Cop

yrig

ht ©

200

5 Pe

arso

n E

duca

tion

Inc.

Company and Marketing Strategy: Partnering to Build Customer Relationships

•Chapter 2•PowerPoint slides•Express version

•Instructor name•Course name•School name•Date

Principles of Marketing, Sixth Canadian Edition

Principles of Marketing, Sixth Canadian Edition

2.2C

opyr

ight

© 2

005

Pear

son

Edu

catio

n In

c.

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 strategies

for growth and downsizing– Assess marketing’s 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

2.3C

opyr

ight

© 2

005

Pear

son

Edu

catio

n In

c.

Strategic Planning

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

• Steps in strategic planning:Figure 2.1

Principles of Marketing, Sixth Canadian Edition

2.4C

opyr

ight

© 2

005

Pear

son

Edu

catio

n In

c.

Mission Statements

• Mission statement:– Statement of an organization’s purpose– What it wants to accomplish in the larger environment– 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-expression; tolerance of diversity, and a platform for the outrageous

Canadian Tire We sell tools, home improvement items, and automotive parts and accessories

We provide advice and solutions that transform ham-handed people into Mr. and Mrs. Fixits

Principles of Marketing, Sixth Canadian Edition

2.5C

opyr

ight

© 2

005

Pear

son

Edu

catio

n In

c.

BCG Growth-Share Matrix

• Business portfolio• Portfolio analysis• Strategic business

unit (SBU)• Five forces driving

profitability:– Barriers to entry– Power of the

customer– Power of suppliers– Presence of

substitutes– Competitive rivalry

within industry

Figure 2.2

Principles of Marketing, Sixth Canadian Edition

2.6C

opyr

ight

© 2

005

Pear

son

Edu

catio

n In

c.

Strategies for SBU’s

• Porter:– Overall cost leadership– Differentiation– Focus

• Treacy and Wiersema:– Operational excellence– Product leadership– Customer intimacy

Principles of Marketing, Sixth Canadian Edition

2.7C

opyr

ight

© 2

005

Pear

son

Edu

catio

n In

c.

Product-Market Expansion Grid

• Product-market expansion grid:– Portfolio planning tool for identifying company growth

opportunities

Figure 2.3

Principles of Marketing, Sixth Canadian Edition

2.8C

opyr

ight

© 2

005

Pear

son

Edu

catio

n In

c.

Partnering to Build Customer Relationships

• Marketing’s role in strategic planning:– Provides a guiding philosophy– Provide inputs to help identify marketing opportunities and assess

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

2.9C

opyr

ight

© 2

005

Pear

son

Edu

catio

n In

c.

The Marketing Process

• The marketing process:– Analyzing marketing

opportunities– Selecting target markets– Developing the

marketing mix, and– Managing the marketing

effort

• Market segmentation• Target marketing• Market positioning

Figure 2.4

Principles of Marketing, Sixth Canadian Edition

2.10C

opyr

ight

© 2

005

Pear

son

Edu

catio

n In

c.

The Four P’s of the Marketing Mix

• The marketing mix:– Set of controllable,

tactical marketing tools

– Blended to produce the desired response in the target market

Figure 2.5

Principles of Marketing, Sixth Canadian Edition

2.11C

opyr

ight

© 2

005

Pear

son

Edu

catio

n In

c.

The Four P’s Versus C’s

Product

Price

Place

Promotion

Customer solution

Customer cost

Convenience

Communication

Principles of Marketing, Sixth Canadian Edition

2.12C

opyr

ight

© 2

005

Pear

son

Edu

catio

n In

c.

Managing the Marketing Effort

• Four marketing management functions:– Marketing analysis– Marketing planning– Implementation– Control

Figure 2.6

Principles of Marketing, Sixth Canadian Edition

2.13C

opyr

ight

© 2

005

Pear

son

Edu

catio

n In

c.

Contents of a Marketing Plan

• Executive summary• Current marketing situation

– Market description, product review, competition, and distribution

• Threat and opportunity analysis• Objectives and issues• Marketing strategy• Action program• Budgets• Controls

Table 2.2

Principles of Marketing, Sixth Canadian Edition

2.14C

opyr

ight

© 2

005

Pear

son

Edu

catio

n In

c.

The Control Process

• Marketing control• Marketing audit

Figure 2.7

Set goals

What do we want to achieve?

Measureperformance

What is happening?

Evaluateperformance

Why is it happening?

Take correctiveaction

What should we do about it?

Principles of Marketing, Sixth Canadian Edition

2.15C

opyr

ight

© 2

005

Pear

son

Edu

catio

n In

c.

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

strategies for growth and downsizing– Assess marketing’s 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