2

Company

MARKETING AN INTRODUCTION
Armstrong/Kotler

and Marketing

Strategy

Partnering to Build Customer Relationships

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Outline
Companywide Strategic Planning: Defining
Marketings Role
Designing the Business Portfolio
Planning Marketing: Partnering to Build Customer
Relationships
Marketing Strategy and the Marketing Mix
Managing the Marketing Effort
Measuring and Managing Return on Marketing
Investment

Strategic Planning
Strategic plan is the companys plan for
long run survival and growth that makes
the most sense given its situation,
opportunities, objectives, and resources.
A fit between marketing opportunities and
organizational goals and capabilities

Strategic Planning
Strategic planning sets the stage for the rest of
the planning in the firm. Companys usually
prepare : Annual Plan
Long range plan &- deals with co.s current
businesses and how to keep
them going.
Strategic plan adapting the firm to take
advantage of opportunities in its constantly
changing environment.

Companywide Strategic Planning

Steps in Strategic Planning

Forming a Mission
The following questions help in developing
sound company mission:
What is your business?
Who is the customer?
What do customers value?
What should our business be?

Defining a Market-Oriented Mission

Market oriented and
based on satisfying
customer needs

Meaningful and
specific yet
motivating

Mission
Statement
Emphasize companys
strengths in the
market

Should NOT be stated

in sales or profits

Examples of Market Oriented mission

statements
Cold Stone Creamerys mission isnt simply to
sell ice cream. Its mission is to make people
happy around the world by selling the highest
quality, most creative ice cream experience
with passion, excellence, and innovation.
Charles Schwab
We are brokerage firm (product oriented not)
We are the guardian of our customers financial
dreams (Market oriented)

Setting Company Objectives and Goals

What Marketing Objectives?

Build profitable
business
relationships

Marketing
Objective?

Designing the Business Portfolio

The Business Portfolio is the collection of

businesses and products that make up the
Company

The best business portfolio is the one that

best fits the companys strengths and
weaknesses to opportunities in the
environment

Planning business portfolio..

First: The company must analyze its current
business portfolio and decide which businesses
should receive more, less, or no investment .
Second: It must shape the future portfolio by
developing strategies for growth and
downsizing.

Analyzing the current business

portfolio
The first step is to identify the key
businesses that make up the company,
called strategic business unit (SBUs).
Strategic business units can be:
A company division
A product line within a division, or
A single product or brand

Evaluation of the SBUs

The attractiveness of the SBU market

or industry

The strength of the SBUs position in

that market or industry

The Boston Consulting Group Approach

Strategies for Growth and Downsizing

Strategies for Growth and Downsizing

Market penetration:- A strategy for company growth
by increasing sales of current products to current
market segments.
Market development:- A strategy for company
growth by identifying and developing new market
segments for current company products.
Product development:- A strategy for company
growth by offering modified or new products to
current market segments.

Strategies for Growth and Downsizing

Diversification :- A strategy for company growth
through starting up or acquiring businesses outside
the companys current products and markets.
Downsizing
:- Reducing the business portfolio by
eliminating products or business units that are not
profitable or that no longer fit the companys overall
strategy.

Partnering to Build
Customer Relationships

Other Company
Departments

Others in the
Marketing system

Internal Value Chain

Value delivery network

Marketing Strategy and the Marketing

Mix
Marketing strategy : The marketing logic by
which the company hopes to create customer
value and achieve profitable customer
relationships.
Marketing mix : The company designs an
integrated marketing mix made up of factors
under its control product, price, place and
promotion.

Marketing Strategy and the

Marketing Mix

Customer Driven Marketing Strategy

Market segmentation is the process of dividing a
market into distinct groups of buyers who have
different needs, characteristics, or behaviors and
who might require separate products or marketing
programs.

Customer Driven Marketing Strategy

Market targeting involves evaluating each
market segments attractiveness and
selecting one or more to enter.

Customer Driven Marketing Strategy

Positioning is arranging for a product to

occupy a clear distinctive, and desirable
place relative to competing products in the
minds of the customer.

Product differentiation
Product differentiation can be done on
the following basis:
Form, Features, Customization,
Performance Quality, Durability, Reliability,
Repairability, Style, Design

Developing an Integrated Marketing Mix

Managing the Marketing Effort

Marketing Analysis

Marketing Analysis

Marketing Planning
Elements of a Marketing Plan
Executive summary
Current marketing situation
Threats and opportunity analysis
Objectives and issues
Marketing strategy
Action programs
Budgets
Controls

Marketing Implementation
The process that turns marketing strategies
and plans into actions in order to accomplish
strategic marketing objectives.
The marketing planning addresses the what
and why of marketing activities,
implementation addresses the who, where,
when and how.

Marketing Control

Set
marketing
goals

Measures
performance

Evaluates
causes of
differences

Take
corrective
actions

Measuring and Managing Return on

Marketing Investment
Return on marketing
investment
(marketing ROI) is
the net return from
a marketing
investment divided
by the costs of the
marketing
investment.

Measuring and Managing Return on

Marketing Investment
A company can assess return on
marketing in terms of standard marketing
performance measures, such as
Brand awareness,
Sales, or
Market share

Return on Marketing Investment