1. Company and Marketing Strategy

2. Objectives
Understand companywide strategic planning and its four steps.
Learn how to design business portfolios and develop strategies for growth and downsizing.
Understand marketing’s role in strategic planning and how marketers partner with others.

3. Objectives
Be able to describe the marketing process and the forces that influence it.
Understand the marketing management functions, including the elements of the marketing plan.

4. EXAMPLE : Walt Disney c
Known for films, animation, theme parks and customer orientation
Parks offer a variety of attractions as well as cleanliness, order, and warmth
Satisfying the customer is everyone’s job
Disney has grown via diversification
Sales and net income have fallen
How Can Disney Recover?

5. Disney companies ABC 16 cable networks 4 TV production companies
ESPN, Disney Channel, Toon Disney, SoapNET, A&E, the History Channel, Lifetime Television, E! Entertainment
4 TV production companies
8 movie production companies
Walt Disney, Touchstone Pictures, Hollywood Pictures, Miramax Films

6. More Disney companies 5 magazine publishing groups 5 music labels
19 Internet groups
Disney Interactive
The Disney Store
Disney Cruise Lines
Two sports Franchises

7. Strategic Planning Strategic planning is defined as:
“The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.”

8. Components of Strategic Planning
Source: Figure adapted from Marketing Strategy, Second Edition, by O. C. Ferrell, Michael Hartline, and George Lucas, Jr. Copyright © Reproduced with permission of South-Western, a division of Thomson Learning.
FIGURE 2.1
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9. Steps in the Strategic Planning Process
Figure 2-1:
Steps in the Strategic Planning Process

11. Strategic Planning Mission statements should . . .
serve as a guide for what the organization wants to accomplish.
be “market-oriented” rather than “product-oriented”.
be neither too narrow, nor too broad.
fit with the market environment.
be motivating.

12. Strategic Planning
Mission statements guide the development of objectives and goals.
Objectives are developed at each level in the organization hierarchy.
Strategies are developed to accomplish these objectives.

13. Discussion Question
Google.com is one of the leading Internet search engines.
Construct a market-oriented mission statement that fits this business.

14. Strategic Planning
Business portfolio: “the collection of businesses and products that make up the company.”
Designing the business portfolio is a key step in the strategic planning process.

15. Levels of Strategic Planning
FIGURE 2.3
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16. Corporate Strategy
A strategy that determines the means for utilizing resources in the various functional areas to reach the organization’s goals
Determines the scope of the business
Guides its resource deployment
Identifies its competitive advantages
Provides overall coordination of functional areas
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17. Corporate Strategy (cont’d)
Issues Influencing Corporate Strategy Development
Corporate culture
Competition
Differentiation
Diversification
Interrelationships among business units
Environment concerns and social issues
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18. Business-Unit Strategy
Strategic Business Unit (SBU)
A division, product line, or other profit center within a parent company
Market
A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products
Market Share
The percentage of a market that actually buys a specific product from a particular company
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19. Business-Unit Strategy (cont’d)
Market-Growth/Market-Share Matrix
A strategic planning tool based on the philosophy that a product’s market growth rate and market share are important in determining marketing strategy
Factors determining SBU/product’s position within a matrix
Product-market growth rate
Relative market share
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20. Strategic Planning Portfolio Design
Identify strategic business units (SBUs)
Assess each SBU:
The BCG growth-share matrix classifies SBUs into one of four categories using:
Market growth rate
The SBU’s relative market share within the market.
Portfolio Design
Step 1: Analyze the current business portfolio
Step 2: Shape the future business portfolio

21. Figure 2-2:
Growth-Share Matrix

22. Market-Growth/Market-Share Matrix (cont’d)
BCG Classification
Star—high growth market, dominant market share
requires additional resources for continued growth
Cash cow—low growth, dominant market share
generates surplus resources for allocation to other SBUs
Dog—low/declining market, subordinate market share
has diminished prospects and represents a drain on the portfolio
Question mark—high growth market, low market share
represents a high-risk/cost opportunity requiring a large commitment of resources to build market share
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23. Strategic Planning Portfolio Design
Determine the future role of each SBU and choose the appropriate resource allocation strategy:
Build
Hold
Harvest
Divest
SBUs change positions over time
Portfolio Design
Step 1: Analyze the current business portfolio
Step 2: Shape the future business portfolio

24. Strategic Planning
Matrix approaches to formal planning share many problems:
Difficult, time-consuming, and costly to implement.
Focus only on current businesses.
Too strongly emphasize market share growth or growth via diversification.

25. Strategic Planning Designing the business portfolio also involves:
Developing strategies for growth by identifying, evaluating, and selecting promising new market opportunities.
Developing strategies for downsizing the business portfolio.

26. Product / Market Expansion Grid
Figure 2-3:
Product / Market Expansion Grid

27. Marketing plays a key role in the strategic planning process.

28. Figure 2-4:
The Marketing Process

29. The Marketing Process Key Elements Analyzing marketing opportunities
The strategic planning and business portfolio analysis processes help to identify and evaluate marketing opportunities.
The purpose of the marketing process is to help the firm plan how to capitalize on these opportunities.
Key Elements
Analyzing marketing opportunities
Selecting target markets
Developing the marketing mix
Managing the marketing effort

30. The Marketing Process Key Elements
The segmentation process divides the total market into market segments.
Target marketing chooses which segment(s) are pursued.
Market positioning for the product is then determined.
Key Elements
Analyzing marketing opportunities
Selecting target markets
Developing the marketing mix
Managing the marketing effort

31. Positioning Market positioning is not restricted to physical goods.
Identify the “competing products” of relevance to the Marble Collegiate Church.
What clear, distinctive, and desirable place in the consumer’s mind does the ad at left attempt to create?

