marketing strat ch2

8/2/2019 Marketing Strat Ch2

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MARKETING STRATEGYO.C. FERRELL • MICHAEL D. HARTLINE

2Strategic Marketing

Planning



2-2

The Strategic Planning Process

• Marketing Plan

– “…a written document that provides the blueprint or outline of the organization’s

marketing activities, including the

implementation, evaluation, and control of those activities.”



2-3

• What role, if any, should customers play in

the strategic planning process? Should they

have a voice in developing theorganizational mission, marketing goals, or

the marketing strategy?

Discussion Question



2-4Exhibit 2.1



2-5

Organizational Mission vs.

Organizational Vision (1 of 2)

• Elements of the Mission Statement

– Five basic questions to be answered:

• Who are we?• Who are our customers?

• What is our operating philosophy?

• What are our core competencies or

competitive advantages?

• What are our concerns and interests related toour employees, our community, society ingeneral and our environment?



2-6

Organizational Mission vs.

Organizational Vision (2 of 2)

• Mission Width and Stability

– Width: Too broad or too narrow?

– Stability: Frequency of modifications• Customer-Focused Mission Statements

– Ben and Jerry’s 3-part Mission Statement

• Product Mission• Economic Mission

• Social Mission

– Tylenol



2-7

• As this 1946 ad

demonstrates, railways

were once a prominent

way to travel across thecountry.

• How did narrow mission

statements lead to missed

opportunities for the

railroad industry?

Marketing Strategy in Action



2-8

Ben & Jerry’s 3 Part Mission



2-9

• Business-Unit Strategy:

– The central means for:

• Utilizing and integrating the organization’s resources

• Carrying out the organization’s mission

• Achieving the organization’s desired goals and objectives

– Associated with developing a competitive advantage

– Determines the nature and future direction of eachbusiness unit

– Essentially the same as corporate strategy in small

businesses

Corporate or Business-Unit Strategy



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• All business functions must support the

organization’s mission and goals.

• Functional objectives should be expressedin clear, simple terms.

• All functional objectives should be

reconsidered for each planning period.

Functional Goals and Objectives



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• Functional strategies are designed to integrateefforts focused on achieving the area’s statedobjectives.

• The strategy must: – (1) Fit the needs and purposes of the functional area

– (2) Be realistic with the organization’s resources and environment

– (3) Be consistent with the organization’s mission goals, and objectives.

• The effects of each functional strategy must beevaluated.

Functional Strategy



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• Involves activities that execute the

functional strategy.

• Functional plans have two target markets: – (1) External market

– (2) Internal market

• A company must rely on its internal market

for a functional strategy to be implemented

successfully.

Implementation



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• Defend or contradict this statement:

Developing marketing strategy is more

important than implementing marketingstrategy because if the strategy is flawed, it

doesn’t matter how well it is implemented.

Discussion Question



2-14

• Designed to keep activities on target with goalsand objectives

• Coordination among functional areas is a criticalissue

– Open lines of communication is the key

• Evaluation and control is both an ending and

beginning: – Occurs after a strategy has been implemented

– Serves as the beginning point for planning in the nextcycle

Evaluation and Control



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• Detailed formulation of the actions needed

to carry out the marketing program

• An action document: – The handbook for marketing implementation,

evaluation and control

• Not the same as a business plan

• Requires a great deal of information from

many different sources

The Marketing Plan



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• Should be well organized

• A good marketing plan outline is:

– Comprehensive

– Flexible

– Consistent

– Logical

Marketing Plan Structure (1 of 5)



2-17

Marketing Plan Structure

Exhibit 2.3



2-18

• I. Executive Summary

– Synopsis of the overall marketing plan

– Introduces major aspects of the marketing plan• II. Situation Analysis

– Summarizes information about 3 key environments:

• Internal environment• Customer environment

• Firm’s external environment




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• III. SWOT Analysis

– Strengths

– Weaknesses – Opportunities

– Threats

– Analysis of the SWOT matrix – Establishing a strategic focus




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• IV. Marketing Goals and Objectives:

– Formal statements of desired and expected outcomesof the marketing plan

– Goals:

• Broad, simple statements of what is to be accomplished

– Objectives

• More specific and essential to planning

• V. Marketing Strategy:

– Primary target market and marketing mix

– Secondary target market and marketing mix




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• VI. Marketing Implementation – 1. What specific marketing activities will be undertaken?

– 2. How will these activities be performed?

– 3. When will these activities be performed? – 4. Who is responsible for the completion of these activities?

– 5. How will the completion of planned activities be monitored?

– 6. How much will these activities cost?

• VII. Evaluation and Control – Formal marketing control

– Informal marketing control

– Financial assessments




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• Tips for using the marketing planframework to develop a marketing plan:

– Plan ahead – Revise, revise, revise

– Be creative

– Use common sense and judgment – Think ahead to implementation

– Update regularly

– Communicate with others

Using the Marketing Plan Structure



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• A good marketing plan will:

– (1) Explain both the present and future situations of the organization

– (2) Specify the outcomes that are expected

– (3) Describe the specific actions that are to take place

– (4) Identify the resources that will be needed

– (5) Permit the monitoring of each action and itsresults

• Communicating the strategy to top executives isparamount.

Purposes and Significance

of the Marketing Plan



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• Top managers ask two questions:

– (1) Will the marketing plan achieve the desired

goals and objectives?

– (2) Are there alternative uses of resources that

would better meet objectives?

• The marketing plan is most often prepared by the

Marketing Director or VP of Marketing

• The final approval lies with the President,

Chairman or CEO

Organizational Aspects of the

Marketing Plan

M j P bl i D l i d



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Major Problems in Developing and

Implementing the Marketing Plan

Exhibit 2.4



2-26

Apple’s Changing Strategic Focus



2-27

• A Market-Oriented Organization:

– Shifts its focus:

• From products to the requirements of market segments

• From transactions to relationships

• From competition to collaboration

– Puts customer’s needs and wants first

– Focuses on long-term, value-added relationships – Instills a corporate culture that puts customers at thetop of the organizational hierarchy

– Cooperates with suppliers and competitors to serve

customers better

Strategic Planning in the

Market-Oriented Organization



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Customers

Frontline Employees

MiddleManagers

CEO

Frontline Employees

MiddleManagers

CEO

Competition

Traditional Organizations

Exhibit 2.5 – Part One



2-29

Market-Oriented Organizations

Exhibit 2.5 – Part Two

Customers

Frontline Employees

Middle

Managers

CEO

Frontline Employees

Middle

Managers

CEO

Cooperation



2-30

• In many organizations marketing is not

given a place of importance in the

organizational hierarchy. Why do you think this happens? What other business

functions get more importance? Why?

Discussion Question

marketing strat ch2

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