1. Copyright © 2011 Pearson Education
Ch 2 -0
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2. Lecturer: Insert your name here
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: Insert your name here
Ch 1 -1
Ch 2 -1
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Copyright © 2011 Pearson Education 1

3. Company and Marketing Strategy
Topic Outline
2.2 Designing the Business Portfolio
2.4 Marketing Strategy and the Marketing Mix
Ch 2 -2
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4. 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
diversification
Note to Instructor
Real Marketing 2.1 provides a good example about a Mo’men Sandwich, a company that grew with an objective of managing “profitable growth.” Mo’men sandwich launched its first branch in 1988 as a family-run business for sandwich takeaway and delivery. Today, Mo’men is the third biggest player in Egypt’s fast-food market and has the third biggest market share, serving over 9.5 million customers a year. This transformation from a small family business to one of Egypt’s leading fast-food players did not happen overnight; it is the result of a combination of ingredients which, when put together, created the perfect recipe for success. Simply, it has had to manage its growth strategy carefully in order to maintain its high quality standards.
Ch 2 -13
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5. 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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6. 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.
Note to Instructor
This Web link leads to the hompage for Alrifai. This is a good website that provides examples of growth strategies. The homepage lists their products, markets, branches…
Ch 2 -15
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7. Companywide Strategic Planning
Developing Strategies for Growth and Downsizing
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 -16
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8. Marketing Strategy and the Marketing Mix
Developing an Integrated Marketing Mix
Note to Instructor
It is interesting to ask how to make the 4Ps more customer centric? This leads to a redefining of the 4Ps to the 4Cs as follows:
Product—Customer solution
Price—Customer cost
Place—Convenience
Promotion—Communication
Ch 2 -23
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9. Copyright © 2011 Pearson Education
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Ch 2 -31
Copyright © 2011 Pearson Education