Principles of Marketing
Chapter II
Marketing Strategy and Corporate Strategy
Chapter 2- slide 1
Corporate and Marketing Strategy
Topic Outline
• Understand the Marketing role in the companywide
strategic planning.
Francois Gaucher - Principals of Marketing Chapter 2- slide 2
Corporate and Marketing Strategy
Strategic Planning and Marketing Strategy
Corporate Strategic planning:
The process of determining a company's long-term goals and
identifying the best approach for achieving those goals by
considering the environment opportunities and threats and the
firm’s strengths and weaknesses.
“Long Term” oriented (Time is culture-bound term)
3 to 5 years (western countries)
Beyond 10 years in Asian countries
Francois Gaucher - Principals of Marketing Chapter 2- slide 3
Corporate and Marketing Strategy
Strategic Planning and Marketing Strategy
Marketing Strategy:
Defines the selected customers to target, the product
positioning, and the ideal product mix (product, price,
promotion, place), and other action programs to reach corporate
goals.
The marketing strategy is set out in a marketing plan.
Francois Gaucher - Principals of Marketing Chapter 2- slide 4
Corporate and Marketing Strategy
Strategic Planning and Marketing Strategy
Corporate Level Functional Level
Functional Srategies:
Corporate Strategic Marketing Strategy, HR Strategy,
Planning IT Strategy, Production Strategy,
etc.
Francois Gaucher - Principals of Marketing Chapter 2- slide 5
Corporate and Marketing Strategy
Strategic Planning and Marketing Strategy
Business objectives Marketing objectives
•Increase market •Increase promotion
share by 10% with budget
new products •Hire new sales force
•Invest in R&D to •Increase pricing of
develop new products slow moving items
•Improve profits by 2% •Invest in social media
and CRM to innovate
through crowd
sourcing.
Francois Gaucher - Principals of Marketing Chapter 2- slide 6
Marketing Organization and Strategy
Marketing Department Organization
Functional Organization
Mixed Organization
Geographic Organization
Business Unit / Product Organization
Market /Customer Organization
Francois Gaucher - Principals of Marketing Chapter 2- slide 7
Marketing Organization and Strategy
Marketing Department Organization
• The most common form of marketing organization is the
functional organization. Under this organization functional
specialists head the various marketing activities.
Chief Marketing
Officer
Supermarkets
Stores
Category
CRM Pricing Simulations Promotions location and
Management
Layouts
Referencing
Francois Gaucher - Principals of Marketing Chapter 2- slide 8
Principals of Marketing
Components of Marketing Strategy
Francois Gaucher - Principals of Marketing Chapter 2- slide 9
Marketing Organization and Strategy
Developing the Marketing Strategy
The Marketing Strategy is defined by the STP model and
the 4 Ps model
STP model 4Ps model
Marketing Strategy is about segmenting the market, targeting the right customers,
and positioning your products/services correctly on the targeted market.
Francois Gaucher - Principals of Marketing Chapter 2- slide 10
Marketing Organization and Strategy
Developing the Marketing Strategy
Market Segmentation
• Identify bases for Segmentation
Identify your market segments “you
• Determine important characteristics of each cannot please everyone”
market segments
Market Targeting
zero in on the segments that you feel will be
• Evaluate attractiveness of each segments
• Select one or more segments
the most profitable for your business
Market Positioning how to place your product effectively in
front of the market segments you selected?
• Develop detailed product positioning for each
segments
How your product stands out from
• Develop a marketing Mix for each segment competitors?
Francois Gaucher - Principals of Marketing Chapter 2- slide 11
Marketing Organization and Strategy
Developing the Marketing Mix
• Product positioning must be supported by the
marketing mix
Francois Gaucher - Principals of Marketing Chapter 2- slide 12
Marketing Organization and Strategy
Developing the Marketing Mix
• Marketing mix: One of the major
concepts in modern marketing
• Marketing mix is the set marketing
tools under the firm control: Product,
Price, Place, and Promotion.
• The firm blends these variables to
produce the response it wants in the
target market
Francois Gaucher - Principals of Marketing Chapter 2- slide 13
Marketing Organization and Strategy
Developing the Marketing Mix
• Product. the goods-and-services combination the company
offers to the target market.
• Price. the amount of money customers pay to obtain the
product.
• Place. company activities that make the product available
to target consumers.
• Promotion. activities that communicate the merits of the
product and persuade target customers to buy it.
Francois Gaucher - Principals of Marketing Chapter 2- slide 14
Marketing Organization and Strategy
Developing the Marketing Mix
PRODUCT PRICE PLACE PROMOTION
Quality List Price Channels Advertising
Design Discounts Coverage Personal selling
Brand name Credit Terms Transportation Direct Marketing
Features Entrance into the Locations Sales Promotion
Packaging market Logistics Public relations
Services
Francois Gaucher - Principals of Marketing Chapter 2- slide 15
Marketing Organization and Strategy
The Marketing Process
Create Manage Capture
Value Relationships Value
1 2 3 4 5
Understand
Design a Construct the Build Capture
the Customer
Marketing Marketing Customer
and Value
Strategy Plan Relationships
Marketplace
Analyzing the Segmenting & Product and Service Customer
Marketing Targeting design Create Satisfied,
Relationship
Environment Loyal customers
Management
Pricing
Research Value Proposition: Partners
Differentiating and Capture Customer
Place Relationship
Positioning Lifetime Value
Marketing (Distribution) Management
Information System Promotion: Increase share of
communicate the Market and share of
value proposition Customer
Francois Gaucher - Principals of Marketing Chapter 2- slide 16
