Chapter 2 - SS(1) PDF

Chapter 2 Company and Marketing Strategy: Partnering to Build Customer Relationships Copyright © 2009 Pearson Education, Inc. Chapter 16 - sli...

Chapter 2 Company and Marketing Strategy: Partnering to Build Customer Relationships Copyright © 2009 Pearson Education, Inc. Chapter 16 - slide 1 Publishing as Prentice Hall Topic Outline: knowing the company What does the company do? (purpose?) mission statement What products does the company sell? SBU & business portfolio What’s the company’s plan for its future? the product/market expansion grid downsizing Q1: What does the company do? mission statement  Strategic Planning (optional) The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. It sets the stage for the rest of planning in the firm. 4  Mission statement Steps in Strategic Planning  Companywide Strategic Planning （1） Defining a Market-Oriented Mission The mission statement shows the organization’s purpose, what it wants to accomplish in the larger environment。 “an invisible hand” Mostly likely to be found the company’s website. What organization?  Mission statements market-oriented vs. product-oriented mission statements market = customers Product-orientation is likely to lead to marketing myopia. Market-oriented mission statement defines the business in terms of satisfying basic customer needs.  Marketing in Action eBay’s Mission Statement “To provide a global trading platform where practically anyone can trade practically anything —you can get it at eBay”. eBay’s mission statement guides the firm in its strategic planning, and is reflected in eBay’s ads.  Homework What’s SONY’s mission? Q2 What products does the company sell? SBU & business portfolio Companywide Strategic Planning Designing the Business Portfolio The business portfolio is the collection of businesses and products that make up the company. strategic business units (SBUs) The businesses chosen for the portfolio should be those that fit the firm’s strengths and weaknesses.  Companywide Strategic Planning Analyzing the Current Business Portfolio Business Portfolio analysis Strategic business units (SBUs) can be Company division Product line within a division Single product or brand Analyzing the Current Business Portfolio Identify key businesses (strategic business units, or SBUs) that make up the company Assess the attractiveness of its various SBUs Decide how much support each SBU deserves Q3 What’s the company’s plan for its future? the product/market expansion grid downsizing  Companywide Strategic Planning Developing Strategies for Growth and Downsizing Product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.  Figure 3 The Product/Market Expansion Grid a growth strategy … outside the company’s current products and markets  Marketing in Action Product Development The key to growth in many consumer goods companies is new product development. New products provide customers with value when they satisfy needs better than existing offerings. Visit www.pg.com to see more examples  Can you use Starbucks to explain the Product/Market Expansion Grid? Product development Market penetration: Market development: Diversification Companywide Strategic Planning Developing Strategies for Growth and Downsizing Downsizing is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company’s overall strategy Identify key businesses (strategic business units, or SBUs) that make up the company Assess the attractiveness of its various SBUs Decide how much support each SBU deserves Downsizing GM: Surviving brands  Summary Mission statement SBU & Business portfolio The Product/Market Expansion Grid  Homework Read Chapter 3. Read the GM case and submit answers on BB: Who is to blame for GM’s bankruptcy?