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2-1Chapter 2CompanyandMarketingStrategyPartneringtoBuildCustomerRelationshipsi t s good and good for you2-2Company and Marketing StrategyCompanywideStrategicPlanning:DefiningMarketingsRoleDesigningtheBusinessPortfolioPlanningMarketing:PartneringtoBuildCustomerRelationshipsMarketingStrategyandtheMarketingMixManagingtheMarketingEffortMeasuringandManagingReturnonMarketingInvestmentTopic Outline2-3Companywide Strategic PlanningStrategic planning istheprocessofdevelopingandmaintainingastrategicfitbetweentheorganizationsgoalsandcapabilitiesanditschangingmarketingopportunitiesStrategic Planning2-4Companywide Strategic PlanningSteps in Strategic Planning2-5Companywide Strategic PlanningThemissionstatementistheorganizationspurpose,whatitwantstoaccomplishinthelargerenvironmentMarket-orientedmissionstatementdefinesthebusinessintermsofsatisfyingbasiccustomerneedsDefining a Market-Oriented MissionWe help you organize the worlds information and make it universally accessible and useful.2-6Companywide Strategic PlanningBusiness objectives Build profitable customer relationshipsInvest in researchImprove profitsMarketing objectivesIncrease market shareCreate local partnershipsIncrease promotionSetting Company Objectives and Goals2-7Companywide Strategic PlanningThe business portfolio isthecollectionofbusinessesandproductsthatmakeupthecompanyPortfolio analysis isamajoractivityinstrategicplanningwherebymanagementevaluatestheproductsandbusinessesthatmakeupthecompanyDesigning the Business Portfolio2-8Companywide Strategic PlanningStrategic business units can beCompanydivisionProductlinewithinadivisionSingleproductorbrandAnalyzing the Current Business Portfolio2-9Companywide Strategic PlanningIdentify key businesses(strategic business units,or SBUs)that make up the companyAssess the attractiveness of its various SBUsDecide how much support each SBU deservesAnalyzing the Current Business Portfolio2-10Companywide Strategic Planning:2-11Companywide Strategic PlanningDifficultyindefiningSBUsandmeasuringmarketshareandgrowthTimeconsumingExpensiveFocusoncurrentbusinesses,notfutureplanningProblems with Matrix Approaches2-12Companywide Strategic PlanningProduct/market expansion grid isatoolforidentifyingcompanygrowthopportunitiesthroughmarketpenetration,marketdevelopment,productdevelopment,ordiversificationDeveloping Strategies for Growth and Downsizing2-13Companywide Strategic PlanningDeveloping Strategies for Growth and Downsizing Product/Market Expansion Grid StrategiesMarket penetrationMarket developmentProduct developmentDiversification2-14Companywide Strategic PlanningMarket penetration isagrowthstrategyincreasingsalestocurrentmarketsegmentswithoutchangingtheproductMarket development isagrowthstrategythatidentifiesanddevelopsnewmarketsegmentsforcurrentproductsDeveloping Strategies for Growth and Downsizing2-15Companywide Strategic PlanningProduct development isagrowthstrategythatoffersnewormodifiedproductstoexistingmarketsegmentsDiversification isagrowthstrategythroughstartinguporacquiringbusinessesoutsidethecompanyscurrentproductsandmarketsDeveloping Strategies for Growth and Downsizing2-16Companywide Strategic PlanningDownsizing isthereductionofthebusinessportfoliobyeliminatingproductsorbusinessunitsthatarenotprofitableorthatnolongerfitthecompanysoverallstrategyDeveloping Strategies for Growth and Downsizing2-17Planning MarketingPartnering to Build Customer RelationshipsValue chain isaseriesofdepartmentsthatcarryoutvalue-creatingactivitiestodesign,produce,market,deliver,andsupportafirmsproducts2-18Planning MarketingPartnering to Build Customer RelationshipsValue delivery network ismadeupofthecompany,suppliers,distributors,andultimatelycustomerswhopartnerwitheachothertoimproveperformanceoftheentiresystem2-19Marketing Strategy and the Marketing Mix2-20Marketing Strategy and the Marketing MixMarket segmentation