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.

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
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. Mission Statement
Marketing Objectives
Business Objectives

9. 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

10. The BCG Matrix 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

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

12. 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.

13. Product/Market Expansion Grid

14. 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

16. Marketing Strategy and Marketing Mix

17. 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

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

19. The Marketing Mix

20. 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

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

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