1. Lecturer: Lulu Saud Altweem
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: Lulu Saud Altweem
Ch 1 -0
Ch 2 -0
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Copyright © 2011 Pearson Education

2. Company and Marketing Strategy
Topic Outline
2.1 Companywide Strategic Planning: Defining Marketing’s Role.
Explain company-wide strategic planning and its four steps.
2.2 Designing the Business Portfolio.
Discuss how to design business portfolios and develop growth strategies.
2.3 Planning Marketing: Partnering to Build Customer Relationships.
Explain Marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value.
Ch 2 -1
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3. Company and Marketing Strategy Topic Outline
2.4 Marketing Strategy and the Marketing Mix.
Describe the elements of a customer-driven marketing strategy and mix and the forces that influence it.
2.5 Managing the Marketing Effort
2.6 Measuring and Managing Return on Marketing Investment
List the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring and managing return on marketing investment.
Ch 2 -2
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4. Companywide Strategic Planning
Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
Companies usually prepare annual plans, long-range plans, and strategic plans.
The annual and long-range plans deal with the company’s current businesses and how to keep them going.
In contrast, the strategic plan involves adapting the firm to take advantage of opportunities in its constantly changing environment
Ch 2 -3
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5. Companywide Strategic Planning
Like the marketing strategy, the broader company strategy must be customer focused.
Company-wide strategic planning guides marketing strategy and planning.
Ch 2 -4
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6. Companywide Strategic Planning
Defining a Market-Oriented Mission
The mission statement is the organization’s purpose; what it wants to accomplish in the larger environment.
A market-oriented mission statement defines the business in terms of satisfying basic customer needs.
Ch 2 -5
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7. Companywide Strategic Planning
Ch 2 -6
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8. Companywide Strategic Planning
Setting Company Objectives and Goals
The company needs to turn its mission statement into detailed supporting objectives for each level of management.
Ch 2 -7
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9. Designing the Business Portfolio
The business portfolio is the collection of businesses and products that make up the company.
Business portfolio planning involves two steps:
the company must analyze its current business portfolio and determine the investment
shape the future portfolio by developing strategies for growth and downsizing
Ch 2 -8
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10. Designing The Business Portfolio
Analyzing the Current Business Portfolio
Strategic business unit (SBU) is a unit of the company that has a separate mission, and objectives that can be planned separately from other company businesses.
Company division
Product line within a division
Single product or brand
Ch 2 -9
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11. Companywide Strategic Planning
Analyzing the Current Business Portfolio
Ch 2 -10
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12. Companywide Strategic Planning:
The Boston Consulting Group Approach
A company classifies all its SBUs according to the growth-share matrix. The growth-share matrix defines four types of SBU’s: (read book pg. no 41-42)
Ch 2 -11
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13. Companywide Strategic Planning
Problems with Matrix Approaches
It have some limitations:
Difficulty in defining SBUs and measuring market share and growth
Time consuming
Expensive
Focus on current businesses, not future planning
Methods to improve:
Dropped formal matrix methods in favor of more customized approaches that better suit their specific situations
Today’s strategic planning has been decentralized
Ch 2 -12
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14. 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, or diversification.
Ch 2 -13
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15. 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
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16. 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.
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 -15
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17. Copyright © 2011 Pearson Education
Planning Marketing: Partnering to Build Customer Relationships
Marketing plays a key role in the company’s strategic planning in several ways:
First, marketing provides a guiding philosophy—the marketing concept—that suggests the company strategy should revolve around building profitable relationships with important consumer groups.
Second, marketing provides inputs to strategic planners by helping to identify attractive market opportunities and assessing the firm’s potential to take advantage of them.
Finally, within individual business units, marketing designs strategies for reaching the unit’s objectives. Once the unit’s objectives are set, marketing’s task is to help carry them out profitably.
Ch 2 -16
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18. Planning Marketing: Partnering to Build Customer Relationships
Partnering with Other Company Departments
Value chain is a series of departments that carry out value- creating activities to design, produce, market, deliver, and support a firm’s products.
That is, each department carries out value-creating activities to design, produce, market, deliver, and support the firm’s products.
Ch 2 -17
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19. Copyright © 2011 Pearson Education
Planning Marketing
Partnering with Others in the Marketing System
Value delivery network is made up of the company, suppliers, distributors, and ultimately the customers who partner with each other to improve performance of the entire system.
Toyota’s performance against Ford depends on the quality of Toyota’s overall value delivery network versus Ford’s
Ch 2 -18
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20. Marketing Strategy and the Marketing Mix
Ch 2 -19
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21. Marketing Strategy and the Marketing Mix
Customer-Driven Marketing Strategy
Most companies are in a position to serve some segments better than others.
Thus, each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments.
This process involves:
Marketing segmentation
Market targeting
Positioning
Ch 2 -20
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22. Copyright © 2011 Pearson Education
Market Segmentation
The process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs, is called market segmentation.
Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts.
Ch 2 -21
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23. Copyright © 2011 Pearson Education
Marketing Targeting
Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
A company with limited resources might decide to serve only one or a few special segments or market niches.
Most companies enter a new market by serving a single segment; if this proves successful, they add more segments.
Ch 2 -22
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24. Marketing Differentiation and Positioning
Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer. Thus, effective positioning begins with differentiation— actually differentiating the company’s market offering so that it gives consumers more value.
Ch 2 -22
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25. Marketing Strategy and the Marketing Mix
Developing an Integrated Marketing Mix
Marketing mix is the set of controllable tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market.
Ch 2 -23
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26. Developing an Integrated Marketing Mix
It holds that the four Ps concept takes the seller’s view of the market, not the buyer’s view. From the buyer’s viewpoint, in this age of customer value and relationships, the four Ps might be better described as the four Cs:
4Ps
Product
Price
Place
Promotion
4Cs
Customer solution
Customer cost
Convenience
Communication
Ch 2 -23
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27. Managing the Marketing Effort
Managing the marketing process requires the four marketing management functions:
Ch 2 -24
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Marketing Analysis
The marketer should conduct a SWOT analysis ,by which it evaluates the company’s overall strengths (S), weaknesses (W), opportunities (O), and threats (T).
Ch 2 -25
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29. Market Planning
from book pg. no 55, table 2.2)
Through strategic planning, the company decides what it wants to do with each business unit. Marketing planning involves choosing marketing strategies that will help the company attain its overall strategic objectives.
Positioning
Market mix
Marketing expenditure level
Target markets
Marketing Strategy:
It outlines how the company intends to create value for target customers in order to capture value in return.
Ch 2 -26
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30. Marketing Implementation
Marketing implementation is the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives. Whereas marketing planning addresses:
what
why
who
where
when
how
Ch 2 -28
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31. Marketing Control
Marketing Control is the process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved. Operating control Strategic control
Management first sets specific marketing goals.
Measures its performance in the market place
Evaluates the causes of any differences between expected and actual performance
Management takes corrective action to close the gaps between goals and performance
Four steps of marketing control:
Ch 2 -29
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32. Measuring and Managing Return on Marketing Investment
Return on Marketing Investment (Marketing ROI)
Return on marketing investment (Marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment.
Marketing ROI provides a measurement of the profits generated by investments in marketing activities.
Ch 2 -30
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33. Copyright © 2011 Pearson Education
From Book
Read reveiwing objectives and key terms (pg. 60 and 61)
Read all 'Key Terms' (pg. 61)
Company case- Bahrain Bay (pg. 63).
Ch 2 -31
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