1. Chapter 2 Company and Marketing Strategy
Idil Yaveroglu
Lecture Notes

2. Planning
Strategic Planning - The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.

3. Steps in Strategic Planning

4. Mission Statement
A statement of the organizations scope and purpose, often identifying its customers, markets, products, technology and values.
A statement of what it wants to accomplish in the larger environment
Should be market oriented not product or technology oriented.
Old: Industry / Product: Newspaper / Railroad
New: Customer / Benefit: _________ / __________

5. Market-Oriented Mission
A mission statement asks..
A mission statement should be:
What is our business?
Who is the customer?
What do consumers value?
What should our business be?
An “invisible hand”
Neither too narrow nor too broad
Should be market oriented, not product oriented
Fitting of market environment
Based on distinctive competencies
Motivating

6. Example Mission Statements
“We create fantasies – a place where America still works the way it’s supposed to”
We help people experience the emotion of competition, winning, and crushing competitors.
We sell lifestyle and self expression; success and status, memories, hopes and dreams.
Google’s mission is to organize the world‘s information and make it universally accessible and useful.

7. “..creativity, quality design and rapid turnaround to adjust to changing market demands”

8. Example: Southwest airlines

9. Mission Statement
Marketing Objectives
Business Objectives

10. Designing the Business Portfolio
Business Portfolio – the collection of businesses and products that make up the company
Identify key businesses or strategic business units. A strategic business unit is a unit of a company with a separate mission and objectives and that can be planned independently from other company businesses.
Assess attractiveness of the SBUs

11. The BCG Matrix Strategies that can be followed for each SBU:
MS of your business
MS of biggest player
Strategies that can be followed for each SBU:
Build: invest more
Hold: invest enough to hold current position
Harvest: Milking ST cash flow
Divest: Phasing out

12. A “healthy” portfolio?

13. A “sick” portfolio?

14. Procter and Gamble http://www.pg.com.tr/procter/pg_sitemap.htmml

15. Limitations of the BCG Matrix
Difficult to implement – sometimes it is difficult to define SBUs and measure market share and growth
Classifies current businesses but provides little advice for future planning.

16. Product/Market Expansion Grid

17. Strategic Windows Product Development Diversification Market
Increase market share among existing customers
Market Penetration
Attract new customers to existing products
Market
Development
Create new products for present markets
Product Development
Introduce new products into new markets
Diversification

19. Marketing Strategy and Marketing Mix

20. Target Market Strategy
Segment the market based on groups with similar characteristics
Analyze the market based on attractiveness of market segments
Select one or more target markets
Find points of difference
Position your product
Develop a marketing mix that will produce satisfying exchanges with target markets

21. Marketing Mix
The marketing mix includes controllable and tactical marketing tools knows as the 4P’s
The 4P’s include
Product
Place
Promotion
Price

22. The Marketing Mix

23. S W O T SWOT Analysis Internal External Things the company does well.
©South-Western College Publishing S W O T
Things the company does well.
Things the company does not do well.
Conditions in the external environment that favor strengths.
Conditions in the external environment that do not relate to existing strengths or favor areas of current weakness.
Internal
External

24. Strengths and Weaknesses
SWOT Analysis
Strengths and Weaknesses
INTERNAL
Production Costs
Marketing Skills
Employee Capabilities
Financial Resources
Available Technology
Company/Brand Image

25. Opportunities and Threats
SWOT Analysis
Opportunities and Threats
EXTERNAL
Social
Demographic
Economic
Technological
Political/Legal
Competitive

26. Competitor Analysis Identifying Competitors
Competitor myopia: a narrow view of the potential competitors
Fall of the Railroads
“They let others take customers away from them because they assumed themselves to be in the railroad business rather than in the transportation business. The reason they defined their industry wrong was because they were railroad oriented instead of transport oriented; they were product oriented instead of customer oriented.”
Theodore Levitt “Market Myopia”
Are railroads any better now at this?
Transportation
Railroads Cars Planes
Speed Medium Medium High
Flexibility Low High Low
Comfort High Medium Low
Safety Medium Medium Low
Price Medium Low Medium - High
(Marginal) 

28. Competitor Analysis Identifying Competitor Strategies
Strategic group – group of firms in an industry following the same or similar strategy in a given target market.
Benchmarking – process of comparing the companies products and processes to those of competitors or leading firms in other industries to identify best practices and find ways to improve quality and performance
Competitors to Attack and Avoid
Weak vs Strong competitors
Finding Unontested Market Spaces
Blue Ocean vs Red Ocean Strategies

29. Competitive Strategies
Cost Leadership: Company works to achieve lowest production and differentiation costs
Eg. Walmart
Differentiation: Company focus is on creating a differentiated product
…is an attractive approach whenever buyers needs are too diverse to be satisfied by a standardized product
Its essence is to be unique in ways that are valuable to the buyer, and that can be sustained
A premium price could be charged for the product
Eg. Nike
Focus: Company focuses its efforts by serving a few market segments
Eg. Rolex