Strategic planning The process of developing and maintaining a s.docx

Strategic planning
The process of developing and maintaining a strategic fit
between the organization's goals and capabilities and its
changing marketing opportunities
Mission statement
A statement of the organization's purpose -- what it wants to
accomplish in the larger environment
Business portfolio
The collection of businesses and products that make up the
company
Portfolio analysis
The process by which management evaluates the products and
businesses that make up the company
Growth-share matrix
A portfolio-planning method that evaluates a company's SBUs
in terms of market growth rate and relative market share
Strategic business unit (SBU)
The key business that makes up the company
Product/market expansion grid
A portfolio-planning tool for identifying company growth
opportunities through market penetration, market development,
product development, or diversification
Market penetration
Company growth by increasing sales of current products to
current market segments without changing the product
Market development

Company growth by identifying and developing new market
segments for current company products
Product development
Company growth by offering modified or new products to
current market segments
Diversification
Company growth through starting up a acquiring businesses
outside the company's current products and markets
Value chain
The series of internal departments that carry out value-creating
activities to design, produce, market, deliver, and support a
firm's products
Value delivery network
The network made up of the company, its suppliers, its
distributors, and its customers who partner with each other to
improve the performance of the entire system
Marketing strategy
The marketing logic by which the company hopes to create
customer value and achieve profitable customer relationships
Market segmentation
Dividing a market into distinct groups of buyers who have
different needs, characteristics, or behaviors, and who might
require separate products of marketing programs
Market segment
A group of consumers who respond in a similar way to a given
set of marketing efforts
Market targeting
The process of evaluating each market segment's attractiveness

and selecting one or more segments to enter
Positioning
Arranging for a product to occupy a clear, distinctive, and
desirable place relative to competing products in the minds of
target consumers
Differentiation
Actually differentiating the market offering to create superior
customer value
Marketing mix
The set of tactical marketing tools -- product, price, place, and
promotion -- that the firm blends to produce the respons it
wants in the target market
SWOT analysis
An overall evaluation of the company's strengths (S),
weaknesses (W), opportunities (O), and threats (O)
Marketing implementation
Turning marketing strategies and plans into marketing actions
to accomplish strategic marketing objectives
Marketing control
Measuring and evaluating the results of marketing strategies
and plans and taking corrective action to ensure that the
objectives are achieved
Marketing return on investment (marketing ROI)
The net return from a marketing investment divided by the costs
of the marketing investment
Marketing
The process by which companies create value for customers and

build strong customer relationships in order to capture value
from customers in return
Needs
States of felt deprivation
Wants
The form human needs take as they are shaped by culture and
individual personality
Demands
Human want that are backed by buying power
Market offerings
Some combination of products, services, information, or
experiences offered to a market to satisfy a need or want
Marketingmyopia
The mistake of paying more attention to the specific products a
company offers than to the benefits and experiences produced
by these products
Exchange
The act of obtaining a desired object from someone by offering
something in return
Market
The set of all actual and potential buyers of a product or service
Marketing management
The art and science of choosing target markets and building
profitable relationships with them
Production concept
The idea that consumers will favor products that are available
and highly affordable; therefore, the organization should focus
on improving production and distribution efficiency
Product concept
The idea that consumers will favor products that offer the most
quality, performance, and features; therefore, the organization
should devote its energy to making continuous product
improvements
Selling concept
The idea that consumers will not buy enough of the firm's

products unless the firm undertake a large-scale selling and
promotion effort
Marketing concept
A philosophy in which achieving organizational goals depends
on knowing the needs and wants of target markets and
delivering the desired satisfaction better than competitors do
Societal marketing concept
The idea that a company's marketing decisions should consider
consumers' wants, the company's requirements, consumers'
long-run interests, and society's long-run interests
Customer relationship management
The overall process of building and maintaining profitable
customer relationships by delivering superior customer value
and satisfaction
Customer-perceived value
The customer's evaluation of the difference between all the
benefits and all the costs of a marketing offer relative to those
of competing offers
Customer satisfaction
The extent to which a product's perceived performance matches
a buyer's expectations
Customer-engagement marketing
Making the brand a meaningful part of consumers' conversations
and lives by fostering direct and continuous customer
involvement in shaping brand conversations, experiences, and
community
Consumer generated marketing
Brand exchanges created by consumers themselves (both invited
and uninvited) by which consumers are playing an increasing
role in shaping their own brand experiences and those of other
consumers
Partner relationship management
Working closely with partners in other company departments
and outside the company to jointly bring greater value to
customers

