SUMMARY CHAPTER 2
Name: Michelle Pangemanan
Class : Marketing Management
Date : 29 Januari 2020
Title : Company and Marketing Strategy
Objective Outline
1. Company-Wide Strategic Planning: Defining Marketing’s Role
Each company must find the game plan for long-run survival and growth that makes the most
sense given its specific situation, opportunities, objectives and resources. This is the focus of
strategic planning(is the process of developing and maintaining a strategic fit between the
organization’s goal and capabilities and its changing marketing opportunities).
Step-step:
-Defining a Market-Oriented Mission.
Many organizations develop formal mission statements that answer these questions. A
mission statement (is a statement of the organization’s purpose - what it wants to accomplish
in the larger environment). A clear mission statement acts as an “invisible hand” that guides
people in the organization.
-Setting Company Objectives and Goals.
The company needs to turn its mission into detailed supporting objectives for each level of
management. Each manager should have objectives and responsible for reaching them.
2.Designing the Business Portfolio
Guided by the company’s mission statement and objectives, management now must plan its
business portfolio(is the collection of business and product that make up the company). The
best business portfolio is the one that best fits the company strengths and weaknesses to
opportunities in the environment.
Business portfolio planning involves two steps
Analyze the current business portfolio.
The mahor acivity in strategic planning is business portfolio analysis(is the process
by which management evaluates the products and business that make up the
company), whereby managment evaluates the products and business that make up the
company.
The Boston Consulting Group Approach.
Using the now-classic Buston consulting Group(BCG) approach, a company classifies
all its SBUs according to the growth-share matrix(is a portfolio-planning method
that evaluates a company’s SBUs in terms of market growth rate and relative market
share.
Problem with Matrix Approaches.
The BCG and other forml methods revolutionized strategic planning.
Developing Strategies for Growth and Downzing.
One useful device for identifying growth opportunities is the product/market
expansion grid(is a portfolio-planning tool for identifying company growth
opportunities through market peneration, market development, product development
or diversification),
3. Planning Marketing: Partnering to Build Customer Relationship
The company’s strategic plan establishes what kinds of business the company will operate
and its objectives for each. Then, within each business unit, more detailed planning takes
place.
Partnering with Other Company Departments
Each company department can be thought of as a link in the company’s internal value
chain(is the series of internal departments that carry out value-creating activities to design,
produce, market, deliver, and support a firm’s products.
Partnering with Others in the Marketing System
More companies today are partnering with other members of the supply chain-suppliers,
distributors and ultimetely-customer to improve the performance of the customer value
delivery network(is the network made up of the company, its suppliers, it distributors and
ultimetely its customers who partner with each other to improve the performannce of the
entire system.
4. Marketing Strategy and the Marketing Mix
Customer are int he center. The goal is to creative value for customers and build profitable
customer relationship. Next comes marketing strategy(is the marketing logic by which the
company hopes to create customer value and achieve profitable customer relationship).
Customer-Driven Marketing Strategy
Each company must divide up the total market, choose the best segments, and design
strategies for profitably serving chosen segments. This process involves:
Marketing Segmentation
The process of dividing a market into distinct groups of buyers who have different
programs, is called market sementation(is diving a market into distinct groups of
buyers who have different needs, characteristics, or behaviors, and who might require
separate products or marketing programs.) a market segment consist a consumers
who respond in a similiar way to a given set of marketing efforts.
Marketing Targeting
After a company has defined its market segments, it can enter one or many of these
segmetns. Market targeting(is the process of evaluating each market segment’s
attractiveness and selecting one or more segments to enter).
Market Differentation and Positioning
Positioning is arranging for a product to occupy a clear, distinctive and desirable
place relative to competing products in the minds of target consumers. Effective
positioning begins with differentation(is actually differentiating the market offering
to create superior customer value).
Developing an Integrated Marketing Mix
Marketing mix is the set of marketing tools(product, price, place, promotion) that the firm
blends to produce the response it wants in the target market.
Product means the goods-and-services combination the company offers to the target
market.
Price is the amount of money customer must pay to obtain the product.
Place includes company activities that make the product available to target
consumers.
Promotion refers to activities that communicate the merits of the product and perusade
target customers to buy it.
5. Managing the Marketing Effort
Marketing Analysis
SWOT analysis(Strenghts, Weaknesses, Opportunities, Threats)
Marketing Planning
Through strategic planning, the company decides what it wants to do with each
business unit. A marketing strategy sonsists of specific strategies for target markets,
positioning, the marketing mix, and marketing expenditure levels.
Marketing Implementation
Marketing implementation is the process that turns marketing plans into marketing
action to accomplish strategic marketing objectives.
