1. Strategic Planning and the Marketing Management Process
Chapter 1
Strategic Planning and the Marketing Management Process

2. The Marketing Concept
An organization should seek to make a profit by serving the needs of customer groups
The purpose is to rivet the attention of marketing managers on customer orientation, rather than on product orientation or selling orientation
The principal task of the marketing function - Find effective and efficient means of making the business do what suits the interests of customers

3. Marketing
The activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

4. Figure 1.1 - Major Types of Marketing

5. Strategic Planning and Marketing Management
All the activities that lead to the development of a clear organizational mission
Organizational objectives
Appropriate strategies to achieve the objectives for the entire organization

6. Figure 1.2 - The Strategic Planning Process

7. Organizational Mission
In developing a statement of mission, management must take into account three key elements:
The organization’s history
The organization’s distinctive competitiveness
The organization’s environment

8. Organizational Mission
An effective mission statement should be:
Focused on markets rather than products
Achievable
Motivating
Specific

9. Organizational Objectives
Objectives must be:
Specific
Measurable
Action commitments

10. Organizational Objectives
If formulated properly, organizational objectives:
Can be converted into specific action
Will provide direction
Can establish long-run priorities for the organization
Can facilitate management control

11. Figure 1.3 - Sample Organizational Objectives

12. Organizational Strategies
Organizations can pursue various strategies based on:
Products and markets
Competitive advantage
Value

13. Figure 1.4 - Organizational Growth Strategies

14. Organizational Strategies Based on Competitive Advantage
Cost leadership strategy - A firm would focus on being the low-cost company in its industry
Strategy based on differentiation - A firm seeks to be unique in its industry or market segment along particular dimensions that the customers value

15. Strategies Based on Value
Three value strategies:
Best price
Best product
Best service

16. Choosing an Appropriate Strategy
Management should:
Select those strategies consistent with its mission
Capitalize on the organization’s distinctive competencies
Sustainable competitive advantage can be based on either the assets or skills of the organization

17. Organizational Portfolio Plan
The first step in this approach is to identify the various divisions, product lines, and so on that can be considered a business
Also called strategic business units (SBUs)
The next step is to establish methods to determine how resources should be allocated among the various SBUs
Known as portfolio models

18. The Marketing Management Process
Process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges with target groups that satisfy customer and organizational objectives

19. Figure 1.5 - Strategic Planning and Marketing Planning

20. Situation Analysis
Involves analysis of the past, present, and likely future in six major areas of concern:
Cooperative environment - Includes all firms and individuals who have a vested interest in the firm’s accomplishing its objectives
Competitive environment - Includes primarily other firms in the industry that rival the organization for both resources and sales

21. Situation Analysis
Economic environment - State of the macroeconomy and changes in it also bring about marketing opportunities and constraints
Social environment - Includes general cultural and social traditions, norms, and attitudes
Political environment - Includes the attitudes and reactions of the general public, social and business critics, and other organizations

22. Situation Analysis
Legal environment - Includes a host of federal, state, and local legislation directed at protecting both business competition and consumer rights

23. Marketing Planning Produces three outputs:
Establishing marketing objectives
Selecting the target market
Developing the marketing mix
Marketing mix: A set of controllable variables that must be managed to satisfy the target market and achieve organizational objectives

24. Implementation of the Marketing Plan
Involves putting the plan into action and performing marketing tasks according to the predefined schedule

25. Control of the Marketing Plan
Involves three basic steps:
Measuring results of implemented marketing plan
Comparing results with objectives
Making decisions on whether plan is achieving objectives

26. Marketing Information Systems and Marketing Research
Throughout the marketing management process, current, reliable, and valid information is needed to make effective marketing decisions
Providing this information is the task of the marketing information system and marketing research

27. Strategic planning is a top-management responsibility
The Strategic Plan, The Marketing Plan, and Other Functional Area Plans
Strategic planning is a top-management responsibility
Ways in which marketing executives are involved in the strategic planning process:
They influence the process by providing important inputs in the form of information and suggestions relating to customers, products, and middlemen
They must always be aware of what the process of strategic planning involves as well as the results

28. Marketing’s Role in Cross-Functional Strategic Planning
More organizations are bringing managers and employees together to participate in cross- functional teams
All personnel working in a cross-functional team participate in creating a strategic plan to serve customers
The greatest advantage of cross-functional team is the ability of team members to consider a situation from a number of viewpoints

29. Marketing’s Role in Cross-Functional Strategic Planning
Strategic planning results in a clearly defined blueprint for management action in all functional areas of the organization

30. Figure 1.6 - The Cross-Functional Perspective in Planning

31. Figure 1.7 - A Blueprint for Management Action