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Learning Objectves
2-1. Explain company-wide strategic planning
and its four steps.
2-2. Discuss how to design business portolios
and develop growth strategies.
2-3. Explain marketng’s role in strategic
planning and how marketng works with its
partners to create and deliver customer
value.
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Learning Objectves
2-4. Describe the elements of a customer
value-driven marketng strategy and mix
and the forces that infuence it.
2-5. List the marketng management functons,
including the elements of a marketng
plan, and discuss the importance of
measuring and managing marketng return
on investment.
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First Stop: Rolex
Building Brand Equity through a Customer-drive
Marketng Mix
Rolex endorses
sports that reinforce
the values of the
brand—achievement
and exclusivity.
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Learning Objectve 2-1
Explain company-wide strategic planning and its
four steps.
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Strategic Planning
• Game plan for long-run survival and growth
• Helps to maintain a strategic ft between its
goals and capabilites and changing marketng
opportunites.
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Figure 2.1 - Steps in
Strategic Planning
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Mission Statement
• Statement of the organizaton’s purpose
• Market oriented - defned in terms of
satsfying basic customer needs
• Emphasize the company’s strengths
• Focus on customers and the customer
experience
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Setng Company Objectves
and Goals
• Detailed supportng objectves for each level
of management
• Setng a hierarchy of objectves
• Business objectves
• Marketng objectves
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Setng Company Objectves
and Goals
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Learning Objectve 2-1 Summary
• Strategic planning
• Defning the company’s mission
• Setng objectves and goals
• Designing a business portolio
• Developing functonal plans
• Company mission statement
• Market oriented, realistc, specifc
• Motvatng, consistent with market environment
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Learning Objectve 2-2
Discuss how to design business portolios
and develop growth strategies.
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Business Portolio
• Collecton of businesses and products that
make up the company
• Steps in business portolio planning:
• Analyze the frm’s current business portolio
• Develop strategies to shape the future portolio
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Business Portolio
Disney has
become
a sprawling
collection of
media and
entertainment
businesses.
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Portolio Analysis
• Management’s evaluaton of the products and
businesses that make up the company
• Identfy the strategic business units (SBUs)
• Assess SBUs’ atractveness and decide on the
level of support SBU deserves
• Direct resources toward more proftable
businesses and phase down or drop its weaker
ones
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Figure 2.2 - The BCG
Growth-Share Matrix
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Growth-Share Matrix
• Evaluates a company’s SBUs in terms of
market growth rate and relatve market share
• Problems with Growth-Share Matrix
• Difcult, tme consuming, and costly
• Difcult to defne and measure
• Provides litle advice for future planning
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Figure 2.3 - The Product/Market
Expansion Grid
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Developing Strategies for Growth
Under Armour
has grown at a
blistering rate
under its
multpronged
growth strategy.
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Downsizing
• Products or business units that are
unproftable or no longer ft the company’s
overall strategy
• Reasons to abandon products or markets
• Rapid growth of the company
• Lack of experience in a market
• Change in market environment
• Decline of a partcular product
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Learning Objectve 2-2 Summary
• Portolio analysis
• BCG Growth-Share Matrix
• Product market expansion grid
• Strategies for growth and downsizing
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Learning Objectve 2-3
Explain marketng’s role in strategic planning
and how marketng works with its partners to
create and deliver customer value.
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Planning Marketng: Partnering to
Build Customer Relatonships
• Provides a guiding philosophy
• Marketng concept—company strategy should
create customer value and build proftable
relatonships
• Provides inputs to strategic planners
• Identfy market opportunites and potental to
take advantage of them
• Designs strategies for reaching the business
unit’s objectves
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Partnering with Other
Company Departments
• Company departments are links in the
company’s internal value chain.
• Firm’s success depends on how well the
various departments coordinate their
actvites.
• Marketers should ensure all the departments
are customer-focused and develop a smooth
functoning value chain.
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Partnering with Other
Company Departments
True Value’s
Internal
Value Chain.
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Partnering with Others in
the Marketng System
• Companies should assess value chains
• Internal departments
• External: suppliers, distributors and customers
• Value delivery network is composed of the
company, its suppliers, its distributors, and its
customers
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Learning Objectve 2-3 Summary
• Planning Marketng
• Partnering to build customer relatonships
• Partnering with other company departments
• Partnering with suppliers, distributors and
customers
• Value delivery network
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Learning Objectve 2-4
Describe the elements of a customer value-
driven marketng strategy and mix and the forces
that infuence it.
