1. Company and Marketing Strategy:
Partnering to Build Customer Relationships
Strategic Planning
The process of developing and maintaining a strategic fit between the organization's goal and capabilities and its changing marketing opportunities
Steps in Strategic Planning
Business unit, product and market level
Corporate Level
Defining the company mission
Setting company objectives and goals
Planning marketing and other functional strategies
Designing the business portfolio

2. Defining a Market-Oriented Mission
Forging a sound mission begins with the following questions
What is our business ?
Who is the customer?
What do consumers value?
What should our business be?
Mission statement
A statement of the organization’s purpose-what in wants to accomplish in the larger environment
“Invisible Hand”- that guides people in the organization.
Firms with well-crafted mission statement have better organizational and financial performance.

3. “We make and sell furniture”
Some companies define their mission myopically in product or technology terms
“We are a chemical-processing firm”
Mission statements should be market oriented and define in terms of satisfying basic customer needs.
Nokia
“Sell mobile phones”
“ Connect people”
Mission statement should be meaningful and specific yet motivating. They should emphasize the company’s strengthens in the marketplace
GremeenPhone
“We are here to help”
HSBC
“World’s Local Bank”

4. Setting Company Objectives and Goals
The company needs to turn its mission into detailed supporting objectives for each level of management. Each manager should have objectives and be responsible for reaching them
This mission leads to a hierarchy of objectives, including business objectives and marketing objectives.
Company
Product-Oriented Definition
Market-Oriented Definition
Google
We provide the world’s best online search engine.
We help you organize the world’s information and make it universally accessible and useful.
Nike
We bring inspiration and innovation to every athlete in the world
We sell athletic shoes and apparel
We sell lifestyle and self-expression; success and status; memories, hopes, and dreams
Revlon
We make cosmetics

5. Designing the Business Portfolio
The collection of business and product that make up the company.
Business portfolio planning involves two steps
First. The company must first analyzing its current business portfolio and decide which business should receive more, less, or no investment
Second, it must shape the future portfolio by developing strategies for growth and downsizing.
Analyzing the Current Business Portfolio
Portfolio analysis
The process by which management evaluates the products and business that make up the company
The company will want to put strong resources into its more profitable business and phase down or drop its weaker ones.

6. Current Business Portfolio analysis involves two steps
First step is to identify the key business that make up the company, called strategic business unit (SBUs)
SBUs
A company division
A product line within a division
Single product or brand
Second step is to assess the attractiveness of its various SBUs and decides how mush support each deserves.
The purpose of strategic planning is to find ways in which the company can best use its strength to take advantage of attractiveness opportunities in the environment .
Evaluate SBUs on two important dimensions –
The attractiveness of the SBU’s market or industry
The strength of the SBU’s position in that market or industry

7. BOSTON CONSULTING GROUP (BCG) MATRIX
is developed by BRUCE HENDERSON of the BOSTON CONSULTING GROUP IN THE EARLY 1970’s.
According to this technique, businesses or products are classified as low or high performers depending upon their market growth rate and relative market share.

8. RELATIVE MARKET SHARE MARKET SHARE
Market share is the percentage of the total market that is being serviced by your company, measured either in revenue terms or unit volume terms.
RELATIVE MARKET SHARE
RMS = Business unit sales this year
Leading rival sales this year
The higher your market share, the higher proportion of the market you control.

9. MARKET GROWTH RATE
Market growth is used as a measure of a market’s attractiveness.
MGR = Individual sales - individual sales
this year last year
Individual sales last year
Markets experiencing high growth are ones where the total market share available is expanding, and there’s plenty of opportunity for everyone to make money.

10. THE BCG GROWTH-SHARE MATRIX
It is a portfolio planning model which is based on the observation that a company’s business units can be classified in to four categories:
Stars
Question marks
Cash cows
Dogs
It is based on the combination of market growth and market share relative to the next best competitor.

12. STARS High growth, High market share
Stars are leaders in business.
They also require heavy investment, to maintain its large market share.
It leads to large amount of cash consumption and cash generation.
Attempts should be made to hold the market share otherwise the star will become a CASH COW.

13. CASH COWS Low growth , High market share
They are foundation of the company and often the stars of yesterday.
They generate more cash than required.
They extract the profits by investing as little cash as possible
They are located in an industry that is mature, not growing or declining.

14. DOGS Low growth, Low market share
Dogs are the cash traps.
Dogs do not have potential to bring in much cash.
Number of dogs in the company should be minimized.
Business is situated at a declining stage.

15. QUESTION MARKS High growth , Low market share
Most businesses start of as question marks.
They will absorb great amounts of cash if the market share remains unchanged, (low).
Why question marks?
Question marks have potential to become star and eventually cash cow but can also become a dog.
Investments should be high for question marks.

16. WHY BCG MATRIX ? To assess : Profiles of products/businesses
The cash demands of products
The development cycles of products
Resource allocation and divestment decisions

17. MAIN STEPS OF BCG MATRIX
Identifying and dividing a company into SBU.
Assessing and comparing the prospects of each SBU according to two criteria :
1. SBU’S relative market share.
2. Growth rate OF SBU’S industry.
Classifying the SBU’S on the basis of BCG matrix.
Developing strategic objectives for each SBU.

