Copyright © 2011 Pearson Education Ch 2 -0 Copyright © 2011 Pearson Education

Lecturer: Insert your name here Principles of Marketing, Arab World Edition Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed Tolba Presentation prepared by Annelie Moukaddem Baalbaki CHAPTER TWO Company and Marketing Strategy: Partnering to Build Customer Relationships Lecturer: Insert your name here Ch 1 -1 Ch 2 -1 Copyright © 2011 Pearson Education Copyright © 2011 Pearson Education 1

Company and Marketing Strategy Topic Outline 2.2 Designing the Business Portfolio 2.4 Marketing Strategy and the Marketing Mix Ch 2 -2 Copyright © 2011 Pearson Education

Companywide Strategic Planning Developing Strategies for Growth and Downsizing Product/market expansion grid is a portfolio planning tool for identifying company growth opportunities through: market penetration market development product development diversification Note to Instructor Real Marketing 2.1 provides a good example about a Mo’men Sandwich, a company that grew with an objective of managing “profitable growth.” Mo’men sandwich launched its first branch in 1988 as a family-run business for sandwich takeaway and delivery. Today, Mo’men is the third biggest player in Egypt’s fast-food market and has the third biggest market share, serving over 9.5 million customers a year. This transformation from a small family business to one of Egypt’s leading fast-food players did not happen overnight; it is the result of a combination of ingredients which, when put together, created the perfect recipe for success. Simply, it has had to manage its growth strategy carefully in order to maintain its high quality standards. Ch 2 -13 Copyright © 2011 Pearson Education

Companywide Strategic Planning Developing Strategies for Growth and Downsizing Market penetration is a growth strategy increasing sales to current market segments without changing the product. Market development is a growth strategy identifying and developing new market segments for current products. Ch 2 -14 Copyright © 2011 Pearson Education

Companywide Strategic Planning Developing Strategies for Growth and Downsizing Product development is a growth strategy through offering new or modified products to current market segments. Diversification is a growth strategy through starting up or acquiring businesses outside the company’s current products and markets. Note to Instructor This Web link leads to the hompage for Alrifai. This is a good website that provides examples of growth strategies. The homepage lists their products, markets, branches… Ch 2 -15 Copyright © 2011 Pearson Education

Companywide Strategic Planning Developing Strategies for Growth and Downsizing Downsizing is the reducing of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy. Ch 2 -16 Copyright © 2011 Pearson Education

Marketing Strategy and the Marketing Mix Developing an Integrated Marketing Mix Note to Instructor It is interesting to ask how to make the 4Ps more customer centric? This leads to a redefining of the 4Ps to the 4Cs as follows: Product—Customer solution Price—Customer cost Place—Convenience Promotion—Communication Ch 2 -23 Copyright © 2011 Pearson Education

Copyright © 2011 Pearson Education This work is protected by local and international copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from this site should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Ch 2 -31 Copyright © 2011 Pearson Education