This document covers topics in strategic planning and marketing. It discusses defining a market-oriented mission and setting company objectives and goals. It also discusses analyzing the current business portfolio using tools like the product/market expansion grid. Various growth strategies like market penetration, market development, product development, and diversification are explained. The marketing process, marketing mix, market segmentation, targeting, and positioning are defined. Managing the marketing effort through tools like SWOT analysis and marketing plans is also outlined. Finally, return on marketing investment is discussed.

1. Chapter Two
Chapter 2- slide 1
Chapter Two
Company and Marketing Strategy
Partnering to Build Customer
Relationships

2. Companywide Strategic Planning
Strategic planning is the process of
developing and maintaining a strategic fit
between the organization’s goals and
Strategic Planning
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between the organization’s goals and
capabilities and its changing marketing
opportunities

3. Companywide Strategic Planning
• The mission statement is
the organization’s
purpose, what it wants to
accomplish in the larger
Defining a Market-Oriented Mission
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accomplish in the larger
environment
• Market-oriented mission
statement defines the
business in terms of
satisfying basic customer
needs

4. Companywide Strategic Planning
Business
objectives
• Build profitable
Marketing
objectives
• Increase
Setting Company Objectives and Goals
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• Build profitable
customer
relationships
• Invest in
research
• Improve profits
• Increase
market share
• Create local
partnerships
• Increase
promotion

5. Companywide Strategic Planning
The business portfolio is the collection of
businesses and products that make up the
company
Designing the Business Portfolio
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company
Portfolio analysis is a major activity in
strategic planning whereby management
evaluates the products and businesses that
make up the company

6. Companywide Strategic Planning
Strategic business unit (SBU) is a unit of the
company that has a separate mission and
objectives that can be planned separately
Analyzing the Current Business Portfolio
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objectives that can be planned separately
from other company businesses
• Company division
• Product line within a division
• Single product or brand

7. Companywide Strategic Planning
Identify key businesses (strategic
business units, or SBUs) that make
up the company
Analyzing the Current Business Portfolio
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Assess the attractiveness of its
various SBUs
Decide how much support each
SBU deserves

8. Companywide Strategic Planning:
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9. Companywide Strategic Planning
• Difficulty in defining SBUs and measuring
market share and growth
• Time consuming
Problems with Matrix Approaches
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• Time consuming
• Expensive
• Focus on current businesses, not future
planning

10. Companywide Strategic Planning
Product/market expansion grid is a tool for
identifying company growth opportunities
Developing Strategies for Growth and Downsizing
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identifying company growth opportunities
through market penetration, market
development, product development, or
diversification

11. Companywide Strategic Planning
Developing Strategies for Growth and Downsizing
Product/Market Expansion Grid Strategies
Market Market
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Market
penetration
Market
development
Product
development
Diversification

12. Companywide Strategic Planning
Developing Strategies for Growth and Downsizing
Product/market expansion grid strategies
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13. Companywide Strategic Planning
Market penetration is a growth strategy
increasing sales to current market segments
without changing the product
Developing Strategies
for Growth and Downsizing
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without changing the product
Market development is a growth strategy that
identifies and develops new market segments
for current products

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

15. Companywide Strategic Planning
Downsizing is the reduction of the business
portfolio by eliminating products or
Developing Strategies
for Growth and Downsizing
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portfolio by eliminating products or
business units that are not profitable or
that no longer fit the company’s overall
strategy

16. 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
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that carry out value-creating activities
to design, produce, market, deliver, and
support a firm’s products

17. The Marketing Process
1. Analyzing Marketing Opportunities
2. Selecting Target Markets
3. Developing the Marketing Mix
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3. Developing the Marketing Mix
4. Managing the Marketing efforts

18. Marketing Strategy and the Marketing
Mix
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19. Marketing Strategy and the
Marketing Mix
Market segmentation is the division of a
market into distinct groups of buyers who
have distinct needs, characteristics, or
Customer-Driven Marketing Strategy
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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

20. Marketing Strategy and the
Marketing Mix
Market targeting is the process of evaluating
each market segment’s attractiveness and
selecting one or more segments to enter
Customer-Centered Marketing Strategy
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selecting one or more segments to enter

21. 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
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desirable place relative to competing
products in the minds of the target
consumer

22. Marketing Strategy and the Marketing
Mix
Marketing mix is the set of controllable
Developing an Integrated Marketing Mix
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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

23. Marketing Strategy and the Marketing
Mix
Developing an Integrated Marketing Mix
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24. Managing the Marketing Effort
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25. Managing the Marketing Effort
Marketing Analysis – SWOT Analysis
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26. Managing the Marketing Effort
Market Planning—Parts of a Marketing Plan
Executive
summary
Marketing
situation
Threats and
opportunities
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summary
Objective
and issues
Marketing
strategy
Action
programs
Budgets Controls

27. Measuring and Managing
Return on Marketing Investment
Return on Marketing Investment (Marketing ROI)
Return on marketing investment (Marketing
ROI) is the net return from a marketing
investment divided by the costs of the
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investment divided by the costs of the
marketing investment. Marketing ROI provides
a measurement of the profits generated by
investments in marketing activities.