Chapter 2: Marketing Strategy (Company)

Strategic Planning

The process of developing and maintaining a strategic fit between the *organization's goals and capabilities* and it *changing marketing opportunities.*

*Strategic Planning Process*

*Corporate Level* 1. Defining the company mission. 2. Setting company objectives and goals. 3. Designing the business portfolio. *Business Unit, Product and market level.* 4. Planning marketing and other functional strategies.

Integrated Marketing Mix

4 Ps - Product - Price - Promotion - Place

Strategic Business Units

A company division, product line, or a single product/brand.

*BCG Growth-Share Matrix*

A portfolio planning method that evaluates a company's SBUs in terms of market growth rate and relative market share. There are 3 categories: 1. Stars 2. Cash Cows 3. Question Marks and, 4. Dogs

*Product / Marketing Expansion Grid*

A portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification. Includes: Existing Products Existing Markets New Product, and New Markets

Mission Statement

A statement of the organization's purpose- what it wants to accomplish in the larger environment. Aims to be market oriented while emphasizing strengths.

SWOT Analysis

An overall evaluation of the company's strengths, weaknesses, opportunities, and threats.

Executive Strategy

Brief summary of the main goals and recommendations.

Business Portfolio

Collection of *businesses and products* that make up the company. Purposed to direct resources towards more profitable Strategic Business Units (SBUs) while phasing out or dropping weaker ones.

Market Development

Company growth by identifying and developing new market segments for current company products.

Market Penetration

Company growth by increasing sales of current products to current market segments without changing the product.

Product Development

Company growth by offering modified or new products to current market segments.

Diversification

Company growth through starting up or acquiring businesses outside the company's current products and markets.

Threats

Current and emerging external factors that may challenge the company's performance.

Budgets

Details a supporting marketing budget that is a projected profit and loss statement.

Opportunities

External factors that the company may be able to exploit to its advantage.

Current Marketing Situation

Gives the market description and the product, competition, and distribution review.

Threats and Opportunities Analysis

Help management to anticipate important positive or negative developments.

Stars

High grow, high share businesses or products.

Strengths

Internal capabilities that may help a company reach its objectives.

Weaknesses

Internal limitations that may interfere with a company's ability to achieve its objectives.

Problems with Growth-Share Matrix

It is: - Difficult, time consuming and costly to implement. - Difficult to define SBUs and measure market share and growth. - Focusing on classifying current businesses but, provides little advice for future planning.

Cash Cows

Low growth, high share businesses or products.

Question Marks

Low share business units in high growth markets.

Dogs

Low share business units in low growth markets.

Objectives & Goals

Objectives are *long term strategic state* that the organization wants to achieve. They can be business, marketing, customer, operational, and financial based. They are achieved through *short term strategic (SMART) goals.*

Marketing Strategy

Outlines the broad marketing logic and the specifics of target markets, positioning, market expenditure levels, and strategies for each marketing mix element.

Controls

Outlines the controls that will be used to monitor progress, allow management to review implementation results, and spot products that are not meeting their goals.

Action Programs

Spells out how marketing strategies will be turned into specific action programs.

Objectives and Issues

States and discusses marketing objectives and key issues.

BCG Growth Share Matrix vs Unpredictable Markets

The BCG growth matrix assumes the market will act predictably, with future success based on current market share.

Contents of a Marketing Plan

The marketing logic by which the company hopes to *create customer value* and achieve *profitable customer relationships.* 1. Executive Summary *Planning* 2. Current marketing situation 3. Threats and opportunities analysis 4. Objectives and Issues *Implementation* 5. Marketing Strategy 6. Action Programs 7. Budgets *Measurement* 8. Controls