CHAPTER 2 - COMPANY MARKETING STRATEGY: Partnering to build customerengagement, value and relationshipsA. COMPANY-WIDE STRATEGIC PLANNING: DEFINING MARKETING’S ROLEStrategic Panning - the process of developing and maintaining a strategic fir between the organization’s goals andcapabilities and its changing marketing opportunities. - Companies usually prepare annual plans, long-range plans, and strategic plans. The annual and longrange plans deals with company’s current businesses and how to keep them going. In contrast, thestrategic plans involves adapting the firm to take advantage to take opportunities in its constantlychanging environment. Steps in Strategic Planning:Mission Statement - a statement of the organization’s purpose - what it wants to accomplish in the large environment. - Forging a sound mission begins with the following questions: What is our business? Who is thecustomer? What do customers value? What should our business be?- acts as an “invisible hand” that guides people in the organization.- mission should focus on customers and the customer experience the firm seeks to create.A mission statement should:1. Not be myopic to product terms2. Be meaningful and specific3. Be motivating4. Emphasize the company’s strengths5. Contain specific workable guidelines6. Not be stated as making sales or profitsMarket-oriented is in tems of satisfying the customer needs.Examples: (Starbucks) We sell “The Starbucks Experience”, one that enriches people’s lives one moment,one human being, one extraordinary cup of coffee at a time.(Facebook) We connect people around the world and help them share important moments in theirlives.(Revlon) We sell lifestyle and self-expression; success and status; memories, hopes, and dreams.Product-orientedis a mission myopically in product or technology terms.Examples:(Starbucks) We well coffee and snacks.(Facebook) We are an online social network. (Revlon) We make cosmeticsSetting Company Objectives and Goals:The mission should be converted to supporting objectives at each level of managementThe mission leads to a hierarchy of objectives, including business objectiveand marketing objectivesB. DESIGNING THE BUSINESS PORTFOLIO TheBusiness Portfolio is the collection of business and products that make up the company. The best business portfolio is the one that best fits the company’s strengths and weaknesses toopportunities in the environment.
Business Portfolio Planning involves two steps. 1. The company must analyze its current business portfolio and determine which businesses should receive more, less, or no investment.2. It must shape the future portfolio by developing strategies for growth and downsizing.Portfolio analysis is the major activity in strategic planning whereby the management evaluates theproducts and businesses that make up the company.