Exhibit 2-1: The Marketing Management Process

Exhibit 2-2: A Marketing Strategy

Exhibit 2-3: Production-Oriented and Marketing-Oriented Managers Have Different Views of the Market

Exhibit 2-4: A Marketing Strategy—Showing the Four Ps of a Marketing Mix

Exhibit 2-5: Strategy Decision Areas Organized by the 4 Ps

Exhibit 2-6: Four Basic Channels of Distribution for Consumer Products

Exhibit 2-7: Relation of Strategy Policies to Operational Decisions for Baby Shoe Company

Exhibit 2-8: Elements of a Firm’s Marketing Program

Exhibit 2-9: Overview of Marketing Strategy Planning Process

Exhibit 2-11: Four Basic Types of Opportunities

TARGET MARKETING– Marketing mix is tailored to fit specific target

customer(s)

MASS MARKETING– Vaguely aims at everyone with the same marketing

mix

Target Marketing vs. Mass Marketing

Why is the Four Ps idea helpful?– Provides an organizing framework– Helps to bring many, more detailed decisions

together in a logical fashion– Focuses thinking on the idea that all marketing

decisions must work together as a whole– Focuses on a managerial orientation—and what a

marketing manager/firm can do about needs of target customers

The Four Ps and Marketing Mix Planning

Marketing plan: a written statement of a marketing strategy and the time related details for carrying out the strategy.Spells out, in detail:– What marketing mix is to be offered– To what target market– For how long– What resources (costs) are needed at what rate– What results are expected– What control procedures will be used.

The Marketing Plan

Marketing program: blends all of the firm's marketing plans into one big plan—which is an integrated part of the whole-company strategic plan– Program requires an effective building up process– A good program must be based on good plans– Each plan must be carefully developed– Each plan is based on a marketing strategy– Each strategy is based on a marketing mix and a target market

Plans in overall program should work together to enhance a competitive advantage

Marketing Program

Distribution of Different Firms Based on Their Marketing Performance

Marketing Manager’s Framework

Customer Equity Increases as a Firm Attracts Customers, Retains Them, and Increases Earnings with Them

Competitive advantage: the firm has a marketing mix that the target market sees as better than a competitor's mix– A better marketing mix offers target customers better customer

value– Note: customers who are not in the target market may not see

the marketing mix as offering better valueRequires that the firm:– understand current competitors' offerings– anticipate competitors' likely plans– monitor effects of changes in competition– REALLY understand the target customers' needs

Competitive Advantage

Focusing Marketing Strategy and Evaluating Market Opportunities

Narrowing down from broad market opportunities that a firm might pursue to a specific strategy– Marketing strategy specifies a specific target market and a

specific marketing mix– Not just some strategy, but one that will offer target customers

superior valueSegmentation helps pinpoint a specific target marketDifferentiation helps pinpoint a marketing mix that is different from and better than what is available from a competitorScreening criteria make it clear why you select a specific strategy (and why others are screened out)S.W.O.T. analysis identifies and lists a firm’s strengths and weaknesses and its opportunities and threats– S.W.O.T helps identify relevant screening criteria (what is needed

to get a competitive advantage)

Marketing Strategy Planning Process

Market Penetration – Arm & Hammer promotes new uses of its baking soda

Market Development– Marriott Hotels target families for weekend get-aways to rent

rooms filled by business travelers during the weekProduct Development– Microsoft develops a new version of its Windows operating

system to appeal to the people who bought an earlier version but now want more features

Diversification– RJR, the cigarette producer, adds baked goods to its product

line to appeal to new customers

Examples of Different Types of Opportunities