Company and Marketing Strategy: Partnering to Build Customer Relationships

Topics: Marketing, Strategic management, Marketing plan Pages: 7 (1458 words) Published: July 16, 2013
Learning Objectives
After studying this chapter, you should be able to:
1.Explain companywide strategic planning in its four steps
2.Discuss how to design business portfolios and develop growth strategies 3.Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value 4.Describe the elements of a customer-driven marketing strategy and mix, and the forces that influence it 5.List the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring return on marketing investment Chapter Outline

1.Companywide Strategic Planning: Defining Marketing’s Role 2.Marketing Strategy and the Marketing Mix
3.Managing the Marketing Effort
4.Measuring and Managing Return on Marketing Investment

Companywide Strategic Planning: Defining Marketing’s Role
Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.

Defining a Market-Oriented Mission
Mission statement: 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.

Setting Company Objectives and Goals
Business objectives
Marketing objectives

Companywide Strategic Planning: Defining Marketing’s Role

The business portfolio is the collection of businesses and products that make up the company

Analyzing the current business portfolio is the process by which management evaluates the products and businesses making up the company

Steps in Analyzing the Current Business Portfolio
1.Identify key businesses making up the company
2.Assess the attractiveness of its various SBUs
3.Decide how much support each SBU deserves

Steps in Analyzing the Current Business Portfolio
Identify key businesses making up the company
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 businesses •Company division
Product line within a division
Single product or brand
Steps in Analyzing the Current Business Portfolio
Assess the attractiveness of various SBUs and decide how much support each deserves

Analyzing the Current Business Portfolio
The Boston Group Approach
Growth share matrix is a portfolio planning method that evaluates a company’s strategic business units in terms of their market growth rate and relative share Strategic business units are classified as:

Stars
Cash Cows
Question marks
Dogs
Analyzing the Current Business Portfolio
The Boston Group Approach
Stars are high-growth, high-share businesses or products requiring heavy investment to finance rapid growth. They will eventually turn into cash cows. •Cash cows are low-growth, high-share businesses or products that are established and successful SBUs requiring less investment to maintain market share •Question marks are low-share business units in high-growth markets requiring a lot of cash to hold their share •Dogs are low-growth, low-share businesses and products that may generate enough cash to maintain themselves but do not promise to be large sources of cash Problems with Matrix Approaches

Difficulty in defining SBUs and measuring market share and growth •Time consuming
Expensive
Focus on current businesses, not future planning

Developing Strategies for Growth and Downsizing
Product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification •Product/market expansion grid strategies

Market penetration
Market development
Product development
Diversification
Market penetration is a growth strategy increasing sales to current market segments without changing the product...
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