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Chapter 2- slide 1
Chapter Two
Company and Marketing Strategy
Partnering to Build Customer
Relationships
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Chapter 2- slide 2Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Company and Marketing Strategy
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
Topic Outline
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Chapter 2- slide 3Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Companywide Strategic Planning
Businessobjectives
Build profitablecustomerrelationships
Invest in
research Improve profits
Marketingobjectives
Increasemarket share
Create localpartnerships
Increasepromotion
Setting Company Objectives and Goals
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Chapter 2- slide 4Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
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.
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
Designing the Business Portfolio
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Chapter 2- slide 5Copyright 2010 Pearson Education, Inc.
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Companywide Strategic Planning
Identify key businesses (strategicbusiness units, or SBUs) that make
up the company
Assess the attractiveness of itsvarious SBUs
Decide how much support eachSBU deserves
Analyzing the Current Business Portfolio
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Companywide Strategic Planning:
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Copyright 2010 Pearson Education, Inc.
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Companywide Strategic Planning
Marketing has the main responsibility for achievingprofitable growth for the company.
The useful tool for identifying growth opportunities is:
Product/market expansion grid is a tool for identifying
company growth opportunities through marketpenetration, market development, product development,
or diversification.
For example: National Foods, a leading company started in
1970 and introduced branded and packaged spice inPakistan. The first year revenue was not enough, so
marketing played a role in business expansion.
Developing Strategies for Growth and Downsizing
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Copyright 2010 Pearson Education, Inc.
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Companywide Strategic Planning
Developing Strategies for Growth and DownsizingProduct/market expansion grid strategies
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Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Companywide Strategic Planning
Market penetration is a growth strategy increasing sales tocurrent market segments without changing the product byimprovements in the marketing mix. National introducedchili, coriander, kasuri, turmeric, achar gosht, biryani and
haleem, it established nation wide distribution system, itstarted communication with customers by internet.
Market development is a growth strategy that identifies anddevelops new market segments for current products. For
example national managers explored new geographicalmarkets and expanded into middle east and north America.In 2000 national entered Australia with raj spices a newbrand to suit their local taste buds. It also entered India.
Developing Strategies
for Growth and Downsizing
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Chapter 2- slide 10Copyright 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Companywide Strategic Planning
Product development is a growth strategy that offers new or
modified products to existing market segments. For example
national added tomato ketchup, various Chinese sauces, jams
and jellies, custards and kheer mix and variety of pickles to its
product lines.Diversification is a growth strategy through starting up or
acquiring businesses outside the companyscurrent products
and markets. For socio economic pressures have brought
about major changes in the life styles of urban house holds.To address the needs of these consumers national has
introduced ronaq brands ready to eat meals including chicken
qorma, karahi, ginger.
Developing Strategies
for Growth and Downsizing
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Chapter 2- slide 11Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Companywide Strategic Planning
Downsizing is the reduction of the business portfolio by eliminating
products or business units that are not profitable or that no
longer fit the companysoverall strategy.
Value chain is a series of departments that carry out value-creatingactivities to design, produce, market, deliver, and support a firms
products.
Value delivery network is made up of the company, suppliers, distributors,
and ultimately customers who partner with each other to improve
performance of the entire system
Developing Strategies
for Growth and Downsizing
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Marketing Strategy and the Marketing
Mix
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Marketing Strategy and theMarketing Mix
Market segmentation is the division of a
market into distinct groups of buyers who
have distinct needs, characteristics, orbehavior and who might require separate
products or marketing mixes
Market targeting is the process of evaluating eachmarket segments attractiveness and selecting
one or more segments to enter
Customer-Driven Marketing Strategy
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Chapter 2- slide 14Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Marketing Strategy and the MarketingMix
Customer-Centered Marketing StrategyMarket positioning is the arranging for a product to
occupy a clear, distinctive, and desirable place
relative to competing products in the minds of
the target consumer
Marketing mix is the set of controllable tactical
marketing toolsproduct, price, place, and
promotionthat the firm blends to produce theresponse it wants in the target market
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Marketing Strategy and the Marketing
MixDeveloping an Integrated Marketing Mix
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Managing the Marketing Effort
Market Planning
Parts of a Marketing Plan
Executive
summary
Marketing
situation
Threats and
opportunities
Objectiveand issues
Marketingstrategy
Actionprograms
Budgets Controls
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