32. The Marketing Process Key Elements Analyzing marketing opportunities
Competitor analysis guides competitive marketing strategy development.
Strategy leads to tactics via the marketing mix:
The “Four Ps” – product, price, place, promotion (seller viewpoint)
The “Four Cs” – customer solution, cost, convenience, and communication (customer viewpoint)
Key Elements
Analyzing marketing opportunities
Selecting target markets
Developing the marketing mix
Managing the marketing effort

33. Figure 2-5:
The Marketing Mix

34. The Marketing Process Key Elements Analyzing marketing opportunities
Marketing analysis
Provides information helpful in planning, implementation, and control
Marketing planning
Strategies and tactics
Marketing implementation
Turns plans into action
Marketing control
Operating control
Strategic control
Key Elements
Analyzing marketing opportunities
Selecting target markets
Developing the marketing mix
Managing the marketing effort

35. Managing the Marketing Effort
Figure 2-6:
Managing the Marketing Effort

36. Creating the Marketing Plan
Marketing Planning
The systematic process of assessing opportunities and resources, determining objectives, defining strategies, and establishing guidelines for implementation and control of the marketing program
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37. Creating the Marketing Plan (cont’d)
Benefits of Planning
Provides the basis for internal communication among employees
Defines the assignment of responsibilities and tasks and sets the schedules for implementation
Presents objectives and specifies resource allocations
Helps in monitoring and evaluating the performance of the marketing strategy
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38. Copyright © Houghton Mifflin Company. All rights reserved.

39. Implementing Marketing Strategies
Marketing Implementation
The process of putting marketing strategies into action
Intended Strategy
The strategy that the company decides on during the planning phase
Realized Strategy
The strategy that actually takes place
Intended Strategy
Realized Strategy
Implementation
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40. Organizing Marketing Activities
Centralized Organization
A structure in which top management delegates little authority to levels below it
Decentralized Organization
A structure in which decision-making authority is delegated as far down the chain of command as possible
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41. Organizing the Marketing Unit
Alternatives for Organizing the Marketing Unit
Product Groups
Centralized or Decentralized
Marketing Functions
Geographic Regions
Customer Types
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42. The Marketing Control Process
FIGURE 2.5
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43. Controlling Marketing Activities
Marketing Control Process
Establishing performance standards and trying to match actual performance to those standards
Establishing Performance Standards
Expected levels of performance
Taking Corrective Action
Improve actual performance
Reduce or change the performance standards
Do both
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44. Controlling Marketing Activities (cont’d)
Problems in Controlling Marketing Activities
Lack of the information required to control activities
Uncontrollable influence of market environment changes on marketing activities
Time lag that occurs between marketing campaigns and their results delays corrective actions
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45. HOW TO DEVELOP A Marketing Plan
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HOW TO DEVELOP A Marketing Plan

46. Market: Past, present, and future
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Market Summary
Market: Past, present, and future
Review changes in market share, leadership, players, market shifts, costs, pricing, and competition

47. Describe the product or service being marketed
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Product Definition
Describe the product or service being marketed

48. The competitive landscape
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Competition
The competitive landscape
Provide an overview of product competitors, and their strengths and weaknesses
Position each competitor’s product against the new product

49. Positioning of product or service
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Positioning
Positioning of product or service
Statement that distinctly defines the product in its market and against its competition over time
Consumer promise
Statement summarizing the benefit of the product or service to the consumer

50. Communication Strategies
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Communication Strategies
Messaging by audience
Target consumer demographics

51. Packaging and Fulfillment
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Packaging and Fulfillment
Product packaging
Discuss form factor, pricing, look, and strategy
Discuss fulfillment issues for items not shipped directly with the product
COGs
Summarize cost of goods and high-level bill of materials

52. Supply backup material with detailed budget information for review
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Launch Strategies
Launch plan
If product is being announced
Promotion budget
Supply backup material with detailed budget information for review

53. Strategy and execution
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Public Relations
Strategy and execution
PR strategies
PR plan highlights
Have backup PR plan including editorial calendars, speaking engagements, conference schedules, etc.

54. Strategy and execution
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Advertising
Strategy and execution
Overview of strategy
Overview of media and timing
Overview of ad spending

55. Third-party marketing
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Other Promotion
Direct marketing
Overview of strategy, vehicles, and timing
Overview of response targets, goals, and budget
Third-party marketing
Co-marketing arrangements with other companies
Marketing programs
Other promotional programs

56. Pricing Pricing Policies
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Pricing
Pricing
Summarize specific pricing or pricing strategies
Compare to similar products
Policies
Summarize policy relevant to understanding key pricing issues

57. Distribution strategy Channels of distribution Distribution by channel
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Distribution
Distribution strategy
Channels of distribution
Summarize channels of distribution
Distribution by channel
Show plan of what percent share of distribution will be contributed by each channel – a pie chart might be helpful

58. Vertical Markets/Segments
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Vertical Markets/Segments
Vertical market opportunities
Discuss specific market segment opportunities
Address distribution strategies for those markets or segments
Address use of third-party partner role in distribution to vertical markets

59. International distribution
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International
International distribution
Address distribution strategies
Discuss issues specific to international distribution
International pricing strategy
Localization issues
Highlight requirements for local product variations

60. Measures of success/failure Requirements for success
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Success Metrics
First year goals
Additional year goals
Measures of success/failure
Requirements for success

61. 18-month schedule highlights Timing
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Schedule
18-month schedule highlights
Timing
Isolate timing dependencies critical to success