Company and Marketing Strategy (Grade A)

Summary:

Chapter 2 of the BMKT300 Marketing Theory and Principles course in the School of Business, Department of Marketing, focuses on company and marketing strategy. The chapter discusses company-wide strategic planning and its importance in aligning organizational goals and capabilities with changing marketing opportunities. Four steps are outlined for effective strategic planning, including designing business portfolios.

Designing the business portfolio involves analyzing the current portfolio and determining which businesses should receive more, less, or no investment. This step shapes the future portfolio through growth and downsizing strategies. The portfolio analysis uses the Growth-Share Matrix, which categorizes Strategic Business Units (SBUs) based on market growth rate and relative market share.

The chapter then introduces the Product/Market Expansion Grid, a tool for identifying growth opportunities through market penetration, market development, product development, or diversification. Examples are provided to illustrate each strategy. The concept of downsizing is also discussed, highlighting reasons for portfolio reduction.

Lastly, the chapter covers the integrated marketing mix, represented by the 4Ps: Product, Price, Place, and Promotion. Definitions and explanations are given for each element. The chapter acknowledges some concerns about the 4Ps framework and suggests considering the 4As from a customer-centred perspective: Acceptability, Affordability, Accessibility, and Awareness.

Overall, this chapter provides students with a comprehensive understanding of company and marketing strategy, including strategic planning, portfolio analysis, growth strategies, downsizing, and the elements of the marketing mix.

Excerpt:

Company and Marketing Strategy

School of Business
Department of Marketing
BMKT300 – Marketing Theory and Principles
Chapter 2 | Part 1
Company and Marketing Strategy

Objectives:
• Explain company-wide strategic planning and outline its four steps.
• Discuss how to design business portfolios.

Company-Wide Strategic Planning – Strategic Planning Definition
• Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
• It involves adapting the firm to take advantage of opportunities in its constantly changing environment for long-run survival and growth.