MKTG1025 Lecture 2: MARKETING PRINCIPLES SUMMARY CHAPTER 2
CHAPTER 2 – COMPANY AND MARKETING STRATEGY: VALUE AND RELATIONSHIPS
Explain company-wide strategic planning and its four steps
Strategi plaig sets the stage for the rest of the opay’s plaig. Marketig otriutes to strategi
plaig, ad the oerall pla defies arketig’s role i the opay. Strategi plaig ioles deelopig
a strategy for long-run survival and growth. It consists of four steps:
1 defiig the opay’s issio,
(2) setting objectives and goals,
(3) designing a business portfolio and
(4) developing functional plans.
The opay’s issio should e arket-oriented, realistic, specific, motivating and consistent with the
market environment. The mission is then transformed into detailed supporting goals and objectives , which in
turn guide decisions about the business portfolio. Then each business and product unit must develop detailed
marketing plans in line with the company-wide plan.
Discuss how to design business portfolios and develop growth strategies
Guided y the opay’s issio stateet ad ojeties, aageet plas its usiess portfolio, or the
collection of businesses and products that make up the company.
The firm wants to produce a business portfolio that best fits its strengths and weaknesses to opportunities in
the environment. To do this, it must analyse and adjust its current business portfolio and develop growth and
downsizing strategies for adjusting the future portfolio. The company might use a formal portfolio-planning
method. But many companies are now designing more customised portfolio-planning approaches that better
suit their unique situations.
Explain marketing’s role i strategic plaig ad how arketig works with its parters to create ad
deliver customer value.
Under the strategic plan, the main functional departments – marketing, finance, accounting, purchasing,
operations, information systems, human resources and others – must work together to accomplish strategic
ojeties. Marketig plays a key role i the opay’s strategi plaig y proidig a arketig oept
philosophy and inputs regarding attractive market opportunities. Within individual business units, marketing
desigs strategies for reahig the uit’s ojeties ad helps to arry the out profitaly.
Marketers alone cannot produce superior value for customers. Marketers must practise partner relationship
management , working closely with partners in other departments to form an effective value chain that serves
the customer. And they must also partner effectively with other companies in the marketing system to form a
competitively superior value delivery network .
Describe the elements of a customer value driven marketing strategy and mix, and the forces that influence
it.
Customer value and relationships are at the centre of marketing strategy and programs. Through market
segmentation, targeting, differentiation and positioning, the company divides the total market into smaller
segments, selects segments it can best serve and decides how it wants to bring value to target customers in
the selected segments. It then designs an integrated marketing mix to produce the response it wants in the
target market. The marketing mix consists of product, price, place and promotion decisions, and taking
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Document Summary
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