isthedivisionofamarketintodistinctgroupsofbuyerswhohavedifferentneeds,characteristics,orbehaviorandwhomightrequireseparateproductsormarketingmixesMarket segment isagroupofconsumerswhorespondinasimilarwaytoagivensetofmarketingeffortsCustomer-Driven Marketing Strategy2-21Marketing Strategy and the Marketing MixMarket targeting istheprocessofevaluatingeachmarketsegmentsattractivenessandselectingoneormoresegmentstoenterCustomer-Centered Marketing Strategy2-22Marketing Strategy and the Marketing MixCustomer-Centered Marketing StrategyMarket positioning isthearrangingforaproducttooccupyaclear,distinctive,anddesirableplacerelativetocompetingproductsinthemindsofthetargetconsumer2-23Marketing Strategy and the Marketing MixMarketing mix isthesetofcontrollabletacticalmarketingtoolsproduct,price,place,andpromotionthatthefirmblendstoproducetheresponseitwantsinthetargetmarketDeveloping an Integrated Marketing Mix2-24Marketing Strategy and the Marketing MixDeveloping an Integrated Marketing Mix2-25Managing the Marketing Effort2-26Managing the Marketing EffortMarketing Analysis SWOT Analysis2-27Managing the Marketing EffortMarket PlanningParts of a Marketing PlanExecutive summaryMarketing situationThreats and opportunitiesObjective and issuesMarketing strategyAction programsBudgetsControls2-28Managing the Marketing EffortImplementingistheprocessthatturnsmarketingplansintomarketingactionstoaccomplishstrategicmarketingobjectivesSuccessfulimplementationdependsonhowwellthecompanyblendsitspeople,organizationalstructure,decisionandrewardsystem,andcompanycultureintoacohesiveactionplanthatsupportsitsstrategiesMarketing Implementation2-29Managing the Marketing EffortFunctional organizationGeographic organizationProduct management organizationMarket or customer managementMarketing Department Organization 2-30Managing the Marketing EffortControlling isthemeasurementandevaluationofresultsandthetakingofcorrectiveactionasneededtoensuretheobjectivesareachieved.OperatingcontrolStrategiccontrolMarketing Control2-31Measuring and Managing Return on Marketing InvestmentReturn on Marketing Investment(Marketing ROI)Return on marketing investment(MarketingROI)isthenetreturnfromamarketinginvestmentdividedbythecostsofthemarketinginvestment.MarketingROIprovidesameasurementoftheprofitsgeneratedbyinvestmentsinmarketingactivities.2-32Ch2 Review2-33Whichofthefollowingisthefirststepinthestrategicplanningprocess?1.Settingcompanyobjectivesandgoals2.Designingthebusinessportfolio3.Developingstrategiesforgrowthanddownsizing4.Definingamarket-orientedmission2-34Whichofthefollowingisthefirststepinthestrategicplanningprocess?1.Settingcompanyobjectivesandgoals2.Designingthebusinessportfolio3.Developingstrategiesforgrowthanddownsizing4.Definingamarket-orientedmission2-35Whatismarketpenetration?1.Makingmoresaleswithoutchangingtheoriginalproduct.2.Identifyinganddevelopingnewmarketsforcurrentproducts.3.Offeringmodifiedornewproductstocurrentmarkets.4.Startinguporbuyingbusinessesbeyondcurrentproductsandmarkets.2-36Whatismarketpenetration?1.Makingmoresaleswithoutchangingtheoriginalproduct.2.Identifyinganddevelopingnewmarketsforcurrentproducts.3.Offeringmodifiedornewproductstocurrentmarkets.4.Startinguporbuyingbusinessesbeyondcurrentproductsandmarkets.2-37Whichofthefollowinginvolvesevaluatingeachmarketsegmentsattractivenessandselectingoneormoresegmentstoenter?1.Marketsegmentation2.Marketpositioning3.Markettargeting4.Marketdifferentiation2-38Whichofthefollowinginvolvesevaluatingeachmarketsegmentsattractivenessandselectingoneormoresegmentstoenter?1.Marketsegmentation2.Marketpositioning3.Markettargeting4.Marketdifferentiation2-39WhichofthefollowingCsbestdescribesthePlacecomponentofthefourPsconcept?1.Customersolution2.Convenience3.Communication4.Customercost2-40WhichofthefollowingCsbestdescribesthePlacecomponentofthefourPsconcept?1.Customersolution2.Convenience3.Communication4.Customercost2-41InaSWOTanalysis,whichofthefollowingwillbecategorizedasopportunitiesforacompany?1.Internalcapabilities,resources