MKT 201 CH 2

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Principles of Marketing

Seventeenth Edition

Chapter 2

Partnering to Build Customer


Engagement, Value, and Relationships

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Learning Objective
Explain company-wide strategic planning and its four steps.

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Company-Wide Strategic Planning
Strategic planning is the process of developing and maintaining a
strategic fit between the organization’s goals and capabilities, and its
changing marketing opportunities.

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Company-Wide Strategic Planning

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Company-Wide Strategic Planning
The mission statement is the organization’s
purpose; what it wants to accomplish in the
larger environment.

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Company-Wide Strategic Planning
Setting Company Objectives and Goals

Business Marketing
objectives objectives
• Build profitable • Increase
customer market share
relationships • Create local
• Invest in partnerships
research • Increase
• Improve profits promotion

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Designing The Business Portfolio

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Designing The Business Portfolio
Developing Strategies for Growth and Downsizing

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Designing The Business Portfolio
Developing Strategies for Growth and Downsizing
Downsizing is when a company must prune, harvest, or divest businesses
that are unprofitable or that no longer fit the strategy.

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Learning Objective
Describe the elements of a customer value-driven marketing strategy and mix,
and the forces that influence it.

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Marketing Strategy and the Marketing Mix

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Marketing Strategy and the Marketing Mix
Customer Value-Driven Marketing Strategy
Marketing strategy is the marketing logic by which the company hopes to
create customer value and achieve profitable customer relationships.

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Marketing Strategy and the Marketing Mix
Customer Value-Driven Marketing Strategy

Market segmentation is the division of a market into distinct groups of


buyers who have different needs, characteristics, or behaviors and who might
require separate products or marketing mixes.

Market segment is a group of consumers who respond in a similar way to a


given set of marketing efforts.

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Marketing Strategy and the Marketing Mix
Customer Value-Driven Marketing Strategy
Market targeting is the process of evaluating each market segment’s
attractiveness and selecting one or more segments to enter.
Market positioning is the arranging for a product to occupy a clear, distinctive,
and desirable place relative to competing products in the minds of target
consumers.
Differentiation begins the positioning process.

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Marketing Strategy and the Marketing Mix
Customer Value-Driven Marketing Strategy

Positioning: The L’Oréal group serves major


segments of the beauty market, and within each
segment it caters to many sub segments. L’Oréal
targets the larger segments through its major
divisions; further within these major divisions,
L’Oréal markets various brands that cater to
customers of different ages, incomes, and lifestyles.

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Marketing Strategy and the Marketing Mix
Developing an Integrated Marketing Mix

Marketing mix is the set of controllable, tactical marketing tools—product,


price, place, and promotion—that the firm blends to produce the response it
wants in the target market.

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Marketing Strategy and the Marketing Mix

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Learning Objective
List the marketing management functions, including the elements of a
marketing plan, and discuss the importance of measuring and managing
marketing return on investment.

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Managing the Marketing Effort
Figure 2.6 Analysis, Planning, Implementation, and Control

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Managing the Marketing Effort
Figure 2.7 Marketing Analysis: SWOT Analysis

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Managing the Marketing Effort
Market Planning—Parts of a Marketing Plan

Executive Marketing Threats and


summary situation opportunities

Objectives Marketing Action


and issues strategy programs

Budgets Controls

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Managing the Marketing Effort
Marketing Implementation
• Turning marketing strategies and plans into marketing actions to
accomplish strategic marketing objectives
• Addresses who, where, when, and how

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Measuring and Managing Return on Marketing Investment

Return on Marketing Investment (Marketing ROI)


• Net return from a marketing investment divided by the costs of the
marketing investment
• Measurement of the profits generated by investments in marketing
activities

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Measuring and Managing Return on Marketing Investment

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