Strategy and Ethical Behavior CHAPTER TWO Strategy and Ethical Behavior 1

Objectives Differentiate marketing strategy & tactics Discuss corporate, SBU, & operational marketing planning Understand organizational missions Introduce total quality management Discuss demarketing Explain market/product matrices Identify stages of the strategic marketing process Describe marketing objectives & plans Introduce positioning Discuss ethics & social responsibility

Marketing Management: Key Terms Process Goals & Objectives Planning Effective & Efficient Activities Executing Controlling

Marketing Strategy Objectives Strategies 5

What is a Marketing Strategy? A Marketing Strategy consists of a plan identifying what basic goals and objectives will be pursued and how they will be achieved in the time available. A strategy entails commitments to certain courses of action and allocation of the resources necessary to achieve the identified goals. 6

Planning: A Framework for the Future Envisioning the future Establishing goals and objectives Designing strategies and tactics to be implemented in the future 7

Levels of Management in Planning Corporation Top Management Hotel Division Airline Rent-a-Car Middle Management Marketing Research Sales Adv. & Sales Promotion Operational Management

Planning: A Framework for the Future Corporate plans Top management SBUs Middle management Operational plans Operational management 9

Top Management: Mission Statement Key Questions What business are we in? How do we organize our business? What are long term organizational goals? Key Goals Provides direction for the entire direction Supports a consumer-oriented perspective Includes a statement of ethical credo 11

Middle Management: SBUs A SBU is organized around some meaningful common element such as…. Industry Technology Customer need SBU Target Market 13

Market/Product Matrix MARKETS PRODUCTS Market Penetration OLD/EXISTING NEW Market Development NEW Product Development Diversification 15

The Strategic Marketing Process 1. Identify and evaluate opportunities 2. Analyze market segments and select target markets 3. Plan a market position; develop marketing mix strategy 4. Prepare a formal marketing plan 20

The Strategic Marketing Process 5. Execute the plan 6. Control efforts and evaluate the results 21

Stage One: Identifying and Evaluating Opportunities Environmental change Situation analysis Environmental scanning and monitoring S.W.O.T. analysis Organization & opportunities matching 22

Stage Two: Analyzing Market Segments & Selecting Target Markets Market segmentation Target markets 23

Stage Three: Market Positioning and Marketing Mix strategy Developing marketing mix 24

Stage Four: Preparing a Formal Marketing Plan Stage Five: Executing the Plan Stage Four: Preparing a Formal Marketing Plan 25

Stage Six: Controlling Efforts and Evaluating Results Supervision Benchmarks Adjustment 27

Managerial Ethics & Socially Responsible Behavior 28

Managerial Ethics & Socially Responsible Behavior ID & Clarify Dilemma Double- Check Gather Facts Act Decide List All Options Test Options 29

Review Differentiate marketing strategy & tactics Discuss corporate, SBU, & operational marketing planning Understand organizational missions Introduce total quality management Discuss demarketing Explain market/product matrices Identify stages of the strategic marketing process Describe marketing objectives & plans Introduce positioning Discuss ethics & social responsibility