Chapter 2 Company and Marketing Strategy: Partnering to Build Customer

to Build Customer Relationship
Kotler
“It is more important to do

what is strategically right than what is immediately profitable”

Dwight D. Eisenhower

“Plans are nothing
Planning is everything”

way I ought to go from here? asked Alice.
That depends

a good deal on where you want to get, said the Cat.
I don’t much care where, said Alice.
Then it doesn’t matter which way you go, said the Cat.

you start with?
How do you plan?

functional
Strategies
Corporate Level
Business unit,
product,
and market
level
Principles of
Marketing

purpose
What is our business?
Who is the customer?
What is the value

to the customer?
What will our business be?
What should our business be?

IBM’s new mission: from “Mainframes’ to “Customer Solutions”

· Dedication to every client's success · Innovation that matters, for our company and for the world · Trust and personal responsibility in all relationships

annual rate of return on investment over the next year

of 15% after tax
produce net profits of $ 2 000 000 in 20XX
produce a cash flow of $ 4 000 000 in 20XX
increase total sales revenue by certain % in 20XX,
achieve market share of 5% for brand A at market B in year C
increase awareness of product or brand A at market B from 20% to 40% over the planning period
expand the number of dealers by 10%...
Increase customers’ knowledge of a product features…
make consumer attitudes more favorable…

of businesses and products that make up the company.
Ex. USKO,

P&G, FoodMaster, Raimbek Group

A variety of tools can be used:
SWOT analysis, Competitor analysis
BCG (Boston Consulting Group) Matrix
Strategic-Planning Gap Model
Product/ Market Expansion Grid
Ansoff’s Growth Matrix

and Maintaining a Strategic Fit Between
the Organization’s Goals

and Capabilities
and Its Changing Marketing Opportunities.

share in their current market
Market development (expansion) - new markets

for current products
Integrative growth
Backward integration - acquire one or more suppliers
Forward integration - acquire one or more distributors
Horizontal integration - acquire one or more competitors
Diversification growth
Concentric diversification - new products related to current products
Horizontal diversification - new products unrelated to current products, but appeal to current customers
Conglomerate diversification - new products that have no relationship to current products, markets, or technology

Development
3. Product
Development
4. Diversification
Existing
Markets
New
Markets
Existing
Products
New
Products
Product/ Market Expansion Grid

Ansoff’s Growth Matrix

Developing Growth Strategies

customers without changing its products.
How? Add new stores in

current market areas, improve advertising, prices, service or store design.

Market Development: develop new
markets for its current products.
How? Identify new demographic or geographic markets.

to current markets.
How? New styles, flavors, colors, or modified

products.
Diversification: new products for new markets.
How? Start up or buy new businesses.

the business portfolio involves finding future businesses and products the

company should consider.
Apply the product/ market expansion grid to assess how one of the following companies might grow:
Meloman store
GROS
Foodmaster
Elite Stroy (Элитстрой)

functional
strategies
Corporate Level
Business unit,
product, and market level

environment