Customer lifetime value
The value of the entire stream of purchases a customer makes of
a lifetime of patronage
Share of customer
The portion of the customer's purchasing that a company gets in
its product categories
Customer equity
The total combined customer lifetime values of all of the
company's customers
Digital and social media marketing
Using digital marketing tools such as Websites, social media,
mobile apps and ads, online video, email, and blogs that engage
consumers anywhere, at any time, via their digital devices
This week we will be learning about creating customer value &
satisfaction and the strategic planning and the marketing
process. For this week’s discussion topic, you will describe
your company’s products or services. Why should someone buy
them over the competition? What want or need do they fulfill?
Base your answers on the topics we cover in the textbook and
PowerPoint notes. Conduct research on your company so you
can discuss the topic as it relates to you company. You can give
your opinion on what you would do if you were Marketing
Director of the company. Also, please comment at least 3 times
on other students posts (they do not have to be in your same
group). Demonstrate that you understand the strategies in the
textbook and PowerPoint notes. You should read all your fellow
students posts, even if they are in a different company, because
you will see how different companies utilize marketing in
different ways.
"Describe your company’s products or services. Why should
someone buy them over the competition? What want or need do
they fulfill?"
Company: Ford Motor Company

© Kevin W. Fitzgerald, 2012
Marketing in a
Changing World:
Creating Customer
Value and Satisfaction
Week 1 Notes MKT 220
Charter Oak State College
Principles of Marketing
Kevin W. Fitzgerald 2012
Notes based on
Marketing, an Introduction
by Gary Armstrong & Philip Kotler
Introduction
Many people think of marketing as only selling or
advertising. But marketing combines many
activities – marketing research, product
development, distribution, pricing, advertising,
personal selling and others – designed to sense,
serve and satisfy consumer needs while meeting
the organizations goals.

Marketing seeks to attract new customers by
promising superior value and to keep current
customers by delivering satisfaction. Marketing
operates within a dynamic global environment.
Rapid changes can quickly make yesterday’s
winning strategies obsolete – so marketers
constantly face new challenges and opportunities.
This Week’s Objectives…
At the end of this week you should be able to:
1. Define what marketing is and discuss its core concepts.
2. Explain the relationship between customer value,
satisfaction and quality.
3. Define marketing management and understand how
markets manage demand and build profitable customer
relationships.
4. Compare the 5 marketing management philosophies.
5. Analyze the major challenges facing marketers heading into
the next century.

What is Marketing?
“Marketing is a societal process by
which individuals and groups obtain
what they need and want through
creating, offering and freely
exchanging products and services of
value with others.”
-Philip Kotler
Core Marketing Concepts
Exchange transactions
and relationships
Core
Marketing
Concepts
Example: Marketing

The Walt Disney company is a master at marketing.
They use their brand to cross sell all their products.
Their theme parks sell toys and movies, the movies sell
toys and trips to the theme parks and the toys do the
same. They use every medium, from RadioDisney to
ABC broadcasting, in their marketing efforts.
Core Concepts of Marketing
Target Markets and Segmentation
Needs, Wants, and Demands
Product or Offering
Value and Satisfaction
Exchange and Transaction
Relationship and Networks
Marketing Channels
Supply Chain

Competition
Marketing Environment
Consumer Motivation
– state of felt deprivation
for basic items such as food,
clothing and complex needs such
as for belonging
– form that a human needs
to take as shaped by culture and
individual personality.
– human wants backed
by buying power.
Satisfying A Consumers
Needs and Wants
– anything that
can be offered to a market
for attention, acquisition,
use or consumption which
might satisfy a need or

want.
(examples: persons, places,
organizations, activities and
ideas)
– activities or
benefits offered for sales
that are essentially
intangible and don’t result
in the ownership of
anything.
(examples: banking, airline,
hotels, accountants)
– ways of thinking
about things.
(examples: concepts,
memberships, belonging)
How Customers Obtain
Products and Services
– act of obtaining a desired
object from someone by offering
something in return
– trade of value between
parties. Usually involves money and a
response.