,andpositivesituationalfactors2.Newtechnologiesbeingdevelopedbytheresearchteam3.Internallimitationsandnegativesituationalfactors4.Favorablefactorsortrendsintheexternalenvironment2-42InaSWOTanalysis,whichofthefollowingwillbecategorizedasopportunitiesforacompany?1.Internalcapabilities,resources,andpositivesituationalfactors2.Newtechnologiesbeingdevelopedbytheresearchteam3.Internallimitationsandnegativesituationalfactors4.Favorablefactorsortrendsintheexternalenvironment2-43IntheBCGgrowth-sharematrix,_arelow-growth,high-sharebusinessesorproducts.1.questionmarks2.dogs3.stars4.cashcows2-44IntheBCGgrowth-sharematrix,_arelow-growth,high-sharebusinessesorproducts.1.questionmarks2.dogs3.stars4.cashcows2-45Whichofthefollowingisthemostcommonformofmarketingorganization?1.Functionalorganization2.Geographicorganization3.Productmanagementorganization4.Customermanagementorganization2-46Whichofthefollowingisthemostcommonformofmarketingorganization?1.Functionalorganization2.Geographicorganization3.Productmanagementorganization4.Customermanagementorganization2-47Whichofthefollowinginvolvescheckingongoingperformanceagainsttheannualplanandtakingcorrectiveactionwhennecessary?1.Strategiccontrol2.Tacticalcontrol3.Operatingcontrol4.Financialcontrol2-48Whichofthefollowinginvolvescheckingongoingperformanceagainsttheannualplanandtakingcorrectiveactionwhennecessary?1.Strategiccontrol2.Tacticalcontrol3.Operatingcontrol4.Financialcontrol2-49Theproduct/brandmarketingplanbeginswitha(n)_.1.SWOTanalysis2.goals3.objectives4.executivesummary2-50Theproduct/brandmarketingplanbeginswitha(n)_.1.SWOTanalysis2.goals3.objectives4.executivesummary2-51_isastatementoftheorganizationspurposeswhatitwantstoaccomplishinthelargerenvironment.1.Objective2.Strategy3.Marketingplan4.Mission2-52_isastatementoftheorganizationspurposeswhatitwantstoaccomplishinthelargerenvironment.1.Objective2.Strategy3.Marketingplan4.Mission2-53ProjectsPickacompanyorbrandfromwhichyoubuyfrequently.VisittheirWebsiteandfindtheportfolioofproducts/servicestheysell.PretendyouarethecompanyCEO.Categorizetheproductsintologicalgroupingsthatwillbecomeyourstrategicbusinessunits(SBUs).Usingyourbestjudgment,allocateresources,usingpercentages,notdollaramounts,toeachSBU(makesurethetotalcomesto100percent).(Objective2)GetthecurrentissueofFortunemagazine;mostcollegelibrariescarryit.Readthecoverstoryanddefinethe4Psofoneofthecompanysproductsmentioned.Thendefinethe4Csofthesameproduct.Aretheredifferences?(Objective4)2-54Formstudentsintogroupsofthreetofive.EachgroupshouldreadRealMarketing2.1“McDonalds:OnaCustomer-FocusedMission.”Eachgroupshouldthenanswerthefollowingquestionsandsharetheirfindingswiththeclass.(Objective2)DescribeMcDonaldsmajorproductsthroughtheuseoftheBCGmatrix.UsingtheProduct/MarketExpansionGrid,showninFigure2.3,identifypotentialgrowthopportunitiesforMcDonalds.WhatcompetitivestrategieshavebeendevelopedbyMcDonaldstocombatinroadsmadebysuchcompaniesasStarbucks?Small Group Assignments2-55ReadtheopeningchaptervignetteontheOlympicbrand.Thinkabouttheanswerstothefollowingquestionsandsharethoseanswerwiththeclass.(Objectives1&4)HowdoesthesponsorshipoftheOlympicsfitintotheoverallmarketingplanofamajorbusiness?Howcanabusinesssupporttheirsponsorshipwithothermarketinginitiativesbefore,duringandaftertheOlympicevent?WhymightsponsorshipoftheOlympicsbeseenasaprimarilycustomer-drivenmarketingstrategy?Individual Assignments2-56Considerthefollowingquestions,formulateandanswer,pairwiththestudentonyourright,shareyourthoughtswithoneanother,andrespondtoquestionsfromtheinstructor.ComparetheBostonConsultingGroupsportfolioanalysismethodtotheproduct/marketexpansiongrid.Whichmethodwouldyouratheruseinyourownbusiness?Why?(Objective2)Whywouldafocusonthe4Csbemoreimportantthanthe4Ps?Whatisavalue-deliverynetwork?Howdoesthisconceptdifferfromthatofthevaluechain?(Objective4)Explaintheconceptofreturnonmarketing.Whyisthisimportant?(Objective5)Think-Pair-Share
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