welcome to chapter 2 in this video series on  the principles of marketing in this video we  

will discuss company and marketing strategy  partnering to build customer engagement value  

and relationships let's get started there's no  better corporate example to start with than nike  

nike's success is more than just making great  sports gear the company's strategy is to build  

engagement and a sense of community between the  brand and its customers this chapter will review  

five learning objectives objective one explain  company-wide strategic planning and its four steps  

objective two discuss how to design business  portfolios and develop growth strategies  

objective three explain marketing's role in  strategic planning and how marketing works  

with its partners to create and deliver customer  value objective four describe the elements of a  

customer value driven marketing strategy  and mix and the forces that influence it  

objective five list the marketing management  functions including the elements of a marketing  

plan and discuss the importance of measuring and  managing market return on investment now let's  

spend some time reviewing each of these objectives  in more detail starting with objective one  

learning objective one explain company-wide  strategic planning in its four steps as well  

as marketing's role first what is a working  definition of strategic planning it is the  

process of developing and maintaining a fit  between the organization's goals and capabilities  

and it's changing marketing opportunities this  figure illustrates the steps in strategic planning  

step one define the company mission step  two set company objectives and goals  

step three design the business portfolio  and step four plan marketing and other  

functional strategies let's define the  company mission the mission statement  

is a company's organizational purpose it's what  they want to accomplish in a larger environment  

next let's set objectives and goals this  includes both business and marketing objectives  

business objectives include building profitable  customer relationships investing in research and  

improving profits marketing objectives include an  increased market share creating local partnerships  

and increasing promotions here's an example  heinz ketchup's objective is to build profitable  

customer relationships by developing foods that  are superior in quality taste nutrition and  

convenience that embrace the company's nutrition  and wellness mission learning objective one  

summary the four steps of company-wide strategic  planning are strategic planning steps in strategic  

planning defining a market-oriented mission and  setting objectives and goals learning objective 2  

designing the business portfolio and developing  growth strategies the business portfolio is a  

collection of businesses and products that make up  the company portfolio analysis is a major activity  

in strategic planning where management  evaluates the products and businesses  

that make up the company as part of the portfolio  there are strategic business units or sbus they  

can be a company division a product line within a  division or a single product or brand as part of  

the portfolio analysis the following processes are  conducted identify strategic business units assess  

how attractive the sbus are and describe how much  support each sbu deserves the growth share matrix  

is a portfolio planning method that evaluates the  company's sbus in terms of market growth rates  

and relative market share this figure identifies  the bcg growth share matrix comparing marketing  

growth rates with relative marketing share with  a business approach there are problems with  

matrix approaches and they include a difficulty in  defining sbus and measuring its market share and  

growth it's time consuming it's expensive and the  focus is on current businesses not future planning  

developing strategies for growth and downsizing  a product market expansion grid looks at new  

products existing products new markets and  existing markets for company growth opportunities  

this figure shows an example of the product market  expansion grid it is divided into four quadrants  

existing markets new markets existing products  and new products when these quadrants merge  

the following occurs existing markets plus  existing products equals market penetration  

existing products plus new markets equals  market development existing markets plus  

new products equals product development and new  markets plus new products equals diversification  

a great example of developing strategies and  downsizing is starbucks they had the courage  

to drop an entire line of premium tees when they  no longer fit into the company mission and goals  

downsizing is when a company must prune harvest  or divest businesses that are unprofitable  

or that no longer fit the strategy learning  objective 2 summary in designing a business  

portfolio analyze the current portfolio by  using a growth share matrix and determine  

strategies for growth and downsizing  through a product market expansion grid  

learning objective three company and marketing  strategy explain marketing's role in strategic  

planning and how marketing works with its partners  to create and deliver customer value what is  

planning marketing partnering to build customer  relationships within planning marketing there is a  

value chain which is a series of departments  that carry out value-created activities to design  

produce market deliver and support a firm's  products partnering with other company departments  

promotes the value of getting the products to  the people and the value of understanding your  

consumer partnering with others in the marketing  system a value delivery network is made up of the  

company suppliers distributors and ultimately  customers who partner with each other to  

improve performance of the entire system learning  objective 3 summary explain marketing's role in  

strategic planning and how marketing works  with its partners to create and deliver  

customer value planning marketing is partnering to  build customer relationships partnering with other  

company departments and partnering with others in  the marketing system learning objective 4 describe  

the elements of a customer value-driven marketing  strategy and mix and the forces that influence it  

this figure identifies how to manage marketing  strategies in the marketing mix in the center  

is customer value and relationships the outer  rings include characteristics such as product  

price suppliers and marketing intermediaries  there are four quadrants which include competitors  

marketing intermediaries suppliers and the  public customer value drives marketing strategy  

a marketing strategy is the marketing logic by  which the company hopes to create customer value  

and achieve profitable customer relationships  customer value driven marketing strategy marketing  

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  

customer value driven marketing strategy market  targeting is a process of evaluating each market  

segment's attractiveness and selecting one  or more segments to enter market positioning  

is 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  customer value driven marketing strategy this is  

an example of positioning the hundred-year-old del  monte brand positions itself as bursting with life  

made in america picked and packed at the peak of  ripeness developing an integrated marketing mix  

a marketing mix is a 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 developing  

an integrated marketing mix this figure shows four  quadrants related to target customers and intended  

positioning this is blended into an integrated  program that actually engages target customers and  

delivers the intended value learning objective 4  summary this objective describes the elements of a  

customer-driven marketing strategy and mix as well  as the forces that influence it marketing strategy  

and marketing mix includes a customer value-driven  marketing strategy and development of an  

integrated marketing mix learning objective five  lists the marketing management functions including  

the elements of a marketing plan and discuss the  importance of measuring and managing marketing  

return on investment objective 5 discusses  managing the marketing effort and measuring  

and managing the return on marketing investment  managing the marketing effort marketing analysis  

this figure identifies the three elements of  analysis planning implementation and organization  

and control this quadrant shows the swot analysis  related to marketing it includes the following  

internal positive attributes or strengths  which can help companies reach their objective  

internal negative attributes or weaknesses which  are limitations that can interfere with company  

objectives external positive attributes  are opportunities which are factors that  

can help companies exploit their advantages and  external negative attributes are threats which  

can challenge company performance the components  of a marketing plan include the executive summary  

marketing situation threats and opportunities  objectives and issues marketing strategy  

action programs budgets and controls marketing  implementation includes turning marketing  

strategies and plans into marketing actions  to accomplish strategic marketing objectives  

it addresses the who where when and how marketing  department organization includes functional  

geographic product management market and  customer management managing the marketing effort  

marketing control control includes the following  characteristics evaluating results taking  

corrective action operating control and strategic  control return on marketing investment or roi  

this is defined as a net return from a  marketing investment divided by the costs of  

the marketing investment it measures the profits  generated by investments in marketing activities  

return on marketing investment this chart explains  return on marketing investment according to the  

chart marketing investment includes the following  marketing returns improved customer value and  

engagement increase customer attraction increase  customer retention increased customer lifetime  

values and customer equity coupled with this is  a cost of marketing investment these elements  

equal the marketing return on investment  learning objective 5 summary the following  

are the elements related to marketing management  functions explain them in detail analysis or swot

thank you for watching chapter 2.  please review the other chapters  

in this marketing series thank you very much