– building long-term
relationships with consumers,
distributors, dealers and suppliers.
Marketing Forces
Suppliers
Company
(Marketer)
Competitors
Marketing
Intermediaries
End-User
Market
Environment
The Four “P”s
Marketing

Mix
Product
Price
Place
Promotion
Customer
Cost
Customer
Solution
Customer
Communications
Customer
Convenience

What is Marketing
Management?
“Marketing Management is the analysis,
planning implementation and control of
programs designed to create, build and
maintain beneficial exchanges with
target buyers for the purpose of
achieving organizational success.”
-Gary Armstrong &
Philip Kotler
Marketing Management
Philosophies

Societal Marketing
Societal
Marketing
Company
(profits)

Consumers
(want satisfaction)
Society
(human welfare)
Customer Delivered Value
Place
Existing
Products
Selling &
Promotion
Profits through
Sales Volume
Customer
Needs

Market Integrated
Marketing
Profits through
Customer
Satisfaction
Starting
Point Focus Means End
(a) The Selling Concept
(b) The Marketing Concept
Fitzgerald Fun Fact

Stew Leonards, the largest dairy
store in the world, has an important
customer relations program in place
– just two rules.
1. The customer is always right.
2. When in doubt, refer to rule #1.
Marketers Respond to
New Challenges
Relationship Marketing
Customer Lifetime Value
Integrated Marketing Communications

Target Marketing
Individualization
Customer Databases
Channels as Partners
Model-based Decisions
Every Employee is a Marketer
Customer Share
Key Terms
•Customer Satisfaction

•Customer Value
•Demands
•Demarketing
•Exchange
•Internet
•Market
•Marketing
•Marketing Concept
•Marketing Management
•Needs
•Products
•Product Concept

•Production Concept
•Relationship Marketing
•Selling Concept
•Service
•Societal Marketing Concept
•Total Quality Management
(TQM)
•Transaction
•Wants
Relevant Websites

http://www.ama.org
http://www.marketing.org
http://www.marketingmag.ca
eting Management
http://www.salesandmarketing.com
http://www.wilsonweb.com/webmarket
– Marketing Virtual Library
http://www.knowthis.com
– The history of internet marketing
http://nsns.com/MouseTracks/
http://www.dssresearch.com/library/segment/understanding.asp
http://www.ama.org/

http://www.marketing.org/
http://www.marketingmag.ca/
http://www.salesandmarketing.com/
http://www.wilsonweb.com/webmarket
http://www.knowthis.com/
http://nsns.com/MouseTracks/
http://www.dssresearch.com/library/segment/understanding.asp
Strategic Planning
and the Marketing
Process
Charter Oak State College
Principles of Marketing
Kevin W. Fitzgerald, 2012
Notes based on
Marketing, an Introduction
by Gary Armstrong & Philip Kotler

Introduction
Strategic planning sets the stage for the rest of a
company’s planning. Marketing contributes to
strategic planning, and the overall plan defines
marketing’s role in the company. Although formal
planning offers a variety of benefits to companies,
not all companies know how to use it well.
Strategic planning involves developing a strategy for
long-run survival and growth. It consists of four
steps: defining the companies mission, setting
objectives and goals, designing a business portfolio
and developing a functioning plan.
Marketing provides inputs to strategic planning and
serves as a guiding philosophy for customer focus.
Marketers design strategies to help meet objectives

and to carry out profitable programs.
This Week’s Objectives…
At the end of this week you should be able to:
1. Explain company wide strategic planning and its 4 steps
2. Discuss how to design business portfolios and growth
strategies.
3. Explain functional planning strategies and assess marketing
role in strategic planning.
4. Describe the marketing process and the forces that influence
it.
5. List the marketing management functions, including the
elements of a marketing plan.

