Company and Marketing StrategyMarketing NotesObjectives ReviewIn Chapter 1, we defined marketing and outlined the steps in the marketingprocess. In this chapter, we examined company-wide strategic planning andmarketing’s role in the organization. Then we looked more deeply intomarketing strategy and the marketing mix and reviewed the major marketingmanagement functions. So you’ve now had a pretty good overview of thefundamentals of modern marketing.Objective 2-1 Explain company-wide strategic planning and its four steps.(pp 38–40)Strategic planning sets the stage for the rest of the company’s planning.Marketing contributes to strategic planning, and the overall plan definesmarketing’s role in the company.Strategic planning involves developing a strategy for long-run survival andgrowth. It consists of four steps: (1) defining the company’s mission, (2)setting objectives and goals, (3) designing a business portfolio, and (4)developing functional plans. The company’s mission should be marketoriented, realistic, specific, motivating, and consistent with the marketenvironment. The mission is then transformed into detailed supporting goalsand objectives, which in turn guide decisions about the business portfolio.Then each business and product unit must develop detailed marketing plansin line with the company-wide plan.Objective 2-2 Discuss how to design business portfolios and developgrowth strategies. (pp 40–46)Guided by the company’s mission statement and objectives, managementplans its business portfolio, or the collection of businesses and products thatmake up the company. The firm wants to produce a business portfolio thatbest fits its strengths and weaknesses to opportunities in the environment.To do this, it must analyze and adjust its current business portfolio anddevelop growth and downsizing strategies for adjusting the future portfolio.The company might use a formal portfolio-planning method. But many
Chapter 2companies are now designing more-customized portfolio-planningapproaches that better suit their unique situations.