Company and Marketing

Strategy

Chapter 2
 Objectives

Understand companywide strategic

planning and its four steps.
Learn how to design business
portfolios and develop strategies for
growth and downsizing.
Understand marketings role in
strategic planning and how
marketers partner with others.
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 Objectives

Be able to describe the

marketing process and the
forces that influence it.
Understand the marketing
management functions,
including the elements of the
marketing plan.
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 Walt Disney
c

Known for films, Satisfying the

animation, theme customer is
parks and customer everyones job
orientation
Disney has grown
Parks offer a variety
of attractions as well via diversification
as cleanliness, order, Sales and net
and warmth income have fallen

Discussion: How Can Disney Recover?

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 Disney companies

ABC
16 cable networks
ESPN, Disney Channel, Toon Disney,
SoapNET, A&E, the History Channel,
Lifetime Television, E! Entertainment
4 TV production companies
8 movie production companies
Walt Disney, Touchstone Pictures,
Hollywood Pictures, Miramax Films

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More Disney companies

5 magazine publishing groups

5 music labels
19 Internet groups
Disney Interactive
The Disney Store
Disney Cruise Lines
Two sports Franchises

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 Strategic Planning

Strategic planning is defined as:

The process of developing and
maintaining a strategic fit between
the organizations goals and
capabilities and its
changing marketing
opportunities.

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 BusinessNow

Nervewire Video Clip

Consultants may
offer valuable
services and
expertise during
the strategic
Click the picture above to play video planning process.
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 Figure 2-1:
Steps in the
Strategic Planning Process

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2-9
 Strategic Planning

Mission statements should . . .

serve as a guide for what the
organization wants to accomplish.
be market-oriented rather than
product-oriented.
be neither too narrow, nor too broad.
fit with the market environment.
be motivating.
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 Strategic Planning

Mission statements guide the

development of objectives and
goals.
Objectives are developed at each
level in the organization hierarchy.
Strategies are developed to
accomplish these objectives.
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 Discussion Question

Google.com is one of
the leading Internet
search engines.

Construct a market-
oriented mission
statement that fits
this business.
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 Strategic Planning

Business portfolio:
the collection of businesses
and products that make
up the company.
Designing the business
portfolio is a key step in
the strategic planning
process.

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 Strategic Planning
Identify strategic
Portfolio Design business units (SBUs)
Assess each SBU:
Step 1:
The BCG growth-
Analyze the share matrix
current business classifies SBUs
portfolio into one of four
categories using:
Step 2:
Market growth rate
Shape the future
The SBUs relative
business market share within
portfolio the market.
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 Figure 2-2:
Growth-Share Matrix

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 Strategic Planning
Determine the future
Portfolio Design role of each SBU and
choose the
Step 1: appropriate resource
Analyze the allocation strategy:
current business Build
portfolio Hold
Step 2: Harvest
Divest
Shape the future
business SBUs change
positions over time
portfolio
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 Strategic Planning

Matrix approaches to formal

planning share many problems:
Difficult, time-consuming,
and costly to implement.
Focus only on current
businesses.
Too strongly emphasize
market share growth or
growth via diversification.

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 Strategic Planning

Designing the business

portfolio also involves:
Developing strategies for growth
by identifying, evaluating, and
selecting promising new market
opportunities.
Developing strategies for
downsizing the business portfolio.
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 Figure 2-3:
Product / Market
Expansion Grid

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 Marketing plays a key role in
the strategic planning process.
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 Figure 2-4:
The Marketing Process

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 The Marketing Process
The strategic planning
Key Elements and business portfolio
analysis processes
Analyzing marketing help to identify and
opportunities evaluate marketing
Selecting target opportunities.
markets The purpose of the
Developing the marketing process is
marketing mix to help the firm plan
how to capitalize on
Managing the
these opportunities.
marketing effort
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 The Marketing Process
The segmentation
Key Elements process divides the
total market into
Analyzing marketing market segments.
opportunities Target marketing
Selecting target chooses which
markets segment(s) are
Developing the pursued.
marketing mix
Market positioning
Managing the for the product is
marketing effort then determined.
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Positioning
Market positioning
is not restricted to
physical goods.

Identify the competing

products of relevance
to the Marble Collegiate
Church.

What clear, distinctive,

and desirable place in
the consumers mind
does the ad at left
attempt to create?

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 The Marketing Process
Competitor analysis
Key Elements guides competitive
marketing strategy
development.
Analyzing marketing Strategy leads to tactics
opportunities via the marketing mix:
Selecting target The Four Ps product,
markets price, place, promotion
(seller viewpoint)
Developing the The Four Cs
marketing mix customer solution, cost,
convenience, and
Managing the communication
marketing effort (customer viewpoint)

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 Figure 2-5:
The Marketing Mix

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 The Marketing Mix

Visit the Hills Pet

Nutrition site.

How are the 4 Cs or

the 4 Ps presented
within the site?

Hills Pet
Nutrition

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 The Marketing Process
Marketing analysis
Key Elements Provides information
helpful in planning,
implementation, and
Analyzing marketing control
opportunities Marketing planning
Selecting target Strategies and tactics
markets Marketing
implementation
Developing the
Turns plans into action
marketing mix
Marketing control
Managing the Operating control
marketing effort Strategic control

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 Figure 2-6:
Managing the
Marketing Effort

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