What is Strategic Planning?
“Strategic planning is the process of
developing and maintaining a
strategic fit between the organization
goals and capabilities and its
changing marketing opportunities.”
-Gary Armstrong &
Philip Kotler
Corporate Level

Defining the
company
mission
Setting
company
objectives
and goals
Designing
the
business
portfolio
Planning,
marketing
and other
functional
strategies
Business Unit
Product and

Market Levels
Strategic Planning Process
Designing the Business Portfolio
Portfolios

Growth Share Matrix
Question Marks
Low
Cash Cows
Stars
Dogs
M
a

r
k
e
t
G
r
o
w
t
h
R
a
t
e
Relative Market Share
$
High
L

o
w
H
ig
h
Product/Market Expansion Grid
3. Product
Development
2. Market
Development
1. Market
Penetration

4. Diversification
E
x
is
t
in
g
M
a
r
k
e
t
s
New ProductsExisting Products
N
e
w

M
a
r
k
e
t
s
The Market Process
•Market Segmentation
•Market Target

•Market Positioning
•Price
•Product
•Place
•Promotion
Marketing Strategy
Target
Customers
Product

PricePlace
Promotion
Competitors
Publics
Marketing
Intermediaries
Suppliers
Technical/physical
Environment
Social/
Cultural
Environment
Demographic/
Economic
Environment

Political/Legal
Environment
The Four Ps
Product
Product Variety
Quality
Design
Features
Brand Name
Packaging

Sizes
Services
Warranties
Returns
Promotion
Advertising
Personal Selling
Sales Promotion
Public Relations
Price
List Price
Discounts
Allowances
Payment Period

Credit Terms
Place
Channels
Coverage
Assortment
Locations
Inventory
Transportation
Logistics
Target
Customers
Intended

Positions
Market Analysis
Analysis
Planning
Develop
Strategic Plans
Develop
Marketing Plans
Implementation
Cary out plans

Control
Measure Results
Evaluate Results
Take Corrective
Action
Contents of a Marketing Plan
•Market Description

•Product Review
•Competition Review
•Distinction Review
rategy
The Control Process
What do

you want to
achieve
What is
happening
Why is it
happening
What
should we
do about it
Take Corrective
Action
Evaluate
Performance
Measure
Performance
Set Goals

Key Terms
•Business Portfolio
•Diversification
•Growth – share matrix
•Market Development
•Market Penetration
•Market Positioning
•Market Segment
•Market Segmentation
•Market Targeting

•Marketing Audit
•Marketing Control
•Marketing Implementation
•Marketing Process
•Marketing Mix
•Marketing Strategy
•Marketing Statement
•Marketing Analysis
•Product Development
•Product/market Expansion
Grid
•Strategic Business Unit (SBU)
•Strategic Planning

•Value Chain Value Delivery
Network
Charter Oak tate College
Kevin W. Fitzgerald 2005
Relevant Websites
http://linz1.net/biz/mktpl.html
http://home3.americanexpress.com/smallbusiness//resources/exp
anding/
mktplan/
http://gov.on.ca/OMAFRA/english/busdev/facts/95-079.htm
http://www.morebusiness.com/templates_worksheets/bplans

http://businessweek.com/1996/35/b34901.htm
http://ww.imcstrategic.com
http://www.intmark.com
www.phelpsgroup.com
http://linz1.net/biz/mktpl.html
http://home3.americanexpress.com/smallbusiness//resources/exp
anding/mktplan/
http://gov.on.ca/OMAFRA/english/busdev/facts/95-079.htm
http://www.morebusiness.com/templates_worksheets/bplans
http://businessweek.com/1996/35/b34901.htm
http://ww.imcstrategic.com/
http://www.intmark.com/
http://www.phelpsgroup.com/

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