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Armstrong, Kotler & da Silva. Marketing : An Introduction An Asian Perspective. 2. Company and Marketing Strategy: Partnering to Build Customer Relationships. Important Concepts. Opening Case Study- Walt Disney Company. Disney Land. Strategic Planning.

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Armstrong, Kotler

& da Silva

Marketing : An Introduction

An Asian Perspective


Company and Marketing Strategy: Partnering to Build Customer Relationships

strategic planning
Strategic Planning

Strategic Planningis the Process of Developing and Maintaining a Strategic Fit Between the Organization’s Goals and Capabilities and Its Changing Marketing Opportunities.

outcomes of effective marketing strategies
Outcomes of effective marketing strategies:
  • Achieve clear competitive advantages over the firm’s rivals
  • Create positive responses among its target customers
  • Turn in positive contributions to its bottom-line
questions a mission statement should answer
Questions a Mission Statement Should Answer

What is our Business?

Who is the Customer?

What do Consumers Value?

What Should our Business Be?

the mission statement
The Mission Statement
  • A statement of the organization’s purpose
    • What it wants to accomplish in the larger environment
  • Should be market oriented and defined in terms of customer needs.
mission statements should

Be Based on Distinctive Competencies

Fit the Market Environment

Be Motivating

Be Realistic

Be Specific

Mission Statements Should:
designing the business portfolio
Designing the Business Portfolio
  • The business portfolio is the collection of businesses and products that make up the company.
  • The company must:
    • analyze its current business portfolio or Strategic Business Units (SBUs),
    • decide which SBUs should receive more, less, or no investment,
    • develop growth strategies for growth or downsizing.
strategic business unit sbu
Strategic Business Unit (SBU)
  • A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses.
  • Can be a company division, a product line within a division, or sometimes a single product or brand.
portfolio analysis
Portfolio Analysis
  • An evaluation of the products and business making up the company.
  • Resources are directed to more profitable businesses and weaker ones are phased down or dropped.
analyzing current sbu s bcg growth share matrix
Analyzing Current SBU’s:BCG Growth-Share Matrix

Relative Market Share

High Low

  • Question Marks
  • Low share SBUs in high growth
  • markets
  • Require cash to hold
  • market share
  • Build into Stars or phase out


  • Stars
  • High growth & share
  • May need heavy
  • investment to grow
  • Eventually, growth will slow

Market Growth Rate

Low High

  • Cash Cows
  • Low growth, high share
  • Established, successful
  • SBU’s
  • Produce cash
  • Dogs
  • Low growth & share
  • Generate cash to sustain self
  • Do not promise to be cash
  • sources
problems with matrix approaches

Can be Difficult, Time Consuming, Costly to Implement

Difficult to Define SBUs & Measure Market Share/Growth

Focus on Current Businesses, Not Future Planning

Problems With Matrix Approaches

Can Place too Much Emphasis on Growth

step ii developing strategies for growth and downsizing
Step II. Developing strategies for growth and Downsizing

Marketing has the main responsibility for achieving profitable growth for the company.

Marketing must identify, evaluate, and select market opportunities and lay down strategies for collecting them.

One useful device for identifying growth opportunities is the Product/Market Expansion Grid.

product market expansion grid
Product/Market Expansion Grid

Figure 2.7




Market Penetration




Market Development



product market expansion grid based on starbucks
Product/Market Expansion Grid Based on Starbucks
  • Market Penetration: make more sales to current customers without changing products.
    • How? Add new stores in current market areas; improve advertising, prices, menu, service.
  • Market Development: identify and develop new markets for current products.
    • How? Review new demographic (seniors/ethnic consumers) or geographic (Asian, European, Australian, & South American) markets.
market penetration
Market Penetration

Started the first shop in 2004

In 2009, the number of shops reached 41 including 8 University campuses

Surej P John

product market expansion grid based on starbucks1
Product/Market Expansion GridBased on Starbucks
  • Product Development: offering modified or new products to current markets.
    • How? Add food offerings, sell coffee in supermarkets, co-brand products.
  • Diversification: start up or buy businesses outside current products and markets.
    • How? Making and selling CDs, testing restaurant concepts, or branding casual clothing.
  • Diversification is developing new products for new markets

Surej P John

  • Reducing the business portfolio by eliminating the products or business units that are not profitable or that no longer fit the company’s overall strategy.

Surej P John

market segmentation
Market Segmentation
  • The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products of marketing programs.
  • A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.
target marketing
Target Marketing
  • Involves evaluating each market segment’s attractiveness and selecting one or more segments to enter.
  • Target segments that can sustain profitability.
market positioning
Market Positioning
  • Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers (e.g. “in a perfect world everyone would drive a Mercedes Benz”)
  • Process begins with differentiating the company’s marketing offer so it gives consumers more value.
the marketing mix
The Marketing Mix
  • The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.
  • Consists of the 4 P’s
    • Product
    • Price
    • Place
    • Promotion

Product strategies

Any kind of strategies that are related to make product improvements.

Product quality

Product design

Product features

Brand Name




Price Strategies

Any kind of business decisions that directly related to the price of the product or service offered

List price



Credit terms etc.


Place Strategies

Place includes the company activities that make the product available to target customers.

Place includes Channels, Coverage, Locations, Inventory, transportation, logistics etc.


Promotion Strategies

Promotion means activities that communicate the merits of the products and persuade the target customers to buy it.

Advertising, Sales promotion, personal selling, public relations etc. are coming under the Promotion concept.



Internal abilities that help the company to achieve its objectives

Good brand name

Low cost of production

Cheap Labor

Enough budget for advertisement or promotions

Ability to introduce the new product into market



Internal limitations that may interfere or block the company’s ability to achieve its objectives

High Competition

Lack of enough money

Poor Quality

Cheap Brand name



External factors of the market that the company may be able to take advantage.



External factors that may challenge the company’s performance

A new competitor in your home market.

Price wars with competitors.

A competitor has a new, innovative product or service.

Competitors have superior access to channels of distribution.