Key Term Outline 2–12–1 Chapter 2: Planning Marketing Strategies Pride/Ferrell Foundations of Marketing Third Edition

Key Term Outline 2–22–2 Copyright © Houghton Mifflin Company. All rights reserved. Part 1 Strategic Marketing and Its Environment Chapter 2 Planning Marketing Strategies

Key Term Outline 2–32–3 Copyright © Houghton Mifflin Company. All rights reserved. Objectives 1.Describe the strategic planning process. 2.Explain how organizational resources and opportunities affect the planning process. 3.Understand the role of the mission statement in strategic planning. 4.Examine corporate, business-unit, and marketing strategies. 5.Understand the process of creating the marketing plan. 6.Describe the marketing implementation process and the major approaches to marketing implementation.

Key Term Outline 2–42–4 Copyright © Houghton Mifflin Company. All rights reserved. 1.Understanding the Strategic Planning ProcessUnderstanding the Strategic Planning Process 2.Assessing Organizational Resources and OpportunitiesAssessing Organizational Resources and Opportunities 3.Establishing an Organizational Mission and GoalsEstablishing an Organizational Mission and Goals 4.Developing Corporate, Business-Unit, and Marketing StrategiesDeveloping Corporate, Business-Unit, and Marketing Strategies 5.Creating the Marketing PlanCreating the Marketing Plan 6.Implementing Marketing StrategiesImplementing Marketing Strategies Outline

Key Term Outline 2–52–5 Copyright © Houghton Mifflin Company. All rights reserved. benchmarking external customers market-growth/ market-share matrix marketing strategy sustainable competitive advantage centralized organization intended strategy mission statement competitive advantage internal customers marketing control process performance standard SWOT analysis core competencies internal marketing implementation realized strategy TQM corporate strategy market marketing objective SBU decentralized organization market opportunity marketing plan strategic planning empowermentmarket share marketing planning strategic windows Key Terms

Key Term Outline 2–62–6 Copyright © Houghton Mifflin Company. All rights reserved. 1. STRATEGIC PLANNING PROCESS The process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan © Used By Permission.

Key Term Outline 2–72–7 Copyright © Houghton Mifflin Company. All rights reserved. Components of Strategic Planning Figure 2.1

Key Term Outline 2–82–8 Copyright © Houghton Mifflin Company. All rights reserved. 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 Marketing Plan © Used By Permission.

Key Term Outline 2–92–9 Copyright © Houghton Mifflin Company. All rights reserved. Effective Marketing Strategy Reflects overall direction of organization Coordinated with firm’s functional areas Contributes to achievement of: Marketing objectives Organizational goals

Key Term Outline 2–10 Copyright © Houghton Mifflin Company. All rights reserved. 2. ASSESSING ORGANIZATIONAL RESOURCES AND OPPORTUNITIES Assessing financial and human resources Capabilities vs. changes Marketing and financial affect Goodwill, reputation and brand as resources

Key Term Outline 2–11 Copyright © Houghton Mifflin Company. All rights reserved. Core Competencies Things a firm does extremely well, which sometimes give it an advantage over its competition BIC maintains its core competency in stationary products, lighters, and shavers © Used By Permission.

Key Term Outline 2–12 Copyright © Houghton Mifflin Company. All rights reserved. Market Opportunity A combination of circumstances and timing that permits an organization to take action to reach a particular target market. Real estate is all about Market Opportunity Explore

Key Term Outline 2–13 Copyright © Houghton Mifflin Company. All rights reserved. Strategic Windows Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a firm competing in the market.

Key Term Outline 2–14 Copyright © Houghton Mifflin Company. All rights reserved. Competitive Advantage The result of a company’s matching a core competency (superior skill or resources) to opportunities in the marketplace © Used By Permission.

