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Pea
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Ed
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In
c.Company and Marketing Strategy: Partnering
to Build Customer Relationships
•Chapter 2
•PowerPoint slides
•Express version
•Instructor name
•Course name
•School name
•Date
Principles of Marketing, Sixth Canadian Edition
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Principles of Marketing, Sixth Canadian Edition
2.2
Learning Objectives
• After studying this chapter, you should be able to:– Explain company-wide strategic planning and its four steps
– Discuss how to design business portfolios and develop strategies for growth and downsizing
– Assess marketing’s role in strategic planning and explain how marketers partner with others inside and outside the firm to build profitable customer relationships
– Describe the marketing process and the forces that influence it
– List the marketing management functions, including the elements of a marketing plan
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Principles of Marketing, Sixth Canadian Edition
2.3
Strategic Planning
• Strategic planning:– Developing a strategic fit between
– organizational goals and capabilities, and
– changing marketing opportunities
• Steps in strategic planning:Figure 2.1
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Principles of Marketing, Sixth Canadian Edition
2.4
Mission Statements
• Mission statement:– Statement of an organization’s purpose
– What it wants to accomplish in the larger environment
– Need to be specific, realistic, and motivating
Table 2.1
Company Product-oriented definition Market-oriented definition
M.A.C Cosmetics We make cosmetics We sell lifestyle and self-expression; tolerance of diversity, and a platform for the outrageous
Canadian Tire We sell tools, home improvement items, and automotive parts and accessories
We provide advice and solutions that transform ham-handed people into Mr. and Mrs. Fixits
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Principles of Marketing, Sixth Canadian Edition
2.5
BCG Growth-Share Matrix
• Business portfolio
• Portfolio analysis
• Strategic business unit (SBU)
• Five forces driving profitability:– Barriers to entry
– Power of the customer
– Power of suppliers
– Presence of substitutes
– Competitive rivalry within industry
Figure 2.2
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Principles of Marketing, Sixth Canadian Edition
2.6
Strategies for SBU’s
• Porter:– Overall cost leadership
– Differentiation
– Focus
• Treacy and Wiersema:– Operational excellence
– Product leadership
– Customer intimacy
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Principles of Marketing, Sixth Canadian Edition
2.7
Product-Market Expansion Grid
• Product-market expansion grid:– Portfolio planning tool for identifying company growth
opportunities
Figure 2.3
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Principles of Marketing, Sixth Canadian Edition
2.8
Partnering to Build Customer Relationships
• Marketing’s role in strategic planning:– Provides a guiding philosophy
– Provide inputs to help identify marketing opportunities and assess potential for taking advantage of them
– Designs strategies for reaching objectives
• Partner relationship management
• Value chain
• Value delivery network
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Principles of Marketing, Sixth Canadian Edition
2.9
The Marketing Process
• The marketing process:– Analyzing marketing
opportunities
– Selecting target markets
– Developing the marketing mix, and
– Managing the marketing effort
• Market segmentation
• Target marketing
• Market positioning
Figure 2.4
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Principles of Marketing, Sixth Canadian Edition
2.10
The Four P’s of the Marketing Mix
• The marketing mix:– Set of controllable,
tactical marketing tools
– Blended to produce the desired response in the target market
Figure 2.5
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Principles of Marketing, Sixth Canadian Edition
2.11
The Four P’s Versus C’s
Product
Price
Place
Promotion
Customer solution
Customer cost
Convenience
Communication
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Principles of Marketing, Sixth Canadian Edition
2.12
Managing the Marketing Effort
• Four marketing management functions:– Marketing analysis
– Marketing planning
– Implementation
– ControlFigure 2.6
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Principles of Marketing, Sixth Canadian Edition
2.13
Contents of a Marketing Plan
• Executive summary
• Current marketing situation– Market description, product review, competition, and distribution
• Threat and opportunity analysis
• Objectives and issues• Marketing strategy
• Action program
• Budgets
• Controls
Table 2.2
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2.14
The Control Process
• Marketing control
• Marketing audit
Figure 2.7
Set goals
What do we want to achieve?
Measureperformance
What is happening?
Evaluateperformance
Why is it happening?
Take correctiveaction
What should we do about it?
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Principles of Marketing, Sixth Canadian Edition
2.15
In Conclusion…
• The learning objectives for this chapter were:– Explain company-wide strategic planning and its four steps
– Discuss how to design business portfolios and develop strategies for growth and downsizing
– Assess marketing’s role in strategic planning and explain how marketers partner with others inside and outside the firm to build profitable customer relationships
– Describe the marketing process and the forces that influence it
– List the marketing management functions, including the elements of a marketing plan