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Part 1: Designing CustomerOriented Marketing Strategies
1. Marketing: Creating Satisfaction
through Customer Relationships
2. Strategic Planning and the
Marketing Process
3. The Marketing Environment,
Ethics, and Social Responsibility
4. E-Commerce: Marketing in the
Digital Age
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Chapter 2
Strategic Planning
and the Marketing
Process
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Chapter Objectives
1. Distinguish between strategic planning and tactical
planning.
2. Explain how marketing plans differ at various levels in
an organization.
3. Identify the steps in the marketing planning process.
4. Describe successful planning tools and techniques,
including Porter’s Five Forces model, first and second
mover strategies, SWOT analysis, and the strategic
window.
5. Identify the basic elements of a marketing strategy.
6. Describe the environmental characteristics that
influence strategy decisions.
7. Describe the methods for marketing planning, including
business portfolio analysis and the BCG matrix.
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Marketing Planning: The Basics for
Strategy and Tactics
 Planning: Process of anticipating future
events and conditions and of determining the
best way to achieve organizational goals
 Marketing planning: Implementing planning
activities devoted to achieving marketing
objectives
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 Strategic Planning versus Tactical Planning
Strategic planning: Process of determining
an organization’s primary objectives and
adopting courses action that will achieve
those objectives
Tactical planning: Process that guides the
implementation of activities specified in the
strategic plan.
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 Strategic Planning versus Tactical Planning
Top management
Greater proportions of their time engaged
in planning
Usually focus their planning activities on
long-range strategic issues
Middle level managers
Focus on operational planning; creating
and implementing tactical plans
Supervisors
Developing the specific programs to meet
goals in their areas of responsibility
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Steps in the Marketing Planning Process
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 Defining the Mission of the Organization
Mission: the essential purpose that
differentiates one company from others
The mission statement specifies the
organization’s overall goals and
operational scope and provides general
guidelines for future management actions
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 Determine Organizational Objectives
An organization lays out its basic objectives,
or goals, in its mission statement
These objectives in turn guide development
of supporting marketing objectives and plans
Well-developed objectives should state
specific, quantitative intentions along with
deadlines for achieving them
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 Assessing Organizational Resources and
Evaluating Environmental Risks and
Opportunities
This step involves a back-and-forth
assessment of strengths, risks, and
available opportunities.
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 Formulating, Implementing, and
Monitoring a Marketing Strategy
Marketing strategy: a firm’s overall
program for selecting and satisfying a
target market
A marketing strategy is aimed at satisfying
consumers in the selected target market
through a careful balance of the elements
of the marketing mix – each of which
represents a subset of the overall
marketing strategy
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Successful Strategies: Tools and
Techniques
 All planning strategies have the goal of
creating a sustainable competitive
advantage for a firm.
 An advantage where other companies cannot
provide the same offering or value.
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 Porter’s
Five Forces
Model
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 First Mover and Second Mover Strategies
First mover strategy: Theory advocating
that the company that is first to offer a
product in a marketplace will be the longterm market winner.
Second mover strategy: Theory that
advocates observing closely the
innovations of first movers and then
introducing new products that improve on
the original offering to gain advantage in
the marketplace.
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 SWOT is an acronym for strengths,
weaknesses, opportunities, and threats
 A SWOT analysis is a method of studying
organizational resources and capabilities to
assess the firm’s strengths and weaknesses
and scanning its environment to identify
opportunities and threats
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 SWOT
Analysis
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 The Strategic Window
A limited period with an optimal fit between
the key requirements of a market and the
particular competencies of a firm
HR Block recognizes the strategic window
of their business.
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Elements of a Marketing Strategy
 Blending the four strategy elements of
marketing decision-making to satisfy chosen
target markets
Product
Price
Distribution
Promotion
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 Target Market
Group of
people
toward
whom the
firm decides
to direct its
marketing
efforts
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 Marketing Mix Variables
Product Strategy
What goods or services to offer
Customer service
Package design
Brand names
Trademarks
Warranties
Product Life Cycle
Positioning
New-product development
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 Marketing Mix Variables
Distribution Strategy
Planning that ensures that consumers find
their products in the proper quantities at the
right times and places.
Modes of transportation
Warehousing
Inventory control
Order processing
Marketing channels
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 Marketing Mix Variables
Promotional Strategy
Blending together the various elements
of promotion to communicate most
effectively with the target market
Informing, persuading, and influencing a
consumer’s purchase decision.
IMC
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 Marketing Mix Variables
Pricing Strategy
Deals with the methods of setting profitable
and justifiable prices
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 The Marketing Environment
Competitive
Political – Legal
Economic
Technological
Social – Cultural
 Rule of three
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Methods for Marketing Planning
 Business Portfolio Analysis
Strategic Business Units (SBUs) are key
business units within diversified firms
A division, product line, or single product
may define an SBU
Firms redesign their SBUs as market
conditions dictate
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 The BCG Matrix
Market Share/ Market Growth Matrix: a
marketing planning tool that classifies a
firm’s SBU’s or products according to
industry growth rates and market shares
relative to competing products
Stars
Cash Cows
Dogs
Question Marks
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 Figure 2.10
BCG Market Share/Market Growth Matrix
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