Company and Marketing Strategy Partnering to Build Customer Relationships

Company and Marketing Strategy

Partnering to Build Customer Relationships

LECTURE-3

• Companywide Strategic Planning: Defining Marketing’s Role

• Planning Marketing: Partnering to Build Customer Relationships

• Marketing Strategy and the Marketing Mix

Topic Outline

Companywide Strategic Planning

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

Strategic Planning

Companywide Strategic Planning

Steps in Strategic Planning

Companywide Strategic Planning

• The mission statement is the organization’s purpose, what it wants to accomplish in the larger environment

• Market-oriented mission statement defines the business in terms of satisfying basic customer needs

Defining a Market-Oriented Mission

We help you organize the world’s information and make it

universally accessible and useful.

Good Mission Statements

• Focus on a limited number of goals• Stress major policies and values• Define major competitive spheres• Take a long-term view• Short, memorable, meaningful

Rubbermaid Commercial Products, Inc.

“Our vision is to be the Global Market ShareLeader in each of the markets we serve. We

will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, cost-

effective and environmentally responsible products. We will add value to these products

by providing legendary customer service through our Uncompromising Commitment

to Customer Satisfaction.”

Motorola

“The purpose of Motorola is to honorablyserve the needs of the community by providingproducts and services of superior quality at a fair price to our customers; to do this so as toearn an adequate profit which is required forthe total enterprise to grow; and by doing so, provide the opportunity for our employees and

shareholders to achieve their personal objectives.”

eBay

“We help people trade anything on earth.We will continue to enhance the onlinetrading experiences of all—collectors, dealers, small businesses, unique itemseekers, bargain hunters, opportunity

sellers, and browsers.”

Companywide Strategic Planning

Business objectives

•Build profitable customer relationships•Invest in research•Improve profits

Marketing objectives

•Increase market share•Create local partnerships•Increase promotion

Setting Company Objectives and Goals

Companywide Strategic Planning

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

Designing the Business Portfolio

Companywide Strategic Planning

Strategic business units can be• Company division• Product line within a division• Single product or brand

Analyzing the Current Business Portfolio

Companywide Strategic Planning

Assess the attractiveness of its various SBUs

Decide how much support each SBU deserves

Analyzing the Current Business Portfolio

Companywide Strategic Planning

Stars are high growth, high businesses or products, they often need heavy investment to finance their rapid growth.

Cash cows are low-growth, high share businesses or products, they need less investment to hold their market share.

BCG Matrix

Companywide Strategic Planning

Question marks are low-share business units in high growth markets, they need lot of cash to hold their share.

Dogs are low-growth, low-share businesses and products. They may generate enough cash to maintain themselves but don't promise to be large sources of cash.

BCG Matrix

Companywide Strategic Planning

• Difficulty in defining SBUs and measuring market share and growth

• Time consuming• Expensive• Focus on current businesses, not future

planning

Problems with Matrix Approaches

Companywide Strategic PlanningDeveloping Strategies for Growth and Downsizing

Product/Market Expansion Grid

Market penetratio

n

Market developm

ent

Product developm

entDiversifica

tion

a tool for identifying company growth

opportunities

Ansoff’s Product-Market Expansion Grid

Companywide Strategic Planning

Market penetration growth by increasing sales to current market segments without changing the product

Market development growth by identifying and developing new market segments for current products

Developing Strategies for Growth and Downsizing

Companywide Strategic Planning

Product development is a growth strategy that offers new or modified products to existing market segments

Diversification is a growth strategy through starting up or acquiring businesses outside the company’s current products and markets

Developing Strategies for Growth and Downsizing

Companywide Strategic Planning

Downsizing prune, harvest or divest businesses that are unprofitable or that no longer fit the strategy

Developing Strategies for Growth and Downsizing

What is the Value Chain?

The value chain is a tool for identifying ways to create more customer value because every firm is a synthesis of

primary and support activities performed to design, produce, market, deliver, and

support its product.

Value Chain Analysis

The way in which primary and support activities are combined in providing goods and services and increasing profit margins.

SupportActivities

Primary Activities

Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value

SupportActivities

Primary Activities

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Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value

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Technological Development

Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value

SupportActivities

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Technological Development

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Human Resource Management

Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value

SupportActivities

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Technological Development

Human Resource Management

Firm Infrastructure

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SupportActivities

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MARGIN

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Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value

Value Chain AnalysisIdentifying Resources and Capabilities That Can Add Value

Bibliography Principles of Marketing by Philip Kotler & Gary Armstrong Fifteenth Edition, Published by Prentice Hall

Marketing Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc.

  Principles and Practices of Marketing by Jobber, D. 4th  edition, McGraw Hill International.

Principles of Advertising & IMC by Tom Duncan 2nd

Edition, Published by McGraw-Hill Irwin.

The End

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