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Company and Marketing Strategy: Partnering to Build Customer Relationships
Chapter 2
Objectives
Understand company-wide strategic planning and its four steps.
Learn how to design business portfolios and develop strategies for growth and downsizing.
Understand marketing’s role in strategic planning and how marketer’s partner with others.
Objectives
Be able to describe the marketing process and the forces that influence it.
Learn the marketing management functions， including the elements of the marketing plan.
Case Study
Known for films， animation， theme parks and customer orientation
Parks offer a variety of attractions as well as cleanliness， order， and warmth
Satisfying the customer is everyone’s job
Disney has grown via diversification
Sales and net income have fallen
The Walt Disney Company
Entertainment Conglomerate consisting of Media， Studio Entertainment， Consumer Products and Theme Parks & Resorts
Theme Park & Resorts Division
Current Park Locations: Anaheim， Orlando， Tokyo， Paris， Hong Kong (2005)
Also includes: The Disney Cruise Line， Disney Regional Entertainment， The Disney Vacation Club， The Anaheim Angels， and the Mighty Ducks of Anaheim
Disney Parks
Disneyland， Anaheim: 1955
Walt Disney World， Orlando: 1971
Tokyo Disneyland:1983
Disneyland Paris/Euro Disneyland: 1992
Hongkong Disneyland: 2005
ShangHai Disneyland: ?
Strategic Planning
Strategic planning is defined as:
“The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.”
The Strategic Marketing Process
Strategic Planning
Planning activities occur at the business unit， product， and market levels， and include:
Defining the purpose and mission
Setting objectives and goals
Designing the business portfolio
Developing detailed marketing and departmental plans
Vision Statements
Vision…pushes the association toward some future goal or achievement…it describes the future
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.
Mission Statements
A well-developed mission statement offers several potential benefits
Mission Statements
Google’s Mission
Founders Larry Page and Sergey Brin named the search engine they built "Google，" a play on the word "googol，" the mathematical term for a 1 followed by 100 zeros.
The name reflects the immense volume of information that exists， and the scope of Google's mission: to organize the world's information and make it universally accessible and useful.
Examples of Mission Statements
Powerful sample mission statements
PEPSI - "Beat Coke"
HONDA - "We will crush， squash， and slaughter Yamaha"
NIKE - "Crush Reebok"
How Should Marketing Be Defined?
How Should Marketing Be Defined?
The Strategic Marketing Process
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.
Turning the Mission into Objectives & Goals
The company’s mission needs to be turned into detailed supporting objectives for each level of management
Each manager should have objectives and be responsible for reaching them
This mission leads to a hierarchy of objectives， including Business & Marketing objectives
Marketing strategies must be developed to support these marketing objectives
(example…Monsanto…for foreign expansion…)
increase its products’ availability and promotion
more salespeople and more advertising
cut prices and target large farms abroad
Turning the Mission into Objectives & Goals
The major activity in strategic planning is business portfolio analysis， whereby management evaluates the products and businesses making up the company
identify the key businesses making up the company (SBU…Strategic Business Unit)
assess the attractiveness of its various SBUs and decide how much support each deserves
The purpose of strategic planning is to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment
Evaluation by:
attractiveness of the SBU’s market or industry
strength of the SBU’s position in that market or industry
Establishing an SBU
What is an SBU?
Strategic Planning
Business portfolio: “the collection of businesses and products that make up the company.”
Designing the business portfolio is a key element of the strategic planning process.
Strategic Planning
Step 1: Analyze the current business portfolio
Step 2: Shape the future business portfolio
Identify strategic business units (SBUs)
Assess each SBU:
The BCG growth-share matrix classifies SBUs into one of four categories using the:
Market growth rate
SBU’s relative market share within the market.
Strategic Planning
Assigning Resources to Each SBU
The aim of identifying the company’s SBU is to develop separate strategies and assign appropriate funding.
Tools for assigning resources
Portfolio evaluation models:
BCG Matrix model
BCG Matrix
What is the BCG Matrix?
What do the contents in the model mean?
What are the strategies that this matrix suggests?
Strategies for BCG Analysis
BCG Model
Cash Cow Dogs
Questions?
Is the company healthy?
Strategic Planning
Step 1: Analyze the current business portfolio
Step 2: Shape the future business portfolio
Determine the future role of each SBU and choose the appropriate resource allocation strategy:
Build
Hold
Harvest
Divest
SBUs change positions over time
Strategic Planning
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.
Strategic Planning
Designing the business portfolio also involves:
Developing strategies for growth by identifying， evaluating， and selecting promising new market opportunities.
Product/market expansion grid
Developing strategies for downsizing the business portfolio.
Planning Marketing
Marketing plays a key role in the strategic planning process.
Marketers must practice CRM and Partner Relationship Management.
Partnering with other departments in the company as well as other firms in the marketing system helps to build a superior value delivery-network.
The Marketing Process
The strategic planning and business portfolio analysis processes help to identify and evaluate marketing opportunities.
The purpose of the marketing process is to help the firm plan how to capitalize on these opportunities.
The Marketing Process
The segmentation process divides the total market into market segments.
Target marketing determines which segment(s) are pursued.
The market positioning for the product is then determined.
The Marketing Process
Competitor analysis guides competitive marketing strategy development.
Strategy leads to tactics by way of the marketing mix:
The “Four Ps” – product， price， place， promotion (seller viewpoint)
The “Four Cs” – customer solution， cost， convenience， and communication (customer viewpoint)
The Marketing Process
Marketing analysis
Provides information helpful in planning， implementation， and control
Marketing planning
Strategies and tactics
Marketing implementation
Turns plans into action
Marketing control
Operating control
Strategic control
Marketing audit
Individual Assignment(2)
Five persons for every time， one person prepare a presentation for two or three minutes
About 5 different brand， the first time is about following brands:
Nokia， BlackBerry， BMW， HP， McDonald
For No. ， 201， 205， 226， 227，231
Tell us three main questions:
(1)What values these brands give us?
(2)Do you like these brands? Why?
(3) Your or your family experience about this brand?
Small Group Presentation(1)
Six groups for your class， one topic for each group.
First group will prepare “Alibaba Corporation”
Time: Next Friday (4th， March)
Topic: About E-commerce (Chapter 3)
Presentation about following topics:
(1)The history of Alibaba.
(2) The mission and marketing strategy of Alibaba?
(3) To E-commerce model， what are the success points and challenges in the future of Alibaba?
Small Group Presentation(2)
Six groups for your class， one topic for each group.
Second group will prepare “Apple Corporation”
Time: Next Friday (18th， March)
Topic: About Consumer behavior (Chapter 6)
Presentation about following topics:
(1)The history of Apple.
(2) Who like the Appple products most?
(3) Tell us the newest products of Apple?
(4) Where and how you know the Apple product first?
(5) What are the success points and challenges in the future of Apple?
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