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Figure 2.5 Managing Marketng
Strategy and the Marketng Mix
Creating
customer
value and
profitable
customer
relationships is
Which customers to at the core of
serve ? marketing.
(segmentation and
targeting)
How will we create
value for them?
(differentiation and
positioning)
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Customer Value-Driven
Marketng Strategy
• Marketng logic by which the company creates
customer value and achieves proftable
customer relatonships
• Integrated marketng mix: product, price,
place, and promoton
• Actvites for best marketng strategy and mix
• Marketng analysis
• Planning, implementaton, and control
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Market Segmentaton and
Market Targetng
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Positoning
• Positoning the product to occupy a clear,
distnctve, and desirable place relatve to
competng products
• Differentatng the market ofering to create
superior customer value
• The entre marketng program should support
the chosen positoning strategy.
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Positoning
Southwest’s positoning
as “The LUV Airline” is
reinforced by the
colorful heart in its new
logo and plane graphics
design.
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Figure 2.5 - The Four Ps of
the Marketng Mix
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Critcisms of the Four Ps
• Omits or underemphasizes service products
• Needs to include packaging as a product
decision
• Buyer’s perspectve would emphasize the four
A s:
• Acceptability
• Afordability
• Accessibility
• Awareness
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Figure 2.6 - Managing Marketng: Analysis,
Planning, Implementaton, and Control
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Figure 2.7 - SWOT Analysis: Strengths (S),
Weaknesses (W), Opportunites (O), and Threats (T)
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Learning Objectve 2-4 Summary
• Customer value-driven marketng strategy
• Market segmentaton and market segment
• Market targetng
• Positoning and diferentatng
• Four Ps of the marketng mix
• Analysis, planning implementaton and control
• SWOT analysis
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Learning Objectve 2-5
List the marketng management functons,
including the elements of a marketng plan,
and discuss the importance of measuring and
managing marketng return on investment.
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Contents of a Marketng Plan
Secton Purpose
Executve summary Brief summary of the main goals and
recommendatons
Current marketng Gives the market descripton and the
situaton product, competton, and distributon
review
Threats and Helps management to antcipate
opportunites analysis important positve or negatve
developments
Objectves and issues States and discusses marketng
objectves and key issues
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Contents of a Marketng Plan
Secton Purpose
Marketng Outlines the broad marketng logic and the specifcs of
strategy target markets, positoning, marketng expenditure levels,
and strategies for each marketng mix element
Acton Spells out how marketng strategies will be turned into
programs specifc acton programs
Budgets Details a supportng marketng budget that is a projected
proft-and-loss statement
Controls Outlines the controls that will be used to monitor
progress, allow management to review implementaton
results, and spot products that are not meetng their goals
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Market Implementaton
• Turning marketng strategies and plans into
marketng actons to accomplish strategic
marketng objectves
• Addresses the who, where, when, and how of
the marketng actvites
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Marketng Department Organizaton
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Marketng Control
• Measuring and evaluatng the results of
marketng strategies and plans
• Operatng control ensures that the company
achieves its sales, profts, and other goals.
• Strategic control involves looking at whether
the company’s basic strategies are well
matched to its opportunites.
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Marketng Return on Investment (ROI)
• Net return from a marketng investment
divided by the costs of the marketng
investment
• Assessment measures
• Standard marketng performance measures
• Customer-centered measures
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Figure 2.8 - Marketng Return
on Investment
Source: Adapted from Roland T. Rust, Katherine N. Lemon, and Valerie A. Zeithaml, “Return on Marketing: Using Consumer Equity to Focus Marketing
Strategy,” Journal of Marketing, January 2004, p. 112. Used with permission.
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Learning Objectve 2-5
• Contents of a marketng plan
• Analysis, planning and implementaton
• Operatng and strategic marketng control
• Marketng department organizaton
• Marketng return on investment
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Learning Objectves
2-1. Explain company-wide strategic planning
and its four steps.
2-2. Discuss how to design business portolios
and develop growth strategies.
2-3. Explain marketng’s role in strategic
planning and how marketng works with its
partners to create and deliver customer
value.
Copyright © 2017 Pearson Education, Ltd. 2 - 48
Learning Objectves
2-4. Describe the elements of a customer
value-driven marketng strategy and mix
and the forces that infuence it.
2-5. List the marketng management functons,
including the elements of a marketng
plan, and discuss the importance of
measuring and managing marketng return
on investment.
Copyright © 2017 Pearson Education, Ltd. 2 - 49
