For MBA and M.com Students. b

1. Company and MarketingCompany and Marketing
StrategyStrategy
Chapter 2Chapter 2

2. Objectives
Understand companywide strategicUnderstand companywide strategic
planning and its four steps.planning and its four steps.
Learn how to design businessLearn how to design business
portfolios and develop strategies forportfolios and develop strategies for
growth and downsizing.growth and downsizing.
Understand marketing’s role inUnderstand marketing’s role in
strategic planning and howstrategic planning and how

3. Objectives
Be able to describe theBe able to describe the
marketing process and themarketing process and the
forces that influence it.forces that influence it.
Understand the marketingUnderstand the marketing
management functions,management functions,
including the elements of theincluding the elements of the

4. Known for films,Known for films,
animation, themeanimation, theme
parks and customerparks and customer
orientationorientation
Parks offer a varietyParks offer a variety
of attractions as wellof attractions as well
as cleanliness, order,as cleanliness, order,
and warmthand warmth
Satisfying theSatisfying the
customer iscustomer is
everyone’s jobeveryone’s job
Disney has grownDisney has grown
via diversificationvia diversification
Sales and netSales and net
income have fallenincome have fallen
cWaltWalt DisneyDisney
Discussion:Discussion: How Can Disney Recover?How Can Disney Recover?

5. Disney companies
ABCABC
16 cable networks16 cable networks
 ESPNESPN, Disney Channel, Toon Disney,, Disney Channel, Toon Disney,
SoapNET, A&E, the History Channel,SoapNET, A&E, the History Channel,
LifetimeLifetime Television,Television, E! EntertainmentE! Entertainment
4 TV production companies4 TV production companies
8 movie production companies8 movie production companies
 Walt DisneyWalt Disney,, TouchstoneTouchstone Pictures,Pictures,
Hollywood Pictures, Miramax FilmsHollywood Pictures, Miramax Films

6. More Disney companies
5 magazine publishing groups5 magazine publishing groups
5 music labels5 music labels
19 Internet groups19 Internet groups
Disney InteractiveDisney Interactive
The Disney StoreThe Disney Store
Disney Cruise LinesDisney Cruise Lines
Two sports FranchisesTwo sports Franchises

7. Strategic Planning
Strategic planning is defined as:Strategic planning is defined as:
 ““The process of developing andThe process of developing and
maintaining a strategic fit betweenmaintaining a strategic fit between
the organization’s goals andthe organization’s goals and
capabilities and itscapabilities and its
changing marketingchanging marketing
opportunities.”opportunities.”

8. Nervewire Video Clip
Consultants may
offer valuable
services and
expertise during
the strategic
planning process.
BusinessNow
Click the picture above to play video

9. Figure 2-1:
Steps in the
Strategic Planning Process

11. Mission statements should . . .Mission statements should . . .
 serve as a guide for what theserve as a guide for what the
organization wants to accomplish.organization wants to accomplish.
 be “market-oriented” rather thanbe “market-oriented” rather than
“product-oriented”.“product-oriented”.
 be neither too narrow, nor too broad.be neither too narrow, nor too broad.
 fit with the market environment.fit with the market environment.
Strategic Planning

12. Strategic Planning
Mission statements guide theMission statements guide the
development of objectives anddevelopment of objectives and
goals.goals.
 Objectives are developed at eachObjectives are developed at each
level in the organization hierarchy.level in the organization hierarchy.
 Strategies are developed toStrategies are developed to

13. Google.comGoogle.com is one ofis one of
the leading Internetthe leading Internet
search engines.search engines.
Construct a market-Construct a market-
oriented missionoriented mission
statement that fitsstatement that fits
this business.this business.
Discussion Question

14. Strategic Planning
Business portfolio:Business portfolio:
“the collection of businesses“the collection of businesses
and products that makeand products that make
up the company.”up the company.”
 Designing the businessDesigning the business
portfolio is a key step inportfolio is a key step in
the strategic planningthe strategic planning

15. Strategic Planning
Step 1:Step 1:
Analyze theAnalyze the
current businesscurrent business
portfolioportfolio
Step 2:Step 2:
Shape the futureShape the future
businessbusiness
Identify strategicIdentify strategic
business units (SBUs)business units (SBUs)
Assess each SBU:Assess each SBU:
 The BCG growth-The BCG growth-
share matrixshare matrix
classifies SBUsclassifies SBUs
into one of fourinto one of four
categories using:categories using:
Market growth rateMarket growth rate
The SBU’s relativeThe SBU’s relative
Portfolio DesignPortfolio Design

