2.

company and marketing strategy partnering to

build customer relationships
1. Company-wide strategic planning: defining
marketings role
- Strategic planning is the process of developing and
maintaining a strategic fit between the organisations
goals and capabilities and its changing marketing
opportunities.

First three steps on corporate level

Occurs at business-unit, product and market level
Ex nestl: quick (chocolate milk), garnier (shampoo), water
Defining a market-oriented mission
-

the mission statement is the organisations purpose,

what it wants to accomplish in the larger environment.
Market-oriented mission statement defines the business
in terms of satisfying basic customer needs.
(not stated in terms of more profit or sales: only a reward)
Meaningful and specific yet motivating, emphasizing the companies
strengths in the marketplace

A mission statement should:

Not be myopic in product terms

Motivating not only for costumers but also for employees
why are we making the product?
ex: mission statement of KUleuven is missing
needs to contain strengths of company
Ex: ebay mission statement: environmental friendly, also secondhand
Fillips; improving peoples life through innovation
Meaningful and specific
Motivating
Emphasize the companys strengths
Contain specific workable guidelines
Not be stated as marketing sales or profits

 Vision => mission decides business goals/objectives and based

on them you create your marketing objectives
Designing the business portfolio
= the collection of businesses and products that make up the
company.
(selling if not profitable anymore)
Overview on your portfolio
you evaluate them to see in which ones youre going to invest
Ex Big : always produce products you through them away, try
with different products to grow
make overview of whole company on business level : different
business units, different small companies
Tried panties, underwear, shavings
-

Portfolio analysis is a major activity in strategic planning whereby

management evaluates the products and businesses that make up
the company.
The best business portfolio has to do with SWOT analysis :
strenthes, weaknesses opportunities and treats of environment
Analyzing the current business portfolio
strategic business units can be:
Company division
Product line within a division
Single product or brand
Ex Nestl: friskies (cats), Nescaf, kitkat (different packaging),
nestea
business unit can be a product line, company division
Ex Philips: SBU: consumer lifestyle, lighting and healthcare
they are going to reduce is to two: healthtech (lifestyle and
healthcare) and sell lighting (split into two companies)

The business portfolio is the collection of businesses and products

that make up the company.
Portfolio analysis is a major activity in strategic planning whereby
management evaluates the products and businesses that make up
the company.

The BCG (=Boston consultant group model) growth share matrix

Look at relative market share (compared to biggest

competitor)
logarithm of your company/ biggest competitor
Growthrates: difficult to put different products into the same
figure
growthrates of apple iphones are totally different from BIG
pens
Nesquick is cash cow from nestl
you need cashcows (dont need to invest a lot of money in them
because not growing anymore) to pay for your stars
Problems:
Difficulty in defining SBUs and measuring market
share and growth
doesnt say anything on the growth
Time consuming
Expensive
Focus on current businesses, not future planning.
What about beer market? Only the winterperiod (drink more beer
over summer), not in there, no customer information: what about
loyal customers? A dog but a good one

Developing strategies for growth and downsizing

ANSOFF : you can grow in different ways
Product/market expansion grid
= a tool for identifying company growth opportunities through
market
penetration, market development, product development or
diversification.
Product/market expansion grid strategies
Same
new

new
same
Market penetration
=a growth strategy increasing sales to current market
segments without changing the product.
Ex increased sales because opening of toothpaste was bigger so
people used more (so sold more)
improve advertising, improve store design, more places to sell
Market development
=a growth strategy that identifies and develops new market
segments for current products.
Ex other flavor, new color, change of packaging (fruitella)
discussion is this a new product or not?, entering China
Ex history Nokia: paper, boots and then mobile phones
Product development
=a growth strategy that offers new or modified products to
existing market segments.
Diversification
= a growth strategy through starting up or acquiring
businesses outside the companys current products and
markets.
Downsizing
=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.

Ex new mission Danone : healthy, energy so sold candybars

because didnt fit I company strategy
SWOT analysis

Managing the marketing function begins with a complete

analysis of the companys situation. The marketer should
conduct a SWOT analysis
Strengths include internal capabilities that may help a
company reach its objectives
Can work on opportunities and threats in the market
Weaknesses include internal limitations that may interfere
with a companys ability to 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
companys performance
External: can try to adapt it, integrate it but cant control it
SWOT analysis until p 55-60
2. Planning marketing: partnering to build
customer relationships
- Value chain
= a series of departments that carry out value-creating activities to
design, produce, market, deliver and support a firms products.
- Value delivery network
= made up of the company, suppliers, distributors and ultimately
customers who
partner with each other to improve performance of the entire
system.
3. Marketing strategy and the marketing mix

Customer-driven marketing strategy

Market segmentation
=the division of a market into distinct groups of buyers who
have different needs, characteristics or behaviour and who
might require separate products or marketing mixes.
Market segment
=a group of consumers who respond in a similar way to a
given set of marketing efforts
Customer-centered marketing strategy
Market targeting
=the process of evaluating each market segments
attractiveness and selecting one or more segments to enter.
Market positioning
=the arranging for a product to occupy a clear, distinctive and
desirable place relative to competing products in the minds of
the target
consumer.
Developing an integrated marketing mix
Marketing mix
=the set of controllable tactical marketing toolsproduct,
price, place and promotionthat the firm blends to produce
the response it wants in the target market.

4. Managing the marketing effort

Parts of marketing planning

Marketing implementation

Implementing
= the process that turns marketing plans into marketing
actions to accomplish strategic marketing objectives.
Successful implementation depends on how well the company
blends its people, organisational structure, decision and reward
system and company culture into a
cohesive action plan that supports its strategies.
Marketing department organization

Marketing control
Controlling is the measurement and evaluation of results and
the taking of corrective action as needed to ensure the
objectives are achieved.
Operating control
Strategic control
5. Measuring and managing return on marketing
Investment
- Return on marketing investment (marketing ROI)

=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