Chapter 2 – company and marketing strategy: partnering to build customer relationships Company-Wide Strategic Planning: Defining Marketing’s Role Strategic planning – the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities Companies usually prepare annual plans, long-range plans, and strategic plans Steps in strategic planning Steps: 1. Defining a Market-Oriented Mission Questions asked in this stage: what is our business? Who is the customer? What do consumers value? What should our business be? Many organizations develop formal mission statements that answer these questions Mission statement – a statement of the organization’s purpose – what it wants to accomplish in the larger environment A clear mission statement act as an invisible hand that guide the people in the organization Mission statements should be market oriented and defined in terms of satisfying basic customer needs Mission statements should be meaningful and motivating, and also emphasize the company’s strengths in the marketplace. Mission statements must focus on customers and the customer experience the company seek to create. If the company accomplishes their customer-focused mission, profit will follow 2. 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. Eg. Heinz company The broad mission leads to a hierarchy of objectives, including business objectives and marketing objectives. Defining the company mission Setting company objectives and goals Designing the business portfolio Planning marketing and other functional strategies Corporate level Business unit, product, and market level
Marketing strategies and programs must be developed to support these marketing objectives 3. Designing the Business Portfolio Business portfolio – the collection of businesses and products that make up the company. The best portfolio is the one that best fits the company’s strengths and weaknesses to opportunities in the environment. Large companies have complex portfolios of businesses and brands Strategic and marketing planning for such business portfolio can be daunting (challenging) but critical task Eg., Roger wireless Strategic planning process is the same for all company’s portfolio 1) analyze its current business portfolio and determine which businesses should receive more, less, or no investment. 2) Shape the future portfolio by developing strategies for growth and downsizing Analyzing the Current Business Portfolio Portfolio analysis – the process by which management evaluates the products and businesses that makes up the company The company should put strong resources to more profitable businesses and phase down or drop the weaker ones Steps: 1) identify the key businesses that make up the company, called Strategic Business Units (SBUs)
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