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Chapter Two,Company and Marketing StrategyPartnering to Build Customer Relationships,Company and Marketing Strategy,Companywide Strategic Planning: Defining Marketings RoleDesigning the Business PortfolioPlanning Marketing: Partnering to Build Customer RelationshipsMarketing Strategy and the Marketing MixManaging the Marketing Effort,Topic Outline,Companywide Strategic Planning,Strategic planning is the process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities,Strategic Planning,Companywide Strategic Planning,The mission statement is the organizations purpose, what it wants to accomplish in the larger environmentMarket-oriented mission statement defines the business in terms of satisfying basic customer needs,Defining a Market-Oriented Mission,Companywide Strategic Planning,Setting Company Objectives and Goals,Companywide Strategic Planning,The business portfolio is the collection of businesses and products that make up the companyPortfolio analysis is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company,Designing the Business Portfolio,Companywide Strategic Planning,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 businessesCompany divisionProduct line within a divisionSingle product or brand,Analyzing the Current Business Portfolio,Companywide Strategic Planning,Analyzing the Current Business Portfolio,Companywide Strategic Planning,Difficulty in defining SBUs and measuring market share and growthTime consumingExpensiveFocus on current businesses, not future planning,Problems with Matrix Approaches,Companywide Strategic Planning,Product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification,Developing Strategies for Growth and Downsizing,Companywide Strategic Planning,Developing Strategies for Growth and Downsizing Product/Market Expansion Grid Strategies,Companywide Strategic Planning,Market penetration is a growth strategy increasing sales to current market segments without changing the productMarket development is a growth strategy that identifies and develops new market segments for current products,Developing Strategies for Growth and Downsizing,Companywide Strategic Planning,Product development is a growth strategy that offers new or modified products to existing market segmentsDiversification is a growth strategy for starting up or acquiring businesses outside the companys current products and markets,Developing Strategies for Growth and Downsizing,Companywide Strategic Planning,Downsizing is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the companys overall strategy,Developing Strategies for Growth and Downsizing,Planning Marketing,Value chain is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firms products,Partnering to Build Customer Relationships,Planning Marketing,Value delivery network is made up of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve performance of the entire system,Partnering to Build Customer Relationships,Marketing Strategy and the Marketing Mix,Market segmentation is the division of a market into distinct groups of buyers who have distinct needs, characteristics, or behavior, and who might require separate products or marketing mixesMarket segment is a group of consumers who respond in a similar way to a given set of marketing efforts,Customer-Driven Marketing Strategy,Marketing Strategy and the Marketing Mix,Market targeting is the process of evaluating each market segments attractiveness and selecting one or more segments to enter,Customer-Centered Marketing Strategy,Marketing Strategy and the Marketing Mix,Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer,Customer-Centered Marketing Strategy,Marketing Strategy and the Marketing Mix,Marketing mix is the set of controllable tactical marketing toolsproduct, price, place, and promotionthat the firm blends to produce the response it wants in the target market,Developing an Integrated Marketing Mix,Managing the Marketing Effort,Market PlanningParts of a Marketing Plan,Managing the Marketing Effort,Implementing is the process that turns marketing plans into marketing actions to accomplish strategic marketing objectivesSuccessful implementation depends on how well the company blends its people, organizational structure, decision and reward system, and company culture into a cohesive action plan that supports its strategies,Marketing Implementation,Managing the Marketing Effort,Marketing Department Organization,Managing the Marketing Effort,Controlling is the measurement and evaluation of results and the taking of corrective action as neededOperating controlStrategic control,Marketing Control,Measuring and Managing Return on Marketing Investment,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.,Return on Marketing Investment (Marketing ROI),All rights reserved. No part of this publication may be reproduced, stor
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