Company and Marketing Strategy: Partnering

to Build Customer Relationships

Chapter 2
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Principles of Marketing, Sixth Canadian Edition

 2.2
Learning Objectives

After studying this chapter, you should be able to:

Explain company-wide strategic planning and its four steps
Discuss how to design business portfolios and develop
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strategies for growth and downsizing

Assess marketings role in strategic
planning and explain how marketers
partner with others inside and
outside the firm to build profitable
customer relationships
Describe the marketing process and
the forces that influence it
List the marketing management
functions, including the elements of
a marketing plan

Principles of Marketing, Sixth Canadian Edition

 2.3
Strategic Planning

Strategic planning:
Developing a strategic fit between
organizational goals and capabilities, and
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changing marketing opportunities

Steps in strategic planning:

Figure 2.1

Principles of Marketing, Sixth Canadian Edition

 2.4
Mission Statements

Mission statement:
Statement of an organizations purpose
What it wants to accomplish in the larger environment
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Need to be specific, realistic, and motivating

Table 2.1

Company Product-oriented definition Market-oriented definition

M.A.C Cosmetics We make cosmetics We sell lifestyle and self-

Canadian Tire We sell tools, home
improvement items, and
automotive parts and
accessories
expression; tolerance of
diversity, and a platform for the
outrageous
We provide advice and
solutions that transform ham-
handed people into Mr. and
Mrs. Fixits

Principles of Marketing, Sixth Canadian Edition

 2.5
BCG Growth-Share Matrix
Business portfolio
Portfolio analysis
Strategic business
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unit (SBU) Figure 2.2

Five forces driving
profitability:
Barriers to entry
Power of the
customer
Power of suppliers
Presence of
substitutes
Competitive rivalry
within industry

Principles of Marketing, Sixth Canadian Edition

 2.6
Strategies for SBUs

Porter:
Overall cost leadership
Differentiation
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Focus
Treacy and Wiersema:
Operational excellence
Product leadership
Customer intimacy

Principles of Marketing, Sixth Canadian Edition

 2.7
Product-Market Expansion Grid

Product-market expansion grid:

Portfolio planning tool for identifying company growth
opportunities
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Figure 2.3

Principles of Marketing, Sixth Canadian Edition

 2.8
Partnering to Build Customer Relationships

Marketings role in strategic planning:

Provides a guiding philosophy
Provide inputs to help identify marketing opportunities and assess
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potential for taking advantage of them

Designs strategies for reaching objectives
Partner relationship
management
Value chain
Value delivery network

Principles of Marketing, Sixth Canadian Edition

 2.9
The Marketing Process

The marketing process:

Analyzing marketing Figure 2.4
opportunities
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Selecting target markets

Developing the
marketing mix, and
Managing the marketing
effort
Market segmentation
Target marketing
Market positioning

Principles of Marketing, Sixth Canadian Edition

 2.10
The Four Ps of the Marketing Mix

The marketing
mix: Figure 2.5

Set of controllable,
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tactical marketing
tools
Blended to
produce the
desired response in
the target market

Principles of Marketing, Sixth Canadian Edition

 2.11
The Four Ps Versus Cs

Product Customer solution

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Price Customer cost

Place Convenience

Promotion Communication

Principles of Marketing, Sixth Canadian Edition

 2.12
Managing the Marketing Effort

Four marketing management functions:

Marketing analysis
Marketing planning
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Implementation
Control
Figure 2.6

Principles of Marketing, Sixth Canadian Edition

 2.13
Contents of a Marketing Plan

Executive summary
Current marketing situation
Market description, product review, competition, and distribution
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Threat and opportunity analysis

Objectives and issues
Marketing strategy
Action program
Budgets
Controls

Table 2.2

Principles of Marketing, Sixth Canadian Edition

 2.14
The Control Process

Marketing control
Marketing audit
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Figure 2.7

Measure Evaluate Take corrective

Set goals
performance performance action
What do we
What is Why is it What should
want to achieve?
happening? happening? we do about it?

Principles of Marketing, Sixth Canadian Edition

 2.15
In Conclusion

The learning objectives for this chapter were:

Explain company-wide strategic planning and its four steps
Discuss how to design business portfolios and develop
Copyright 2005 Pearson Education Inc.

strategies for growth and downsizing

Assess marketings role in strategic
planning and explain how marketers
partner with others inside and
outside the firm to build profitable
customer relationships
Describe the marketing process and
the forces that influence it
List the marketing management
functions, including the elements of
a marketing plan

Principles of Marketing, Sixth Canadian Edition