Chapter 2Planning, Implementing, and ControllingMarketing Strategies :Chapter 2Planning, Implementing, and ControllingMarketing Strategies


Objectives :Objectives Describe strategic planning process Explain how organizational resources & opportunities affect planning process Understand role of mission statement in strategic planning Examine corporate, business-unit, and marketing strategies Understand process of creating marketing plan Describe marketing implementation process and major approaches to marketing implementation


Strategic Planning :Strategic Planning The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan. Strategic Marketing Plan FAQs


Components OfStrategic Planning :Components OfStrategic Planning Source: From Marketing Strategy, 2nd Edition. Reprinted with permission of South-Western, a division of Thomson Learning: www .thomsonrights.com. Fax 800- 730-2215.


Marketing Strategy :Marketing Strategy A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market. Apple’s iPod


Effective Marketing Strategy :Effective Marketing Strategy Reflects overall direction of organization Coordinated with firm’s functional areas Contributes to achievement of: Marketing objectives Organizational goals Apple’s Unusual Marketing Strategy


Marketing Plan :Marketing Plan A written document that specifies the activities to be performed to implement and control the organization’s marketing activities.


Assessing Organizational Resources and Opportunities :Assessing Organizational Resources and Opportunities Assessing financial and human resources Capabilities vs. changes Marketing and financial affect Goodwill, reputation and brand as resources


Core Competencies :Core Competencies Things a firm does extremely well, which sometimes give it an advantage over its competition. Core competencies


Market Opportunity :Market Opportunity A combination of circumstances and timing that permits an organization to take action to reach a particular target market.


Strategic Window :Strategic Window Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a firm competing in the market.


Competitive Advantage :Competitive Advantage The result of a company’s matching a core competency to opportunities it has discovered in the marketplace. Dell vs. Apple


SWOT Analysis :SWOT Analysis Strengths Weaknesses Opportunities Threats


Customer Satisfaction :Customer Satisfaction Strengths Advantages Weaknesses Disadvantages Opportunities Threats


Four-Cell SWOT Matrix :Four-Cell SWOT Matrix Source: Adapted from Nigel F. Piercy, Market-Led Strategic Change.Copyright © 1992 Butterworth-Heinemann Ltd., p. 371. Reprinted with permission.


Establishing an Organizational Mission and Goals :Establishing an Organizational Mission and Goals Mission Statement A long-term view, or vision, of what the organization wants to become.


MissionStatement Answers: :MissionStatement Answers: Who are our customers? What is our core competency?


Corporate Identity :Corporate Identity Unique Symbols Personalities Philosophies


Marketing Objective :Marketing Objective A statement of what is to be accomplished through marketing activities.


Marketing Objectives Terms :Marketing Objectives Terms Product Introduction Improvement Innovation Sales Volume Profitability Market Share Pricing Distribution Advertising Employee Training


MarketingObjective Characteristics :MarketingObjective Characteristics Clear, simple terms Measurable Specify time frame Consistent with unit and corporate strategy


Developing Corporate, Business-Unit, and Marketing Strategies :Developing Corporate, Business-Unit, and Marketing Strategies


Corporate Strategy :Corporate Strategy A strategy that determines the means for utilizing resources in the various functional areas to reach the organization’s goals.


Microsoft Announces Shift In Corporate Strategy :Microsoft Announces Shift In Corporate Strategy “Trustworthy Computing” Emphasize security and privacy over new capabilities Highest priority is to ensure that computer users continue to venture across an increasingly Internet-connected world “Microsoft announces corporate strategy toward security and privacy” Information Security News, “Microsoft announces corporate strategy toward security and privacy”, Jan. 2002, http://seclists.org/lists/isn/2002/Jan/0092.html ?


Business-Unit Strategy :Business-Unit Strategy Strategic Business Unit (SBU) A division, product line, or other profit center within the parent company. Example of SBU organization


Market :Market A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products.


Market Share :Market Share The percentage of a market that actually buys a specific product from a particular company.


Growth Share Matrix :Growth Share Matrix


Marketing Strategy :Marketing Strategy Components of marketing strategy Selecting target markets Creation of marketing mix.


SustainableCompetitive Advantage :SustainableCompetitive Advantage An advantage that the competition cannot copy.


Marketing Planning :Marketing Planning The process of assessing marketing opportunities and resources, determining marketing objectives, defining marketing strategies, and establishing guidelines for implementation and control of the marketing program.


Marketing Implementation :Marketing Implementation The process of putting marketing strategies into action.


Intended Strategy :Intended Strategy The strategy the organization decided on during the planning phase


Realized Strategy :Realized Strategy The strategy that actually takes place


Components OfThe Marketing Plan :Components OfThe Marketing Plan


Approaches ToMarketing Implementation :Approaches ToMarketing Implementation Customers External Internal Internal Marketing Total Quality Management Benchmarking Empowerment


External Customers :External Customers Individuals who patronize a business.


Internal Marketing :Internal Marketing A management philosophy that coordinates internal exchanges between the organization and its employees to achieve successful external exchanges between the organization and its customers.


Total Quality Management :Total Quality Management A philosophy that uniform commitment to quality in all areas of the organization will promote a culture that meets customers’ perceptions of quality.


Benchmarking :Benchmarking Comparing the quality of the firm’s goods, services, or processes with that of its best-performing competitors.


Empowerment :Empowerment Giving customer-contact employees authority and responsibility to make marketing decisions without seeking approval of their supervisors.


OrganizingMarketing Activities :OrganizingMarketing Activities Organization Centralized Decentralized Structure Function Product Region Type of customer


Controlling Marketing Activities :Controlling Marketing Activities Marketing Control Process Establishing performance standards, evaluating actual performance by comparing it with established standards, and reducing the difference between desired and actual performance.


The MarketingControl Process :The MarketingControl Process