1. Strategy and Ethical Behavior
CHAPTER TWO
Strategy and Ethical Behavior 1

2. 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

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

4. Marketing Strategy
Objectives
Strategies 5

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

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

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

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

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

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

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

12. 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

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

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

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

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

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

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

19. Managerial Ethics & Socially Responsible Behavior28

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

21. 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