Marketing Management Sixteenth Edition PDF

Marketing Management Sixteenth Edition Chapter 2 Marketing Planning and Management Copyright © 2022, 2016, 2012 Pearso...

Marketing Management Sixteenth Edition Chapter 2 Marketing Planning and Management Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Corporate and Business Unit Planning Three key areas: – Managing the company’s business as an investment portfolio – Assessing the market’s growth rate and the company’s position in that market – Developing a viable business model Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Four Planning Activities Defining the corporate mission Building the corporate culture Establishing strategic business units Assigning resources Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Defining the Corporate Mission (1 of 2) 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 Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Defining the Corporate Mission (2 of 2) Good mission statements: – Focus on a limited number of specific goals – Stress the company’s major policies and values – Define the major markets that the company aims to serve – Take a long-term view – Are as short, memorable, and meaningful as possible Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Building the Corporate Culture What exactly is a corporate culture? – Some define it as “the shared experiences, stories, beliefs, and norms that characterize an organization.” Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Defining Strategic Business Units (1 of 2) A strategic business unit (SBU): – Is a single business, or a collection of related businesses, that can exist separately from the rest of the company – Has its own set of competitors – Has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Defining Strategic Business Units (2 of 2) A specialized portfolio involves SBUs with fairly narrow assortments consisting of one or a few product lines A diversified portfolio involves SBUs with fairly broad assortments containing multiple product lines Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Allocating Resources Assess each SBU’s competitive advantage and the attractiveness of the market in which it operates – Grow – Harvest – Hold Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Developing Market Offerings Strategy involves choosing a well-defined market in which the company will compete and determining the value it intends to create in this market Tactics, also called the marketing mix, make the company’s strategy come alive Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Developing the Marketing Strategy Two components: – Target market – Value proposition Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Identifying the Target Market The Five Cs: – Customers – Competitors – Collaborators – Context – Company Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Figure 2.2 Identifying the Target Market: The 5-C Framework Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved The Five Cs (1 of 2) Target customers are the individuals or organizations whose needs the company plans to fulfill Collaborators work with the company to create value for target customers Competitors aim to fulfill the same needs of the same customers that the company is targeting Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved The Five Cs (2 of 2) The company develops and manages a given market offering The context is the environment in which the company and its collaborators operate Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Developing a Value Proposition (1 of 2) Customer value Collaborator value Company value Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Developing a Value Proposition (2 of 2) An optimal value proposition balances the value for customers, collaborators, and the company Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Figure 2.3 The 3-V Market Value Principle Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Designing the Marketing Tactics The market offering is the actual good that the company deploys in order to fulfill a particular customer need Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Figure 2.4 Marketing Tactics: The Seven Tactics (7Ts) Defining the Market Offering Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Figure 2.5 Marketing Tactics as a Process of Designing, Communicating, and Delivering Customer Service Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Planning and Managing Market Offerings G-STIC Approach – Set a goal – Develop a strategy – Design the tactics – Define an implementation plan – Identify a set of control metrics Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Setting a Goal Goal focus: – Monetary goals – Strategic goals Performance benchmarks: – Quantitative benchmarks – Temporal benchmarks Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Developing the Strategy (1 of 2) Target market – Customers – Competitors – Collaborators – Company – Context Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Developing the Strategy (2 of 2) Value proposition – Customer value – Collaborator value – Company value Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Designing the Tactics Resource development Development of the offering Commercial deployment Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Identifying Controls Evaluate performance—use benchmarks to track progress Monitor the environment—take corrective actions as necessary Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Developing a Marketing Plan Three main functions: – Describes the company’s goal and proposed course of action – Informs the relevant stakeholders about the goal and action plan – Persuades the relevant decision makers of the viability of the goal and the proposed course of action Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Contents of the Marketing Plan (1 of 2) Executive summary—the “elevator pitch” Situation overview—an overall evaluation of the environment Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Contents of the Marketing Plan (2 of 2) G-STIC section—the core of the marketing plan – Goal – Strategy – Tactics – Implementation – Control Exhibits Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Updating the Marketing Plan Marketing plans are not static; they need updating in order to remain relevant Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Conducting a Marketing Audit An effective marketing audit should be: – Comprehensive – Systematic – Unbiased – Periodic Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved Copyright This work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved