Company and Marketing Strategy: Partnering to Build Customer Relationships Chapter 2 PowerPoint slides Express version Instructor name Course name School name Date Principles of Marketing, Sixth Canadian Edition

Learning Objectives After studying this chapter, you should be able to: Explain company-wide strategic planning and its four steps Discuss how to design business portfolios and develop strategies for growth and downsizing Assess marketing’s role in strategic planning and explain how marketers partner with others inside and outside the firm to build profitable customer relationships Describe the marketing process and the forces that influence it List the marketing management functions, including the elements of a marketing plan Principles of Marketing, Sixth Canadian Edition

Strategic Planning Strategic planning: Steps in strategic planning: Developing a strategic fit between organizational goals and capabilities, and changing marketing opportunities Steps in strategic planning: Figure 2.1 Principles of Marketing, Sixth Canadian Edition

Product-oriented definition Market-oriented definition 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 Company Product-oriented definition Market-oriented definition M.A.C Cosmetics We make cosmetics We sell lifestyle and self-expression; tolerance of diversity, and a platform for the outrageous Canadian Tire We sell tools, home improvement items, and automotive parts and accessories We provide advice and solutions that transform ham-handed people into Mr. and Mrs. Fixits Principles of Marketing, Sixth Canadian Edition

BCG Growth-Share Matrix Business portfolio Portfolio analysis Strategic business unit (SBU) Figure 2.2 Five forces driving profitability: Barriers to entry Power of the customer Power of suppliers Presence of substitutes Competitive rivalry within industry Principles of Marketing, Sixth Canadian Edition

Strategies for SBU’s Porter: Treacy and Wiersema: Overall cost leadership Differentiation Focus Treacy and Wiersema: Operational excellence Product leadership Customer intimacy Principles of Marketing, Sixth Canadian Edition

Product-Market Expansion Grid Portfolio planning tool for identifying company growth opportunities Figure 2.3 Principles of Marketing, Sixth Canadian Edition

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 Principles of Marketing, Sixth Canadian Edition

The Marketing Process The marketing process: Market segmentation Analyzing marketing opportunities Selecting target markets Figure 2.4 Developing the marketing mix, and Managing the marketing effort Market segmentation Target marketing Market positioning Principles of Marketing, Sixth Canadian Edition

The Four P’s of the Marketing Mix Set of controllable, tactical marketing tools Figure 2.5 Blended to produce the desired response in the target market Principles of Marketing, Sixth Canadian Edition

The Four P’s Versus C’s Product Customer solution Price Customer cost Place Convenience Promotion Communication Principles of Marketing, Sixth Canadian Edition

Managing the Marketing Effort Four marketing management functions: Marketing analysis Marketing planning Implementation Control Figure 2.6 Principles of Marketing, Sixth Canadian Edition

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 Principles of Marketing, Sixth Canadian Edition

The Control Process Marketing control Marketing audit 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? Principles of Marketing, Sixth Canadian Edition

In Conclusion… The learning objectives for this chapter were: Explain company-wide strategic planning and its four steps Discuss how to design business portfolios and develop strategies for growth and downsizing Assess marketing’s role in strategic planning and explain how marketers partner with others inside and outside the firm to build profitable customer relationships Describe the marketing process and the forces that influence it List the marketing management functions, including the elements of a marketing plan Principles of Marketing, Sixth Canadian Edition