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Chapter [2]

Company and marketing strategy

Strategic planning: is the process a strategic fit between the organization's goals
and capabilities and its changing marketing opportunter.

2- 1 Companywide strategic planning:

Setting Designing
Defining the marketing
company the
company    and other
objectives business
mission functional
and goals profitolio
1. the mission statement: is the organization's purpose what it wants to
accomplish in the larger environment.
a market-onented mission statement defines the business in terms of
satisfying basic customer needs.

Company wide strategic planning

2.setting company objectives and goals the company needs to turn its mission
statement into detailed supporting objectives for each level of management.
Business objectives Marketing objectives
 build profitable customer relationship  increase market share
 invest in research  create local partnerships
 improve profits  increase promotion
2-2: designing the business portfolio
o The business portfolio : is the collection of business and products
that make up the company.
o Portfolio analysis: is a major activity in strategic planning, where by
management evaluates the products and
businesses that make up the company.

Analyzing the current business portfolio

 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 business.
 Company division.
 Product line within a division.
 Single product or brand.
Analyzing the current business portfolio
1. identify key business [ strategic business units or SBUs that make up the
2. assess the attractiveness of its various SBUS
3. Deside how much support each is bean services

Problems with matrix approaches

- Difficulty in defining SBUS and measuring market.
- Time consuming.
- Expensive.
- Focus on current businesses, not future planning.

Developing strategies for growth and downsizing

Product / market expansion gride is protifolo planning tools for identifying
company growth oppoot unities through
- market penetration.
- Market development.
- Product development.
- Ad versification.

Market penetration:
Is a growth strategy increasing sales to current market segments without
changing the product.
Market development:
Is a growth strategy identifying and developing new market segments for
current products.
Product development:
Is a growth offering, new or modified products to current market
Ad versification:
is a growth strategy through starting up or acquiring businesses outside
the company's current products and markets.
eliminating products or business units that are not profitable or that no
longer fit the company's overall strategy.

2-3 planning marketing

Partnering with other company departments
Value chain:
is a series of departments that carry out value creating avidities to design,
produce, market, and deliver & support a firm's produce's.
Value delivery network:
is made up of the company, suppliers, distribute and ultimately the
customers who partner with each other to improve performance of the
outline system
Market segmentation:
is the division of a market into distinct groups of buyers who have distinct
needs, charactoristics or behavior and who might require seperale or
marketing mixes.
Market segment:
is a group of consumers who respond in a similar way to a given set of
marketing efforts.
2-4 manying morles strategy and marketing mix competiters:
Marketing intermediaries

At its core marketing is all about

creating customers value and profitable
customers relationships.

Supplies public
Customer – driven market 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 segment:
is a group of consumers who respond in a similar way to a given set of
marketing efforts.
Market targeting:
is the process of evaluating each market segment's attractiveness and
desirable place relative to competing products in the minds of the target

Developing an integrated marketing mix

Marketing mix:
is the set of controllable tactical marketing tools – products, price, place,
and promotion, that the firm blends to produce the response it wants in
the target market.

[product] [price]
- variety - lot price
- quality - discounts
- design - allowances
- features - payment periods
- brond name - credit terms
- packaging
- services


[promotion] [place]
- advertising - channels
- personal selling - coverage
- sales promotion - assortments
- public relations - locations
- inventory
- transportation
- logistics
2-5: managing the marketing effort
Managing marketing:
Analysis, planning, implementations and control

Planning Implementation Control

Develop strategic plans Carry out the Measure results
 plans 
Develop marketing plans Evaluate results

Take correction action

Swot analysis
 strength [S] , weaknesses [w]
 opportunities [O] , threats [T]

Strengths Weaknesses
Internal Internal capabilities that may Internal limitations that may
help a company reach its interfere with a company's ability
objectives to achieve its objectives

Opportunities Threats
External External factors that the Current and emerging external
company may be able to exploit factors that may challenge the
to its advantages company's performance
Positive Negative

Market planning
Parts of a marketing plan
Executive Marketing Treats & Objective
Summary Situation Opportunities And issues

Marketing Action
Budgets Controls
Strategy Programs

Marketing implementation
Is the process that turns marketing plans into marketing actions to
accomplish strategic marketing objectives.
Successful implementation:
Depends on how well the company blends its people organizational
structure, its decision and reward system and company culture into a
cohenisive actions plan that supports its strategies.
Marketing deportment orgs.

Functional Product Market or customer Geographic

. org . management org management . org

Marketing control
Marketing control:
Is the process of measuring and evaluating the results of marketing
strategies and plans and taking corrective action to ensure that objectives
are achieved.
 operating control.
 Strategic control.

2-6: measuring and managing return on marketing investment

 Return on marketing investment [marketing ROI]
Return from a marketing investment divided by the costs of the
marketing investment.
 Marketing ROI provides a measurement of the profits generated by
investments in marketing activities.

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