1. The document discusses Nike's strategy evolution from early success due to innovative sneaker treads to embracing strategic planning and focusing on innovation and new markets in response to changing consumer preferences and negative PR. 2. Strategic planning helps companies adapt to changing environments by maintaining strategic fit between goals, capabilities, and opportunities. It involves setting objectives and analyzing business portfolios to direct resources. 3. Marketing plays a key role in strategic planning by providing guidance, identifying opportunities, designing strategies, and building value networks. Customer-driven strategies involve market segmentation, targeting specific segments, and positioning products relative to competitors.

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

2. Roadmap: Previewing the Concepts
1. Explain strategic planning
2. Describe business portfolios and growth strategies
3. Detail marketing’s role in strategic planning
4. Describe elements of customer-driven marketing
strategy
5. List the marketing management functions

3. Case Study
NIKENIKE – Strategy: Then and Now– Strategy: Then and Now
Early Days
• Characterized by “seat of
the pants” management.
• Innovative sneaker tread
drove early success.
• Technological product
superiority, big-name
endorsements, and “Just Do
It” ads revolutionized sport
marketing.
• 1980s – 1990s: Nike
leverages brand strength
into new product areas.
Late 1990s - Present
• Changes in consumer shoe
preference, declining
product innovation, and
negative PR plague Nike.
• Anti-establishment image no
longer works: brand backlash
occurs.
• Strategic planning is
embraced & Nike focuses on
innovation & exploring new
market opportunities.
• Nike has global success
2 - 3

4. What is Strategic Planning?
Strategic planning involves
adapting the firm to take
advantage of opportunities in its
constantly changing
environment.
Strategic planning helps a firm to
maintain a strategic fit between
its goals and capabilities and its
changing marketing
opportunities.
2 - 4
Goal 1: Explain strategic planning

5. Steps in Strategic Planning 2 - 5

6. Marketing Management
2 - 6
A mission
statement asks..
 What is our
business?
 Who is the
customer?
 What do
consumers value?
 What should our
business be?
A mission statement
should be:
 An “invisible hand”
 Neither too narrow nor
too broad
 Fitting of market
environment
 Based on distinctive
competencies
 Motivating
Market-Oriented Mission
Goal 1: Explain strategic planning

7. Let’s Talk!
• In 2002
Microsoft’s
mission was "To
empower people
through great
software -- any
time, any place,
and on any
device.”
• The mission
statement now
reads, "At
Microsoft, we
work to help
people and
businesses
throughout the
world realize
their full
potential.”
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8. The Mission Statement
• A statement of the
organization’s purpose.
• What it wants to
accomplish in the larger
environment.
• Should be market oriented
and defined in terms of
customer needs
2 - 8

9. Setting Company Objectives
and Goals
• The mission should be
converted to supporting
objectives at each level
of management.
• The mission leads to
setting a hierarchy of
objectives.
• Business objectives
• Marketing objectives
2 - 9

10. Setting Company Objectives
and Goals
• Business objectives
• Build profitable
customer
relationships
• Invest in research
• Improve profits
• Marketing objectives
• Increase market
share
• Create local
partnerships
• Increase promotion
2 -
10

11. The Business Portfolio
A business portfolio is the collection of
businesses and products that make up the
company
Business portfolio planning involves two
steps:
1. Analyzing the current business
portfolio
2. Shaping the future portfolio by
developing strategies
2 -
11
Goal 2: Describe business portfolios and growth

12. Portfolio Analysis
• Evaluation of the products and businesses
that make up the company by the
management
• Steps:
• Identifying the strategic business units (SBUs)
• Assessing the attractiveness of its various SBUs
and deciding the support each SBU deserves
• The purpose is to direct resources toward
more profitable businesses while phasing out
or dropping weaker ones
2 -
12

13. Marketing Management 2 -
13
 Build
 Increase market
share
 Works well for
question marks
 Hold
 Preserve market
share
 Good for cash cow
 Harvest
 Increases short-
term cash flow
 Good for weak cash
cows, question
marks and dogs
 Divest
 Sell or liquidate
 Good for dogs and
question marks
Analyzing the Current
Business Portfolio
Goal 2: Describe business portfolios and growth

14. The BCG
Growth-Share Matrix
2 -
14

15. Marketing’s Role
in Strategic Planning
• Provide a guiding philosophy
• Identify attractive opportunities
• Design effective strategies
• Build strong value chains
• Form superior value delivery networks
2 -
15
Goal 3: Detail marketing's role in strategic planning

16. Marketing Strategy
• Customers grouped by:
• Geographic
• Demographic
• Psychographic
• Behavioral
• Market segment is a
groups of consumers
who respond in similar
ways to marketing
efforts.
2 -
16
1. Market
Segmentation
2. Target marketing
3. Market
Positioning
StrategyStrategy
Goal 4: Describe elements of customer-driven strategy

17. Marketing Strategy
• Evaluation of each
segment’s
attractiveness
• Selection of segments
with greatest long-term
profitability
• A company can choose
one or several
segments to target
2 -
17
StrategyStrategy
Goal 4: Describe elements of customer-driven strategy
1. Market
Segmentation
2. Target marketing
3. Market
Positioning

18. Marketing Strategy
• The place the product
occupies in the
consumer’s mind
• Products are positioned
relative to competing
products
• Marketers look for
clear, distinctive and
desirable place in
positioning
2 -
18
StrategyStrategy
Goal 4: Describe elements of customer-driven strategy
1. Market
Segmentation
2. Target marketing
3. Market
Positioning

19. Marketing Mix
• The marketing mix includes controllable and
tactical marketing tools knows as the 4P’s
• The 4P’s include
• Product
• Place
• Promotion
• Price
2 -
19
Goal 4: Describe elements of customer-driven strategy

20. Managing the
Marketing Effort
• Finding opportunities
• Avoiding threats
• Understanding strengths
• Analyzing weaknesses
2 -
20
Goal 5: List the marketing management functions
• Analysis
• Planning
• Implementation
• Control
Marketing FunctionsMarketing Functions

21. Managing the
Marketing Effort
• Marketing plans include:
• Executive summary
• Analysis of current situation
• Objectives
• Targets and positioning
• Marketing mix
• Budget
• Controls
2 -
21
Goal 5: List the marketing management functions
Marketing FunctionsMarketing Functions
• Analysis
• Planning
• Implementation
• Control

22. Managing the
Marketing Effort
• Plans are turned into action
with day-to-day activities
• Good implementation is a
challenge
2 -
22
Goal 5: List the marketing management functions
Marketing FunctionsMarketing Functions
• Analysis
• Planning
• Implementation
• Control

23. Managing the
Marketing Effort
• Evaluation of the results of
marketing strategies
• Checks for differences
between goals and
performance
2 -
23
Goal 5: List the marketing management functions
Marketing FunctionsMarketing Functions
• Analysis
• Planning
• Implementation
• Control

24. Measuring Effectiveness
• Return on marketing (marketing ROI)
• The net return from a marketing investment divided
by the costs of the investments
2 -
24
Goal 5: List the marketing management functions