This document outlines the key principles of corporate and marketing strategy. It discusses how corporate strategic planning involves determining long-term goals by considering opportunities/threats and strengths/weaknesses. Marketing strategy defines target customers, product positioning, and the marketing mix (product, price, place, promotion) to reach corporate goals. The marketing strategy is set out in a marketing plan. Marketing objectives must align with and support overall business objectives.

1. Chapter 2- slide 1
Principles of Marketing
Chapter II
Marketing Strategy and Corporate Strategy

2. Chapter 2- slide 2Francois Gaucher - Principals of Marketing
Corporate and Marketing Strategy
• Understand the Marketing role in the companywide
strategic planning.
Topic Outline

3. Chapter 2- slide 3Francois Gaucher - Principals of Marketing
Corporate 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
Strategic Planning and Marketing Strategy

4. Chapter 2- slide 4Francois Gaucher - Principals of Marketing
Corporate 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.
Strategic Planning and Marketing Strategy

5. Chapter 2- slide 5Francois Gaucher - Principals of Marketing
Corporate and Marketing Strategy
Strategic Planning and Marketing Strategy
Corporate Level Functional Level
Corporate Strategic
Planning
Corporate Strategic
Planning
Functional Srategies:
Marketing Strategy, HR Strategy,
IT Strategy, Production Strategy,
etc.
Functional Srategies:
Marketing Strategy, HR Strategy,
IT Strategy, Production Strategy,
etc.

6. Chapter 2- slide 6Francois Gaucher - Principals of Marketing
Corporate and Marketing Strategy
Business objectives
•Increase market
share by 10% with
new products
•Invest in R&D to
develop new products
•Improve profits by 2%
Marketing objectives
•Increase promotion
budget
•Hire new sales force
•Increase pricing of
slow moving items
•Invest in social media
and CRM to innovate
through crowd
sourcing.
Strategic Planning and Marketing Strategy

7. Chapter 2- slide 7Francois Gaucher - Principals of Marketing
Marketing Organization and Strategy
Marketing Department Organization
Functional OrganizationFunctional Organization
Geographic OrganizationGeographic Organization
Business Unit / Product OrganizationBusiness Unit / Product Organization
Market /Customer OrganizationMarket /Customer Organization
MixedOrganizationMixedOrganization

8. Chapter 2- slide 8Francois Gaucher - Principals of Marketing
Marketing Organization and Strategy
• The most common form of marketing organization is the
functional organization. Under this organization functional
specialists head the various marketing activities.
Marketing Department Organization
Chief Marketing
Officer
Supermarkets
CRM Pricing Simulations
Category
Management
Referencing
Promotions
Stores
location and
Layouts

9. Chapter 2- slide 9Francois Gaucher - Principals of Marketing
Principals of Marketing
Components of Marketing Strategy

10. Chapter 2- slide 10Francois Gaucher - Principals of Marketing
Marketing Organization and Strategy
The Marketing Strategy is defined by the STP model and
the 4 Ps model
Developing the Marketing Strategy
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.

11. Chapter 2- slide 11Francois Gaucher - Principals of Marketing
Marketing Organization and Strategy
Identify your market segments “you
cannot please everyone”
Developing the Marketing Strategy
Market Segmentation
• Identify bases for Segmentation
• Determine important characteristics of each
market segments
Market Targeting
• Evaluate attractiveness of each segments
• Select one or more segments
Market Positioning
• Develop detailed product positioning for each
segments
• Develop a marketing Mix for each segment
zero in on the segments that you feel will be
the most profitable for your business
how to place your product effectively in
front of the market segments you selected?
How your product stands out from
competitors?

12. Chapter 2- slide 12Francois Gaucher - Principals of Marketing
Marketing Organization and Strategy
• Product positioning must be supported by the
marketing mix
Developing the Marketing Mix

13. Chapter 2- slide 13Francois Gaucher - Principals of Marketing
Marketing Organization and Strategy
• 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
Developing the Marketing Mix

14. Chapter 2- slide 14Francois Gaucher - Principals of Marketing
Marketing Organization and Strategy
• 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.
Developing the Marketing Mix

15. Chapter 2- slide 15Francois Gaucher - Principals of Marketing
Marketing Organization and Strategy
Developing the Marketing Mix
PRODUCT
Quality
Design
Brand name
Features
Packaging
Services
PRICE
List Price
Discounts
Credit Terms
Entrance into the
market
PLACE
Channels
Coverage
Transportation
Locations
Logistics
PROMOTION
Advertising
Personal selling
Direct Marketing
Sales Promotion
Public relations

16. Chapter 2- slide 16Francois Gaucher - Principals of Marketing
Marketing Organization and Strategy
Understand
the Customer
and
Marketplace
Design a
Marketing
Strategy
Construct the
Marketing
Plan
Build
Customer
Relationships
Capture
Value
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ResearchResearch
Marketing
Information System
Marketing
Information System
Segmenting &
Targeting
Segmenting &
Targeting
Value Proposition:
Differentiating and
Positioning
Value Proposition:
Differentiating and
Positioning
Product and Service
design
Product and Service
design
PricingPricing
Place
(Distribution)
Place
(Distribution)
Promotion:
communicate the
value proposition
Promotion:
communicate the
value proposition
Customer
Relationship
Management
Customer
Relationship
Management
Partners
Relationship
Management
Partners
Relationship
Management
Create Satisfied,
Loyal customers
Create Satisfied,
Loyal customers
Capture Customer
Lifetime Value
Capture Customer
Lifetime Value
Increase share of
Market and share of
Customer
Increase share of
Market and share of
Customer
The Marketing Process
Analyzing the
Marketing
Environment
Analyzing the
Marketing
Environment
Manage
Relationships
Capture
Value
Create
Value