16. Figure 2-2:
Growth-Share Matrix

17. Strategic Planning
Step 1:Step 1:
Analyze theAnalyze the
current businesscurrent business
portfolioportfolio
Step 2:Step 2:
Shape the futureShape the future
businessbusiness
Determine the futureDetermine the future
role of each SBU androle of each SBU and
choose thechoose the
appropriate resourceappropriate resource
allocation strategy:allocation strategy:
 BuildBuild
 HoldHold
 HarvestHarvest
 DivestDivest
SBUs changeSBUs change
Portfolio DesignPortfolio Design

18. Strategic Planning
Matrix approaches to formalMatrix approaches to formal
planning share many problems:planning share many problems:
 Difficult, time-consuming,Difficult, time-consuming,
and costly to implement.and costly to implement.
 Focus only on currentFocus only on current
businesses.businesses.
 Too strongly emphasizeToo strongly emphasize
market share growth ormarket share growth or

19. Strategic Planning
Designing the businessDesigning the business
portfolio also involves:portfolio also involves:
 Developing strategies for growthDeveloping strategies for growth
by identifying, evaluating, andby identifying, evaluating, and
selecting promising new marketselecting promising new market
opportunities.opportunities.
 Developing strategies forDeveloping strategies for
downsizing the business portfolio.downsizing the business portfolio.

20. Figure 2-3:
Product / Market
Expansion Grid

21. Marketing plays a key role inMarketing plays a key role in
the strategic planning process.the strategic planning process.

22. Figure 2-4:
The Marketing Process

23. The Marketing Process
The strategic planningThe strategic planning
and business portfolioand business portfolio
analysis processesanalysis processes
help to identify andhelp to identify and
evaluate marketingevaluate marketing
opportunities.opportunities.
The purpose of theThe purpose of the
marketing process ismarketing process is
to help the firm planto help the firm plan
how to capitalize onhow to capitalize on
these opportunities.these opportunities.
Key ElementsKey Elements
Analyzing marketingAnalyzing marketing
opportunitiesopportunities
Selecting targetSelecting target
marketsmarkets
Developing theDeveloping the
marketing mixmarketing mix
Managing theManaging the
marketing effortmarketing effort

24. The Marketing Process
Analyzing marketingAnalyzing marketing
opportunitiesopportunities
Selecting targetSelecting target
marketsmarkets
Developing theDeveloping the
marketing mixmarketing mix
Managing theManaging the
marketing effortmarketing effort
Key ElementsKey Elements
The segmentationThe segmentation
process divides theprocess divides the
total market intototal market into
market segments.market segments.
Target marketingTarget marketing
chooses whichchooses which
segment(s) aresegment(s) are
pursued.pursued.
Market positioningMarket positioning
for the product isfor the product is
then determined.then determined.

25. 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 consumer’s mind
does the ad at left
attempt to create?

26. The Marketing Process
Competitor analysisCompetitor analysis
guides competitiveguides competitive
marketing strategymarketing strategy
development.development.
Strategy leads to tacticsStrategy leads to tactics
via the marketing mix:via the marketing mix:
 The “Four Ps” – product,The “Four Ps” – product,
price, place, promotionprice, place, promotion
(seller viewpoint)(seller viewpoint)
 The “Four Cs” –The “Four Cs” –
customer solution, cost,customer solution, cost,
convenience, andconvenience, and
communicationcommunication
(customer viewpoint)(customer viewpoint)
Analyzing marketingAnalyzing marketing
opportunitiesopportunities
Selecting targetSelecting target
marketsmarkets
Developing theDeveloping the
marketing mixmarketing mix
Managing theManaging the
marketing effortmarketing effort
Key ElementsKey Elements

27. Figure 2-5:
The Marketing Mix

28. The Marketing Mix
Visit the Hill’s Pet
Nutrition site.
How are the 4 C’s or
the 4 P’s presented
within the site?
Hill’s Pet
Nutrition

29. The Marketing Process
Marketing analysisMarketing analysis
 Provides informationProvides information
helpful in planning,helpful in planning,
implementation, andimplementation, and
controlcontrol
Marketing planningMarketing planning
 Strategies and tacticsStrategies and tactics
MarketingMarketing
implementationimplementation
 Turns plans into actionTurns plans into action
Marketing controlMarketing control
 Operating controlOperating control
 Strategic controlStrategic control
Analyzing marketingAnalyzing marketing
opportunitiesopportunities
Selecting targetSelecting target
marketsmarkets
Developing theDeveloping the
marketing mixmarketing mix
Managing theManaging the
marketing effortmarketing effort
Key ElementsKey Elements

30. Figure 2-6:
Managing the
Marketing Effort