Chapter Two

Company and Marketing Strategy Partnering to Build Customer Relationships

Chapter 2- slide 1

Company and Marketing Strategy

Topic Outline Companywide Strategic Planning: Defining Marketings Role Designing the Business Portfolio Planning Marketing: Partnering to Build Customer Relationships Marketing Strategy and the Marketing Mix Managing the Marketing Effort

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Chapter 2- slide 2

Companywide Strategic Planning

Setting Company Objectives and Goals

Business objectives Build profitable customer relationships Invest in research Improve profits
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Marketing objectives Increase market share Create local partnerships Increase promotion
Chapter 2- slide 3

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. 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

Companywide Strategic Planning

Analyzing the Current Business Portfolio

Identify key businesses (strategic business units, or SBUs) that make up the company Assess the attractiveness of its various SBUs

Decide how much support each SBU deserves

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Chapter 2- slide 5

Companywide Strategic Planning:

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Chapter 2- slide 6

Companywide Strategic Planning Developing Strategies for Growth and Downsizing

Marketing has the main responsibility for achieving profitable growth for the company. The useful tool for identifying growth opportunities is: Product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification. For example: National Foods, a leading company started in 1970 and introduced branded and packaged spice in Pakistan. The first year revenue was not enough, so marketing played a role in business expansion.

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Chapter 2- slide 7

Companywide Strategic Planning

Developing Strategies for Growth and Downsizing Product/market expansion grid strategies

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2- slide 8

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 by improvements in the marketing mix. National introduced chili, coriander, kasuri, turmeric, achar gosht, biryani and haleem, it established nation wide distribution system, it started communication with customers by internet.
Market development is a growth strategy that identifies and develops new market segments for current products. For example national managers explored new geographical markets and expanded into middle east and north America. In 2000 national entered Australia with raj spices a new brand to suit their local taste buds. It also entered India.
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Chapter 2- slide 9

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. For example national added tomato ketchup, various Chinese sauces, jams and jellies, custards and kheer mix and variety of pickles to its product lines. Diversification is a growth strategy through starting up or acquiring businesses outside the companys current products and markets. For socio economic pressures have brought about major changes in the life styles of urban house holds. To address the needs of these consumers national has introduced ronaq brands ready to eat meals including chicken qorma, karahi, ginger.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2- slide 10

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 companys overall strategy.
Value chain is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firms products. 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

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2- slide 11

Marketing Strategy and the Marketing Mix

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Chapter 2- slide 12

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 targeting is the process of evaluating each market segments attractiveness and selecting one or more segments to enter
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2- slide 13

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 Marketing mix is the set of controllable tactical marketing toolsproduct, price, place, and promotionthat the firm blends to produce the response it wants in the target market

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2- slide 14

Marketing Strategy and the Marketing Mix

Developing an Integrated Marketing Mix

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Chapter 2- slide 15

Managing the Marketing Effort

Market PlanningParts of a Marketing Plan

Executive summary Objective and issues

Marketing situation Marketing strategy

Threats and opportunities

Action programs

Budgets

Controls

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Chapter 2- slide 16