intoStars
Starsor
orphase
phaseout
out
Dogs
Dogs Cash
Cash Cows
Cows

••Low
Lowgrowth
growth&&share
share ••Low
Lowgrowth,
growth,high
highshare
share
•• Generate cash to sustain self ••Established,
Low

Generate cash to sustain self Established,successful

successful
•• Do not promise to be cash
Do not promise to be cash SBU’s
SBU’s
sources
sources •• Producecash
Produce cash

Relative Market Share

Low High 2-7
 Problems With Matrix Approaches

Can
Can be
be Difficult,
Difficult, Time
Time Consuming,
Consuming, Costly
Costly to
to Implement
Implement

Difficult
Difficult to
to Define
Define SBUs
SBUs && Measure
Measure Market
Market Share/Growth
Share/Growth

Focus
Focus on
on Current
Current Businesses,
Businesses, Not
Not Future
Future Planning
Planning

Can
Can Lead
Lead to
to Poorly
Poorly Planned
Planned Diversification
Diversification

Can
Can Place
Place too
too Much
Much Emphasis
Emphasis on
on Growth
Growth

2-8
 Product/Market Expansion Grid

Existing 1. Market 3. Product

MARKET

Penetration Development

2. Market
New Development 4. Diversification

Existing New
PRODUCT

2-9
Marketing’s
Marketing’s Role
Role in
in Strategic
Strategic Planning
Planning

Provide
Provide aa Guiding
Guiding Philosophy
Philosophy

Provide
Provide Inputs
Inputs to
to Strategic
Strategic Planners
Planners

Design
Design Strategies
Strategies to
to Reach
Reach Objectives
Objectives

2-10
 Value Delivery Network

Company’s Value Chain

Distributors Suppliers

Customers
2-11
Managing Marketing Strategy
and Marketing Mix

2-12
 Market Segmentation
• The process of dividing a market into distinct groups
of buyers with different needs, characteristics, or
behavior who might require separate products of
marketing programs.
• A market segment consists of consumers who
respond in a similar way to a given set of marketing
efforts.

2-13
 Target Marketing

• Involves evaluating each market

segment’s attractiveness and selecting
one or more segments to enter.

• Target segments that can sustain

profitability.

2-14
 Market Positioning

• Arranging for a product to occupy a clear,

distinctive, and desirable place relative to
competing products in the minds of target
consumers (e.g., Red Bull, Paris, Gucci)

• Process begins with differentiating the

company’s marketing offer so it gives
consumers more value.

2-15
The 4 P’s of the Marketing Mix

2-16
 The 4 P’s & 4 C’s of the
Marketing Mix

• 4 P’s - Seller’s View • 4 C’s - Buyer’s View

– Product – Customer Solution
– Price – Customer Cost
– Place – Convenience
– Promotion – Communication

2-17
Managing the Marketing Effort

2-18
Marketing Control Process

2-19
Marketing Department Organization

Functional
Functional Market
Market or
or Customer
Customer
Organization
Organization Organization
Organization

Product
Product Management
Management Geographic
Geographic
Organization
Organization Organization
Organization

2-20