FOM Chapter 2: Marketing Planning and Management

Chapter 2: Marketing Planning and Management  Topics(the key issue: how to create value for customers) 1. Identify the key tasks required for company and business unit planning *Describe the three levels of strategy: corporate, strategic business unit, and functional *Explain strategic business uni...

Chapter 2: Marketing Planning and Management  Topics(the key issue: how to create value for customers) 1. Identify the key tasks required for company and business unit planning *Describe the three levels of strategy: corporate, strategic business unit, and functional *Explain strategic business unit 2. Describe the process of developing a market offering *Differentiate between strategy and tactic *Explain value proposition 3. Explain the process of marketing planning 4. Describe the key components of an actionable marketing plan 5. Recap the important points Corporate and Business Unit Planning and Management Figure 2.1: The Strategic Planning Process *Business unit = strategic business unit (SBU) *Offering planning refers to developing market offerings at functional level (i.e., marketing) *(Strategic) Business Unit(SBU) : an independently managed entity or unit of a large company, which is responsible for a particular range of products or activities. *Strategic Business Units: Examples & Definition (watch the first 70 seconds) I. Corporate and strategic business unit planning-1 1. Defining the corporate mission 2. Building the corporate culture 3. Establishing strategic business units 4. Assigning resources to each strategic business unit 1. Defining the corporate mission  A mission is a clear, concise, and enduring statement of the reasons for an organization’s existence  Often referred to as its core purpose, a company’s mission is a long-term goal that provides company employees and management with a shared sense of purpose, direction, and opportunity Classic questions: What is our business? Who is the customer? What is of value to the customer? What will our business be? What should our business be? e.g.,) Publix mission statement; UNF mission statement 2. Defining the corporate culture: the shared experiences, stories, beliefs, and norms that characterize an organization e.g.,1) Zappos: “unique and employee-centric culture; a fun and family-like environment, employee satisfaction” e.g.,2) Google: “innovative and inclusive culture; a flexible and stimulating work environment, encouraging creativity and personal development”  I. Corporate and strategic business unit planning-2 3. Defining Strategic Business Units (for large companies) -Single business or collection of related businesses that can be planned separately from the rest of the company -Own set of competitors -Manager responsible for strategic planning and profit performance and controls most factors affecting profit. Corporate planning SBU Offering planning: Developing marketing offerings 4. Allocating resources to each strategic unit Assess each SBU’s competitive advantage and the attractiveness of the market in which it operates Assess growth opportunities: planning/reviewing new businesses, downsizing, and terminating old businesses II. Offering planning (i.e., Developing Market Offerings: applies to functional  Marketinglevel )-1 involves choosing a well-defined market in which the company will compete and strategy determining the value it intends to create in the market(i.e., specifies the target market and the value). :A comprehensive plan for achieving objectives (0r goals). What Are SMART Marketing Goals? Marketing tactics, also called the marketing mix (see below). the specific actions to achieve marketing strategy in the chosen market; product, service, brand image, pricing, communication….) 1. Developing the Marketing Strategy: Target market and value proposition 1) Identifying the target market: The 5-C Framework Target market: a specific group of potential customers that a business aims to reach with its products or services (aims to create and provide value for them) : consists of the five factors (company, customers, collaborators, competitors and context) Collaborators: suppliers, manufacturers, distributors, advertising agencies... Context: environment: social, technological(AI…), regulatory, economic, and physical(global warming, …) The Traditional Marketing 4Ps : product, price, promotion, and place II. Offering planning (i.e., Developing Market Offerings- apply to functional 2) Developinglevel )-2proposition: a clear statement of the tangible results a customer gets from using a value your products or services, or the whole cluster of benefits the firm promises to its customers. : overall unique benefits vs. a specific element of a product or service that sets it apart from its competitors. *The question is ‘what unique value, which is different from competitors,’ can your firm offer to your customers? Q) Walmart vs. Publix: what value does each company provide for you?  The 3-V Market Value Principle: A company needs to consider the types of value when developing market offering * 8 Great Value Proposition Examples (+ 5 Key Takeaways) II. Offering planning (i.e., Developing Market Offerings- apply to functional level 2. Designing the)-3 Marketing Tactics: The market offering (which reflects the company’s tactics) is the actual good that the company deploys in order to fulfill a particular customer need. Marketing Tactics: The Seven Tactics Marketing Tactics as a Process of Designing, (7Ts) Defining the Market Offering Communicating, and Delivering Customer Value Three Levels of Strategy : UNF example Overall UNF’s Mission & Vision (UNF President office as corporate or organizational Level) Business Unit: CCB Mission & Vision (Each college as SBU Level)  Marketing & Logistics, Management, Finance & Accounting, & Economics (Each department as functional Level) e.g.,1) CCB: goal/objective: Increase MSM and MBA students 30% by fall 2026 1)Marketing Strategy 1 : Improve communication about the MBA and MSM programs in the Jacksonville communities (e.g., companies) Below are some tactics to achieve the strategy 1 a)Identify the communities and visit/invite each community twice a year (Dean, chairs..) b)Redo and reorganize the websites for the programs by the summer of 2025 c)Create Facebook for the programs by the end of 2024 d)Appoint one director (faculty or staff) for each program by Aug. 2025 2) Marketing Strategy 2: Hire XX number of new faculty and staff by the end of 2025 to achieve the goal/objective e)Hire one staff by August 2025. He/she will be in charge of the websites and Facebook f)Hire a new program director by the end of 2025 g)Hire five new faculty who will be teaching MSM and MBA programs ----- e.g.,2) Marketing Department 1)Goals/objectives: 2)Strategies: II. Offering planning (i.e., Developing Market Offerings- applies to functional level)-4 3. Creating a market value map III. The organization of the marketing plan(see p. 47-48) Executive summary: a streamlined and succinct overview of the company’s goal and the proposed course of actions (1-2 pages ) Situation overview: the company overview(the company’s history, culture, offerings, resources..) and the market overview Implementation: laying out the aspects of executing an offering’s strategy and tactics Control Evaluate performance—use benchmarks to track progress Monitor the environment—take corrective actions as necessary Recap-Chapter 2: Make sure that you can explain the 1.following The three levels of strategic planning: corporate, strategic business unit, and functional 2. What is a strategic business unit? 3. What are the differences between marketing strategy and tactics? 4. SMART marketing goals/objectives: What are these? 5. What is a value proposition? 6. What are the key components of an actionable marketing plan?