Key Term Outline 2–15 Copyright © Houghton Mifflin Company. All rights reserved. SWOT Analysis An assessment of the organization’s strengths, weaknesses, opportunities, and threats Figure 2.2

Key Term Outline 2–16 Copyright © Houghton Mifflin Company. All rights reserved. 3. ESTABLISHING AN ORGANIZATIONAL MISSION AND GOALS Mission Statement Answers: Who are our customers? What is our core competency? Corporate Identity Unique Symbols Personalities Philosophies Celestial Seasonings complete mission statement

Key Term Outline 2–17 Copyright © Houghton Mifflin Company. All rights reserved. Marketing Objective A statement of what is to be accomplished through marketing activities to match strengths to opportunities, or to provide for the conversion of weaknesses to strengths Should be stated in clear, simple terms Should be accurately measurable Should specify a time frame for accomplishment Should be consistent with business-unit and corporate strategy

Key Term Outline 2–18 Copyright © Houghton Mifflin Company. All rights reserved. Promotional Elements at Jordan’s Furniture

Key Term Outline 2–19 Copyright © Houghton Mifflin Company. All rights reserved. 4. DEVELOPING CORPORATE, BUSINESS-UNIT, AND MARKETING STRATEGIES Figure 2.4

Key Term Outline 2–20 Copyright © Houghton Mifflin Company. All rights reserved. Corporate Strategy A strategy that determines the means for utilizing resources in the various functional areas to reach the organization’s goals © Used By Permission. Page 34

Key Term Outline 2–21 Copyright © Houghton Mifflin Company. All rights reserved. Corporate Strategy Development Influencing Issues Corporate culture Competition Differentiation Diversification Interrelationships among business units Environment concerns and social issues Accenture's corporate strategy is geared toward helping companies become high performance businesses © Used By Permission.

Key Term Outline 2–22 Copyright © Houghton Mifflin Company. All rights reserved. Business-Unit Strategy Strategic Business Unit (SBU) A division, product line, or other profit center within a parent company Band-Aid is a strategic business unit of Johnson & Johnson © Used By Permission.

Key Term Outline 2–23 Copyright © Houghton Mifflin Company. All rights reserved. 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

Key Term Outline 2–24 Copyright © Houghton Mifflin Company. All rights reserved. Market-Growth/Market-Share Matrix Figure 2.5

Key Term Outline 2–25 Copyright © Houghton Mifflin Company. All rights reserved. Marketing Strategy Components of marketing strategy Target Market Selection Creating the Marketing Mix Sustainable Competitive Advantage Dyson targets homeowners with its high-tech vacuum cleaners. © Used By Permission. Page 35

Key Term Outline 2–26 Copyright © Houghton Mifflin Company. All rights reserved. Components of Marketing Mix

Key Term Outline 2–27 Copyright © Houghton Mifflin Company. All rights reserved. 5. CREATING THE MARKETING PLAN Marketing Planning The process of assessing opportunities and resources, determining objectives, defining strategies, and establishing guidelines for implementation and control of the marketing program © Used By Permission.

Key Term Outline 2–28 Copyright © Houghton Mifflin Company. All rights reserved. Components of the Marketing Plan

Key Term Outline 2–29 Copyright © Houghton Mifflin Company. All rights reserved. 6. IMPLEMENTING MARKETING STRATEGIES The process of putting marketing strategies into action Intended Strategy Realized Strategy Intended Strategy Realized Strategy Implementation

Key Term Outline 2–30 Copyright © Houghton Mifflin Company. All rights reserved. Approaches to Marketing Implementation Customers External customers Internal customers Internal Marketing External Customers Internal Customers Total Quality Management Benchmarking Empowerment

Key Term Outline 2–31 Copyright © Houghton Mifflin Company. All rights reserved. TQM Example Xerox Quality Improvement Processes Produced a Faster Color Printer © Used By Permission.

Key Term Outline 2–32 Copyright © Houghton Mifflin Company. All rights reserved. Organizing Marketing Activities Product Groups Centralized or Decentralized Marketing Functions Geographic Regions Customer Types Alternatives for Organizing the Marketing Unit

Key Term Outline 2–33 Copyright © Houghton Mifflin Company. All rights reserved. The Marketing Control Process Figure 2.7

Key Term Outline 2–34 Copyright © Houghton Mifflin Company. All rights reserved. After reviewing this chapter you should: Be able to describe the strategic planning process. Know how organizational resources and opportunities affect the planning process. Understand the role of the mission statement in strategic planning. Be familiar with corporate, business-unit, and marketing strategies. Understand the process of creating a marketing plan. Be able to describe the marketing implementation process and the major approaches to marketing implementation.