Copyright © 2005 Pearson Education Inc. Company and Marketing Strategy: Partnering to Build Customer Relationships Chapter 2 PowerPoint slides Express version Principles of Marketing, Sixth Canadian Edition

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 2.2 Strategic Planning Strategic planning: Involves developing an overall company strategy for long-run survival and growth. Steps in strategic planning:

Copyright © 2005 Pearson Education Inc.

Principles of Marketing, Sixth Canadian Edition 2.4 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 CompanyProduct-oriented definitionMarket-oriented definition Amazon.comWe sell books, videos, CDs, toys, hardware and other products. We make the internet buying experience fast, easy and enjoyable…… NikeWe sell shoesWe help people experience the emotion of competition, winning and crushing competitors.

Copyright © 2005 Pearson Education Inc. Designing the Business Portfolio The collection of businesses and products that make up the company. The company must: –analyze its current business portfolio or Strategic Business Units (SBU’s) –decide which SBU’s should receive more, less, or no investment –develop growth strategies for adding new products or businesses to the portfolio

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 2.6 BCG Growth-Share Matrix Business portfolio Portfolio analysis Strategic business unit (SBU) Figure 2.2

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 2.7 Product-Market Expansion Grid Product-market expansion grid: –Portfolio planning tool for identifying company growth opportunities

Copyright © 2005 Pearson Education Inc. Product/ Market Expansion Grid Market PenetrationMarket Penetration: increase sales to present customers with current products. How? Cut prices, increase advertising, get products into more stores. Market DevelopmentMarket Development: develop new markets with current products. How? Identify new demographic or geographic markets. Product DevelopmentProduct Development: offering modified or new products to current customers. How? New styles, flavors, colors, or modified products. DiversificationDiversification: new products for new markets. How? Start up or buy new businesses.

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 2.9 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

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 2.10 The Marketing Mix & strategy 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

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 2.11 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

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 2.12 The Four P’s Versus C’s Product Price Place Promotion Customer solution Customer cost Convenience Communication

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 2.13 Managing the Marketing Effort Four marketing management functions: –Marketing analysis –Marketing planning –Implementation –Control Figure 2.6

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 2.14 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

Copyright © 2005 Pearson Education Inc. Marketing Implementation Marketing Strategy Marketing Performance Implementation Climate and Culture Action Programs Decision and Reward Organizational Structure Human Resources

Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 2.16 The Control Process Figure 2.7 Set goals What do we want to achieve? Measure performance What is happening? Evaluate performance Why is it happening? Take corrective action What should we do about it?