18. BCG MATRIX WITH CASH FLOW

19. BENEFITS BCG MATRIX is simple and easy to understand.
It helps you to quickly and simply screen the opportunities open to you, and helps you think about how you can make the most of them.
It is used to identify how corporate cash resources can best be used to maximize a company’s future growth and profitability.

20. LIMITATIONS
BCG MATRIX uses only two dimensions, Relative market share and market growth rate.
Problems of getting data on market share and market growth.
High market share does not mean profits all the time.
Business with low market share can be profitable too.

21. Growth Strategies
Intensive Growth: Intensive growth strategies are appropriate when current products and current markets show the potential for sales increase. There are three main strategic options that seem to be appropriate to accomplish intensive growth:
1. Market Penetration.
2. Market development.
3. Product development.
PRODUCT
Current
New
Market penetration
Product development
Market development
Diversification
Current
MARKET
New

22. Diversification Growth
This strategy involves developing new products to be sold in new markets.
Markets
Present Markets
New Markets
Horizontal diversification
Conglomerate diversification
Integrated diversification
Concentric diversification
Unrelated to Current Products
New Products
Related to Current Products
Diversification Strategies

23. Planning Marketing: Partnering to Build Customer Relationships
Partnering With The Other Company Departments
Value chain
The series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.
Partnering With Others in the Marketing System
Value delivery network
The network made up of the company, supplies, distributors, and, ultimately, customers who “partner” with each other to improve the performance of the entire system.
Toyota – Includes the phrase in its mission statement: “achieve suppliers satisfaction”

24. Marketing intermediaries Competitors Marketing Planning
maar
Marketing intermediaries
Competitors
Marketing Planning
Product
Marketing Analysis
Segmentation
Customer value and relationship
Targeting
Place
Price
Differentiation
Positioning
Marketing Implementation
Marketing Control
Promotion
Suppliers
Publics

25. Marketing Strategy and the Marketing Mix
The marketing logic by which the business unit hopes to create customer value and achieve profitable customer relationships
Customer Driven Marketing Strategy
This process involves :-
Market Segmentation
Market Targeting
Differentiation
Positioning
Market Segmentation
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing program
Market Segment
A group of customers who respond in a similar way to a given set of marketing efforts

26. Market Targeting Positioning Differentiation GrameenPhone
The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Positioning
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds to target customer.
GMG Airlines – “First Class All the Way”
Differentiation
Actually differentiating the market offering to create superior customer value.
GrameenPhone
Djuice
For teenagers
Village Phone
For village women
Akota
For small entrepreneur

27. Developing an Integrated Marketing Mix
The set of controllable tactical marketing tools- products, price, place and promotion- that the firms blends to produce the response it wants in the target market
Product
It means the goods-and-services combination the company offers to the target market.
Price
It is the amount of money customer must pay to obtain the product.
Place
It includes company activities that make the product available to target consumers
Promotion
It means activities that communicate the merits of the product and persuade target customers to buy it.

28. Integrated positioning
Product
Variety
Quality
Design
Features
Brand Name
Packaging
Services
Price
List price
Discount
Allowances
Payment period
Credit Terms
Target customers
Integrated positioning
Promotion
Advertising
Personal selling
Sales promotion
Public relations
Place
Channels
Coverage
Assortment
Locations
Inventory
Transportation
logistics

29. 4 Ps 4Cs The 4Ps might be better described as the four Cs Product
Customer solution
Price
Customer cost
Place
Convenience
Promotion
Communication

30. Analysis, Planning, Implementation, and Control
Managing Marketing :
Analysis, Planning, Implementation, and Control
Analysis
Planning
Develop Strategic Plan
Develop marketing plan
Implementation
Carry out the
plans
Control
Measure Results
Evaluate result
Take Corrective Action

31. Marketing Analysis: SWOT Analysis
An overall evaluation of the company’s strengths(S), weakness(W), opportunities (O), threats (T)
Strengths
Internal capabilities that may help a company reach its objectives
Weakness
Internal limitations that may interfere with a achieve its objectives
Opportunities
External factors that the company may be able to exploit to its advantage
Threats
Current and emerging external factors that may challenge the company’s performance
Internal
External
Negative
Positive

32. Contents of a Marketing Plan
Marketing Planning
Contents of a Marketing Plan
Executive Summary
Current Marketing Situation
Threats and Opportunity Analysis
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls

33. Marketing Implementation
The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives
Marketing Department Organization
Marketing Control
The process of measuring and evaluating the results of
marketing strategies and plans and taking corrective
action to ensure that objectives are achieved.

34. Measuring and Managing Return on Marketing Investment
Return on marketing investment (or marketing ROI)
The net return from a marketing investment divided by the costs of the marketing investment.

35. Marketing Investments
Improved customer value and satisfaction
Marketing Returns
Increased Customer Attraction
Increased Customer Retention
Increased Customer Lifetime Values And Customer Equity
Cost of Marketing Investment
Return on Marketing Investment