MARKETING
Dr. Mahani BMA Shakur
Faculty of Economics & Business
Universiti Malaysia Sarawak
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LU 2: Marketing Strategy
Objectives
• At the end of this learning units, you should
be able to:
– Briefly explain the marketing planning role and
strategy in an organisation
– Discuss approaches that can be used to analyse
business portfolio and develop growth strategies
– Understand the term ‘value’ and satisfaction
Market vs. Product Oriented Business
Definition
Company
Facebook
Revlon
ProductOriented
Definition
Market-Oriented
Definition
We are an online
social network
We connect people around
the worlds and help them
share important moments
in their lives
We make
cosmetics
We sell lifestyles and selfexpression; success and
status; memories, hopes
and dreams
Source: Kotler and Amstrong, 2014
Introduction
• Marketing Planning and strategy must
maintain the strategic fit between the
company’s overall organizational goals,
capabilities and it’s changing marketing
opportunities
Marketing Planning Role
• Defining a market oriented mission
– Every organisation requires a clear mission
statement that communicate the purpose of an
organisation
– Market orientation should tally with the
organisation’s mission statement
• Setting Up Company Objectives and Goals
– The broad mission leads to a hierarchy of
objectives, including business objectives and
marketing objectives
Business Portfolio Analysis
• Analyzing the Strategic Business Units (SBU) performance
• Popular – Growth Share Matrix
Low
High
Market Growth Rate
– The Boston Consulting Group Approach
Star
Question
Mark
Cash
Cow
Dog
High
Low
Relative Market Share
The Boston Consulting Group
Approach
Star
• High-growth, high-share businesses or product
• Often need heavy investments to finance growth
Cash
Cows
• Low-growth, high-share businesses or products
• Established and successful SBU, need less investment, produce a
lot of cash to support itself and to support other SBUs
Question
Marks
• Low-share SBU in high-growth market
• Require a lot of cash to hold their share – management to decide
whether to build into stars or to phase out the SBU
Dogs
• Low-growth, low-share businesses or products
• May generate enough cash to maintain themselves but do not
promise to be a large sum of cash
The Product/Market Expansion Grid
New Market
Existing
Market
• Often known as Ansoff Matrix
Existing
Product
New Product
Market
Penetration
Product
Development
Market
Development
Diversification
Customer Value and Satisfaction
• Satisfied customers will stay –i.e. customer
retention
– Loyal customers normally will spread good news
about a company/ brand.
– Desired by the company since it will reduce the cost of
customer acquisition
• Not satisfied customer
– Moving away from our company / brand
– Switch to competitors’ product / services → spread
negatives expressions about a company/ brand.
Customer Value and Satisfaction
• Golden Rule: Customer is Always Right /
Customer is King!
• One of the way to measure loyal customer with Customer Lifetime Value (LTV)
– i.e. Prediction of the amount of revenue / profit
that a single customer can generate for a company
from the relationship with a customer, over his
/her lifetime
Main References
• Kotler and Amstrong (2014) Principles of
Marketing, 15th ed., Person Education Ltd.,
Essex
• Lamb, Hair, McDaniel, Summmers and
Gardiner (2013) Marketing2; 2nd Asia-Pacific
Edition., Cengage Learning Australia Pty.Ltds.