ch-2 - copy
TRANSCRIPT
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Chapter 2- slide 1Copyright 2009 Pearson Education, Inc.Publishing as Prentice Hall
Chapter Two
Company and Marketing Strategy
Partnering to Build Customer
Relationships
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Chapter 2- slide 2Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Companywide Strategic Planning
The process of developing and maintaining astrategic fit between the organizations goals and
capabilities and its changing marketing
opportunities
Strategic Planning:
Set of managerial decisions that determines the long
term performance of an organization by determining an
organizations primary objectives and then developingand adopting strategies to achieve those objectives.
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Chapter 2- slide 3Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
ExternalAudit
InternalAudit
Long-TermObjectives
Generate,Evaluate,
SelectStrategies
ImplementStrategies:Marketing,Fin/Acct,R&D, CIS,MGT
Measure &Evaluate
Performance
Vision&
Mission
Comprehensive Strategic-ManagementModel
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Chapter 2- slide 4Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Companywide Strategic Planning
Steps in Strategic Planning
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Chapter 2- slide 5Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Companywide Strategic Planning
The mission statement isthe organizations
purpose, what it wants toaccomplish in the largerenvironment
Market-oriented mission
statement defines thebusiness in terms ofsatisfying basic customerneeds
Defining a Market-Oriented Mission
We help you organize the worlds
information and make it
universally accessible and useful.
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Chapter 2- slide 6Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Companywide Strategic PlanningCompany Product-Oriented
Definition
Market-Oriented
Definition
Amazon.com We sell books, videos,
CDs, toys, consumer
electronics and other
products online
We make the Internet
buying experience fast,
easy, and enjoyable
were the place where
you can find anddiscover anything you
want to buy online
Disney We run theme parks We create fantasies
a place where dreams
come true and America
still works the way its
supposed to
Nike We sell athletic shoes
and apparel
We bring inspiration
and innovation to every
athlete* in the world
(* if you have a body,
you are an athlete)
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Chapter 2- slide 7Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Companywide Strategic Planning
Business
objectives Build profitable
customerrelationships
Invest inresearch
Improve profits
Marketing
objectives Increase
market share
Create local
partnerships Increase
promotion
Setting Company Objectives and Goals
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Chapter 2- slide 8Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Companywide Strategic Planning
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 thatmake up the company
Designing the Business Portfolio
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Chapter 2- slide 9Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Companywide Strategic Planning
Strategic business unit (SBU) is a unit of the
company that has a separate mission and
objectives that can be planned separately
from other company businesses
Company division
Product line within a division
Single product or brand
Analyzing the Current Business Portfolio
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Chapter 2- slide 11Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
11
Role of Strategic Business Units
Figure 2.2
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Chapter 2- slide 12Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Companywide Strategic Planning:
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Chapter 2- slide 14Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Companywide Strategic Planning
Developing Strategies for Growth and DownsizingProduct/Market Expansion Grid Strategies
Marketpenetration
Marketdevelopment
Productdevelopment
Diversification
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Chapter 2- slide 15Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Companywide Strategic PlanningDeveloping Strategies for Growth and Downsizing
Product/market expansion grid strategies
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Chapter 2- slide 16Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Companywide Strategic Planning
Market penetration is a
growth strategy increasingsales to current marketsegments without changingthe product
Market development is agrowth strategy thatidentifies and develops newmarket segments for currentproducts
Developing Strategiesfor Growth and Downsizing
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Chapter 2- slide 17Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Companywide Strategic Planning
Product development is a growth strategy
that offers new or modified products toexisting market segments
Diversification is a growth strategy through
starting up or acquiring businesses outsidethe companys current products and
markets
Developing Strategiesfor Growth and Downsizing
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Chapter 2- slide 18Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Companywide Strategic Planning
Downsizing is the reduction of the businessportfolio by eliminating products or
business units that are not profitable or
that no longer fit the companys overall
strategy
Developing Strategiesfor Growth and Downsizing
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Chapter 2- slide 19Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Planning Marketing
Partnering to Build Customer Relationships
Value chain is a series of
departments that carryout value-creating
activities to design,
produce, market,deliver, and support a
firms products
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Chapter 2- slide 20Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Planning Marketing
Partnering to Build Customer Relationships
Value delivery network ismade up of the
company, suppliers,distributors, andultimately customerswho partner with each
other to improveperformance of theentire system
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Chapter 2- slide 21Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Managing the Marketing Effort
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Chapter 2- slide 22Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Managing the Marketing Effort
Implementing is 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,
organizational structure, decision and rewardsystem, and company culture into a cohesive
action plan that supports its strategies
Marketing Implementation
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Chapter 2- slide 23Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Managing the Marketing Effort
Functional organization
Geographic organization
Product management organization
Market or customer management
MarketingD
epartment Organization
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Chapter 2- slide 24Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Managing the Marketing Effort
Controlling is the measurement and
evaluation of results and the taking of
corrective action as needed
Operating control
Strategic control
Marketing Control
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Chapter 2- slide 25Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
Measuring and ManagingReturn on Marketing Investment
Return on Marketing Investment (Marketing ROI)
Return on marketing investment
(Marketing ROI) is 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.
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Chapter 2- slide 26Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright Copyright 20102010 Pearson Education, Inc.Pearson Education, Inc.
Publishing as Prentice HallPublishing as Prentice Hall